Sportradar Group AB (SRAD), the Swiss sports data provider, reported its Q1 2026 earnings today, revealing figures that fell short of analysts' expectations. Despite a revenue increase to €346.5 million ($405.9 million) from €311 million ($364 million) in the same quarter last year, the results did not meet forecasts.
The disappointing earnings were overshadowed by serious allegations from research firms Muddy Waters and Callisto, which claimed that a significant portion of Sportradar's revenue is derived from clients operating in unregulated 'shadow' markets. In response to these claims, the company expedited its earnings release to address the issues directly.
Muddy Waters and Callisto, while engaging in short-selling, asserted that a considerable amount of Sportradar's income comes from illegal gambling operations. During the earnings call, shareholders were particularly attentive to the management's response. Sportradar firmly denied these allegations, which were detailed in a comprehensive report that included undercover investigations into the company’s dealings at the ICE Barcelona event.
CEO Carsten Koerl strongly defended Sportradar's compliance practices, labeling the allegations as part of a coordinated effort to manipulate the company's stock price. He emphasized, “We have one of the most rigorous compliance processes in a complex, highly regulated industry. The claims that we knowingly engage with illegal operators are completely unfounded and reflect a fundamental misunderstanding of our business model. We exclusively partner with licensed operators in regulated markets.”
In a positive development for investors, Sportradar announced a new buyback program, enhancing its share repurchase authorization by $250 million, bringing the total to $1 billion. This initiative aims to support the stock price, which has seen a decline of 16.5% since the latest allegations emerged. Currently, the stock trades at $13.93 on the Nasdaq.
Despite the positive news regarding the buyback, the earnings call was dominated by the recent negative publicity. CEO Koerl addressed the allegations, including those concerning his personal history and supposed connections to Russian markets. Legal firms Kessler Topaz Meltzer & Check LLP and Bleichmar Fonti & Auld LLP are reportedly investigating whether Sportradar failed to disclose potential reputational and compliance risks.
Koerl expressed his frustration regarding the allegations, stating, “I view these reports as a personal attack. The number of false and defamatory statements about myself and this company is alarming. Many of these are recycled, debunked stories being used to incite panic for the benefit of short sellers.”
Additionally, management discussed the integration of IMG Arena during the earnings call, noting that this process has temporarily impacted the company's bottom line.