Sportradar Group (SRAD) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of €311 million, up 17% year-over-year, with broad-based growth across products and geographies.

• Adjusted EBITDA rose 25% to €59 million, with margin expanding to 18.9% and strong operating leverage.

• Free cash flow reached €32 million, a significant improvement year-over-year, with a 54% conversion rate.

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

• Announced acquisition of IMG ARENA's sports rights portfolio, expected to be immediately accretive to adjusted EBITDA and cash margins, and extended MLB partnership through 2032.

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 for the quarter was €24 million, a significant improvement year-over-year, aided by a €28 million FX gain.

• Free cash flow was €32 million, with a conversion rate of 54%.

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

Outlook and guidance

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

• Expect at least 200 basis points of adjusted EBITDA margin expansion in 2025.

• Free cash flow conversion rate expected to exceed 2024's 53%.

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

• Three-year targets include 15% revenue CAGR through 2027, margins to 27% by 2027, and free cash flow conversion to 60%.