Sportradar Stock Soars 14% After Earnings Beat as Prediction Markets and Betting Tech Fuel 24% Growth

Shares of Sportradar Group jumped more than 14% in early trading Tuesday after the sports data company reported third-quarter results that beat Wall Street estimates. Growth in its betting technology business and in prediction markets drove the gains.

The Nasdaq-listed stock, which trades under the ticker SRAD, rose $1.86, or 14.49%, to $14.74 shortly after the opening bell. Trading volume was about 5.6 million shares in the first minutes of the session, well above the stock's three-month daily average of about 2.2 million.

The rally offers some relief to shareholders. The stock is still down about 50% over the past 52 weeks.

Revenue up 24%

Sportradar, based in St. Gallen, Switzerland, said revenue rose 24% to 363 million euros for the quarter ended Sept. 30.

Its Betting Technology & Solutions business grew 27%, and its Sports Content, Technology & Services segment grew 11%. Revenue from betting and gaming content, which includes the company's official sports data feeds, jumped 37%.

Profit for the period rose 20% to 27 million euros. Adjusted EBITDA rose 21% to 102 million euros, with a margin of 28.2%.

The company said the increase came mainly from revenue growth and lower adjusted personnel costs. Those gains were partly offset by costs tied to IMG ARENA, the sports betting rights business it acquired in 2025, especially sports rights fees.

"Sportradar delivered another strong quarter of double-digit growth," CEO Carsten Koerl said.

Prediction markets help growth

Prediction markets were a major contributor. Sportradar expanded its partnership with Polymarket to more than 20 leagues and competitions, including Germany's Bundesliga, Euroleague Basketball and the tennis Grand Slams.

The company also signed agreements with prediction market makers and brokers. It said these deals extend its reach across the prediction market ecosystem and diversify its customer base.

The United States accounted for 27% of total revenue in the quarter, up from 23% a year earlier. Sportradar said the increase reflects market expansion, including prediction market growth, and more customers buying its premium content.

Buybacks and an asset sale

Sportradar bought back $157 million of its shares during the quarter. It has repurchased 34 million shares for $519 million since the program began, including $408 million in 2026.

The buybacks reduced its cash. Cash and cash equivalents fell to 190 million euros at Sept. 30 from 365 million euros at the end of 2025.

The company also agreed to sell Atrium Sports for $170 million. The deal is expected to close in the fourth quarter.

Sportradar also extended its exclusive global rights to distribute Euroleague Basketball official data and audiovisual betting rights through 2031. The agreement covers more than 650 games a year.

Cash flow

Net cash from operating activities rose 37% to 157 million euros, and free cash flow rose 12% to 73 million euros.

Outlook unchanged

Sportradar kept its 2026 forecast of about 1.53 billion euros in revenue and 364 million euros in adjusted EBITDA. Those targets are broadly in line with analysts' estimates.

A difficult year for the stock

Even after Tuesday's gain, the stock remains well below its level of a year ago. Investors have weighed the company's growth against the high cost of sports data rights and competition in the betting technology market.

The stock trades at about 199 times trailing earnings, according to market data.

What to watch

Investors will watch whether prediction markets keep supporting growth, how Sportradar handles the costs of its sports rights portfolio, and whether it continues buying back shares. The closing of the Atrium Sports sale and the company's full-year results will be the next major events for the stock.