Grandstand (GRSD) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, with Q4 revenue of $35.3M, adjusted EBITDA of $14.7M, and free cash flow of $13.2M, driven by iGaming growth and strategic acquisitions.

• Full-year 2024 revenue grew 17% to $127.2M, adjusted EBITDA rose 33% to $48.7M, and free cash flow increased 81% to $41.6M, supported by global iGaming expansion and the Freebets.com acquisition.

• Completed accretive acquisitions of Freebets.com, OddsJam, and Odds Holdings, enhancing product portfolio and market positioning.

• Repurchased 3.3M shares in 2024, nearly 9% of outstanding shares, and expanded credit facility to $165M.

• Positioned for accelerated growth in 2025, targeting 35% revenue and 40% adjusted EBITDA growth at guidance midpoints.

Financial highlights

• Q4 2024 revenue rose 9% year-over-year to $35.3M; gross profit increased 21% to $33.1M; cost of sales decreased 57%.

• Q4 adjusted EBITDA margin reached 42%, up from 32% in Q4 2023; full-year adjusted EBITDA margin was 38%.

• Q4 adjusted net income up 41% to $12.2M; adjusted diluted EPS up 59% to $0.35.

• Full-year free cash flow was $41.6M, up from $23M in 2023; over 80% of adjusted EBITDA converted to free cash flow.

• Q4 net income attributable to shareholders increased 24% to $7.9M; full-year net income up 68% to $30.7M.

Outlook and guidance

• 2025 revenue guidance: $170M–$174M (midpoint 35% growth); adjusted EBITDA guidance: $67M–$69M (midpoint 40% growth), including $14.5M incremental adjusted EBITDA from Odds Holdings acquisition.

• Expect over 20% of 2025 revenue from subscriptions and a return to growth in North America.

• Guidance excludes contributions from new acquisitions or unconfirmed market launches (e.g., Missouri sports betting).

• Targeting $100M annual adjusted EBITDA in the medium term.