Grandstand (GRSD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $37.8 million, adjusted EBITDA $7.7 million, and adjusted free cash flow $9.6 million, all in line with expectations.

• Net loss narrowed to $4.6 million from $13.4 million year-over-year; adjusted net income was $2.5 million ($0.05 per share), down from $0.37 per share.

• Restructuring completed in Q2/May 2026, expected to yield $6.5 million in fixed cost savings in H2 and support margin expansion and reiterated full-year guidance.

• Corporate rebranding to Grandstand and launch of Rollcard, a new fintech product targeting gaming payments.

• Business diversified across sports data, marketing, fintech, and entertainment, with B2B data as a key growth driver.

Financial highlights

• Total revenue down 5% year-over-year, driven by a 10% decline in marketing revenue, offset by 12% growth in data revenue.

• Adjusted EBITDA margin was 20%, gross margin 64%, both lower than prior year due to marketing mix shift.

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

• Adjusted free cash flow rose to $9.6 million from $8.2 million year-over-year, with 81% EBITDA-to-cash conversion over six months.

• Total cash at quarter-end was $8.8 million, with total liquidity of $33.3 million including undrawn credit facilities; borrowings stood at $122.3 million.

Outlook and guidance

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

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

• Margin expansion expected to continue into 2027, with EBITDA margins in the low 30s.

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

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