Grandstand (NASDAQ:GRSD) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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Summary
Grandstand Ltd reported Q2 revenue of $37.8 million and adjusted EBITDA of $7.7 million, in line with expectations. Adjusted free cash flow was nearly $10 million.
The company completed a restructuring in May, with cost savings expected to benefit margins in the second half of 2026, setting up for higher adjusted EBITDA and free cash flow run-rate.
Grandstand introduced a new fintech product, Rollcard, which targets the sports betting and gaming market, with a projected $50 to $100 million revenue opportunity over five years.
Sports Data Services revenue grew 12% year-over-year, with B2B driving significant growth, now comprising the majority of this segment's revenue.
Marketing revenue declined by 10% year-over-year due to SEO declines, though strong growth was observed in North America and partner audience monetization.
The company's strategic focus includes diversifying its business away from SEO and enhancing AI capabilities to streamline operations and improve margins.
Grandstand is positioned for revenue and adjusted EBITDA growth in 2026 and into 2027, driven by enterprise data growth, diversified marketing, and new product launches.
Management reiterated full-year guidance of $165 to $170 million in revenue and $45 to $50 million in adjusted EBITDA, expecting strong revenue growth in the second half due to seasonal factors.
Full Transcript
OPERATOR (Operator)
Greetings and welcome to Grandstand Ltd.'s second quarter earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to Peter McGough, Investor Relations.
Please go ahead, sir.
Peter McGough, Senior VP of Investor Relations and Capital Markets
Hello everyone and welcome to Grandstand's second quarter 2026 results call. I'm Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Kevin McChrystal, co-founder and Chief Executive Officer, and Elias Mark, Chief Financial Officer. This call is being webcast live through the Investor Relations section of our website, grandstand.com/investors, and a downloadable version of the press release is available there as well.
A webcast replay will be available on the website after the conclusion of this call. You may also contact Investor Relations support by emailing [email protected]. I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided, consists of forward-looking statements, including as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the Risk Factors section of Grandstand's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.
During the call there will also be a discussion of non‑IFRS financial measures. A description of these non‑IFRS financial measures is included in the press release issued this afternoon, and reconciliations of these non‑IFRS financial measures to their most directly comparable IFRS measures are also in the press release, which is available in the Investors tab of our website. I'll now turn the call over to Kevin.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Good afternoon everyone and thank you for joining our 2026 second quarter conference call. We have quite a bit to share with you today, including our second quarter results and outlook for the full year, as well as our recent corporate rebranding and the introduction earlier this week of our new Rollcard product. Elias will follow with a review of the second quarter financial results in detail before we open it up for questions. Looking at our operating performance in the second quarter, revenue of $37.8 million and adjusted EBITDA of $7.7 million were in line with our expectations.
We also generated nearly $10 million in adjusted free cash flow, which is a positive indication on the health of our business and our ability to generate attractive levels of cash flow. The restructuring we announced in May is now substantially complete. The bulk of the associated costs were incurred in the second quarter. Cost savings from the restructure will benefit margins in the second half of the year, underpinning our full-year guidance which we reiterated today.
Looking a little further out, we will exit 2026 with a significantly higher adjusted EBITDA and free cash flow run-rate and an expanded margin profile for the business. The second-half margin profile will carry forward into 2027. Our business has grown and diversified significantly since our IPO, and our recent rebrand reflects these changes. Grandstand captures where the business is today and, importantly, where we will continue to invest and grow.
We have established our position as the intelligence layer at the heart of the sports and gaming ecosystem. Our portfolio of data, technology, content, and audience solutions help power informed decisions across sports, gaming, and entertainment, serving both consumers and partners. Our consumer brands have built trust with each of their unique audiences, developed over more than 20 years, and will continue to reach millions of users under the Grandstand umbrella.
We started as a U.K. gaming comparison hub and, over time, added products targeting new global audiences around sports betting, fantasy sports, and Las Vegas. Now, in addition to recommending the best places for users to play online, we're developing more of our own products to directly service the problems users face in the market, thus deepening the relationship with each user. The data, technology, and advertising tools we developed initially for consumer audiences have significant application for partners in the wider sports, gaming, and entertainment ecosystem.
Today we have multiple partner solutions across five core areas: sports data, which includes real-time odds data, line movement, injuries, and sports content, namely via Optic Odds; advertising, with our ad tech and commercial solutions connecting operators to consumers; partner audience monetization through Grandstand Partners, a technology and commercial support platform that provides media companies, apps, communities, and influencers with the infrastructure to monetize their audiences at scale; entertainment and ticketing solutions through Spotlight Vegas; and now fintech, with the recent launch of Rollcard, which I will come back to soon. Clearly laying out our partner solutions helps us discover more B2B opportunities. We will continue to report based on Sports Data Services and Marketing. Sports Data Services revenue grew 12% year over year in Q2, with B2B continuing to be the accelerating growth driver. Sports Data revenue is on track for growth in the teens this year, with significantly higher growth coming from our B2B Optic Odds solution.
B2B now makes up the majority of revenue for the Sports Data Services business and is pacing to grow well in excess of 50% this year compared to last year. Optic Odds is the intelligence layer powering informed decisions in sports, processing more than 1 million requests per second. New B2B data deals in Q2 were led by quant and market-making partners who value the speed of our data. Forty percent of our new deals were international partners, and we continue to see success upselling existing clients.
Optic Odds is also rapidly becoming the sports data layer for consumer AI. Perplexity went fully live into production in early July. Optic Odds is the 11th most invoked connector in Perplexity, ahead of massive enterprises like Gmail, Google Drive, Slack, Notion, and the Snowflake API. Daily volume requests are still climbing by the day, all before the natural catalyst of the NFL season. Q2 total Marketing revenue is down 10% year over year to $26.5 million, driven from declines in SEO revenue.
But we saw strong growth in North America and from our partner audience monetization platform, Grandstand Partners. Our Marketing business has dramatically diversified from a year ago, with non-SEO Marketing revenue now accounting for 67% of our Marketing business. While gross margins for non-SEO channels are lower, the opex requirements tied to these revenues are also much lower than for organic SEO. The restructure heavily targeted fixed costs in the Marketing business, which will result in improved margins going forward.
As we move into the second half of the year, we see a clear path to returning the Marketing business to growth for the 2027 full year. I also want to highlight that even at the lower Marketing revenue run-rates, our Marketing operations continue to generate attractive levels of cash flow. Now we can finally talk about Rollcard, our new fintech solution. It is a purpose-built, FDIC-insured, high-limit debit card for sports betting, casino, and prediction markets.
Payments and money movement remain a high-friction point in gaming for both consumers and operators. Rollcard has been designed as a high-limit, low-friction debit card built with a betting consumer in mind. The revenue model is based on interchange generated from dollars deposited into sportsbooks, casinos, and prediction markets. Rollcard customers earn cash back on qualifying deposits. The underlying deposits that drive handle and trading volume are in the tens of billions of dollars.
A low single-digit market share for gaming, betting, and trading deposits forecasts a $50 to $100 million revenue opportunity in the next five years. The majority of handle and trading is concentrated into a smaller cohort of players that actively bet across multiple platforms. Rollcard was designed to serve that cohort of players. The value proposition for the cardholder is simple: safe, private, high-limit, low-friction debit card to manage the funding of their betting and trading strategies.
The cardholders will be incentivized with a cashback program and other premium benefits that we'll introduce to enhance cardholder experience and loyalty. Rollcard is backed by Grandstand's sports, gaming, and entertainment audience. That existing audience relationship provides Rollcard direct reach to high-intent customers from the start. In addition, our existing relationships with prediction markets, online operators, and land-based operators will expedite the go-to-market motion.
The Rollcard payments platform is a clear example of Grandstand developing value-added solutions as a fintech intelligence layer for payments in sports, gaming, and entertainment, creating a deeper connection between both consumers and partners. Looking forward, the balance of 2026 is setting up for a typical seasonal pickup as we move into the North American sports season, which will drive revenue growth. We will also benefit in the second half of this year from the restructure-related fixed cost savings, which will drive margin improvement.
Restructure wasn't just about resetting our cost structure; it was an intentional shift to layer AI at the core of how we operate, then build teams around it. The AI-enabled restructure has allowed us to reduce management layers and empower more nimble teams. Repetitive processes have been and continue to be automated. While work velocity is increasing, we are continuing to innovate in how we utilize the AI tools available. We are now rolling out Momento, our context layer that sits underneath our tools and gives them the company's memory.
The benefit compounds the more we use it by remembering relevant knowledge across the business. We're also moving to a multi-agent harness to provide access to the best models while keeping token costs in check. Grandstand is now positioned to sell more of our own product suite directly to our audience, including Rollcard, OddsJam, RotoWire, and Spotlight, in addition to our performance-based advertising. Keeping our audience within our own ecosystem allows us to deepen engagement while increasing revenue opportunities.
Enterprise data growth and a diversified Marketing business are positioning Grandstand for a return to revenue and adjusted EBITDA growth as we move through 2026 and into 2027. With that, I will turn the call over to Elias for a review of our second quarter financial results and further detail on our guidance for the year.
Elias Mark, Chief Financial Officer
Thank you, Kevin. Second quarter revenue of 37.8 million and adjusted EBITDA of 7.7 million were in line with expectations; adjusted free cash flow was 9.6 million. The operating dynamics for the first quarter were carried forward into the second quarter, and total revenue was down 5% year over year, with lower marketing revenue offsetting continued strong growth in data services. Data revenue of 11.2 million grew 12% year over year, entirely driven by strong growth in enterprise services.
Data revenue was 30% of total revenue in the quarter, and the majority of data revenue was enterprise revenue. Marketing revenue of 26.5 million declined by 10%. Strong growth in partner audience monetization and in North America, including from prediction markets, was offset by declining revenue from organic search and for markets outside of North America. Adjusted EBITDA in the second quarter was 7.7 million. Adjusted EBITDA margin was 20% and gross margin was 84% in the quarter compared to 35% and 93% in the year-ago period.
The lower margin reflects the higher cost of sales and marketing expenses associated with a diversified marketing business, partly offset by lower people costs as we have executed on the previously announced restructure plan. As a result, we entered the third quarter with a reduced headcount of approximately 25% and will see 13 million of lower fixed costs on an annualized basis, driving margin expansion moving forward. We incurred 3.2 million of restructuring costs, of which 1.1 million was settled during the second quarter and 2.1 million will be settled during the third quarter.
Adjusted net income was 2.5 million and adjusted net income per share was $0.05 compared to 13.4 million and $0.37 in the year-ago period. The decline reflects the lower adjusted EBITDA and higher interest expense in the quarter, and unrealized foreign exchange gains positively affecting the year-ago period. Adjusted free cash flow was 9.6 million compared to 8.2 million in the year-ago period. Cash conversion in the quarter was unusually high because of working capital timing differences following the first quarter, where it was unusually low.
Over the first six months of the year, 81% of adjusted EBITDA was converted to adjusted free cash flow. Whereas timing differences can affect a single quarter, we expect that our low CapEx business model will continue supporting such cash conversion in the 70 to 80% range, allowing us to both delever and continue investing in product innovation. At the end of the second quarter, we had total cash of 8.8 million and total liquidity of 33.3 million, including undrawn credit facilities of 24.5 million.
During the second quarter, we continued to delever by prepaying 10.4 million, settling the third consideration, achieving a 10% annualized discount, and by repaying 2.8 million on our term loan. This was financed by free cash flow generation and an 8 million drawdown on the revolving credit facility. At the end of the quarter we had 122.3 million of interest-bearing liabilities and 26.5 million of remaining deferred consideration. Finally, on our guidance, we are reiterating our outlook for the full year to be in the range of 165 to 170 million, and adjusted EBITDA to be in the range of 45 to 50 million.
The implied margin reflects the mix shift in marketing revenue, Roll Card launch expenses, and modest revenue and fixed cost savings from the restructure benefiting the second half of the year. We expect positive seasonality in the second half of the year to drive strong sequential revenue growth. Paired with 6.5 million of fixed cost savings from the restructure, this will drive margin expansion and significantly higher adjusted EBITDA and adjusted free cash flow in the second half of the year.
We expect that trajectory to carry forward into 2027 and drive strong year-over-year adjusted EBITDA growth with expanded margins in the low 30s. And with that, we will turn it over for questions.
OPERATOR (Operator)
Thank you, Saul. Ladies and gentlemen, just a reminder, if you would like to ask a question, please press star and then one. If you would like to withdraw your question, please press star and then two. Again, to ask a question, please press star and then one. Now, the first question we have comes from Jeff Stanton of Stifel. Please go ahead.
Jeff Stanton, Analyst at Stifel
Oh great. Good afternoon. Thanks, everyone. Why don't we start with the new product launches? That's where we've been getting the most questions since you announced it, including tonight. Devin, can you just maybe talk to the decision internally to expand sort of a bit further outside what I would call your kind of historical swim lane with payments and maybe how you think about your right to win in a competitive environment in that space?
Devin
Yeah, sure, Jeff. I mean, first off, payments are the biggest friction in U.S. gaming and it's a space we've been eyeing since PASPA. You know, we've been doing this in this space for 20 years and have a deep understanding of the issues users and operators face. And as we continue to build out our audience, we want to find more ways to provide value to them directly rather than just referring to operators. It's a large space. As I mentioned, there's 50 to 100 million upside, margins in the mid 30s.
We have the audience that we can sell into, which is really helpful to give us a launchpad for the business. We have partnerships in the ecosystem with operators and everybody else we need to work with. We have all the pieces we need to run this business already. As we've been developing our owned and operated audience, our partner audience, our ad tech, and various pieces, we can use that to sell into Roll Card. So we think that's going to give us a great advantage.
Jeff Stanton, Analyst at Stifel
That's great. Thanks, Devin. And then for our follow-up, maybe switching gears over to the guidance. Looks like the midpoint implies about 5% revenue growth in the back half versus flat in Q1 and down 5% in the second quarter. Elise, you called out a few tailwinds in the prepared remarks, but maybe can you just rank order for us, you know, some of the growth drivers as you see it that bridge you back into the mid-single-digit range. And I think I caught this, but is it fair to assume, you know, sort of growth improves sequentially through Q3 into Q4 and continued into 2027?
Elias Mark, Chief Financial Officer
Yes. As we enter the third and, in particular, the fourth quarter, we have some positive seasonality coming into play that will help us reverse the trend in our marketing business. Where we've seen a decline, we think the marketing business over the second half of the year will be roughly flat, and we see the data business continue growing in the teens. So that's kind of the components on the revenue side.
Jeff Stanton, Analyst at Stifel
And just to be clear, did anything change with your assumptions on roll card in the back half and for the revenue guidance?
Elias Mark, Chief Financial Officer
No, roll card was included in our original guidance. We do assume a modest start to the ramp this year. It's a bit of trial and error in the beginning, so it does include a small contribution for roll card. But that was baked into our guidance, and nothing has changed since launch a couple of days ago.
Jeff Stanton, Analyst at Stifel
That's right. Thank you both.
OPERATOR (Operator)
Thank you. The next question we have comes from Barry Jonas of Truist Securities. Please go ahead.
Barry Jonas, Analyst at Truist Securities
Hey guys, thank you for taking my questions. Wanted to get further into the roll card. Kevin, is there a way to help thinking about the long-term market opportunity for the card and, I guess, the payment platform in general as a whole? Thank you.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah. So the primary way we make money is on interchange on deposits into operators, and that is a very large market of deposits into operators. So, you know, taking a reasonably small, say 1% to 2% interchange fee on that and taking a reasonably small market share is, alone, a pretty big opportunity. We are not going to scale this immediately into that 50 to 100 million; that's going to take years to do, but we think on a five-year timeline it could get quite large.
Expect something like 80% to 85% gross margins prior to marketing on that business. There are additional ways we can monetize besides interchange, but that's kind of more medium term. Right now we're focused on that piece of the business.
Barry Jonas, Analyst at Truist Securities
Great. And then just wanted to dig in a little into OddsJam. I think we've seen a proliferation of competitive tools, potentially AI-driven. Maybe just talk about how you plan to keep OddsJam's current positioning and where you sort of sit in terms of the product development and how you'll sort of compete with up-and-coming competitors. Thank you.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah, there are certainly plenty of startups whipping up kind of worse versions of OddsJam with AI and pricing it lower. We are still competitive with that. We're building new core features to increase more of a moat for startups. The most important thing we've been focused on this year is rebuilding our social distribution engine since the end of the earn-out, and I think we're in a much better place now for NFL and expect that to stabilize. But an important piece of OddsJam—and I think the same for RotoWire—is to understand how we report.
We report by revenue type, not by brand, and so there's a lot of additional value coming from RotoWire and OddsJam. We're seeing very strong growth in North American marketing, and a decent piece of that is supported by RotoWire and OddsJam, which goes under the marketing revenue. Additionally, OddsJam's a key support driver for roll cards. So there's multiple ways for us to win with OddsJam—not only with the data, which also flows into Optic Odds, but there's a marketing opportunity.
On top of that there's roll card support, and we are—I don't want to get into the features themselves—but developing a much deeper feature set which would be very challenging for new products to compete with.
Barry Jonas, Analyst at Truist Securities
That's very helpful.
OPERATOR (Operator)
Thank you. The next question we have comes from David Bain of BE Securities. Please go ahead.
David Bain, Analyst at Texas Capital
Great. Thank you. And we're at Texas Capital, but that's fine. Thank you for all the color; that's been helpful. Maybe first, could you take a step back and share longer-term margin expectations for the marketing business and the levers within that number, including maybe some bifurcation of SEO versus non-SEO? Any kind of detail would be helpful.
Elias Mark, Chief Financial Officer
Yeah, I think it's helpful to start in H2. We expect from Q2 through to the rest of H2 to roughly double the contribution from the marketing business. A significant portion of our restructure was tied to fixed costs related to the marketing and SEO business, which will help the margins of that business into the end of the year and then a run rate going into next year. So the margins will expand this year. We don't have to wait a year or two for that to happen.
If we look at the mix here within the marketing business, about two-thirds of the business at run rates is from sources other than SEO. Most of the business is very diversified as it is, and the expectation is to have contribution margins moving forward in the 40s from the marketing business, which compares to contribution margins on the data side in the mid-60s.
David Bain, Analyst at Texas Capital
Okay. Okay, great. Yep. Sorry, Ellie.
Elias Mark, Chief Financial Officer
Just on the EBITDA side, if we looked at landed EBITDA margins in totality, we're guiding towards low 30s for the second half of the year, and that's where we see the business performing coming into 2027 as well. The data side of the business will continue to scale in '27 with very high incremental margins. The marketing business we expect to have very modest growth, but positive growth in '27, and that should have a neutral margin effect. And the balance there is roll card, which will have much lower margins in the scaling phase.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah, spam is getting better. Google has seemingly done a better job of dealing with that. That said, the overall SEO positioning is roughly, you know, there's a slight decline from Q1 to Q2. That's just normal seasonal trends, obviously a larger decline year over year. The regulatory environment and a handful of the countries where we have predominantly SEO-focused businesses have not been helpful. UK is an example of that, where we're seeing CPAs down about 15%.
But we are seeing some positives there. In the North American business, the marketing is up pretty substantially and that also includes SEO. So it's not down everywhere, that's for sure. But in terms of the future, SEO is certainly not going away. We are really focused on diversifying away from SEO so we're less impacted by whatever the future of Google is. This includes many channels, but ultimately building direct user relationships that allow us to sell subscriptions, fintech, tickets, et cetera, to those audiences and also cross-sell into affiliate platforms I mentioned.
I mentioned the subscription business that we have revenue associated with those as well. Rotowire in particular has been doing very well with SEO and that, you know, that goes under the marketing business. But it's from Rotowire.
OPERATOR (Operator)
Thank you. The next question we have comes from David Katz of Jefferies. Please go ahead.
David Katz, Analyst at Jefferies
Afternoon everyone. Thanks for taking my question. I think I wanted to keep going down that same vein you just left off and talk about the non-SEO portion of the business and the marketing piece of the business. You said doing very well. Can you maybe take us just a little bit farther and give us a long-term aspirational, any qualitative sizing or sense of where you think that can go since it seems to still be growing pretty well?
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah. As we referenced, the non-SEO is now about two-thirds of the marketing business. It's the same channels we've talked about before, some mix of CRM, paid and social. But Grandstand Ltd is also a big piece of this. That's our partner audience monetization platform which provides technology, commercial tools and whatnot to external media companies and help them monetize their audience. At scale that's up over 100% year over year. It's roughly the same proportion of SEO to non-SEO as our overall marketing business.
We're also doing more advertising deals. So think brand exposure rather than just performance deals. We are diversifying globally but a lot of that impact we're seeing now is in North America. And with that the North American business is—North American marketing business is going strong. The North American marketing is up 63% year over year and marketing is about 57% of our total North American business. And this is partly Grandstand Ltd which I mentioned.
Prediction markets are starting to ramp acquisitions. So we have a new partner in the market to work with. And in the US a lot of it's sports. So World Cup was helpful in Q2, but that was roughly as expected. You will see some larger indices at a slightly lower value per NDC with that. But rev share will also pick up long term with that. SEO is still holding up there in North America, but there is a very significant run rate for the marketing business.
Everybody asks us when is sports data going to be larger than marketing? And the answer is probably not for a little while on a contribution basis. In a few years that seems possible or likely. But until revenue, the marketing business is going to keep growing. You know, we've talked for a long time about diversifying, but we have a diversified marketing business now with two-thirds of it being non-SEO. You know, it can grow very substantially from where it's at today.
David Katz, Analyst at Jefferies
Understood. Appreciate all of that. With respect to prediction markets, you know, it obviously is impossible to have a call and not spend some reasonable amount of time on that. Can you just, you know, help us think about, you know, the size level and the proportion that that can bring, you know, given how quickly that's growing and, you know, what your avenues of engagement are there.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah, we've historically primarily talked about prediction markets in terms of our data business and that is still going strong. As I mentioned earlier, a lot of these market makers and quant funds are now entering the space and utilizing our data. We are, though, doing more on the marketing side than we were previously. It's really useful to have another player in the market that's, you know, that needs traffic and users and we're happy to supply that.
Grandstand Ltd is not cannibalized by these prediction markets. It's really the opposite. You know, they're providing an additional participant in the market looking for users and it seems like it's going to push the rest of the market to be a little more aggressive in the NFL season in terms of acquisition. So I think it'll be helpful all around. Hard to say right now in terms of the size of the prediction market. As you know, I think when we talk Q3, we'll have a better frame on that.
This is the first NFL season with a full push there.
David Katz, Analyst at Jefferies
Thank you.
OPERATOR (Operator)
Thank you. Ladies and gentlemen, just a reminder, if you would like to ask a question today, please press star and then one. Now the next question we have comes from Chad Baynon of Macquarie. Please go ahead.
Chad Baynon, Analyst at Macquarie
Good afternoon. Thanks for taking my question. Just with respect to the guide and holding that in relation to the inline second quarter, I think you've said marketing should be roughly flat for the year, sports up in the teens. But can you kind of help us think about what would get you to the low or high end, particularly of that revenue guide, given that we have about five months left in the year? Thank you.
Elias Mark, Chief Financial Officer
Yeah. So to clarify, we expect the marketing business to be roughly flat in H2 as it was down in H1. It will be marginally down for the full year. If we look at the range of guidance, what would really push us towards the top of the range would be a recovery in SEO. That would go through Bear Equity, the data side of our business. It's a little bit easier to forecast and would have less volatility in expectations. The primary growth drivers right now are the sports data B2B, the enterprise sales, and North American marketing.
So those are the two pieces. They're both growing at a pretty good pace right now. So if they grow a little bit faster, that's what would get us to the top of the range.
Chad Baynon, Analyst at Macquarie
Great, thank you. And then on North American, maybe a two-parter here. There has been another player that's kind of climbing the ranks in terms of market share—some slight shifts there on the podium. So wondering how your diversification looks amongst customers. And then secondly with respect to Alberta, any comments in terms of if it's been a successful customer acquisition period up there? Thanks.
Kevin McChrystal, Co-Founder and Chief Executive Officer
I'll take your Alberta question first. That launched in Q3, so not in these Q2 figures. It has been a reasonably successful launch. I think our market share is about what it normally is in these things. It is not the biggest province and it's not a really spiky launch. It's going to be a flatter, more prolonged launch. But we are doing reasonably well in Alberta, so feel good about that. In terms of your first question, I guess you're a little vague.
In terms of the new market participant, what are you referring to exactly?
Chad Baynon, Analyst at Macquarie
Just with respect to Fanatics' recent move in iGaming share in iGaming.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah, look, iGaming for us is pretty stable—or sports betting, actually for both, actually; it's probably better to phrase it that way. Yeah. As I mentioned earlier, I think having additional players beyond the traditional OSB partners in the market is pushing everybody to be more aggressive in terms of their acquisition, and we benefit from that. We are working closely with them, with Fanatics, and I expect that to go well. In terms of the iGaming side, that's pretty consistent.
Not too much moving sharply there. In terms of sports betting, I think we're lined up nicely for the fall with our North American marketing business being the key driver within our marketing business. That is primarily sports-based, or very heavily sports-based. And so we, you know, do see more seasonal trends on the US calendar rather than the historical—you know, when we were more international casino it was a slightly different trend line there.
So we expect a strong September moving to NFL.
Chad Baynon, Analyst at Macquarie
Thank you. Appreciate it.
OPERATOR (Operator)
Thank you. Ladies and gentlemen, just a final reminder, if you would like to ask a question today, please press star and then one. Now the next question we have comes from Mike Hickey of Stonex. Please go ahead.
Mike Hickey, Analyst at Stonex
Hey Kevin, Elias, thanks for taking our questions. Maybe just the first one, Kevin, on your data business—continues to be a real window of strength for you guys. Can you talk about your product pipeline for the sports data business and what new products or capabilities you're most excited about?
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah, excited about all of the sports data B2B, to be frank. But as noted with the prediction markets, the market makers, there's a new buyer of data. International still going strong. A year ago that was zero of the business and now it's 40% of new sales. And we're increasingly upselling a lot of existing clients as we slowly build out new feature set within Optic. You know, we did talk in Q1 about non-sports data entering; that went live pretty recently.
So we'll need to take a couple months to kind of see what comes there. But we plan to continue building more products on top of Optic to power more of what operators need from us. You know, we started as this kind of trading, risk management, and can move on to power more of what they need to power their entire sportsbook.
Mike Hickey, Analyst at Stonex
You guys, it's nice to see you hit consensus, beat numbers this quarter. Obviously you've gone through a challenging environment to give guidance and you've restructured your business. Looks like SEO is stable somewhat here, data is growing nicely. Do you feel like, Elias, that you've sort of reached a point now where your business is stable enough that you have greater confidence in your forward guidance or your ability to forecast growth?
Elias Mark, Chief Financial Officer
Yeah, our internal feeling is that we have reset. We're confident about our guidance for the balance of the year and we're pretty happy with where we're at with our internal modeling for '27 and beyond as well. I do feel that we're in a bit more of a stable state than perhaps we were six months ago.
Mike Hickey, Analyst at Stonex
Maybe one more. I think we're probably the last question here. Kevin, you look at your geo segments, pretty good strength here obviously in North America, but pretty pronounced weakness in UK, Ireland and Europe. And I think you talked a bit to that weakness being regulatory-driven, maybe the tax increase in UK you're getting the first quarter impact. Can you just give us maybe a little bit more details on the weakness that you're seeing ex-US, how you think that that business will trend obviously moving forward.
Thanks guys.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Yeah, it obviously is down year over year. The UK business is primarily an SEO business for us today. We're doing more there to diversify it, but a heavy proportion is still SEO. So we are diversifying traffic sources and whatnot in the UK and Ireland, and other international geos as well. But what we're seeing there is that you add some negative SEO with the regulatory impact on top, and that's what kind of drives it down to where it's at. I do think it's at a reasonably stable place.
I don't know that it's going to be a primary growth driver for us going forward. I think it'll be a nice business. The UK is still a market that has a lot of operators. So if you look at the total market size, the offshore is eating into it. There's a handful of operators that are exiting the market, but there's still a lot of operators that all have an appetite for traffic that we can help offer them. So I think it's going to be a nice cash cow business for a long time, but probably not a primary growth driver.
For international in general, whereas a lot of these other international markets are more SEO-dependent than we are in North America. And again, that's something that we are evolving as well. But we're ahead of pace in North America with the diversification.
OPERATOR (Operator)
Thank you. Thank you. At this stage, there are no further questions on the conference. I will now hand back to Kevin McChrystal for closing comments. Please go ahead, sir.
Kevin McChrystal, Co-Founder and Chief Executive Officer
Thanks, everybody. Obviously, you know, it's not too long ago I took over as CEO. Setting it nicely, you know, moving one step at a time. The initial priority was the structure and related team changes. Next, we wanted to reset the corporate identity, which we've done. Finally, we are able to launch role card. We're extremely focused on granular execution across all projects and tightly managing our cash flow. We feel really good about where the business is now.
Things have stabilized, there's a lot of growth prospects on the horizon. So thank you very much and look forward to chatting next time.
OPERATOR (Operator)
Thank you, ladies and gentlemen. That then concludes today's conference. Thank you for joining us. You may now disconnect your lines.
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