Sportradar reported favorable Q1 earnings results, as the company faces scrutiny over alleged ties to illegal operators amid recent activity by two short sellers and a competitor’s lawsuit.
The European sports data and content provider addressed recent short-selling by two activist investors Tuesday during the company’s Q1 2026 earnings call. Sportradar addressed the investor activity as it reported quarterly revenue growth but did not acknowledge a lawsuit over official league data brought by a competitor in sports data.
Sportradar denies unfavorable investor reports
Last week, activist research firm Callisto Research released a study that tied Sportradar to more than 270 illicit platforms that claimed to use the company’s services. Callisto Research short-sold positions in Sportradar stock amid the release of the study.
Muddy Waters Research also short-sold Sportradar stock after initiating an investigation. The investment research firm that specializes in activist short-selling estimates that illegal gambling operators make up between 20-40% of Sportradar’s total revenue.
Its probe included investigators posing as operators of a startup sportsbook that targets markets that ban online gambling, with a Sportradar sales team offering their services.
“For more than four years as a public company and over the past two and a half decades before that, we have built Sportradar to give bookmakers and fans the tools they need to engage with and wager safely on their favorite sports markets,” said Sportradar Chief Executive Officer Carsten Koerl during the earnings call. “To be clear, Sportradar and I reject the unfounded and misinformed allegations contained in the reports”.
Koerl also contended that Sportradar operates in regulated gaming markets amid the scrutiny.
“In order to maintain the respect and trust of our stakeholders and ensure the long-term vitality of our industry, we continue to conduct our business in a manner consistent with the highest standards,” added Koerl. “To be clear, the company maintains a robust compliance framework with oversight from the board of directors that is designed to assist the company and its officers in navigating the complex business and regulatory landscape”.
Sportradar’s stock price fell by more than 20% last week following the release of the reports.
Latest financial results for Sportradar
Sportradar generated $406m in revenue in Q1 2026, a 11% increase year-over-year.
The Switzerland-based company also reported adjusted EBITDA growth of 12% in Q1 2026 to $77m. The financial results were spearheaded by its Sports Content, Technology & Services segment, which posted $336m in Q1 revenue. Sportradar reported that $105m of its total revenue generated in Q1 came from its U.S. operations.
Its U.S. revenue grew by 4% compared to the same period last year.
Altenar takes legal action against Sportradar
Sportradar is being accused of black-market activity as it faces a lawsuit in U.S. federal court to prevent it from “abusing its exclusive control over the upstream United States markets for live official sports league data”, creating a lack of industry-wide competition.
Altenar is suing Sportradar, accusing it of a monopoly-like operation that wields its power as a sports data provider for some of the top leagues in the world, including the NBA and MLB. Altenar also accuses Sportradar of denying it access to data despite a partnership.
The company is seeking a judge to declare Sportradar’s refusal to deal with it for rights in the U.S. as a violation of antitrust laws. In the suit, Altenar mentions the Sherman Act to support its claims, as the federal statute aims to combat monopolistic business practices.
Altenar is seeking treble damages, with the amount to be determined at trial, and preliminary and permanent injunctive relief. Sportradar is also facing legal action from Altenar in the U.K.
IMG Arena deal drives US growth for Sportradar
Sportradar’s acquisition of IMG Arena and a rights package allowed the company to drive growth in the U.S., with more than 75% of its core betting clients consuming IMG content.
The company acquired IMG Arena and the rights package from Endeavor Group Holdings in a deal valued at up to $225m. The rights package includes Major League Soccer, the PGA TOUR, Wimbledon and the U.S. Open. It has a reach of 14 sports on six continents.
Sportradar leveraged its deal for the rights package in March to expand its partnership with Hard Rock Bet to provide official betting data and odds for the PGA TOUR and the UFC.
“We are excited to continue unlocking incremental value through cross-selling, giving our tremendous operating leverage as we capitalize on our existing infrastructure and capabilities,” said Koerl.
Sportradar’s online casino, prediction market plans
Sportradar is also aiming to capitalize on the launch of a new brand.
Earlier this year, Sportradar enhanced its suite of online casino solutions by launching Playradar, a brand dedicated to serving iGaming operators. The solution delivers long-term value to Sportradar’s portfolio of clients by delivering a live experience hub.
The hub allows players to live-stream games while playing and also offers as a hybrid gaming experience by facilitating the integration of historical sports streams. Playradar also fosters partnerships between online casino developers and operators for game deliveries.
“Playradar capitalizes on our unique position as well as our sports data expertise to offer hybrid products that blend the sports betting and iGaming experiences,” continued Koerl. “We are doing this organically and cost-effectively using existing resources”.
Playradar’s services are currently being leveraged in several Latin American markets, including Brazil. Sportradar anticipates launches later this year in the U.S. and Canada.
A bold prediction?
Meanwhile, Sportradar is doubling down on its belief that it can be a leader in prediction markets.
“We see prediction markets as a significant opportunity, where Sportradar is uniquely positioned to lead given our premium content, global scale and unmatched product portfolio,” continued Koerl.
Sportradar voiced the same sentiment during the company’s earnings call in Q4 2025, when it said it is focusing on monetizing “this opportunity” to enter prediction markets.
“Prediction markets expand the U.S. TAM by opening up new states, attracting new demographics and increasing engagement with sports,” said Koerl. “Similar to our position in online sports betting, we will power key players in the prediction market ecosystem”.
Sportradar also provided a full-year financial outlook for 2026.
The company projects full-year revenue in 2026 to range between $1.8bn and $1.86bn. It is estimated to close the year with an adjusted EBITDA of between $457m and $468m.
