Sportradar Group AG reported first-quarter 2026 revenue of €347 million on April 28, representing year-on-year growth of 11%, as the Swiss sports data and technology company moved to counter allegations from two short-seller research firms that its business model is partly dependent on illegal gambling operators.
The company’s Betting Technology & Solutions division drove the headline growth, with revenue up 15% year-over-year to €288 million, largely on the back of a 20% increase in Betting & Gaming Content attributable to contributions from the acquisition of IMG ARENA and broader uptake of its product suite.
Adjusted EBITDA rose 12% to €66 million, with the Adjusted EBITDA margin expanding to 19.0%. Free cash flow increased 38% to €44 million. The company recorded a net loss of €6 million for the period, compared to a profit of €24 million in the same quarter a year ago, primarily due to unrealised foreign currency losses linked to US dollar-denominated sports rights.
United States revenue rose 4% to €89 million, representing 26% of total company revenue, down from 28% in the prior year quarter, as foreign currency movements continued to weigh on reported results. Full financial details are available in Sportradar’s Q1 2026 earnings press release.
Short-Seller Allegations
The earnings call was brought forward from its originally scheduled date — a decision made in direct response to a damaging week for the company’s share price. On April 22, 2026, reports published simultaneously by Muddy Waters Research and Callisto Research accused Sportradar of misleading investors about the legality of its business model, triggering a share price decline of over 22% and wiping more than $800 million from the company’s market capitalisation in a single session.
Muddy Waters’ report, titled “Sportradar AG: Putting the BET into Aiding and Abetting,” alleged that Sportradar’s business model “depends on illegal operators to survive” and estimated that illegal operators contributed approximately 20–40% of the company’s total revenues.
Callisto Research, conducting its own independent review, examined hundreds of gambling platforms and reported evidence that over 270 individual platforms — more than a third of the 800 operators Sportradar claims to serve — were using Sportradar’s products or services while operating illegally in regulated or prohibited gambling markets. A senior former employee cited in the Callisto report estimated the company’s exposure to unlicensed operators could be as high as 30–40% of revenue.
Muddy Waters also alleged it conducted an undercover operation at ICE Barcelona, where representatives posing as a prospective operator told Sportradar’s sales team they wanted to target illegal markets and, according to the firm, the company was willing to proceed. A Sportradar Asia sales executive was also alleged to have offered to introduce the undercover team to what the report described as China’s largest illegal operator.
Company Response
Sportradar’s chief executive, Carsten Koerl, used the earnings call to forcefully reject the allegations, describing the reports as an effort by “actors” who “thrive on misinformation and repackaging historical allegations to drive down company stock prices at the expense of long-term focused investors.” In a concurrent filing with the US Securities and Exchange Commission, Sportradar stated it “will not tolerate efforts to manipulate its securities” and outlined the know-your-customer process it employs, including verifying ownership and control of partners and screening global sanctions lists.
Integrity Partnerships Under Scrutiny
The controversy carries particular resonance given the company’s positioning. Sportradar is a primary integrity services partner to numerous major sports organisations, including FIFA, the NBA, the NHL, MLB, and the PGA Tour. During the quarter, the company extended its integrity services agreement with FIFA for a further five years through 2031, providing AI-driven bet-monitoring, intelligence, and investigation support across FIFA’s 211 member associations. Its Integrity Services division was one of the few segments to deliver significant growth in the quarter, with revenue up 81% year-over-year to €5.8 million.
Regulatory and Legal Fallout
Three US gambling regulators have reportedly commenced reviews into the company following the publication of the short-seller reports. Multiple US securities law firms have also opened investigations into whether Sportradar made materially false or misleading statements to investors regarding compliance with its partner base.
Following the initial share price collapse, Sportradar shares were trading at under $12 on April 28 — more than 60% below their all-time closing high of $31.79 per share. Jefferies downgraded the stock from buy to hold and reduced its price target from $30 to $14.
Outlook and Leadership
Despite the turbulence, Sportradar reiterated its full-year 2026 financial outlook, projecting constant currency revenue growth of 23–25% and Adjusted EBITDA growth of 34–37%, with an Adjusted EBITDA margin expansion of approximately 200–225 basis points. The company also announced a $250 million enhanced open market share repurchase programme, and confirmed the appointment of Sameer Deen as Chief Operating Officer, commencing May 18, 2026. Deen was previously Chief Commercial Officer and President at UK-listed operator Entain.