Grandstand (GRSD) investor relations material

Executive summary

• Q2 2026 revenue was $37.8 million, down 5% year-over-year, and in line with expectations.

• Adjusted EBITDA was $7.7 million, a 44% decrease year-over-year, with a margin of 20%.

• Adjusted free cash flow reached $9.6 million, up 18%, reflecting strong cash generation and positive working capital movements.

• Corporate restructuring is substantially complete, expected to support margin expansion in H2 2026 and beyond.

• The company rebranded and launched Rollcard, a new fintech product targeting the gaming and betting market.

Financial highlights

• Gross profit fell 14% year-over-year to $31.8 million due to higher cost of sales from marketing diversification.

• Data revenue grew 12% year-over-year to $11.2 million, driven by enterprise subscriptions.

• Marketing revenue declined 10% year-over-year to $26.5 million, with non-SEO channels now two-thirds of segment revenue.

• Adjusted net income was $2.5 million ($0.05 per share), down from $13.4 million ($0.37 per share) a year ago.

• Cash flow from operations was $1.8 million, impacted by $7.6 million in deferred consideration payments.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $165–$170 million, with adjusted EBITDA of $45–$50 million.

• H2 2026 expected to benefit from positive seasonality, margin expansion, and cost savings, driving sequential revenue and EBITDA growth.

• Margin profile expected to expand into the low 30s in 2027, with continued strong growth in data and modest growth in marketing.

• Rollcard launch included in guidance, with a modest initial contribution expected for the last five months of 2026.

• Enterprise sports data services to remain the fastest-growing segment.