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Global Alpha Capital Adds Another $15 Million to Its 7th-Largest Position: Genius Sports
The Motley Foolยท 2025-12-10 03:49
Core Insights - Global Alpha Capital has increased its stake in Genius Sports Limited by purchasing 537,900 shares, bringing its total holdings to 4,733,700 shares valued at approximately $58.60 million as of the end of the third quarter [2][3] - Genius Sports reported a significant sales growth of 38% in the last quarter, indicating strong performance in the sports data and technology sector [1][11] - The company currently has a market capitalization of $2.57 billion and trades at a price of $10.75 per share, reflecting an 11% increase over the previous year [4][3] Company Overview - Genius Sports Limited is a leading provider of technology and data-driven services to the sports, sports betting, and media sectors, leveraging proprietary technology for live data collection and distribution [6][8] - The company serves over 400 sports leagues, more than 650 sportsbooks, and 250 brands, providing a comprehensive suite of data, streaming, marketing, and integrity solutions [11][9] - Genius Sports has established contracts with major partners, including the English Premier League, NCAA, NBA, and holds a 10% stake from the NFL, aligning incentives for continued collaboration [12][11] Financial Metrics - The company reported a trailing twelve months (TTM) revenue of $604.52 million, with a net income of -$119.17 million, indicating ongoing challenges in achieving profitability [4][11] - Genius Sports' stock-based compensation currently accounts for 24% of its revenue, which may impact future profitability if not managed [12] - The stock is trading at 36 times forward earnings, suggesting a premium valuation relative to its growth potential and market position [13]