Sportradar reported a significant increase in its U.S. revenue, rising 47% year over year in the third quarter of 2026, largely due to its expanding role in the prediction markets sector. During the company's earnings call, CEO Carsten Koerl addressed concerns over the possibility of more states regulating sports event contracts, expressing confidence that such actions would not detrimentally impact the business.
Koerl stated that Sportradar has formed partnerships with various prediction market operators, including Kalshi, Polymarket, and DraftKings, amidst an ongoing legal debate regarding the legitimacy of these markets. Some states, such as Michigan, Nevada, and Utah, have taken steps to limit these sports contracts.
Despite potential enforcement actions, Koerl emphasized that Sportradar's existing contracts include clauses to safeguard against market exclusions, which he believes currently impact only less significant markets. "At the moment, the markets which are excluded are not really the significant ones, so we see that the growth is continuing and accelerating," he explained. He added that the regulatory landscape is beyond their control but has yet to show a substantial effect on their prediction markets.
In the third quarter of 2026, Sportradar's total revenue reached €363 million (approximately $406 million), marking a 24% increase. Profit rose by 20% to €27 million ($30.2 million), and adjusted EBITDA was up 21% to €102 million ($114.2 million). The growth in U.S. revenue, which totaled €98 million ($109.7 million), greatly exceeded the rest-of-world increase of 17%.
Analysts Jordan Bender and Isabelle Slavin noted that Sportradar's impressive growth in the U.S. surpassed expectations. The surge in revenue contributed to a rise in Sportradar’s stock price from $12.84 to a high of $14.94 on the morning of the earnings announcement.
Koerl attributed this U.S. growth to the increasing demand for diverse content and solutions offered by Sportradar, reflecting their successful expansion into prediction markets. "This is the first quarter we saw the benefits of the extension of our flywheel in prediction markets with exchanges," he mentioned, highlighting Sportradar's position as a leading sports data and technology partner in this ecosystem.
The CEO also pointed out that entering the prediction markets was strategically advantageous since it leveraged existing sports rights and technology with minimal additional investment. He described prediction markets as a vital extension of global sports engagement that complements rather than replaces regulated sports betting.
Sportradar has built relationships with several federally registered prediction market platforms, providing services such as official league data and integrity monitoring. Their partners in this area include Kalshi, Novig, Polymarket, and Robinhood. Following new partnerships with Kalshi and Polymarket, Koerl noted that Novig has become Sportradar's third-leading exchange partner, while a broker agreement with Robinhood has recently been established. They believe opportunities exist not just in partnerships with exchanges but also with market-making firms, where stronger growth prospects are anticipated.
Koerl mentioned that Sportradar works with around 10 market makers, focusing on enhancing real-time data services to optimize their trading of sports event contracts. The aim is to develop a superior prediction market feed with low latency, taking data aggregation to new levels.
The NBA's recent endorsement of prediction market partners, including Kalshi and Polymarket, along with the extension of their agreement with DraftKings, is seen as a significant advantage for Sportradar. Koerl reiterated the importance of compliance frameworks set forth by the NBA, which stress the use of official data for trading in these markets, viewing this as a beneficial directive.
Beyond prediction markets, Sportradar is also exploring opportunities in the online casino space. In March 2026, they announced the launch of Playradar, aimed at delivering iGaming solutions in regulated territories. Koerl noted that progress has been promising, with plans to roll out a 24/7 service containing live casino options early in 2027, and expressed excitement about the interest they have garnered in this field.
CFO Craig Felenstein highlighted that both Playradar and potential mergers and acquisitions will complement Sportradar's core business areas of sports betting and sports event contracts as they look forward to 2027.
