Sportradar Group (SRAD) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of €311 million, up 17% year-over-year, with broad-based growth across products and geographies and Adjusted EBITDA rising 25% to €59 million, margin expanding to 18.9%.

• Free cash flow reached €32 million, a significant improvement from €0 million in Q1 2024, with a 54% conversion rate.

• U.S. revenue grew 31% and now represents 28% of total revenue, driven by strong uptake in betting and media services.

• Strategic focus on expanding product adoption, innovation, and adjacent markets like iGaming, especially in Brazil and APAC.

• Announced acquisition of IMG ARENA's sports rights portfolio, expected to be immediately accretive to EBITDA and cash margins upon closing in Q4 2025.

Financial highlights

• Total revenue reached €311 million, a 17% increase compared to Q1 last year; Adjusted EBITDA was €59 million, up 25% year-over-year, with margin expanding to 18.9%.

• Net profit of €24 million, up from a €1 million loss in Q1 last year, aided by a €28 million FX gain.

• Free cash flow was €32 million, with a conversion rate of 54%, up from 0% in Q1 2024.

• U.S. revenue grew 31%, rest-of-world revenue up 12% year-over-year.

• Cash and cash equivalents stood at €358 million at quarter-end, with total liquidity of €578 million and no debt.

Outlook and guidance

• 2025 revenue guidance maintained at at least €1,273 million (15%+ growth), adjusted EBITDA at least €281 million (26%+ growth), and at least 200 basis points of margin expansion.

• Guidance excludes impact from IMG ARENA acquisition, which is expected to be accretive once closed.

• Free cash flow conversion expected to exceed 2024's 53%, targeting 60% over the next few years.

• Three-year targets include 15% revenue CAGR through 2027 and margin expansion to 27% by 2027.

• Adjusted EBITDA margin expected to expand by at least 200 basis points.