According to a new report from Macquarie Equity Research, the sports data and analytics company Sportradar is well-positioned for significant growth as more US states legalize online sports betting and in-play betting continues to increase in popularity.
Macquarie Reveals Interesting Findings about Sportradar
Macquarie contends that the $8 billion market-cap company remains undervalued by investors, even though it meets the software industry’s “elusive Rule of 40.” This is a benchmark indicating a strong company when the sum of its revenue growth rate and profit margin reaches at least 40%. Macquarie research highlights that Sportradar has the technology, trust, and integrity to grow the ecosystem, noting that it already partners with three of the four major US sports leagues.
Adding to those, Sportradar also recently signed a deal with DAZN, which will see the company distribute ultra-low latency betting data and non-exclusive media content from the FIFA Club World Cup 2025. The event is set to take place from June 14 through July 13.
Here Are Some More Numbers
Macquarie forecasts that Sportradar’s revenue, EBITDA, and free cash flow (FCF) will grow at compound annual rates of over 15%, 27%, and 35%, respectively, between 2024 and 2027. The company highlights Sportradar‘s strong operating leverage. Macquarie also notes that SRAD’s largest expense, which is league rights fees, is largely fixed over the term of its contracts. Because of this, the business benefits from significant built-in operating leverage.
State-level legalization remains a key in Sportradar’s growth. According to Macquarie, the introduction of online sports betting in California and Texas could boost margins by approximately 500bps+ at maturity, potentially pushing EBITDA margins above 30%, compared to 20.1% in 2024. In the first quarter of 2025, Sportradar reported revenue of $359 million, a 17% year-over-year increase.
The report emphasizes that Sportradar’s business model is especially well-suited to capitalize on the growing popularity of in-game NBA betting, which generates a take rate more than three times higher than that of pre-match wagers. Currently, only about 33% of gross gaming revenue (GGR) in North America comes from live betting. However, Macquarie expects this share to rise substantially, noting that in more mature markets like the UK, up to 80% of GGR is driven by in-play wagering.
The company’s report also sheds light on Sportradar’s large market share. The company has approximately 25% of the global gross gaming revenue (GGR) linked to official data, nearly double the share of its closest competitor, which holds around 13%. Macquarie estimates the total addressable market for sports data rights could reach $5 billion by 2030. In North America, where online sports betting GGR is projected to grow at a 19.5% CAGR through 2027, Sportradar’s US revenue is expected to expand even faster, at a 32% CAGR over the same period.