Genius Sports Secures $1.2B Legend Deal as Wells Fargo Cuts Target to $10
Genius Sports agreed to acquire media network Legend for up to $1.2B after reporting FY2025 revenue of $669M (up 31%) and adjusted EBITDA of $136M (up 59%). Wells Fargo cut its price target from $16 to $10 over deal uncertainties, and Genius launched Brand Sports Momentum Score with WPP Media.
1. FY2025 Earnings and Guidance
On February 6, Genius Sports reported preliminary unaudited FY2025 results including Group revenue of $669 million, up 31% year-over-year, and Group adjusted EBITDA of $136 million, up 59% with a 20% margin. The company ended the period with $281 million in cash and projected 2026 revenue of $810–820 million and adjusted EBITDA of $180–190 million.
2. Legend Acquisition Agreement
Genius Sports entered a definitive agreement to acquire Legend in a transaction valued at up to $1.2 billion, comprising $900 million at closing and up to $300 million in earnouts. The acquisition is expected to be immediately accretive to adjusted EBITDA margins and free cash flow conversion, while supporting at least a 20% compound annual revenue growth rate through 2028.
3. Wells Fargo Price Target Adjustment
Wells Fargo analysts lowered the price target on Genius Sports from $16 to $10, retaining an Overweight rating but citing uncertainty around Legend’s payment terms and the transaction’s long-term impact on valuation. The firm highlighted the need for greater clarity on earnout thresholds and integration costs before revising its outlook.
4. WPP Media Partnership
On February 10, Genius Sports partnered with WPP Media to enhance brand investment in sports by launching the Brand Sports Momentum Score. This new metric, powered by Genius’s Fan Graph and FANHub platforms, will offer advertisers advanced insights into fan engagement and sponsorship performance.