Genius Sports to Continue Investment in Sports Firm Legend and Prediction Markets

Sports technology company Genius Sports has recently released its FY25 financial results, reporting group-wide revenue growth of 31%, rising from $510 million the previous year to $669.6 million. The company expects to exceed $1 billion in revenue by the end of 2026 following its acquisition of sports content and media firm Legend earlier this year, while continuing to benefit from the expanding prediction markets sector.

Genius to Focus on Its New Acquisition and Prediction Markets

For many observers, the company’s $1.1 billion acquisition of Legend earlier this year has been a major point of interest during the latest earnings report. Mark Locke, chief executive officer of Genius, said that the completion of the Legend acquisition would further strengthen the company’s position at the intersection of official data, fan identity, and real-time intent.

But prediction markets are also a huge tool in Genius’ strategy for 2026. The often controversial platforms have enjoyed a surge in popularity in the US. In recent weeks, Kalshi and Polymarket have reached a $20 billion valuation, despite the numerous lawsuits and regulatory pressures surrounding the two businesses.

However, Locke said that league partners had responded positively to the potential to expand their viewership through prediction market platforms. He added that this capability was one of the key motivations behind the move to extend attention to Kalshi. According to Locke, leagues looking to reach sports fans, particularly in North America, could leverage the company’s existing audience, making it an especially attractive proposition for partners seeking broader engagement.

Furthermore, Locke explained that the advertising opportunity through prediction markets is quite significant. He added that more and more people are making wagers on sports in the US, and prediction markets are at the forefront.

Here Are Some Numbers for the Last Financial Year

For 2025, EBITDA reached $136.2 million, representing a 58.9% increase from $85.7 million the previous year. However, the company reported a wider net loss, totaling $111.6 million, up 77% from $63 million in 2024. The picture was more positive in the fourth quarter, however, with net loss narrowing by 26.9% from $28.2 million in Q4 2024 to $20.6 million, while EBITDA rose 49.3% from $32.4 million to $48.6 million.

Genius attributed the increased annual loss primarily to a non-recurring rise in litigation and related expenses, as well as costs linked to its licensing agreements with the NFL. In particular, the loss was driven by a one-off increase in stock-based compensation associated with NFL-issued warrants.

It should also be noted that, despite Genius’s goals of significant growth after the acquisition of Legend, things have not set off incredibly well. Just days after the former company announced the acquisition of the latter, Genius’s stock plummeted as investors didn’t seem too keen on the rather expensive purchase.

Despite that, Genius seems to be convinced in prediction markets, with its leadership saying that the company will keep a closer look at the field in 2026.