Company Overview
Genius Sports Limited functions as a provider of technology-led products and services tailored specifically for the sports, sports betting, and sports media industries across the Americas, Europe, and international markets. The company operates within the Communication Services sector, specifically the Internet Content & Information industry, which positions it as a critical infrastructure provider for the digital distribution of live optical tracking, event data, and related content. In terms of scale, Genius Sports Limited holds a market capitalization of $1.17B and employs approximately 2,000 individuals to support its global operations. The annual revenue of $669.49M combined with a market cap of $1.17B indicates that the market values the company at approximately 1.74 times its trailing twelve-month sales, suggesting a valuation that prioritizes future growth potential and strategic positioning over current profitability.
Financial Health
The company reported total revenue of $669.49M for the trailing twelve months, while simultaneously posting a net income of -$111,581,000 and an EBITDA of -$120,560,000. The significant gap between the positive revenue figure of $669.49M and the negative net income reveals a cost structure where operating expenses, likely driven by research and development or sales expansion, exceed the gross profit margin of 23.0%. Despite the negative earnings, the business generated positive Free Cash Flow of $107.22M, which provides a crucial layer of financial flexibility by allowing the company to fund operations or invest in technology without relying immediately on external capital markets. The gross margin stands at 23.0%, indicating that the company retains a portion of revenue after direct costs, yet the operating margin is negative at -18.1%, reflecting high overhead costs relative to sales. The profit margin is further compressed to -16.7%, confirming that the company is currently unprofitable on a bottom-line basis. Regarding liquidity and leverage, the company holds $280.56M in cash against $30.50M in debt, resulting in a debt-to-equity ratio of 4.21, which suggests a leveraged balance sheet structure. The current ratio is 1.56, indicating that the company possesses sufficient current assets to cover its short-term liabilities with a comfortable buffer. Return on Equity is recorded at -17.2% and Return on Assets at -9.2%, metrics that reveal that the company is currently destroying shareholder value and utilizing assets inefficiently in the current period.
Valuation Assessment
The valuation metrics present a complex picture, with a P/E Ratio (TTM) listed as N/A due to negative earnings, while the Forward P/E is 4.59. This discrepancy between the N/A trailing multiple and the low forward multiple of 4.59 implies that the market is pricing in a significant expected improvement in earnings trajectory, anticipating that profitability will return within the next fiscal period. The Price to Book ratio is 1.54, indicating that the stock trades at a premium of 54% above its book value, which suggests investors are paying for intangible assets, future growth options, or brand value rather than tangible net assets. Alternative valuation measures include a Price to Sales ratio of 1.74 and an EV/EBITDA of -7.20. The negative EV/EBITDA of -7.20 reflects the current losses but highlights that enterprise value is still being assigned to the business based on sales multiples and asset backing. The stock price has fluctuated between a 52-week high of $13.73 and a 52-week low of $4.46. Without the current price explicitly provided in the facts, the trading range establishes a volatility band of nearly 1900%, within which the stock moves significantly. The Beta is 1.99, which indicates that the stock is expected to be nearly twice as volatile as the broader market, exposing investors to amplified swings in price relative to general market movements.
Growth & Income
The company demonstrated robust top-line expansion with a Revenue Growth (YoY) of 37.0%, whereas the Earnings Growth (YoY) is N/A due to the reported net losses. The disparity between the high revenue growth rate of 37.0% and the lack of earnings growth implies that the company is prioritizing market share acquisition and infrastructure expansion over immediate profit generation. As a non-dividend payer, the company maintains a Dividend Yield of N/A and a Payout Ratio of 0.0%, meaning it reinvests all available cash flow back into the business rather than distributing income to shareholders. The overall growth and income profile is characterized by aggressive revenue expansion coupled with substantial cash generation, allowing the company to fund its own growth despite current operating losses.