Q1 2026 Genius Sports Ltd Earnings Call6

May 7, 2026

Operator 1: Good day, welcome to Genius Sports' Q1 2026 Earnings Results Call. At this time, all participants are in a listen-only mode. Following the presentation, there will be an opportunity to ask questions. Please note that this call is being recorded.

Operator: Good day, welcome to Genius Sports' Q1 2026 Earnings Results Call. At this time, all participants are in a listen-only mode. Following the presentation, there will be an opportunity to ask questions. Please note that this call is being recorded. It is now my pleasure to introduce your host, Genius Sports. Please go ahead.

Speaker #2: Please note that this call is being recorded. It is now my pleasure to introduce your host, Genius Sports. Please go ahead. Thank you and good morning.

[Company Representative] (Genius Sports): Thank you and good morning. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility for updating forward-looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our annual report on Form 20-F filed with the SEC on 17 March. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius Sports's operating performance. These measures should not be considered in isolation or as a substitute for Genius Sports's financial results prepared in accordance with US GAAP.

Brandon Bukstel: Thank you and good morning. Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility for updating forward-looking statements. Any such statements should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC, including our annual report on Form 20-F filed with the SEC on 17 March. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius Sports' operating performance. These measures should not be considered in isolation or as a substitute for Genius Sports' financial results prepared in accordance with US GAAP.

Speaker #2: Before we begin, we'd like to remind you that certain statements made during this call may constitute forward-looking statements that are subject to risks that could cause our actual results to differ materially from our historical results or from our forecasts.

Speaker #2: We assume no responsibility for updating forward-looking statements. Any such statement should be considered in conjunction with cautionary statements in our earnings release and risk factor discussions in our filings with the SEC.

Speaker #2: Including our annual report on Form 20F filed with the SEC on March 17th. During the call, management will also discuss certain non-GAAP measures that we believe may be useful in evaluating Genius's operating performance.

Speaker #2: These measures should not be considered in isolation or as a substitute for Genius's financial results prepared in accordance with US GAAP. A reconciliation of these non-GAAP measures to the most directly comparable US GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniussports.com.

[Company Representative] (Genius Sports): A reconciliation of these non-GAAP measures to the most directly comparable US GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniussports.com. With that, I'll now turn the call over to our CEO, Mark Locke.

Brandon Bukstel: A reconciliation of these non-GAAP measures to the most directly comparable US GAAP measures is available in our earnings press release and earnings presentation, which can be found on our website at investors.geniussports.com. With that, I'll now turn the call over to our CEO, Mark Locke.

Speaker #2: With that, I'll now turn the call over to our CEO, Mark Locke.

Speaker #3: Good morning, everyone, and thank you for joining. Before I get into the results, a quick word on context. We're really pleased to share that we've successfully closed the legend acquisition last week.

Mark Locke: Good morning, everyone, and thank you for joining. Before I get into the results, a quick word on context. We're really pleased to share that we successfully closed the Legend acquisition last week. Integration is well underway, and we're excited to share our progress into the quarters ahead. Q1 was another strong quarter, reinforcing the simple point that this is a reliable compounding business model and that we are executing on plan. We delivered group revenue growth of 31% and adjusted EBITDA growth of 21%, with meaningful contributions from both betting and media. Importantly, betting grew 33% this quarter, and that consistency is structural, and I want to spend a few minutes on why. Net revenue retention remains in the 120% to 130% range across our sportsbook customers year after year.

Speaker #3: Integration is well underway, and we're excited to share our progress into the quarters ahead. Q1 was another strong quarter. Reinforcing the simple point that this is a reliable, compounding business model, and that we are executing on plan.

Speaker #3: We delivered group revenue growth of 31% and adjusted EBITDA growth of 21%. With meaningful contributions from both betting and media. Importantly, betting grew 33% this quarter, and that consistency is structural, and I want to spend a few minutes on why.

Speaker #3: Net revenue retention remains in the $120 to $130% range across our sportsbook customers year after year. We partner with circa 500 licensed sportsbook brands across regulated markets globally.

Mark Locke: We partner with circa 500 licensed sportsbook brands across regulated markets globally. Over half our revenue is generated outside of the United States. Our consistent growth comes from the same drivers that we have always communicated: selling additional content and products to sportsbooks, winning new customers globally, sharing in market growth, and increasing the value of our partnerships as they come up for renewal. Each renewal is a pricing event, more content, more products, more geographies. That's what compounds into the growth that you see year after year. What sets us apart is how deliberately this business is built. That repeated performance across a diverse set of customers, products, and regulated geographies is fundamental to how this business compounds. Further, we are selective by design, working only with licensed operators in regulated markets. It is what makes our business model predictable and sustainable.

Speaker #3: And over half our revenue is generated outside of the United States. Our consistent growth comes from the same drivers that we have always communicated.

Speaker #3: Selling additional content and products to sportsbooks; winning new customers globally; sharing in market growth; and increasing the value of our partnerships as they come up for renewal.

Speaker #3: Each renewal is a pricing event. More content, more products, more geographies. And that's what compounds into the growth that you see year after year.

Speaker #3: What sets us apart is how deliberately this business is built. That repeated performance across a diverse set of customers' products and regulated geographies, business compounds.

Speaker #3: Further, we are selective by design. Working only with licensed operators in regulated markets. It is what makes our business model predictable and sustainable. That predictability is reinforced by our contracts, which are structured to protect against the downside.

Mark Locke: That predictability is reinforced by our contracts, which are structured to protect against the downside. Volatility in handle or hold does not translate to earnings volatility for Genius. We have proven this through periods of industry-wide pressure, and this quarter was no different. While discussing our betting business, I want to spend a moment on prediction markets because, as we've mentioned before, this is a meaningful new ecosystem for Genius Sports. The regulatory framework is evolving. Leagues are establishing agreements with the CFTC and prediction market platforms, and well-funded operators are deploying significant new influxes of capital at scale. We are a beneficiary of this. Where we are different is that our position here is structural. We provide the data and the infrastructure that enables prediction market operators and the other stakeholders in the ecosystem to function at scale.

Speaker #3: Volatility in handle or hold does not translate to earnings volatility for Genius. We have proven this through periods of industry-wide pressure, and this quarter was no different.

Speaker #3: While discussing our betting business, I want to spend a moment on prediction markets. Because as we've mentioned before, this is a meaningful new ecosystem.

Speaker #3: For Genius Sports. The regulatory framework is evolving. Leads are establishing agreements with the CFTC and prediction market platforms and well-funded operators are deploying significant new influxes of capital at scale.

Speaker #3: We are a beneficiary of this. Where we are different is that our position here is structural. We provide the data, and the infrastructure, that enables prediction market operators and the other stakeholders in the ecosystem to function at scale.

Speaker #3: We expect this to translate into both incremental data revenue and advertising demand as those operators ramp customer acquisition. The way to think about this is simple.

Mark Locke: We expect this to translate into both incremental data revenue and advertising demand as those operators ramp customer acquisition. The way to think about this is simple. We are applying the same proven model in the US online sports betting market to a new category. As a concrete example of revenue, during the quarter, we onboarded several high-profile market makers using our low-latency data feeds to help them participate in prediction markets. That is the pattern. Our infrastructure becomes the foundation for new products as they emerge. As the industry continues to evolve, we see a clear opportunity to execute that same proven strategy and effectively expand our addressable market. We are at the very early stages of that journey today and are excited about our pipeline. That is the betting story. Now Media. Media grew 22% in this quarter.

Speaker #3: We are applying the same proven model in the US online sports betting market to a new category. As a concrete example of revenue, during the quarter, we onboarded several high-profile market makers using our low-latency data feeds to help them participate in prediction markets.

Speaker #3: That is the pattern our infrastructure becomes the foundation for new products as they emerge. And as the industry continues to evolve, we see a clear opportunity to execute that same proven strategy and effectively expand our addressable market.

Speaker #3: We are at the very early stages of that journey today, and are excited about our pipeline. That is the betting story. Now media. Media grew 22% in this quarter.

Speaker #3: Most excitingly for Genius was the launch of our Moment Engine, that has already gained significant traction across the advertising industry, and become the new standard.

Mark Locke: Most excitingly for Genius was the launch of our Moment Engine that has already gained significant traction across the advertising industry and become the new standard. The Moment Engine identifies when fan engagement is likely to peak, not just from the scoreboard, but from momentum shifts, comebacks, and the kind of high-impact moments where customer attention is most valuable to advertisers. GeniusIQ is what makes that possible. Importantly, it matches that moment to high-value audiences and activates them instantly. It's not just about identifying what is happening in the game, it's about understanding who it matters to and how they are likely to respond. Not every fan reacts to the same moment in the game in the same way. That signal, the connection between the moment, the fan, and the response, is what advertisers pay for. What differentiates us is the combination of data and identity.

Speaker #3: The Moment Engine identifies when fan engagement is likely to peak, not just from the scoreboard, but from momentum shifts, comebacks, and the kind of high-impact moments where customer attention is most valuable to advertisers.

Speaker #3: Genius IQ is what makes that possible. An importantly, it matches that moment to high-value audiences and activates them instantly. It's not just about identifying what is happening in the game.

Speaker #3: It's about understanding who it matters to and how they are likely to respond. Because not every fan reacts to the same moment in the game in the same way.

Speaker #3: That signal the connection between the moment the fan and the response is what advertisers pay for. What differentiates us is the combination of data and identity.

Speaker #3: Our fan hub ID graph, 250 million consumers, combined with legends' intense signals drive better targeting and higher yields. The result is enabling advertisers to target high-intent audiences in real time, which drive higher yields and increased spend over time.

Mark Locke: Our FanHub ID graph, 250 million consumers, combined with Legends intent signals drive better targeting and higher yields. The result is enabling advertisers to target high-intent audiences in real-time, which drives higher yields and increased spend over time that translates directly into high-margin media revenue. To accelerate the growth of this opportunity, we have now integrated the Moment Engine with leaders representing approximately 90% of the programmatic market, agencies, broadcasters, and the major SSPs and DSPs. These integrations let us connect into existing advertising workflows and budgets with minimal friction, supporting our ability to scale efficiently. The product was already live during the tentpole events like the Super Bowl and March Madness with NBA Finals and FIFA World Cup still ahead. What we are executing here is a structural shift in how digital businesses create value.

Speaker #3: That translates directly into high margin, media revenue. To accelerate the growth of this opportunity, we have now integrated the Moment Engine with leaders representing approximately 90% of the programmatic market.

Speaker #3: Agencies, broadcasters, and the major SSPs and DSPs. These integrations let us connect into existing advertising workflows and budgets with minimal friction, supporting our ability to scale efficiently.

Speaker #3: The product was already live during the tentpole events like the Super Bowl and March Madness, with NBA Finals and FIFA World Cup still ahead.

Speaker #3: What we are executing here is a structural shift in how digital businesses create value. The economy has moved from selling attention to capturing intent.

Mark Locke: The economy has moved from selling attention to capturing intent. Search engines did it. Retail media did it at the point of purchase. In sports, we are enabling that shift to happen in real-time, and the Moment Engine is built precisely for it. At our NewFront event in New York a few weeks ago, we partnered with nearly 70 new advertisers, clear evidence of growing demand for outcome-driven sports advertising. That builds on existing partnerships that we have with Publicis, WPP, DoorDash, Venmo, and Samsung. Samsung, in particular, tested our self-serve CTV product early and quickly graded Genius as a tier 1 partner within its internal evaluation framework, increasing spend by 220% from their test campaign to their most recent booking. A remarkable signal given Samsung's scale and selectivity in choosing advertising technology partners.

Speaker #3: Search engines did it. Retail media did it at the point of purchase. In sports, we are enabling that shift to happen in real time, and the Moment Engine is built precisely for it.

Speaker #3: At our new front event in New York a few weeks ago, we partnered with nearly 70 new advertisers. Clear evidence of growing demand for outcome-driven sports advertising.

Speaker #3: That builds on existing partnerships that we have with publicists, WPP, DoorDash, Venmo, and Samsung. Samsung in particular tested our self-serve CTV product early and quickly graded Genius as a tier-one partner within its internal evaluation framework.

Speaker #3: Increasing spend by 220% from their test campaign to their most recent booking. A remarkable signal given Samsung's scale and selectivity in choosing advertising technology partners.

Speaker #3: We expect more of these graduations as advertisers complete their first full season with the product. As adoption continues to grow, we expect the Moment Engine to be a meaningful driver of high-margin media revenue over time.

Mark Locke: We expect more of these graduations as advertisers complete their first full season with the product. As adoption continues to grow, we expect the Moment Engine to be a meaningful driver of high-margin media revenue over time. The core businesses in betting and media are on a strong footing. Now I want to spend a few minutes on the three areas that are accelerating our margin expansion and profitability. Legend, GeniusIQ, and AI. They are all connected and all running on the same platform. First, Legend. As you know, Legend adds the intent layer of the system that we have been building for two decades. Owned environments where 118 million unique users actively engage with sport and iGaming, with more than two-thirds returning regularly. Combined with the official data and infrastructure that Genius already provides, the platform now connects context, engagement, and action all in one place.

Speaker #3: The core businesses embedding and media are on a strong footing. And now I want to spend a few minutes on the three areas that are accelerating our margin expansion and profitability.

Speaker #3: Legend, Genius IQ, and AI. They're all connected and all running on the same platform. First, legend. As you know, legend ads the intent layer of the system that we have been building for two decades.

Speaker #3: Owned environments where 118 million unique users actively engage with sport and iGaming, with more than two-thirds returning regularly. Combined with the official data and infrastructure that Genius already provides, the platform now connects context, engagement, and action all in one place.

Speaker #3: As AI commoditizes information retrieval, owned environments are where users come back to engage. They become more defensible, not less. Legend also extends the Moment Engine into the global iGaming market, which is expected to grow at near 20% CAGR over the next three years.

Mark Locke: As AI commoditizes information retrieval, owned environments are where users come back to engage. They become more defensible, not less. Legend also extends the Moment Engine into the global iGaming market, which is expected to grow at near 20% CAGR over the next 3 years. On customer acquisition, as US markets mature, sophisticated operators are shifting spend from the blanket promotional offers towards targeted high-intent performance media, channels where Legend is a proven leader. We're already seeing clear evidence of this shift. For example, Legend-acquired customers delivered 60% higher yield for operators after 1 year. The category is moving towards Legend's model. Integration is underway, and we'll share more on synergy execution next Q. Second, GeniusIQ is replacing legacy systems across the sports league landscape. As we outlined our Investor Day, GeniusIQ is the operating system of modern sport.

Speaker #3: On customer acquisition, as US markets mature, sophisticated operators are shifting spend from blanket promotional offers towards targeted, high-intent performance media—channels where Legend is a proven leader.

Speaker #3: We're already seeing clear evidence of this shift. For example, legend acquired customers delivered 60% higher yield for operators after one year. The category is moving towards legend's model.

Speaker #3: Integration is underway, and we'll share more on synergy execution next quarter. Second, Genius IQ is replacing legacy systems across the sports league landscape. As we outlined our investor day, Genius IQ is the operating system of modern sport.

Speaker #3: One platform that captures live game action understands fans, distributes data, and powers every touchpoint where sport is consumed. Officiating, coaching, betting, fan engagement, advertising.

Mark Locke: One platform that captures live game action, understands fans, distributes data, and powers every touch point where sport is consumed. Officiating, coaching, betting, fan engagement, advertising, all running on the same system. Legacy manual data capture, where humans key in events from television feeds, is obsolete. Leagues are transitioning towards automated AI-driven solutions. We are winning that transition. Our recent expansion with Liga MX is one example. A single relationship covering officiating support, performance analytics for clubs, betting data, and fan engagement, all powered by GeniusIQ. We see a meaningful opportunity to take market share and drive incremental revenue with limited additional costs as more leagues make this transition. This is the strategic shift that we anticipated and that we built for. We are now seeing the return on that investment in real time. Third, AI lowers our cost base and increases speed across the business.

Speaker #3: All running on the same system. Legacy manual data capture where humans key in events from television feeds is obsolete. Leagues are transitioning towards automated AI-driven solutions, and we are winning that transition.

Speaker #3: Our recent expansion with LigaMX is one example. A single relationship covering officiating support, performance analytics for clubs, betting data, and fan engagement, all powered by Genius IQ.

Speaker #3: We see a meaningful opportunity to take market share and drive incremental revenue with limited additional costs. As more leagues make this transition, this is a strategic shift that we anticipated and that we built for, and we are now seeing the return on that investment in real time.

Speaker #3: Third, AI lowers our cost base and increases speed across the business. Genius IQ automates data collection in venues where it is deployed. Delivering faster, more accurate data with reduced operational overhead.

Mark Locke: Genius IQ automates data collection in venues where it is deployed, delivering faster, more accurate data with reduced operational overhead. By the end of next year, we expect that automation to span our entire data rights portfolio. That is a meaningful margin lever as we scale. Internally, agentic AI has cut feature development time by more than 50%. We expect these gains to compound. We're extending the same capabilities into partner workflows, embedding our technology more deeply into customers' operations, which both creates stickiness and creates additional commercial opportunity. We have also developed automated anti-piracy solutions to protect our most valuable asset, the data itself. AI is not just enabling innovation in our products, it is structurally improving our margin profile and reinforcing the defensibility of our business. The through line is this: one platform, three accelerants, expanding operating leverage.

Speaker #3: By the end of next year, we expect that automation to span our entire data rights portfolio. That is a meaningful margin lever as we scale.

Speaker #3: Internally, Agentic AI has cut feature development time by more than 50%, and we expect these gains to compound. We're extending the same capabilities into partner workflows.

Speaker #3: Embedding our technology more deeply into customers' operations, which both creates stickiness and creates additional commercial opportunity. We have also developed automated anti-piracy solutions to protect our most valuable asset.

Speaker #3: The data itself. AI is not just enabling innovation in our products. It is structurally improving our margin profile and reinforcing the defensibility of our business.

Speaker #3: The through line is this: one platform, three accelerants, expanding operating leverage—that is what gives us confidence in sustained margin expansion from here. Bryan will take you through the financials, but I'll leave you with this.

Mark Locke: That is what gives us confidence in sustained margin expansion from here. Bryan will take you through the financials, but I'll leave you with this. Q1 extends a consistent pattern of execution on a durable model. We are moving from a data provider to the operating system and monetization layer of global sport. We've built a competitive position and margin profile that few others in the sports ecosystem can replicate. Consider this against the backdrop of an industry that's being reshaped by AI. Every wave of AI progress increases the value of two things, data that can't be replicated and destinations audiences actively choose. We own both, which puts us in a rare position. AI doesn't threaten our core, it compounds it. The opportunity is to use AI to make our data more useful, our destinations more essential, and the gap between us and everyone else even wider.

Speaker #3: Q1 extends a consistent pattern of execution on a durable model. We are moving from a data provider to the operating system and monetization layer of global sport.

Speaker #3: We've built a competitive position and margin profile that few others in the sports ecosystem can replicate. Consider this against the backdrop of an industry that's being reshaped by AI.

Speaker #3: Every wave of AI progress increases the value of two things: data that can't be replicated and destinations audiences actively choose. We own both, which puts us in a rare position.

Speaker #3: AI doesn't threaten our core. It compounds it. The opportunity is to use AI to make our data more useful, our destinations more essential, and the gap between us and everyone else even wider.

Speaker #3: I want to close with a direct comment. We understand and appreciate that it's early days with respect to legend. As I wrote to shareholders in February, the gap between how we see this business and how some of the market currently sees it is where the asymmetric returns live.

Mark Locke: I want to close with a direct comment. We understand and appreciate that it's early days with respect to Legend. As I wrote to shareholders in February, the gap between how we see this business and how some of the market currently sees it is where the asymmetric returns live. The way that we close that gap is by delivering quarter after quarter with the discipline that has defined this business for two decades. These results begin that process, and every conversation between today and our next call will be about exactly that. With that, I'll turn the call over to Brian.

Speaker #3: The way that we've closed that gap is by delivering quarter after quarter, with the discipline that has defined this business for two decades. These results begin that process, and every conversation between today and our next call will be about exactly that.

Speaker #3: And with that, I'll turn the call over to Bryan.

Speaker #2: Thanks, Mark. Three things I want to land today. Q1 was another quarter of well-balanced, consistent growth. The legend financing priced well, with strong lender support, and the combined company takes our 2026 EBITDA margin from 23% to 28%.

Bryan Castellani: Thanks, Mark. 3 things I wanna land today. Q1 was another quarter of well-balanced, consistent growth. The Legend financing priced well with strong lender support, and the combined company takes our 2026 EBITDA margin from 23% to 28%, pulling our long-term target forward by 2 years. Starting with Q1, we delivered well-balanced revenue growth across both segments. Betting was up 33% and Media up 22%, translating to group revenue growth of 31% and adjusted EBITDA growth of 21%. Geographic balance was equally strong with over 25% revenue growth across Europe, the Americas, and rest of world. 2 housekeeping notes on the quarter. First, as outlined previously, we now consolidate our sports technology and services business into Betting and Media. This aligns with how we manage the business and reflects where expected growth and profitability will come from.

Speaker #2: Pulling our long-term target forward by two years. Starting with Q1, we delivered well-balanced revenue growth across both segments. Betting was up 33% and media up 22%.

Speaker #2: Translating the group revenue growth of 31% and adjusted EBITDA growth of 21%. Geographic balance was equally strong, with over 25% revenue growth across Europe, the Americas, and rest of the world.

Speaker #2: Two housekeeping notes on the quarter. First, as outlined previously, we now consolidate our sports technology and services business into betting and media. This aligns with how we manage the business and reflects where expected growth and profitability will come from.

Speaker #2: Going forward, we will report on those two segments only. Second, on cash, we historically see outflows in the first half and inflows in the second half.

Bryan Castellani: Going forward, we will report on those two segments only. Second, on cash, we historically see outflows in H1 and inflows in H2, netting positive for the full year. We expect that pattern to repeat in 2026. Now on Legend. The financing tells you what outside capital thinks of this business. Concurrent with closing last week, we funded an $825 million term loan A at SOFR plus 350 basis points. Better terms than where credit markets sat when we originally signed and a lower cost of capital than we initially expected. In a more selective credit environment, lender diligence reinforced the predictability of our cash flows, our low leverage profile, and the durability of the model.

Speaker #2: Netting positive for the full year. We expect that pattern to repeat in 2026. Now, on legend. The financing tells you what outside capital thinks of this business.

Speaker #2: Concurrent with closing last week, we funded an $825 million term loan A at SOFR plus $350 basis points. Better terms than where credit markets sat when we originally signed, and a lower cost of capital than we initially expected.

Speaker #2: In a more selective credit environment, lender diligence reinforced the predictability of our cash flows; our low leverage profile and the durability of the model.

Speaker #2: We also elected to size the debt $25 million below the original structure, reflecting our confidence in free cash flow generation and our commitment to disciplined deleveraging.

Bryan Castellani: We also elected to size the debt $25 million below the original structure, reflecting our confidence in free cash flow generation and our commitment to disciplined deleveraging. This reduces upfront and ongoing interest, fees, and amortization while preserving ample liquidity. Which brings me to guidance. Now reflecting the combined company beginning 1 May. For Q2, we expect 1 month of standalone Genius and 2 months of combined group financials, delivering group revenue of approximately $185 million and group-adjusted EBITDA of $45 million. For full year 2026, we expect group revenue of between $990 million and $1.01 billion, and adjusted EBITDA of between $270 and $280 million, in line with the 2026 annualized estimates we provided in February. The headline number.

Speaker #2: This reduces upfront and ongoing interest fees and amortization, while preserving ample liquidity. Which brings me to guidance. Now reflecting the combined company beginning May 1st, for Q2, we expect one month of standalone genius and two months of combined group financials.

Speaker #2: Delivering group revenue of approximately $185 million and group adjusted EBITDA of 45 million. For full year 2026, we expect group revenue of between $990 million and $1.01 billion.

Speaker #2: And adjusted EBITDA of between $270 and $280 million. In line with the 2026 annualized estimates we provided in February. The headline number. This raises our 2026 adjusted EBITDA margin expectation from 23% to 28%.

Bryan Castellani: This raises our 2026 adjusted EBITDA margin ex-expectation from 23% to 28%. The acquisition is immediately margin accretive and accelerates our path to our previously stated long-term revenue and margin targets by 2 years. On cash flow, 2 points. First, this year. Q2 will mark the low point consistent with the seasonality of prior years, while also having one-off acquisition expenses. In the H2, we expect the combined business to generate approximately $100 million of total cash flow, including all interest expenses and debt repayment. This equates to roughly 50% to 55% conversion of the approximately $200 million of adjusted EBITDA we expect in the period. Second, the trajectory. As we move into 2027, free cash flow conversion increases towards our previously stated 2028 target of at least 60% on an unlevered basis.

Speaker #2: The acquisition is immediately margin accretive and accelerates our path to our previously stated long-term revenue and margin targets by two years. On cash flow, two points.

Speaker #2: First, this year. Q2 will mark the low point, consistent with the seasonality of prior years. While also having one-off acquisition expenses. In the second half, we expect the combined business to generate approximately $100 million of total cash flow.

Speaker #2: Including all interest expenses and debt repayment. This equates to roughly 50 to 55% conversion of the approximately $200 million of adjusted EBITDA we expect in the period.

Speaker #2: Second, the trajectory. As we move into 2027, free cash flow conversion increases toward our previously stated 2028 target of at least 60% on an unlevered basis.

Speaker #2: And 2027 is also the year we transition to positive gap net income on a sustained basis. One last point, and it's the most important forward-looking one.

Bryan Castellani: 2027 is also the year we transition to +GAAP net income on a sustained basis. One last point, and it's the most important forward-looking one. Today's guidance does not yet include the four revenue synergies we identified at the time of the transaction, and these are where we see significant upside potential. To recap them briefly, they are, first, customer cross-sell uniting Genius' official data with Legend's high intent acquisition funnel. Second, monetization of the combined audience asset across the advertising ecosystem. Third, scaling Legend's technology platform across our 400+ league and team partners. Fourth, distributing Genius data and products through Legend's channels. On that fourth synergy, work is already underway. Over the coming weeks, users on Legend's properties will begin seeing Genius products integrated directly into their experience. This will be the first visible signal of integration progress.

Speaker #2: Today's guidance does not yet include the four revenue synergies we identified at the time of the transaction. And these are where we see significant upside potential.

Speaker #2: To recap them briefly, they are: first, customer cross-sell uniting geniuses official data with legend's high-intent acquisition funnel. Second, monetization of the combined audience asset across the advertising ecosystem.

Speaker #2: Third, scaling legend's technology platform across our 400-plus league and team partners. And fourth, distributing genius data and products through legend's channels. On that fourth synergy, work is already underway.

Speaker #2: Over the coming weeks, users on legend's properties will begin seeing genius products integrated directly into their experience. This will be the first visible signal of integration progress.

Speaker #2: In 2026, the majority of legend's value comes from consolidation, margin uplift, and cross-sell of legend inventory into existing betting partners. Deeper data-driven media synergies build as we move into 2027 and beyond.

Bryan Castellani: In 2026, the majority of Legend's value comes from consolidation, margin uplift, and cross-sell of Legend inventory into existing betting partners. Deeper data-driven media synergies build as we move into 2027 and beyond. One specific synergy worth calling out separately, prediction markets. As Mark covered, the ecosystem requires both official data and high-value audiences, capabilities we uniquely combine. Together, Genius and Legend create the only platform in our industry that delivers both at scale. We see this as one of the most attractive incremental revenue opportunities ahead, and only the very early stages of this opportunity are reflected in today's guidance. To close, Q1 extended the track record. The financing validated the model. Legend pulls our long-term targets forward by 2 years. The combined business is set up to deliver sustained revenue growth, margin expansion, and cash flow, and meaningful long-term value for shareholders.

Speaker #2: One specific synergy worth calling out separately: prediction markets. As Mark covered, the ecosystem requires both official data and high-value audience capabilities we uniquely combine.

Speaker #2: Together, genius and legend create the only platform in our industry that delivers both at scale. We see this as one of the most attractive incremental revenue opportunities ahead and only the very early stages of this opportunity are reflected in today's guidance.

Speaker #2: To close, Q1 extended the track record. The financing validated the model. Legend pulls our long-term targets forward by two years. The combined business is set up to deliver sustained revenue growth, margin expansion, and cash flow.

Speaker #2: And meaningful, long-term value for shareholders. With that, we'll open the line for questions.

Bryan Castellani: With that, we'll open the line for questions.

Speaker #1: Thank you. question and answer session. I would like to remind everyone for one question, one follow-up. If you would like to ask a question, please press star followed by the number one on your touchstone phone and you will hear a confirmation that your hand has been raised.

Operator 1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. I would like to remind everyone for 1 question, 1 follow-up. If you would like to ask a question, please press star followed by the number one on your touch-tone phone. You will hear a confirmation that your hand has been raised. If you wish to withdraw your question, please press star followed by the number one again. If you're using a speakerphone, we kindly ask you to lift the handset before pressing any keys. Please hold for a moment while we gather questions. Our first question comes from the line of Ryan Sigdahl from Craig-Hallum Capital Group. Please go ahead.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. I would like to remind everyone for 1 question, 1 follow-up. If you would like to ask a question, please press star followed by the number one on your touch-tone phone. You will hear a confirmation that your hand has been raised. If you wish to withdraw your question, please press star followed by the number one again. If you're using a speakerphone, we kindly ask you to lift the handset before pressing any keys. Please hold for a moment while we gather questions. Our first question comes from the line of Ryan Sigdahl from Craig-Hallum Capital Group. Please go ahead.

Speaker #1: If you wish to withdraw your question, please press star followed by the number one again. If you're using a speakerphone, we kindly ask you to lift the handset for pressing any keys.

Speaker #1: Please hold for a moment while we gather questions. Our first question comes from the line of Ryan Sigdahl from Craig Hallam Capital Group. Please go ahead.

Speaker #3: Hey, good day, Mark, Brian. Nice to see the strong Q1 results. I want to start, Brian, with guidance. Just because you ended on it.

Ryan Sigdahl: Hey, good day, Mark, Ryan. Nice to see the strong Q1 results. Wanna start, Brian, with guidance, just 'cause you ended on it. Are you able to break out the legacy Genius guide relative to your new guide and then what's included for Legend? I tried to do some reconciliation relative to the standalone expectations you'd put out there. It appears like maybe a little lower on the revenue and the same EBITDA, but hopefully hoping you can help me with that.

Speaker #3: Are you able to break out the legacy Genius guide relative to your new guide, and then what's included for Legend? I tried to do some reconciliation relative to the standalone expectations you'd put out there.

Speaker #3: It appears like maybe a little lower on the revenue and the same EBITDA, but hopefully hoping you can help me with that.

Speaker #4: Hey, Ryan, thanks. On guidance, this is all in line with the earlier guidance we gave in February. And in February, we started with a genius standalone guidance that had 22% revenue growth and 36% EBITDA growth.

Bryan Castellani: Hey, Ryan. Thanks. On guidance, this is all in line with the earlier guidance we gave in February. In February, we started with a Genius standalone guidance that had 22% revenue growth and 36% EBITDA growth, which is really strong, and we're on track to achieve that. With Legend closed just last week, we now present it as a combined business. The guidance you see is effective 1 May on the combination. You can see it's immediately accretive to margin and cash flow, potential synergies to drive upside. We feel good about that guidance. Again, I just wanna stress it's all in line with that earlier guidance in February.

Speaker #4: Which is really strong and we're on track to achieve that. With legend closed just last week, we now present it as a combined business.

Speaker #4: So the guidance you see is effective May 1st on the combination. And you can see it's immediately accretive to margin and cash flow. Potential synergies to drive upside.

Speaker #4: And so we feel good about that guidance. And again, I just want to stress it's all in line with that earlier guidance in February.

Speaker #3: Helpful. NFL—so, it's reported the NFL does not have an official sportsbook. They were in those negotiations previously—DraftKings, FanDuel, Caesars—that expired at the end of March.

Ryan Sigdahl: Helpful. NFL, it's reported the NFL does not have an official sportsbook. They're in those negotiations previously DraftKings, FanDuel, Caesars, that expired at the end of March. Curious kinda what your view is of that. I know it's a long time until the start of the season, but just, how that relates to you guys and what you expect to happen there.

Speaker #3: Curious, kind of what your view is of that. I know it's a long time until the start of the season, but just how that relates to you guys and what you expect to happen there.

Speaker #4: Hey, Ryan, thanks for the question. Yeah, I mean, look, it is a long time to the start of the season, you're right. And it's I mean, this is nothing we haven't really seen before.

Mark Locke: Hey, Ryan. Thanks for the question. Yeah, I mean, look, it is a long time to the start of the season, you're right. I mean, this is nothing we haven't really seen before. You know, I don't wanna comment further, you know, NFL or, you know, how those negotiations are going. From our point of view, you know, we've got very strong visibility over our future revenues and our partnerships and our relationship with the NFL, just to remind everybody, is locked in until Super Bowl 2030.

Speaker #4: I don't want to comment further—NFL or how those negotiations are going. But from our point of view, we've got very strong visibility over our future revenues.

Speaker #4: And our partnerships and our relationship with the NFL, just to remind everybody, is locked in until Super Bowl 2030.

Speaker #3: Thanks, Mark. Good luck, guys.

Ryan Sigdahl: Thanks, Mark. Good luck, guys.

Speaker #1: Thank you. Our next question comes from the line of Clark Lampen from BTIG. Please go ahead.

Operator 1: Thank you. Our next question comes from the line of Clark Lampen from BTIG. Please go ahead.

Operator: Thank you. Our next question comes from the line of Clark Lampen from BTIG. Please go ahead.

Speaker #3: Thanks very much. Morning and thanks for really detailed thoughts around sort of legend and the opportunity sort of moving forward. Maybe to drill down on that at a slightly more micro level.

Clark Lampen: Thanks very much. Morning and thanks for really detailed thoughts around Legend and the opportunity moving forward. To drill down on that at a slightly more micro level, I wanted to see if you guys could talk about some of the ongoing work and the Publicis and Moments integrations that you guys talked about in the March timeframe. Could you give us a feel for early commercial traction, what you're seeing with the integrations? Are those driving incremental revenue now or are we still in the activation and testing phase? A clarification on guidance. I think, Brian, you just said immediately accretive there are potential synergies, guidance should be considered basically in line.

Speaker #3: I wanted to see if you guys could talk about some of the ongoing work and the publicists and sort of moments integrations that you guys talked about in the March timeframe.

Speaker #3: Could you give us a feel for early commercial traction? What you're seeing with the integrations? Are those driving incremental revenue now or are we still in the sort of activation and testing phase?

Speaker #3: And then a clarification on guidance. I think Brian, you just said immediately accretive there are potential synergies, but guidance should be considered basically in line it sounds like you guys have a very nicely growing demand backlog from core and prediction customers.

Clark Lampen: It sounds like you guys have a very nicely growing demand backlog from core and prediction customers. What would you wanna see before maybe starting to underwrite or sort of embed those potential synergies that you just talked about? Thanks a lot.

Speaker #3: What would you want to see before maybe starting to underwrite or sort of embed those potential synergies that you just talked about? Thanks a lot.

Speaker #4: Hey, Clark. Thanks for the question. Look, I'll let Brian pick up the second part of it. But I mean, it suffices to say I think we said a few times that the upside isn't priced in sorry, isn't in any of the guides.

Mark Locke: Hey, Clark. Thanks for the question. I'll let Brian pick up the second part of it. I mean, it's suffice to say, I think we've said a few times that the upside isn't, you know, priced in sorry, isn't in any of the guides. To answer your question on the sort of micro details, as I think you called them, we've got a few main things we're going. On the Legend integration, things are going really well.

Speaker #4: To answer your question, sort of micro details, I think you called them. Look, we've got a few main things we're going on. The legend integration, things are going really, really well.

Mark Locke: From an operational point of view, we've got a 60-person commercial offsite together, I think, next week or the week after, which is gonna bring the businesses together, and we're gonna address a lot of the inbounds that we're that we're getting already, which is a really, really good sign. The combined offering is going down very well. From a product point of view, we're integrating BetVision into Legend at the moment, which gives us not only additional reach, but more inventory, which we should be able to immediately drive value from through our advertising partnerships. On the Moment Engine, you saw the comments or heard the comments in the pre-recorded script. We think we picked up 70 new customers and 90% of the SSP/DSP market, and that's delivering immediate revenue.

Speaker #4: From an operational point of view, we've got a 60-person commercial offsite together. I think next week or the week after, which is going to bring the businesses together.

Speaker #4: And we're going to address a lot of the inbounds that we're getting already, which is a really, really good sign for the combined offering is going down very well.

Speaker #4: From a product point of view, we're integrating Betvision into legend at the moment, which gives us not only additional reach, but more inventory, which we should be able to immediately drive value from through our advertising partnerships.

Speaker #4: On the moment, engine you saw the comments or heard the comments in the prerecorded script. We think we've picked up 70 new customers and 90% of the SSP-DSP market.

Speaker #4: And that's delivering immediate revenue. So we're extremely excited about the opportunities. It's going exactly to plan. And we feel very confident about the growth and the revenue numbers that we've put out into the market previously.

Mark Locke: We're extremely excited about the opportunities. It's going exactly to plan, and we feel very confident about the growth and the revenue numbers that we put out into the market previously. I'll let Bryan pick up the second part of your question.

Speaker #4: But I'll let Brian pick up the second part of your question.

Speaker #3: I think that second part, just on the what we would need to see to layer in those synergies, and we've always been consistent that the acquisition was we guided with what was in front of us.

Bryan Castellani: I think that second part, just on the.

Mark Locke: Yeah

Bryan Castellani: You know, what we would need to see to layer in those synergies. We've always been consistent that the acquisition was we guided with what was in front of us. As those synergies come to light, we will start to layer them in. We've said the nearest ones are the cross-sell opportunities. You know, as Mark said, the teams have started to get together. There's interest on both sets of customers, and proposals going out where we can now leverage the combined opportunity. As those things start to layer in, we will update you as we go.

Speaker #3: And as those synergies come to light, we will start to layer them in. We've said the nearest ones are the cross-sell opportunities. And as Mark said, the teams have started to get together.

Speaker #3: There's interest on both sets of customers. And proposals going out where we can now leverage the combined opportunity. So as those things start to layer in, we will update you as we go.

Speaker #5: Thanks very much.

Clark Lampen: Thanks very much.

Speaker #1: Thank you. Our next question comes from the line of Jordan Bender from Citizens GMP. Please go ahead.

Operator 2: Thank you. Our next question comes from the line of Jordan Bender from Citizens JMP. Please go ahead.

Operator: Thank you. Our next question comes from the line of Jordan Bender from Citizens JMP. Please go ahead.

Speaker #6: Hey, everyone. Morning. Thanks for the question. Mark, you touched on onboarding the market makers to your platform. Broadly, can you maybe just help us think through the economics of what selling that data might look like?

Jordan Bender: Everyone, morning. Thanks for the question. Mark, you touched on onboarding the market makers to your platform. You know, broadly, can you maybe just help us think through the economics of what selling that data might look like? I know you're not gonna be able to kinda give us contract by contract, just kind of help us size the overall opportunity there for you guys. Maybe the second part of that is, you know, you have the infrastructure in place, would you guys ever consider market making yourselves?

Speaker #6: I know you're not going to be able to kind of give us contract by contract, but just kind of help us size the overall opportunity there for you guys and maybe the second part of that is you have the infrastructure in place.

Speaker #6: Would you guys ever consider market making yourselves?

Speaker #4: Yeah, it's a good question, Jordan. I mean, these are fairly early days. Whilst we've got a great deal of experience of doing this in Europe, I think we've mentioned before that we've worked with market makers there for a long time on the exchanges.

Mark Locke: Yeah, it's a good question, Jordan. Look, I mean, these are fairly early days. We, you know, whilst we've got, you know, a great deal of experience of doing this in Europe, I think we've mentioned before that we've worked with market makers there for a long time on the exchanges. I think from a technical point of view, we don't really see much difference over here. Saying all of that, the economics and the way it's gonna wash out in the US is clearly something that we're keeping an eye on and watching the evolution of. As a result of that, the deals that we're running are short-term deals. We have various different economic structures.

Speaker #4: And I think from a technical point of view, we don't really see much difference over here. Saying all of that, the economics and the way it's going to wash out in the US is clearly something that we're keeping an eye on and watching the evolution of.

Speaker #4: As a result of that, the deals that we're running are short-term. Deals we have various different economic structures. But fundamentally, as time goes on, we'll evolve those deals as we get more clarity.

Mark Locke: Fundamentally, as time goes on, we'll evolve those deals as we get more clarity, frankly, on what the best economic deal is. That's gonna be on a case-by-case basis, depending on the quality and the type of the market maker that we're working with. We're leaving ourselves a lot of flexibility.

Speaker #4: Frankly, on what the best economic deal is, but that's going to be on a case-by-case basis depending on the quality and the type of the market maker that we're working with.

Speaker #4: We're leaving ourselves a lot of

Speaker #6: Christopher, thanks. And then just on the follow-up, Brian, I think I caught that you said $100 million of free cash flow in the second half of the year.

Jordan Bender: Understood. Thanks. Just on the follow-up, Bryan, I think I caught that you said $100 million of free cash flow in H2 of the year. If I look at the Q1 number, you know, it kind of implies you have to, you know, not lose that much in Q2. Is that to say that you might actually be free cash flow negative for the entire year? Did I catch that correctly?

Speaker #6: If I look at the 1Q number, it kind of implies you have to not lose that much in the second quarter. Is that to say that you might actually be free cash flow negative for the entire year?

Speaker #6: Did I catch that correctly?

Speaker #3: Oh, sorry. No. So let me just give you a little bit of a walk on the cash flow. So Q1, seasonal pattern, that is part of our history.

Bryan Castellani: Sorry, no. Let me just give you a little bit of a walk on the cash flow. Q1 seasonal pattern, that is part of our history. You know, just the way timing vis-à-vis timing of rights payments versus revenue, right? We monetize our rights over 12 months, but the rights payments time into the season. Q2 will have a number of one-time impacts just given the transaction. We will see the low point in Q2 probably around $140 to $150 million. Then that build back, that $100 million, starting from really the H2 of the year, you really start to get a clean read on the earnings and cash flow power of the combined business.

Speaker #3: And just the way timing vis-à-vis timing of rights payments versus revenue, right? We monetize our rights over 12 months, but the rights payments time into the season.

Speaker #3: Q2, we'll have a number of one-time impacts just given the transaction. So we will see the low point in Q2 probably around 140 to 150 million.

Speaker #3: And then that buildback, that $100 million and starting from really the second half of the year, you really start to get a clean read on the earnings and cash flow power of the combined business.

Speaker #3: And so that's 50 to 55 percent total conversion just so that we were cleaner on where you might model that. And so that reflects basically the back half of the year earning about $200 million of EBITDA that may be more Q4 than Q3.

Bryan Castellani: That's 50% to 55% total conversion, just so that we were cleaner on where you might model that. That reflects basically the H2 earning about $200 million EBITDA. That may be more Q4 than Q3, again, in line with the pattern of history here. Hopefully that answers your question as to how to think about the cash from here on.

Speaker #3: Again, in line with the pattern of history here. But hopefully, that answers your question as to how to think about the cash from here on.

Speaker #6: Perfect. Thank you.

Jordan Bender: Perfect. Thank you.

Speaker #1: Our next question comes from the line of Barry Jonas from Tourist Securities. Please go ahead, sir.

Operator 2: Our next question comes from the line of Barry Jonas from Truist Securities. Please go ahead, sir.

Operator: Our next question comes from the line of Barry Jonas from Truist Securities. Please go ahead, sir.

Speaker #7: Hey, guys. To maybe just talk a little bit more about the prediction opportunity right now, I don't believe the NFL has reached an agreement at this point.

Barry Jonas: Hey, guys. Can maybe just talk a little bit more about the prediction opportunity right now? I don't believe the NFL has reached an agreement at this point, just curious what the opportunity is and then what you're sort of waiting on to proceed once you get more buy-in from the NFL or any other leagues. Thank you.

Speaker #7: So just curious what the opportunity is and then what your sort of weighting on to proceed once you get more buy-in from the NFL or any other leagues.

Speaker #7: Thank you.

Speaker #4: Yeah, it's a good question. And clearly, a hot topic at the moment. So I think it's probably best to break it into three buckets.

Mark Locke: Yeah. I'd say it's a good question and clearly a hot topic at the moment. I think it's probably best to break it into three buckets, because already the prediction markets are driving a lot of value for us. The first one we touched upon a minute ago, with the market makers, we're generating good revenues there. Early days, but we're seeing real positive opportunities there. You've got the second bucket, if you like. I'm sure you've all watched the valuations and some of the raises that have been going on at the moment which, you know, frankly, is gonna be for marketing and for product.

Speaker #4: Because already, the prediction markets are driving a lot of value for us. And the first one we touched upon a minute ago with the market makers, we're generating good revenues there.

Speaker #4: Early days, but we're seeing real positive opportunities there. You've got the second part of the or the second bucket, if you like, I'm sure you've all watched the valuations and some of the raises that have been going on at the moment, which frankly is going to be for marketing and for product.

Speaker #4: And we see a lot of that raise coming through to Genius and Legends as part of customer acquisition. And the marketing. So there's a significant opportunity there, which we are already starting to capitalize on.

Mark Locke: We see a lot of that, you know, coming through to Genius and Legend as part of customer acquisition and the marketing. There's a, you know, significant opportunity there which we are already starting to capitalize on. Finally, on the data side, look, we've got to have a very close eye on the regulators, and the regulatory environment is something that we are obviously very sensitive to and our partners are very sensitive to. You're seeing positive moves from the CFTC towards, you know, official data. A lot of our partners outside of the NFL are, you know, showing strong interest in engaging. We expect that those sorts of deals will come in on a, sorry, on a short-term basis.

Speaker #4: And then finally, on the data side, look, we've got to have a very close eye on the regulators. And the regulatory environment is something that we are obviously very sensitive to and our partners are very sensitive to.

Speaker #4: But you're seeing positive moves from the CFTC towards official data. A lot of our partners outside of the NFL are showing strong interest in engaging.

Speaker #4: So we expect that that those sorts of deals will come in on a longer on a sorry, on a short-term basis. On a medium-term basis, the NFL and the US sports leagues, I'm sure, are considering their positions.

Mark Locke: On a medium-term basis, the, you know, the NFL and the US sports leagues, I'm sure are considering their positions. But I think it's fair to say that for the prediction markets to have a long and rosy future, they're going to want to work very closely with those leagues and with the CFTC. As a result of that, we expect in the medium term, some progress on that front.

Speaker #4: But I think it's fair to say that for the prediction markets to have a long and rosy future, they're going to want to work very closely with those leagues and with the CFTC.

Speaker #4: So as a result of that, we expect in the medium term, some progress on that front.

Speaker #3: That's helpful. And then just for my follow-up, maybe for Brian, can you talk about capital allocation here, your thoughts specifically touching on share of purchases?

Barry Jonas: That's helpful. Just for my follow-up, maybe for Brian, can you talk about capital allocation here, your thoughts specifically touching on share repurchases? You know, I don't think the company bought back anything in the quarter, despite the sell-off. Thank you.

Speaker #3: I don't think the company bought back anything in the quarter despite the sell-off. Thank you.

Speaker #5: So we will always prioritize the best use of our capital. And the highest ROI opportunities. We're a week out of closing the transaction. And the financing, which was favorable, we're focused on managing that balance sheet.

Bryan Castellani: We will always prioritize the best use of our capital and the highest ROI opportunities. We're a week out of closing the transaction and the financing, which was favorable. We're focused on managing that balance sheet. We always have been. Right now, the focus is on de-leveraging, and we can do that in two ways, paying down the debt, as well as growing the EBITDA and the cash, as we've said, and as quarter our strategy. The quicker we de-lever, the quicker we have optionality to do those other types of things you're asking about. Our focus right now is to de-lever.

Speaker #5: We always have been right now, the focus is on de-leveraging and we can do that in two ways. Paying down the debt as well as growing the EBITDA and the cash as we've said and as quarter our strategy.

Speaker #5: And the quicker we de-lever, the quicker we have optionality to do those other types of things you're asking about. But our focus right now is to de-lever.

Speaker #6: Thank you very much.

Barry Jonas: Thank you very much.

Speaker #1: Our next question comes from the line of Chad Bannon from McClary. Please go ahead.

Operator 2: Our next question comes from the line of Chad Beynon from Macquarie. Please go ahead.

Operator: Our next question comes from the line of Chad Beynon from Macquarie. Please go ahead.

Speaker #8: Hi, good morning. Thanks for taking my question. Wondering if you could expand a little bit just in terms of engagement in the Serie A as that season comes to a close and this was a big integration year with your new rights contract and bet vision.

Chad Beynon: Hi, good morning. Thanks for taking my question. Wondering if you could expand a little bit just in terms of engagement in Serie A as that season comes to a close. You know, this was a big integration year with your new rights contract and BetVision. Any additional color just in terms of what you've seen from that contract in this first year. Thank you.

Speaker #8: So any additional color just in terms of what you've seen from that contract in this first year? Thank you.

Speaker #4: Yeah. Thanks for the question. Look, it's super interesting. I mean, Italy is the biggest betting market in Europe. It's often missed by people. Our relationship with them is very strong.

Mark Locke: Yeah. Thanks for the question. Look, it's super interesting. I mean, you know, Italy is the biggest betting market in Europe. It's often missed by people. Our relationship with them is very strong. We're very happy with the technology integration that we've done and the distribution of the products. You know, we feel really good about the future of that relationship.

Speaker #4: We're very happy with the technology integration that we've done and the distribution of the products. And we feel really good about the future of that relationship.

Speaker #8: Okay. Great. Thank you, Mark. And then as we think about the NFL ad inventory opportunities and kind of tying that back with the event that you just had with New Front, when will we start to see you kind of fill the bucket in terms of that inventory?

Chad Beynon: Okay, great. Thank you, Mark. As we think about the NFL ad inventory opportunities and kinda tying that back with the event you just had with NewFront, when will we start to see you kind of fill the bucket in terms of that inventory? Is that something that's closer into the season, or is that a process that's going on right now? Any commentary there would be helpful. Thanks.

Speaker #8: Is that something that's closer into the season? Or is that a process that's going on right now? And any commentary there would be helpful.

Speaker #8: Next.

Speaker #4: Yeah, sure. Look, we're already outselling the NFL inventory. And clearly, with the addition of the Moment engine, and the improvement in ROI that our advertisers see a result of that, we are very confident that that's going to generate a very good result for us this year.

Mark Locke: Yeah, sure. I mean, look, we're already out selling the NFL inventory. Clearly with the addition of the Moment Engine and the improvement in ROI that our advertisers see a result of that, we are very confident that that's going to generate a very good result for us this year.

Speaker #8: Great. Thank you very much.

Chad Beynon: Great. Thank you very much.

Speaker #1: Our next question comes from the line of Eric Handler from Roth Capital. Please go ahead.

Operator 2: Our next question comes from the line of Eric Handler from ROTH Capital. Please go ahead.

Operator: Our next question comes from the line of Eric Handler from ROTH Capital. Please go ahead.

Speaker #9: Good morning. Thanks for the question. I wonder, in terms of your media business, is would you be willing to sort of quantify either from a volume or dollar basis how interest is shaping up for the NBA Finals this year?

Eric Handler: Good morning. Thanks for the question. I wonder in terms of your media business, would you be willing to sort of quantify either from a volume or dollar basis how interest is shaping up for the NBA Finals this year? As well, when you look at the incremental opportunity with the World Cup, is there any color you can give around that?

Speaker #9: And as well, when you look at the incremental opportunity with the World Cup, is there any color you can give around that?

Speaker #4: Yeah. So this is an interesting moment for us. Excuse the pun. With our Moment engine, the great thing about it and the fact that we've distributed it so widely and it's been picked up by so many clients is that we're part of the workflow of those clients.

Mark Locke: Yeah. This is an interesting moment for us, excuse the pun, with our Moment Engine. You know, the great thing about it and the fact that we've distributed it so widely and it's been picked up by so many clients is that we're part of the workflow of those clients. When you combine that with the fact that we have a rolling set of events throughout the year, you know, you mentioned a couple and obviously the World Cup is a big one. The combination of that means that this product will automatically be used by our clients as part of their campaign management.

Speaker #4: And so when you combine that with the fact that we have a rolling set of events throughout the year, you mentioned a couple, and obviously, the World Cup's a big one.

Speaker #4: The combination of that means that this product will automatically be used by our clients as part of their campaign management. So effectively, we are now running our product sets on a 24/7, 365 basis based on the events, based on what's going on in the match, and generating revenue from every campaign.

Mark Locke: Effectively, we are now running our product sets on a 24/7, 365 basis based on the events, based on what's going on in the match and generating revenue from every campaign.

Speaker #9: Great. Thank you. And I wonder if there's any sort of updates or color data you can give for bet vision in the quarter?

Eric Handler: Great. Thank you. I wonder if there's any sort of updates, or color or data you can give for BetVision in the quarter.

Speaker #4: Yeah. Look, bet vision's we're super happy with it. It's going really nicely at the moment. We've seen bet vision's growth in global football, actually, now.

Mark Locke: Yeah, look, BetVision's, we're super happy with it. It's going really nicely at the moment. We've seen BetVision's growth in global football actually now, you know, obviously with the offside, but with the off-season, but it's now surpassed some of the NFL. There's a huge amount of opportunity that we're seeing outside of, outside of the core, you know, US market there. We're really happy with the output and the results that we're getting are really strong. Clearly we're winning rights, sorry, away from our competition. That product is really helping us do that. We feel very, very strongly about it, and we're super happy with the ROI that we're getting on that.

Speaker #4: It's obviously with the offside, but with the offseason. But so now to pass some of the NFL. So there's a huge amount of opportunity that we're seeing outside of the core US market there.

Speaker #4: We're really happy with the output and the results that we're getting. Our really strong. And clearly, we're winning result. Sorry. We're winning rights away from our competition.

Speaker #4: And that product is really helping us do that. So we feel very, very strongly about it. And we're super happy with the ROI that we're getting on that.

Speaker #9: Much appreciated.

Eric Handler: Much appreciated.

Speaker #1: Our next question comes from the line of Bernie McTerman from Midham and Company. Please go ahead.

Operator 2: Our next question comes from the line of Bernie McTernan from Needham & Company. Please go ahead.

Operator: Our next question comes from the line of Bernie McTernan from Needham & Company. Please go ahead.

Speaker #8: Great. Thanks for taking the questions. Maybe to start, Mark, I know it's early days, but is official data holding that same demarcation that it had in online sports about any meeting?

Bernie McTernan: Great. Thanks for taking the questions. Maybe to start, Mark, I know it's early days, but is official data holding that same demarcation that it had in online sports betting? Meaning, are you and your competitors staying in your own lanes in terms of selling data to prediction market stakeholders that only you have official data for? Or is it, you know, more of the Wild West out there at this moment in time?

Speaker #8: Are you and your competitors staying in your own lanes in terms of selling data to prediction market stakeholders that only you have official data for?

Speaker #8: Or is it more of the wild west out there at this moment in time?

Speaker #4: Yeah. I mean, it's certainly not the wild west. It's much more the market's evolved. It's much more rational than it used to be. And I think you're seeing that in the results.

Mark Locke: Yeah, I mean, it's certainly not the Wild West. It's much more, you know, the market has evolved. It's much more rational than it used to be, and I think you're seeing that in the results. You know, we're pretty clear, and I think our competitors are pretty clear about what rights we hold. And we're engaging with not only the rights holders, but the prediction markets on that basis. I think the most important thing that people need to think about in terms of prediction markets is as they evolve and mature and become, you know, move towards sort of stronger regulatory framework, they're going to need to fall much more in line with the way that the, you know, I guess the more traditional sports betting markets work.

Speaker #4: We're pretty clear. And I think our competitors are pretty clear about what rights we hold. And we're engaging with not only the rights holders, but the prediction markets on that basis.

Speaker #4: I think the most important thing that people need to think about in terms of prediction markets is as they evolve and mature and become move towards sort of stronger regulatory framework, they're going to need to fall much more in line with the way that, I guess, the more traditional sports betting market has worked.

Speaker #4: So they're going to look to mirror those type of framework, which provides a significant opportunity for us and also other players in the market who have access and the control over that data.

Mark Locke: They're going to look to mirror those, that type of framework which provides them, you know, significant opportunity for us and also, you know, other players in the market who have access and the control over that data. Again, and I think I mentioned this before, you look at what the CFTC have said about the need to move towards official data and the fact that the leagues are starting to align, you're just going to see more adoption on that basis. Again, we're very well placed for that.

Speaker #4: And again, if you look at the I think I mentioned this before. You look at what the CFTC have said about the need to move towards official data.

Speaker #4: And the fact that the leagues are starting to align. You're just going to see more adoption on that basis. Again, we're very well placed for that.

Speaker #8: Got it. Thank you. And then just a clarification, Brian, I believe you mentioned the full year kind of legacy genius guy was unchanged. But there was a pretty substantial beat in the first quarter.

Bernie McTernan: Got it. Thank you. Just a clarification. Bryan, I believe you mentioned, the full year kind of legacy Genius guide was unchanged, but there was a pretty substantial beat in Q1. Is this just a pull forward or just maybe some confusion that we had on seasonality? Thank you.

Speaker #8: So is this just a pull forward or just maybe some confusion that we had on seasonality? Thank you.

Bryan Castellani: No confusion. You know, we're always mindful and managing to the full year guide, and we're consistent with that. Again, here, with Q2 just closing the transaction, we wanna come out of the gate here well, really no change, just managing the full year, rather than quarter to quarter.

Speaker #10: No confusion. We're always mindful and managing to the full-year guide, and we're consistent with that. And so, again, here with Q2, just closing the transaction, we want to come out of the gate here well.

Speaker #10: And so really no change. Just managing the full year rather than quarter to quarter.

Speaker #8: Understood. Thank you both.

Bernie McTernan: Understood. Thank you both.

Speaker #1: Our next question comes from the line of Jed Kelly from Oppenheimer. Please go ahead, sir.

Operator 2: Our next question comes from the line of Jed Kelly from Oppenheimer. Please go ahead, sir.

Operator: Our next question comes from the line of Jed Kelly from Oppenheimer. Please go ahead, sir.

Speaker #11: Hey, great. So thanks for taking my question. I think when you acquired Legend, you were kind of calling for like 20% growth for the full year.

Jed Kelly: Hey, great. Thanks for taking my question. I think when you acquired Legend, you were kind of calling for like 20% growth for the full year. You know, it seems like two of the largest sports books are increasing the amount they're willing to invest in prediction markets. You know, Kalshi has gotten funding. It seems like we're ramping up for what one would call maybe a 2022, 2023 advertising spend that we saw in OSB in prediction markets. Just how should we think about the back half advertising ramp for Legend?

Speaker #11: It seems like two of the largest sports books are increasing the amount they're willing to invest in prediction markets. Kelce has gotten funding. So it seems like we're ramping up for what one would call maybe a 22, 23 advertising spend that we saw in OSB in prediction markets.

Speaker #11: So just how should we think about the back half advertising ramp for Legend?

Speaker #4: Hey, Jed. Thanks for that. Look, obviously, we love that comparison. And we agree with it as well. We're seeing a lot of the sort of excitement that we saw in those early days.

Mark Locke: Hey, Jed, thanks for that. Look, obviously we love that comparison and we agree with it as well. We're seeing a lot of the sort of excitement that we saw in those early days. The, you know, the back half is gonna be seasonal. They're still gonna be rational spenders and even though they've raised a lot of money and they're, you know, being aggressive with their acquisition. However, it's gonna be based around sports events and, you know, we would think it'd be likely to follow that calendar, albeit it's a big opportunity for us. As I said for a while, we're extremely well-placed, even more so now with Legend and the distribution network that they have.

Speaker #4: The back half is going to be seasonal. There's still going to be rational spenders even though they've raised a lot of money in their being aggressive with their acquisition.

Speaker #4: However, it's going to be based around sports events. And we would think it's likely to follow that calendar albeit it's a big opportunity for us.

Speaker #4: And as I said for a while, we're extremely well placed—well, even more so now with Legend and the distribution network that they have.

Speaker #11: Got it. And then just as a follow-up, just with Legend, I guess just in the relationship with the LLMs, when you go do and you kind of go into some of these LLMs, they are scraping covers and taking the sources.

Jed Kelly: Got it. Just as a follow-up, just with Legend, I guess just in the relationship with the LLMs, you know, when you kind of go into some of these LLMs. They are scraping, you know, Covers.com and taking the sources. Is there any way to protect that data or protect what they have or maybe integrate with the LLMs? Can you just talk about that relationship in terms of preserving some of the uniqueness around, you know, I mean, the Legend's site portfolios? Thanks.

Speaker #11: Is there any way to protect that data or protect what they have or maybe integrate with the LLMs? Can you just talk about that relationship in terms of preserving some of the uniqueness around the Legend's site portfolio?

Speaker #11: Thanks.

Speaker #10: Yeah. Look, LLMs are a big opportunity for us through Legend. We what I think I said in my prepared remarks, what LLMs are good at is aggregating information.

Mark Locke: Yeah, look, LLMs are a big opportunity for us through Legend. You know, we, you know, what I think I said in my prepared remarks, you know, what LLMs are good at is aggregating information. Really, this is all about destination sites, which Legend has in the new app that's just been soft launched as well. We feel, you know, from a AI point of view and an LLM point of view, we're a net winner. We're seeing record audience coming through the LLMs to Legend at the moment, which is obviously translating to cash.

Speaker #10: But really, this is all about destination sites, which Legend has in the new app that's just been soft-launched as well. So we feel from a AI point of view and an LLM point of view, we're a net winner.

Speaker #10: And we're seeing record audience coming through the LLMs to Legend at the moment, which is obviously translating to cash.

Speaker #11: Great. Thanks.

Jed Kelly: Great. Thanks.

Speaker #1: Thank you. Our next question comes from the line of Mike. Hickey from Stonex. Please go ahead.

Operator 2: Thank you. Our next question comes from the line of Mike Hickey from StoneX. Please go ahead.

Operator: Thank you. Our next question comes from the line of Mike Hickey from StoneX. Please go ahead.

Speaker #12: Hey, Mark, Brian, congrats, guys, on a great one Q and the closing of your deal here. Just two questions from us, Mark. First one, renewals.

Mike Hickey: Hey, Mark, Bryan. Congrats guys on a great Q1 and the closing of your deal here. Just two questions from us, Mark. First one, renewals, obviously you've had a lot of success in renewals historically. Just curious sort of how you're thinking about any upcoming operator renewals in the US, and what are the key levers you think in terms of driving incremental growth from these agreements?

Speaker #12: Obviously, you've had a lot of success in renewals historically. Just curious sort of how you're thinking about any upcoming operator renewals in the US and where the key levers you think in terms of driving incremental growth from these agreements?

Speaker #4: Yeah. I mean, look, Mike, we're horizontally relaxed about this stuff. We've been doing it for years. And we expect this to carry on in the same way that we've seen it historically.

Mark Locke: Yeah, I mean, look, Mike, we're horizontally relaxed about this stuff. We've been doing it for years, we expect this to, you know, carry on in the same way that we've seen it historically. We know what the levers are, we know what our value proposition is, we've got an incredible track record of customer renewals and net revenue retention and growth. We feel very confident and very relaxed about that.

Speaker #4: We know what the levers are. We know what our value proposition are. And we've got an incredible track record of customer renewals and net revenue retention and growth.

Speaker #4: So we feel very confident and very relaxed about that.

Speaker #12: Nice. Then just curious on the marketing opportunity you see, Mark, international. Obviously, the UK is a big area. I think in terms of Legend on gaming marketing, just the tax situation there has gotten nasty.

Mike Hickey: Nice. Then just curious on the marketing opportunity you see, Mark, international. Obviously, the UK is a big area, I think, in terms of Legend gaming marketing. Just the tax situation there has gotten nasty. Obviously, that's already baked into your guidance. Just wondering the impact you're seeing there, if you think it'll normalize or I guess how it'll trend through the year. Then just broadly speaking, when you look at the Moment Engine, which has been absolutely exceptional and now Legend, when you look international, the biggest opportunities for growth that you guys see in the future. Thanks.

Speaker #12: Obviously, that's already baked into your guidance. Just wondering about the impact you're seeing there—if you think it'll normalize, or, I guess, how it'll trend through the year.

Speaker #12: And then just broadly speaking, when you look at the moments engine, which has been absolutely exceptional. And now Legend, when you look international, the biggest opportunities for growth that you guys see in the future.

Speaker #12: Thanks.

Speaker #11: Yeah. Thanks, Mike. Good question. Look, I mean, Legend's obviously globally diversified. And that's super important part for it. One of the things is might be quite interesting is to think about the US.

Mark Locke: Thanks, Mike. A good question. I mean, Legend obviously globally diversified, that's a super important part for it. One of the things is might be quite interesting is to think about the US. You know, if you remember, look at Flutter's results yesterday. 19% of the growth was iGaming versus 1% betting. Clearly Genius is outperforming on the betting front in a very significant way, as you've seen from the results this month and going forwards. I think the proportion of the money that's coming and growth that's coming from iGaming is very significant and a really good indicator for how well Legend's gonna perform in the US market. Suffice to say, we're pretty excited about that.

Speaker #11: If you remember, look at Flutter's results yesterday. 19% of them 90% of the growth was iGaming versus 1% betting. Now, clearly, Genius is outperforming on the betting front in a very significant way, as you've seen from the results this month and going forwards.

Speaker #11: But I think the proportion of the money that's coming and growth that's coming from iGaming is very significant. And a really good indicator for how well Legend's going to perform in the US market.

Speaker #11: Suffice to say, we're pretty excited about that. Pretty excited about the new exposure that we've got to the iGaming market. That combined with the growth that we're seeing and the advertising product means that we expect some really strong results from that space.

Mark Locke: Pretty excited about the new exposure that we've got to the iGaming market. That combined with the growth that we're seeing and the advertising product means that we, you know, we expect some really strong results from that space.

Speaker #12: Thanks, Mark.

Mike Hickey: Thanks, Mark.

Speaker #1: Our next question comes from the line of Trey Bowers from Wells Fargo. Please go ahead.

Operator 2: Our next question comes from the line of Trey Bowers from Wells Fargo. Please go ahead.

Operator: Our next question comes from the line of Trey Bowers from Wells Fargo. Please go ahead.

Speaker #13: Hey, guys. Just first, a couple of guidance questions. Any seasonality to call out around Legend? The incremental EBITDA for Q2, just relative to two months, seems a little lower.

Trey Bowers: Hey, guys. Just first, a couple guidance questions. Any seasonality to call out around Legend? The incremental EBITDA for Q2 just relative to 2 months, it seems a little lower in that quarter if I just annualize the overall annualized EBITDA contribution of Legend. With that, any update to those long-term guide targets that you guys provided at the time of the acquisition? I have a quick follow-up. Thanks.

Speaker #13: In that quarter, if I just annualize the overall annualized EBITDA contribution of Legend. And then with that, any update to those long-term guide targets that you guys provided at the time of the acquisition?

Speaker #13: And then I have a quick follow-up. Thanks.

Speaker #11: Hey, thanks. While Legend is less seasonal than Genius and you guys know our back half, just given the sports calendar and the advertising calendar, is significantly weighted to Q3, Q4.

Bryan Castellani: Hey, thanks. While Legend is less seasonal than Genius, you guys know, our back half just given the sports calendar and the advertising calendar, is significantly weighted to Q3, Q4. Legend is more even given that it is iGaming. They still have their peak quarters in Q3, Q4. There is some seasonality to it, where the front half is notably less than the back half. No change on the guide. We remain consistent. You know, I think you guys know me well enough that I keep saying we're consistent.

Speaker #11: Legend, it is more even given that it is iGaming, but they still have their peak quarters in Q3, Q4. So there is some seasonality to it where the front half is notably less than the back half.

Speaker #11: And no change on the guide. We remain consistent. And I think you guys know me well enough that I keep saying we're consistent.

Speaker #13: And then just on cash flow, just if we could put a finer point on this. If Q1 burned around 80 million and Q2, you guys expect that to be 140 to 150.

Trey Bowers: Just on cash flow, if we could put a finer point on this. If Q1 burned, you know, around $80 million and Q2 you guys expect that to be $140 to $150 and then a rebound in H2 of $100 million, you know, it's a negative cash flow year of north of $100 million. Then you mentioned kinda conversion showing up at the 50% plus rate in H2. If you're usually in a cash draw position in H1, you know, you should be well north of that in H2, so I think it'd be super helpful just to kinda try to quantify what the one-timers related to the deal, et cetera, were in H1, just to get a better sense of what kinda underlying cash flows look like. Thanks so much.

Speaker #13: And then a rebound in the second half of 100, it's a negative cash flow year of north of 100 million. And then you mentioned kind of conversion showing up at the 50% plus rate in the second half.

Speaker #13: But if you're usually in a cash draw position in the first half, you should be well north of that in the second half. So I think it'd be super helpful just to kind of try to quantify what the one-timers related to the deal, etc., were in the first half just to get a better sense of what kind of underlying cash flows look like.

Trey Bowers: I think it'd be super helpful just to kinda try to quantify what the one-timers related to the deal, et cetera, were in H1, just to get a better sense of what kinda underlying cash flows look like. Thanks so much.

Speaker #13: Thanks so much.

Bryan Castellani: It, the underlying cash flow again, Q3, Q4 is the clean read, is about $100 million total. You know, that Q2, you know, reminder that.

Bryan Castellani: It, the underlying cash flow again, Q3, Q4 is the clean read, is about $100 million total. You know, that Q2, you know, reminder that, you know, given just the confidence in the business, we did reduce the loan balance. In any transaction, as any company would upon close, you do have the financing and the closing costs. You know, as we end the year, you know, we will have optionality on that cash balance in terms of de-lever or invest in the business. You know, again, the Q3, Q4 is the better read and the guidance to 2028, you know, we expect 2027 to build towards that 60% free cash flow conversion in 2028. All of it remains consistent. As you get through the second half into 2027, much cleaner and moving away from one-off transaction related costs.

Speaker #11: The underlying cash flow, again, Q3, Q4 is the clean read. It's about 100 million total. And that Q2, reminder that given just the confidence in the business, we did reduce the loan balance in any transaction as any company would upon close.

Bryan Castellani: You know, given just the confidence in the business, we did reduce the loan balance. In any transaction, as any company would upon close, you do have the financing and the closing costs. You know, as we end the year, you know, we will have optionality on that cash balance in terms of de-lever or invest in the business. You know, again, the Q3, Q4 is the better read and the guidance to 2028, you know, we expect 2027 to build towards that 60% free cash flow conversion in 2028. All of it remains consistent. As you get through the second half into 2027, much cleaner and moving away from one-off transaction related costs.

Speaker #11: You do have the financing and the closing costs. So and as we end the year, we will have optionality on that cash balance in terms of delever or invest in the business.

Speaker #11: So again, the Q3, Q4 is the better read. And the guidance to 28, we expect 27 to build towards that 60% free cash flow conversion in 28.

Speaker #11: And so all of it remains consistent. And as you get through the second half and the 27, much cleaner moving away from one-off transaction-related costs.

Speaker #13: Okay. Thanks, guys.

Trey Bowers: Okay. Thanks, guys.

Speaker #1: Thank you. Our next question comes from the line of Jeff Stancho from Stayfield. Please go ahead.

Operator 2: Thank you. Our next question comes from the line of Jack Stanchal from Stifel. Please go ahead.

Operator: Thank you. Our next question comes from the line of Jack Stanchal from Stifel. Please go ahead.

Speaker #14: Hey, good morning, everyone. Thanks for taking our questions. Maybe just starting off by following up on, I think it's Bernie's question earlier. So the CFTC just wrapped up an engagement process for some potential rule-making.

Jack Stanchal: Hey, good morning, everyone. Thanks for taking our questions. Maybe just starting off by following up on, I think it's Bernie's question earlier. The CFTC just wrapped up an engagement process for some potential rulemaking. We know there's some understandably mixed responses regarding whether or not the CFTC should require the use of official data. I think it's specifically from the exchanges. Mark, can you just help us think about sort of sensitivity to the addressable customer mix and the TAM here for your data if the CFTC does require the usage official data versus the, you know, scenario where it's really more a function of latency that determines official versus non-official data? Thanks.

Jeff Stantial: Hey, good morning, everyone. Thanks for taking our questions. Maybe just starting off by following up on, I think it's Bernie's question earlier. The CFTC just wrapped up an engagement process for some potential rulemaking. We know there's some understandably mixed responses regarding whether or not the CFTC should require the use of official data. I think it's specifically from the exchanges. Mark, can you just help us think about sort of sensitivity to the addressable customer mix and the TAM here for your data if the CFTC does require the usage official data versus the, you know, scenario where it's really more a function of latency that determines official versus non-official data? Thanks.

Speaker #14: We noticed there's some understandably mixed responses regarding whether or not the CFTC should require the use of official data. I think it's specifically from the exchanges.

Speaker #14: Mark, can you just help us think about sort of sensitivity to the addressable customer mix and the TAM here for your data if the CFTC does require the usage of official data versus a scenario where it's really more a function of latency that determines official versus non-official data?

Speaker #14: Thanks.

Speaker #11: Yeah. I think the key thing is that quality of data. You need to have an official results to settle by. Otherwise, you've got the Wild West.

Mark Locke: Yeah. I think the key thing is that quality of data. Look, you know, you need to have an official result to settle by, otherwise you've got the Wild West. I think that's well understood, and you're only gonna get the official result from the official holder of data, and that's fundamentally the leagues and Genius or the leagues and, you know, whoever holds those rights. I think that's a fairly clear relationship that's out there. In terms of the TAM, the way I think about or the way we think about it, the way we model it is we think of each of the major prediction markets being like one of the top US sportsbooks.

Speaker #11: And I think that's well understood. And you're only going to get the official result from the official holder of data. And that's fundamentally the leads in Genius or the leads in whoever holds those rights.

Speaker #11: So I think that's a fairly clear relationship. That's out there. In terms of the TAM, the way I think about or the way we think about it, the way we model it is we think of each of the major prediction markets being like one of the top US sports books.

Speaker #11: So we see the economics of Flutter or DraftKings or Cauchy or Polymarket or Robinhood. We see all of them being equal in terms of their size.

Mark Locke: You know, we see the economics, of, you know, Flutter or DraftKings or Kalshi or Polymarket or Robinhood. We see all of them being, you know, equal in terms of their, you know, their size. When we think about the TAM and then we think about the opportunity for revenue from us, that's our sort of base case. You've then got, you know, marketing around the edge. You've got the addition of Legend, which obviously, you know, over-indexes on customer acquisition, which in the current market is extremely good for us because they've got the opportunity to go outside of the current states where you've seen potential saturation from the existing OSBs. We see an outsized opportunity in the prediction market.

Speaker #11: So when we think about the TAM and then we think about the opportunity for revenue from us, that's our sort of base case. You've then got marketing around the edge.

Speaker #11: You've got the addition of Legend, which obviously over-indexes on customer acquisition, which in the current market is extremely good for us because they've got the opportunity to go outside of the current states where you've seen potential saturation from the existing OSBs.

Speaker #11: So we see an outsized opportunity in the prediction markets. But ultimately, we think that the underlying data piece will settle down, as I said, around the large OSB players size.

Mark Locke: Ultimately, we think that the underlying data piece will settle down, as I said, around the large OSB players', size.

Speaker #14: That's great. Thank you for that. And then switching gears, Mark, you touched on this briefly in your prepared remarks, but just double-clicking here into some of the focus on specifically or only regulated markets and operators.

Jack Stanchal: That's great. Thank you for that. Then switching gears. You know, Mark, you touched on this briefly in your prepared remarks, but just double-clicking here into some of the focus on specifically or only regulated markets and operators. I just want to clarify. Does any of your betting business or any material portion of your betting business revenues come via B2B resellers, or is it only direct relationships with regularly licensed operators? Then if you could just sort of broadly refresh us on your compliance processes that are in place to ensure that customers are behaving according to commercial terms and conditions, that would be helpful as well. Thanks.

Jeff Stantial: That's great. Thank you for that. Then switching gears. You know, Mark, you touched on this briefly in your prepared remarks, but just double-clicking here into some of the focus on specifically or only regulated markets and operators. I just want to clarify. Does any of your betting business or any material portion of your betting business revenues come via B2B resellers, or is it only direct relationships with regularly licensed operators? Then if you could just sort of broadly refresh us on your compliance processes that are in place to ensure that customers are behaving according to commercial terms and conditions, that would be helpful as well. Thanks.

Speaker #14: I just want to clarify. Does any of your betting business or material or any material portion of your betting business revenues come via B2B resellers, or is it only direct relationships with regulated licensed operators?

Speaker #14: And then if you could just sort of broadly refresh us on your compliance processes, that are in place to ensure that customers are behaving according to commercial terms and conditions.

Speaker #14: That'd be helpful as well. Thanks.

Speaker #11: Yeah. Sure. Look, I mean, I think it's a good question. And obviously, we're expected to talk about this. But I've been doing this for 25 years.

Mark Locke: Yeah, sure. Look, I mean, I think it's a good question, and obviously, we expected to talk about this. I've been doing this for 25 years, and we've always taken very deliberate steps to avoid any exposure to any sorts of these risks. You know, the way we operate is that we're very, very selective by design. What that means is that we structurally set ourselves up to only work with operators that meet our very high probity standards, which is why we've limited ourselves to such a carefully curated list of only about 500 operators.

Speaker #11: And we've always taken very deliberate steps to avoid any exposure to any sorts of these risks. And the way we operate is that we're very, very selective by design.

Speaker #11: And what that means is that we structurally set ourselves up to only work with operators that meet our very high probity standards, which is why we've limited ourselves to such a carefully curated list of only about 500 operators.

Speaker #14: That's great. Thanks very much.

Jack Stanchal: That's great. Thanks very much.

Jeff Stantial: That's great. Thanks very much.

Speaker #1: Thank you. And our last question comes from the line of Greg Gibbs from Northland Securities. Please go ahead.

Operator 2: Thank you. Our last question comes from the line of Greg Gibas from Northland Securities. Please go ahead.

Operator: Thank you. Our last question comes from the line of Greg Gibas from Northland Securities. Please go ahead.

Speaker #15: Great. Good morning, Mark and Brian. Thanks for taking the questions. You mentioned being flexible with respect to market maker contracts. And then being fairly short-term relatively as a result.

Greg Gibas: Great. Good morning, Mark and Bryan. Thanks for taking the questions. You know, you mentioned being flexible with respect to market maker contracts and them being fairly shorter term relatively as a result. I was wondering if you could, you know, maybe how you expect those contract terms to evolve over time as prediction markets mature.

Speaker #15: So I was wondering if you could maybe how you expect those contract terms to evolve over time as prediction markets mature.

Speaker #11: Sure. It's a good question. Look, you've got a couple of levers, right? You've got liquidity. And you've got breadth of market. And then you've also got regulatory change.

Mark Locke: Sure. It's a good question. Look, you've got a couple of levers, right? You've got liquidity, and you've got breadth of market, then you've also got regulatory change. We've gotta be focused on all three of those. Taking short-term contracts gives us a bit of a view and flexibility around that. As liquidity in those markets grow, clearly the value of our data and the need for low latency, high quality specific data becomes more valuable, and that's something that we've got a very clear eye on. We see a very clear path to revenue, significant revenue growth in that space as the natural evolution of that market values the higher quality data that's available.

Speaker #11: And we've got to be focused on all three of those. So taking short-term contracts gives us a bit of a view. And flexibility around that.

Speaker #11: As liquidity in those markets grow, clearly, the value of our data and the need for low-latency, high-quality, specific data becomes more valuable. And that's something that we've got a very clear eye on.

Speaker #11: So we see a very, very clear path to significant revenue growth in that space, as the natural evolution of that market values the higher-quality data that's available.

Speaker #15: Got it. Very helpful. And as a follow-up, I wanted to just see with your moment engine now generally available or greater availability now integrated across partners that represent 90% of programmatic advertising ecosystem, how would you maybe characterize early adoption or engagement with those advertising partners relative to your early expectations?

Greg Gibas: Got it. Very helpful. You know, as a follow-up, I wanted to just see with your Moment Engine now generally available or greater availability now integrated across, you know, partners that represent 90% of programmatic advertising ecosystem, how would you maybe characterize early adoption or engagement with those advertising partners relative to your early expectations?

Speaker #11: Yeah, look, we're super excited about this. The adoption rate that we've seen is really, really good. And more importantly, the results that we're getting are very, very strong.

Mark Locke: Yeah, look, we're super excited about this. The adoption rate that we've seen is really, really good. More importantly, the results that we're getting are very, very strong. As I think you heard in the prepared remarks, we mentioned Samsung, you know, outspending by 220%, and it's early days. I mean, look, there's a number of test campaigns that we're running at the moment and are still to finish. If the initial results, you know, maintain at the level that we've seen, this is gonna be a very strong product in the market.

Speaker #11: As I think you heard in the prepared marks, we mentioned Samsung. Our spending by 220%. And it's early days. So I mean, look, there's a number of test campaigns that we're running at the moment.

Speaker #11: And they're still to finish. But if the initial results maintain at the level that we've seen, this is going to be a very strong product in the market.

Speaker #15: That's great to hear. Thanks.

Greg Gibas: That's great to hear. Thanks.

Operator 2: Thank you, everyone. That concludes our conference call for today. You may now disconnect.

Operator: Thank you, everyone. That concludes our conference call for today. You may now disconnect.