Genius Sports stock surged 12% Tuesday on the New York Stock Exchange as a strong 2025 outlook from management overcame missing profit estimates by a wide margin for the year just completed.
Genius shares gained $0.99 in trading to close at $9.31. They gained as much as 15% during trading before closing action trimmed the increase. Still, the move put Genius among the top three best-performing U.S. stocks Tuesday in a broad market that suffered another day of steep declines from consumer spending and tariff pressures.
“I’m expecting growth throughout the year, really, and … it’ll be particularly strong in the first half of the year I think coming from betting,” chief financial officer Nicholas Taylor said during the question-and-answer period with Wall Street analysts on its earnings call Tuesday. “Although it’s early, and I’m not going to guide to 2026 now, I think our initial view is that we anticipate to continue both that strong revenue growth and the continued margin expansion that we’ve seen in ’24, ’25 through ’26 and beyond as well.”
Management told investors that this year should see revenue rise 21% to $620 million and praised the resiliency of its sports betting and media services businesses in the wake of trade wars, taxes and bookmaker losses. That resiliency, and the business’ positive cash flow, could make Genius a buyer as related businesses suffer.
“There are some businesses that are struggling. Some of them are … frankly, not very attractive. Others are more attractive. And the prices of some of those businesses are coming to a point where actually you’re thinking they could be additive to us at the right price, and we’re well-positioned,” CEO Mark Locke said on the call.
The forward-looking vision for the business led most investors to ignore Genius’ mixed results for the fourth quarter and full year 2024 reported Tuesday. Genius tallied 38% growth in fourth-quarter sales to $176 million, thanks in large part to a new round of contracts friendlier to the business. Revenue was $511 million for 2024, up nearly 24%.
But Genius missed profit expectations widely, reporting a net loss of $0.12 per share for the quarter and $0.27 for the year, when analyst consensus predicted a $0.01 per share profit for Q4 and a per share loss of $0.14 for the year.
The bottom-line losses came with some encouraging metrics for Genius, in particular with the U.S. showing a sales rise of 51% thanks to new contracts with every major sportsbook, according to Genius. In-play wagering and technology-driven enhancements for media partners were also cited as strong operations.
The S&P 500 index, meanwhile, closed 1.2% lower. It’s down 6% the past month.
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