TLDR
- Sportradar said prediction markets added to its results for the first time in Q3.
- U.S. revenue rose 47% to €98 million, up from about 10% growth in the first half.
- The CEO said more than 300 market makers could want faster sports data.
- Partners include Kalshi, Polymarket, Novig, Robinhood and about 10 market makers.
- Q3 revenue rose 24% to €362.5 million, and the 2026 outlook was kept.
Sportradar said prediction markets made their first positive contribution to its results in the third quarter. The sports data company is now selling its feeds to a growing list of exchanges, brokers and market makers.
The shift comes as growth in traditional online sports betting slows. CFO Craig Felenstein said the betting market is growing more slowly than when Sportradar set its earlier targets, and prediction markets are replacing some of that expected growth.
U.S. revenue rose 47% to €98 million in the quarter, up from roughly 10% growth in the first half. The company did not say how much of that came from prediction markets.
Market Makers Want Speed
CEO Carsten Koerl said the company now works with three exchange partners: Kalshi, Polymarket and Novig. It also signed its first broker deal with Robinhood and has about 10 agreements with market makers.
Koerl told Citizens analyst Jordan Bender the wider pool of market makers could top 300 firms, depending on which exchanges are counted. He said these firms want faster data to support trading on sports events.
“For example, in tennis, we get the line calls 0.2 seconds faster than anybody else,” Koerl said. He was describing the company’s official data feed.
Sportradar is also building a feed made for prediction markets using real-time data. This includes an NBA model meant to predict events seconds before they happen.
The Polymarket deal now covers more than 20 sports leagues and competitions, up from a single sport at the start. Kalshi uses Sportradar’s data, integrity, fan engagement and customer acquisition products.
Koerl said competition among prediction market operators to win customers is also lifting demand for Sportradar’s marketing services. Marketing & Media Services revenue grew 15%, up from roughly 3% in the first half.
The company said serving these clients takes little new spending. “We are using the same rights, same technology, and the same teams that already power our betting business,” management said.
The deals were slower to arrive than planned. In the second quarter, management said delays in signing prediction market agreements pushed back expected revenue and led to a cut in full-year guidance.
Results and Outlook
Third-quarter revenue rose 24% to €362.5 million. U.S. revenue made up 27% of the total, up from 23% a year earlier. Felenstein said the World Cup added about $2.5 billion in Managed Trading Services turnover.
Adjusted EBITDA climbed 21% to €102.2 million, though the margin slipped to 28.2% from 29.0%. Profit rose 20% to €27 million.
Sports rights costs jumped 54% to €111.7 million, mainly due to IMG Arena content. Felenstein said a smaller part was tied to prediction market deals, with those costs linked directly to revenue.
When UBS analyst Robin Farley asked for an annual revenue figure for prediction markets, Felenstein did not give one. He said the deals mix fixed fees with variable payments tied to market growth, and that the company expects strong growth from the business in 2027. In Q2, Koerl had said prediction markets could bring in “tens of millions” of euros in 2026.
Felenstein said the outlook balances prediction market gains against uncertainty in Brazil. He did not say how much one offsets the other.
Year-to-date free cash flow rose 18% to €177 million. Sportradar bought back $157 million in shares in Q3, bringing 2026 repurchases through October 30 to $408 million, or 28 million shares.
The company agreed to sell Atrium Sports to Teamworks Innovations for $170 million, with the deal expected to close in Q4. Sportradar kept its 2026 forecast for revenue of €1.518 billion to €1.533 billion and adjusted EBITDA of €360 million to €368 million, excluding the Atrium sale.
