Sportradar Group AG (NASDAQ:SRAD) shares fell nearly 12% on Tuesday, even after the sports technology firm reported record quarterly and full-year results and boosted its share repurchase authorization to $1 billion.
The company posted fourth-quarter revenue of €369 million, up 20% year over year from €307 million, driven by a 29% jump in Betting & Gaming Content and incremental contributions from the IMG ARENA acquisition completed in November. Adjusted EBITDA for the quarter rose 48% to €89 million, exceeding expectations.
For full-year 2025, Sportradar delivered record revenue of €1.29 billion, an increase of 17% from €1.11 billion in 2024. Net profit climbed to €100 million, or 7.8% of revenue, compared with €34 million the prior year. Adjusted EBITDA advanced 33% to €297 million, with margins improving 291 basis points to 23.0%.
“Sportradar concluded 2025 with another quarter of strong performance, demonstrating significant momentum across our business as we continued to drive innovation and customer adoption,” said Carsten Koerl, Chief Executive Officer.
Segment performance remained solid. Betting Technology & Solutions generated €1.05 billion in annual revenue, up 15%, while Sports Content, Technology & Services grew 22% to €243 million. The U.S. market was a standout, with revenue increasing 23% to €324 million.
Looking ahead, the company guided fiscal 2026 revenue of €1.557 billion to €1.582 billion, representing constant-currency growth of 23% to 25%. The midpoint implies roughly 22% reported growth. Adjusted EBITDA is expected to reach between €390 million and €400 million, up 34% to 37% on a constant-currency basis, with margin expansion of about 200 to 225 basis points.
Despite the strong outlook, investors appeared underwhelmed. Sportradar also announced it is expanding its share repurchase authorization from $300 million to $1 billion. The company has already repurchased $171 million in shares under the program.
The market reaction suggests that, while results were robust, expectations may have been even higher heading into the release.