Grandstand reported second-quarter revenue of $37.8 million and adjusted EBITDA of $7.7 million, results that Chief Executive Officer Kevin McCrystle said were in line with the company’s expectations. The company generated $9.6 million in adjusted free cash flow during the quarter and reiterated its full-year revenue and adjusted EBITDA guidance.
The company also discussed its recent corporate rebranding, completion of a restructuring program, continued growth in its sports-data operations, and the launch of Rollcard, a debit-card product designed for sports betting, casino and prediction-market users.
Revenue Mix Shifts Toward Data and Non-SEO Marketing
McCrystle said Grandstand’s B2B sports-data offering, OpticOdds, is pacing to grow more than 50% this year compared with last year. The company said 40% of new OpticOdds deals in the quarter were with international partners, while new agreements were led by quant and market-making clients seeking faster data delivery.
OpticOdds also entered production with Perplexity in early July. McCrystle said OpticOdds had become Perplexity’s 11th most-invoked connector, with daily API requests continuing to rise ahead of the NFL season.
Marketing revenue fell 10% year over year to $26.5 million, reflecting declines in organic-search revenue and markets outside North America. However, Grandstand said its North American marketing business grew 63% year over year, supported by sports-related activity, prediction markets and its Grandstand Partners audience-monetization platform.
Non-SEO revenue accounted for 67% of marketing revenue in the quarter. McCrystle said the company’s non-SEO channels include customer relationship management, paid marketing, social channels, advertising arrangements and Grandstand Partners, which provides technology and commercial support for outside media companies, apps, communities and influencers. He said Grandstand Partners grew more than 100% year over year.
Restructuring Expected to Lift Margins
Grandstand said the restructuring announced in May is substantially complete. The program reduced headcount by approximately 25% and is expected to lower fixed costs by $13 million on an annualized basis. The company expects $6.5 million of those savings to benefit the second half of 2026.
The company recorded $3.2 million in restructuring costs, including $1.1 million settled in the first half and $2.1 million expected to be settled in the third quarter.
Adjusted EBITDA margin was 20% in the second quarter, compared with 35% a year earlier, while gross margin was 64%, compared with 93%. Mark attributed the lower margins to higher costs of sales and marketing associated with a more diversified marketing business, partly offset by lower “Eagle” costs.
Management expects margins to improve in the second half as seasonal revenue increases and fixed-cost savings take effect. Mark said Grandstand expects blended adjusted EBITDA margins in the low 30% range during the second half and into 2027.
- Adjusted net income was $2.5 million, or $0.05 per share, compared with $13.4 million, or $0.37 per share, a year earlier.
- Adjusted free cash flow rose to $9.6 million from $8.2 million in the prior-year period.
- For the first six months of 2026, Grandstand converted 81% of adjusted EBITDA into adjusted free cash flow.
- The company ended the quarter with $8.8 million in cash and total liquidity of $33.3 million, including undrawn credit facilities.
During the quarter, Grandstand prepaid $10.4 million of deferred consideration at what Mark described as a 10% annualized discount and repaid $2.8 million of its term loan. The company financed those actions through free cash flow and an $8 million draw on its credit-facility revolver. Interest-bearing liabilities totaled $122.3 million at quarter-end, alongside $26.5 million of remaining deferred consideration.
Rollcard Targets Betting and Trading Deposits
Grandstand launched Rollcard, an FDIC-insured, high-limit debit card intended for users funding sports-betting, casino and prediction-market accounts. McCrystle said payments and money movement remain a major friction point for consumers and operators in U.S. gaming.
The product’s primary revenue source is expected to be interchange on deposits into gaming and trading platforms. McCrystle said a low-single-digit share of the deposit market could represent a $50 million to $100 million revenue opportunity over five years. He said the product is expected to generate gross margins of roughly 80% to 85% before marketing costs, though the company expects the business to take years to scale.
Rollcard was included in Grandstand’s existing 2026 guidance, with management expecting only a modest contribution this year as it tests and builds the product. The company said its established audience, operator relationships and existing marketing infrastructure should support the Rollcard go-to-market effort.
Outlook Reaffirmed
Grandstand reiterated its full-year 2026 outlook for revenue of $165 million to $170 million and adjusted EBITDA of $45 million to $50 million. Management expects stronger seasonal demand in the second half, particularly as North American sports activity increases.
Mark said the company expects its marketing business to be roughly flat in the second half, while sports data services should continue growing in the teens. Marketing revenue is expected to be modestly lower for the full year because of its first-half decline.
McCrystle said a faster recovery in SEO would be the primary factor that could push results toward the high end of the revenue range. While he said Google has made progress addressing spam in search results, Grandstand’s overall SEO position remains largely unchanged. The company is prioritizing diversification away from SEO and toward direct consumer relationships, data subscriptions, fintech, ticketing and other products.
“Things have stabilized,” McCrystle said in closing remarks, adding that Grandstand is focused on execution, cash-flow management and its growth opportunities entering 2027.
About Gambling.com Group (NASDAQ:GAMB)
Gambling.com Group is a digital performance marketing company specializing in the online gambling industry. Through a diversified portfolio of affiliate websites, the company generates leads and traffic for operators in segments such as sports betting, online casino, poker, bingo and daily fantasy sports. Its platforms offer in-depth reviews, expert guides, comparison tools and editorial content designed to help players make informed choices and drive conversions for partner brands.
The group’s service offerings include search engine optimization, pay-per-click campaigns, display advertising, email marketing and social media management.
