Core Viewpoint - Shares of sports-focused firms experienced a decline following a New York State bill aimed at banning sports-related prediction markets for residents [1][4]. Group 1: Stock Performance - Genius Sports saw a nearly 3% drop in after-hours trading, closing at $10.30 [2][3]. - DraftKings shares fell by 0.79%, closing at $31.51 [2][3]. - Flutter Entertainment's stock decreased by 4.26%, with a closing price of $234.45 [2][3]. Group 2: Legislative Impact - The New York State legislation, known as the ORACLE Act, seeks to prohibit various categories of sports-related betting, including wagers on catastrophic events, politics, and individual incidents within larger sporting events [4][5]. - The bill aims to regulate emerging platforms that combine financial trading with gambling mechanics, which have outpaced current oversight [6]. Group 3: Market Context - Kalshi, a federally-regulated prediction market, recently achieved a valuation of $5 billion after raising $300 million [7]. - Polymarket is attempting to re-enter the U.S. market following a $2 billion investment from Intercontinental Exchange Inc. [7]. - The prediction market sector is viewed as part of a "hype cycle," indicating significant interest and potential growth in this area [7].

Genius Sports Limited (NYSE: GENI ) is a company that sells official sports data and analytics used by betting companies, sports leagues, and broadcasters around the world. Earlier this spring, I rated the company’s stock as a Hold,I focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclos ...

Core Insights - Hodges Capital Management Inc. increased its stake in Genius Sports Limited, holding 1,854,611 shares valued at $22.96 million as of September 30, 2025, marking an increase from the previous quarter [1] Company Overview - Genius Sports Limited is a leading provider of sports data technology and integrity solutions, serving a global client base with proprietary technology for real-time data, streaming, and analytics [5][6] - The company reported a market capitalization of $2.41 billion and a revenue of $604.52 million for the trailing twelve months (TTM) [3] Financial Performance - Genius Sports experienced a significant year-over-year revenue growth of 38%, with third-quarter sales reaching $166.3 million [10] - Despite the revenue growth, the company reported a net loss of $28.8 million for the third quarter, contrasting with a gain of $12.5 million in the same period the previous year [10] - The company anticipates a revenue increase of 28% for the year, projecting total revenue to reach $655 million [10] Stock Performance - As of November 6, 2025, shares of Genius Sports were priced at $10.21, reflecting a 42.0% increase from the previous year and outperforming the S&P 500 by 34.2 percentage points [8] - The stock had previously surged over 50% in late September 2025 but was down 24.5% from its peak by November 7, 2025 [7]

Core Viewpoint - Genius Sports Limited reported a significant revenue increase of 38.3% year-over-year for the quarter ended September 2025, although it posted a negative EPS of -$0.11, indicating ongoing challenges in profitability despite revenue growth [1]. Financial Performance - Revenue for the quarter reached $166.28 million, exceeding the Zacks Consensus Estimate of $158.46 million by 4.93% [1]. - The company’s EPS was -$0.11, compared to -$0.02 in the same quarter last year, reflecting a decline in earnings performance [1]. Revenue Breakdown - Revenue from Betting Technology, Content & Services was $110.01 million, slightly above the average estimate of $108.83 million from four analysts [4]. - Revenue from Media Technology, Content & Services was $41.79 million, significantly higher than the average estimate of $35.18 million [4]. - Revenue from Sports Technology & Services was $14.49 million, slightly below the estimated $14.61 million [4]. Stock Performance - Over the past month, shares of Genius Sports Limited have decreased by 6.1%, contrasting with a 2.1% increase in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3].

Financial Data and Key Metrics Changes - The company reported a 38% year-on-year increase in group revenue, marking the strongest quarter of revenue growth since Q1 2022 [5] - Group-adjusted EBITDA increased by 32% year-on-year to $34 million, representing a 20% margin [5][24] - Operating cash flow for the quarter was $27 million, indicating seasonality in cash flow, which typically turns positive in the second half of the year [23] Business Line Data and Key Metrics Changes - Betting revenue grew by 28% year-on-year, primarily driven by growth with existing customers [6] - Media revenue surged nearly 90% year-on-year to $42 million, setting a new quarterly record [12] - The number of sportsbook customers utilizing the BetVision product increased from six to over 100 in one year, demonstrating significant growth [11] Market Data and Key Metrics Changes - The U.S. market is driving most of the growth, with a 19% revenue increase in the more mature European business year-to-date [21][22] - In-play betting represented 30% of total NFL handle, aligning with expectations, and is expected to continue driving revenue growth [9] Company Strategy and Development Direction - The company is focused on expanding its content coverage and increasing product adoption in the online sports betting industry [25] - The strategic acquisition of Sports Innovation Lab is enhancing the company's advertising capabilities and audience understanding [15][50] - The company is optimistic about the long-term potential of its media business, with a unique set of sports data and audience insights driving superior returns for advertising partners [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capitalize on emerging opportunities in prediction markets, contingent on regulatory developments [19][44] - The company anticipates strong growth in both betting and media segments, raising revenue guidance from $645 million to $655 million for the full year [24] - Management highlighted the importance of integrity solutions and official data in the evolving market landscape [46] Other Important Information - The company plans to provide a detailed overview of its business and strategic outlook at the upcoming Investor Day on December 3rd [5][25] - The company is experiencing a timing mismatch between expense and revenue recognition due to new contracts, which is expected to resolve in Q4 [22][30] Q&A Session Summary Question: Can you quantify the impact of the Serie A and European leagues contracts? - Management noted a revenue timing mismatch but did not provide specific quantification [31] Question: What led to the media segment's strong performance? - The growth was attributed to agency partnerships and strong returns from advertising campaigns [40] Question: How does the company view the growth of the betting tech business? - Management expects strong growth above market rates, driven by product rollout and integration [38] Question: What is the company's stance on prediction markets? - Management sees potential opportunities in prediction markets but emphasizes the need for regulatory compliance [44] Question: How is the company addressing the integrity of its data? - The focus remains on providing official data and maintaining transparency in the market [46] Question: What is the outlook for free cash flow in Q4? - Management expects strong organic growth in free cash flow, particularly in the second half of the year [64] Question: How is the company approaching the NFL advertising inventory? - Management reported that NFL ad inventory has been sold out, indicating strong demand [82]

Financial Data and Key Metrics Changes - The company reported a 38% year-on-year increase in group revenue, marking the strongest quarter of revenue growth since Q1 2022 [5] - Group-Adjusted EBITDA increased by 32% year-on-year to $34 million, representing a 20% margin [5][24] - Betting revenue grew by 28% year-on-year, driven primarily by growth with existing customers [6][24] - Media revenue surged nearly 90% year-on-year to $42 million, setting a new quarterly record [12][24] Business Line Data and Key Metrics Changes - The media sector was the largest contributor to revenue growth, with a 90% increase year-on-year [12] - The betting segment saw significant growth due to exclusive rights secured for European leagues and Serie A, enhancing the content portfolio [7][8] - The number of sportsbook customers utilizing the BetVision product increased from six to over 100 within a year, demonstrating rapid expansion [11] Market Data and Key Metrics Changes - The U.S. market is driving most of the growth, with a 19% revenue increase in the more mature European business year-to-date [21][22] - In-play betting represented 30% of total NFL handle, aligning with expectations and indicating a growing trend in the U.S. market [9][56] Company Strategy and Development Direction - The company is focused on expanding its content coverage and product adoption in the online sports betting industry, aiming for durable revenue growth [24][25] - The strategic emphasis is on leveraging unique sports data, audience data, and advertising inventory to enhance return on ad spend for partners [17][19] - The company is observing developments in prediction markets, considering them as potential growth opportunities while ensuring compliance with regulations [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends across both betting and media, with expectations for continued strong growth [24][25] - The company raised its full-year revenue guidance from $645 million to $655 million, reflecting a 28% growth expectation [24] - Management highlighted the importance of official data and integrity solutions in the evolving market landscape [44][46] Other Important Information - The company plans to provide a detailed overview of its business and strategic outlook at the upcoming Investor Day on December 3rd [5][25] - The operating cash flow for the quarter was $27 million, indicating seasonality in cash flow patterns [23] Q&A Session Summary Question: Can you quantify the revenue timing mismatch related to Serie A and European leagues? - Management indicated that the rights market is evolving positively, with rights fees coming down, allowing for better technology deployment and partnerships [28][30] Question: What is the impact of the media segment's performance on EBITDA? - The media segment's strong growth was noted, but it flows through at a lower margin compared to the betting business, with expectations for improvement in future quarters [32][34] Question: How does the company view the growth of the betting tech business? - Management expects strong growth in the betting segment, with product rollouts and integration providing significant revenue opportunities [36][38] Question: What are the implications of prediction markets for the company? - Management sees potential opportunities in prediction markets but emphasizes the need to monitor regulatory developments closely [43][44] Question: How is the company addressing the integrity aspect of its business? - The focus remains on official data and transparency, which are increasingly vital as the market evolves [46] Question: What is the outlook for the media business growth? - Management raised growth expectations for the media business to nearly 30%, driven by strong agency relationships and advertising spend [24][40] Question: How is the company planning to create more NFL ad inventory? - Management confirmed that they have successfully sold out NFL ad inventory, allowing for future inventory creation [82]

Financial Data and Key Metrics Changes - The company reported a 38% year-on-year increase in group revenue, marking the strongest quarter of revenue growth since Q1 2022 [4] - Group-adjusted EBITDA increased by 32% year-on-year to $34 million, representing a 20% margin [4][21] - Operating cash flow for the quarter was $27 million, demonstrating seasonality with cash flow typically flipping positive in the second half of the year [21] Business Line Data and Key Metrics Changes - Betting revenue increased by 28% year-on-year, driven by growth with existing customers and the acquisition of exclusive rights to European leagues and Serie A [5][11] - Media revenue surged nearly 90% year-on-year to $42 million, marking a new quarterly record and the strongest year-on-year increase since Q1 2022 [11][22] Market Data and Key Metrics Changes - The U.S. market is driving most of the growth, with a 19% revenue increase year-to-date in the more mature European business [20] - In-play betting represented 30% of total NFL handle, aligning with expectations and indicating continued growth in this segment [7][9] Company Strategy and Development Direction - The company is focused on expanding its content coverage, increasing product adoption, and leveraging favorable commercial terms to enable durable revenue growth [22][23] - The acquisition of Sports Innovation Lab enhances the company's understanding of fan engagement and advertising effectiveness, positioning it well for future growth [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends across both betting and media, with expectations for nearly 30% growth in media for the full year [22] - The company is optimistic about the long-term potential of its advertising platform, driven by unique data and inventory capabilities [16][23] Other Important Information - The company is observing developments around prediction markets, which may provide new opportunities for expanding the addressable market [17][18] - Management emphasized the importance of compliance with regulatory requirements and the need for official data as the market evolves [32] Q&A Session Summary Question: Can you quantify the impact of the Serie A and European leagues on the quarter? - Management noted a timing mismatch between expense and revenue recognition due to contracts being finalized shortly after the quarter end, but did not provide specific quantification [24][26] Question: What drove the media segment's strong performance? - The growth was attributed to agencies and strong returns from advertising products, with the combination of these factors driving outsized growth [30][31] Question: How is the company positioned regarding prediction markets? - Management sees potential opportunities in prediction markets but is closely monitoring regulatory developments [32] Question: What is the outlook for the NFL's international expansion? - The NFL is experiencing success internationally, with increased interest and betting activity in new markets [46] Question: How does the company view the balance of growth versus profitability? - The company remains focused on achieving a 30% margin target while also emphasizing cash flow conversion and sustainable growth [54][56]

Third Quarter 2025 Earnings November 4, 2025 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results o ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Opportunity - Wall Street is investing heavily in AI, but there is a looming energy crisis as AI technologies require vast amounts of electricity, comparable to the consumption of small cities [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment [3][8] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses significant nuclear energy infrastructure assets, which are crucial for America's future power strategy, and is capable of executing large-scale engineering projects across various energy sectors [7][8] Financial Health - The company is noted for being debt-free and having a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It also holds a significant equity stake in another AI-related company, providing indirect exposure to multiple growth opportunities in the AI sector [9][10] Market Trends - The article discusses the broader trends of AI, energy, tariffs, and onshoring, indicating that this company is strategically aligned with these developments [6][14] - The influx of talent into the AI sector is expected to drive continuous innovation, further solidifying the importance of energy infrastructure in supporting AI advancements [12][14]

Core Insights - Kalshi has made significant waves in the sports betting sector, setting a new trading record of over $260 million last Saturday and surpassing $275 million on Sunday, breaking its previous record of $245 million set on the 2024 election day [1] - The majority of Kalshi's trading volume, approximately 98%, is derived from college and professional football events, despite other sporting and political events occurring simultaneously [1] - The trading volume for the game between the Green Bay Packers and the Dallas Cowboys reached $57.2 million, marking it as the highest trading volume for a single game in history [1] Industry Impact - The surge in Kalshi's trading activity led to a significant drop in the U.S. stock market for gambling companies, with DraftKings falling 12%, Flutter Entertainment over 10%, and other companies experiencing declines ranging from 5% to nearly 9% [2] - Analyst David Bain from Texas Capital Securities believes that investor concerns regarding the sports betting industry are exaggerated, suggesting that the reported trading volume may not be as substantial as indicated, as the $540 million figure could include both buy and sell transactions [2] - Bain anticipates that many gambling companies will provide reassuring statements to investors at the upcoming G2E gaming exhibition in Las Vegas, viewing the current stock price declines as buying opportunities for online gambling stocks [3]