Sportradar revises its 2026 projections following a slowdown in the US market.

Sportradar has revised its growth projections for 2026 downwards after reporting a slowdown in the US online sports betting market in the second quarter. Unfavorable exchange rates also weighed on the results, according to company executives.

The new financial guidance forecasts revenue growth of between 19% and 20%, reaching a total of €1,5 billion (US$1,7 billion). Cash flow is expected to grow between 24% and 27%, reaching a range of €360 million (US$415 million) to €368 million (US$424 million). Chief Financial Officer Craig Felenstein stated that the third quarter will be the best of the year in terms of revenue growth.

Slowdown in the American market

Felenstein described the behavior of online sports betting in the United States as something that has "stabilized in its growth" and said he does not expect a significant recovery in the second half of the year. Second-quarter results were further hampered by the New York Knicks' strong performance in the NBA playoffs , which reduced the volume of bets against the team. The CFO described the period as "a broad commentary on the weakness of the overall market" in the United States, although baseball volumes remained solid.

CEO Carsten Koerl highlighted the company's performance during the World Cup, stating that "a large portion" of Sportradar's customers came from Latin America and North America. "The final was a record for us," he said. "It had the highest trading volume." Koerl also reported that Sportradar is on track to surpass its target of €25 million ($29 million) in revenue synergies, largely stemming from the acquisition of IMG Arena. The company further expanded the launch of a premium golf service in partnership with the PGA and live bid viewing for Major League Soccer.

Prediction markets as a new bet

Prediction markets have emerged as the main alternative growth driver in the United States. Felenstein acknowledged that expected deals in this segment, especially with event contracting platforms, have been closed, but are taking longer than anticipated to finalize and, therefore, have not been fully incorporated into annual projections. "All the fundamentals of the business remain exactly the same," he stated. According to him, prediction markets are "positioned to accelerate growth in the second half of the year."

Koerl announced agreements with Kalshi and Polymarket covering the ATP, NHL, and other leagues. “We’re going to boost the key players in the prediction markets ecosystem,” said the CEO, adding that Sportradar is in negotiations with other event contract providers. A more comprehensive agreement with Kalshi, involving additional leagues including the NBA, is contingent on approval from the sports league partners. “We’ve taken a long time to initiate agreements with leagues and players,” explained Koerl. “We’re very optimistic, but we execute with a lot of discipline. The delay in prediction markets isn’t just in our hands. We have to wait for our league partners.”

Koerl pointed out that most of the activity in event contracts occurred in states like Texas and California, which do not have regulated online sports betting . "According to our clients, there is very little cannibalization," he said.

Financial position and other fronts

Asked about the balance between high fixed costs and the slow growth of American betting, Felenstein replied that the company's strategy was not changing. Sportradar's content, he said, continued to generate significant revenue and margin. Felenstein added that he sees no better use for the company's resources at this time than a share buyback. The company ended the quarter with €251 million ($290 million) in cash and no debt.

Regarding allegations of short selling, Koerl reported that Sportradar's audit committee refuted the accusations. The company has rigorous integrity measures in place, the CEO said, and obtained regulatory approvals in the United States and other markets in July. The PlayRadar igaming service has been certified in South America, Europe, and Canada, with approvals in American jurisdictions expected soon. Regarding mergers and acquisitions, Koerl stated that none are planned, especially in the affiliate market, although the company remains attentive to other opportunities.