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Grandstand Limited
(NASDAQ:GRSD)
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Rating:46Neutral
Price Target:
$2.00
▲(20.48% Upside)
Action:Reiterated
Date:07/25/26
The score is held down primarily by deteriorating profitability, higher leverage, and sharply weaker recent free cash flow, alongside bearish technical conditions below major moving averages. Partially offsetting this is a mixed-but-improving FY2026 outlook with planned cost savings and expected H2 acceleration, though execution and SEO/regulatory risks remain meaningful.
Positive Factors
Diversification away from SEO
Shifting marketing mix toward CRM, paid media, audience monetization and partnerships reduces reliance on volatile organic search. Durable channel diversification supports more predictable lead sources, revenue mix stability, and lower single-channel risk over the next 2–6 months as partnerships scale.
Negative Factors
Margin and profitability compression
Rapid margin erosion indicates either rising cost of sales from diversification or pressure on pricing and retention. Sustaining healthy profitability is critical to service debt and fund product investment; continued compression would weaken cash generation and limit strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversification away from SEO
Shifting marketing mix toward CRM, paid media, audience monetization and partnerships reduces reliance on volatile organic search. Durable channel diversification supports more predictable lead sources, revenue mix stability, and lower single-channel risk over the next 2–6 months as partnerships scale.
Read all positive factors
Grandstand Limited (GRSD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.74M
Dividend YieldN/A
Average Volume (3M)583.37K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth19.23%
EPS Growth-232.12%
CountryUS
Employees599
SectorConsumer Cyclical
Sector Strength84
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-1.29
Shares Outstanding35,097,190
10 Day Avg. Volume407,555
30 Day Avg. Volume583,368
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.79
Price to Sales (P/S)1.17
P/FCF Ratio17.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.07Price Target Upside205.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.34
Revenue Forecast (FY)$165.24M
Grandstand Limited Business Overview & Revenue Model
Company Description
Grandstand Limited provides marketing and sports data services for the gambling industry in North America, the United Kingdom, Ireland, rest of Europe, and internationally. The company offers digital marketing, and consumer and enterprise data sub...
How the Company Makes Money
Gambling.com primarily makes money by referring potential customers to online gambling operators and getting paid based on the commercial value of those referrals. Its key revenue streams are performance marketing arrangements with operators, typi...
Grandstand Limited Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong execution and accelerating product-led growth in sports data (OpticOdds), meaningful progress diversifying away from SEO, planned cost savings via a 25% workforce restructuring, and a constructive FY2026 guidance with expected H2 acceleration. Offsetting these positives are material near-term profitability and margin compression, declines in marketing revenue driven by SEO and regulatory headwinds (notably UK&I), lower free cash flow versus prior year, and elevated leverage and one-time cash obligations. Management is focused on H2 recovery and deleveraging, but execution risk exists as the company transitions to an AI-first operating model and scales non-SEO channels.Positive Updates
Stable Top-Line and Clear H2 Outlook
Q1 revenue of $40.4M was flat year-over-year and in line with expectations; company reiterated FY2026 revenue guidance of $165M–$170M and adjusted EBITDA guidance of $45M–$50M, expecting revenue, adjusted EBITDA and free cash flow to expand in the second half of 2026.
Negative Updates
Marketing Revenue Decline and SEO Headwinds
Marketing revenue declined 5% YoY to $29.2M in Q1, driven by persistent poor search rankings and regulatory headwinds (U.K. & Finland). UK&I revenue was cited as down ~30%, with lower LTVs and softer traffic.
Read all updates
Q1-2026 Updates
Positive
Negative
Stable Top-Line and Clear H2 Outlook
Q1 revenue of $40.4M was flat year-over-year and in line with expectations; company reiterated FY2026 revenue guidance of $165M–$170M and adjusted EBITDA guidance of $45M–$50M, expecting revenue, adjusted EBITDA and free cash flow to expand in the second half of 2026.
Read all positive updates
Company Guidance
The company updated full‑year 2026 guidance to revenue of $165–170 million and adjusted EBITDA of $45–50 million (implying an adjusted EBITDA margin at the midpoint of roughly 28%), and said it expects revenue, adjusted EBITDA and free cash flow to expand materially in the second half of the year; management is pursuing a strategic restructuring (≈25% headcount reduction) that will generate ~$13 million of annualized cost savings (net of higher AI usage) with about half (~$6.5M) realized in H2 2026 and the remainder in 2027, incurring one‑time implementation costs of roughly $2.5 million, and noted the guidance change versus prior outlook reflects a ~$5M reduction in revenue, a ~$5M increase in cost of sales (mix shift), offset by ~$5M lower adjusted operating expenses (including ~$6.5M of restructuring savings partly offset by ~$1.5M higher marketing).Grandstand Limited Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
45
Neutral
Cash Flow
51
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 165.25M | 165.45M | 127.18M | 108.65M | 76.51M | 42.32M |
| Gross Profit | 142.33M | 135.77M | 119.65M | 99.54M | 73.55M | 42.32M |
| EBITDA | -20.64M | -9.54M | 42.75M | 23.13M | 10.83M | 15.23M |
| Net Income | -45.34M | -32.93M | 30.68M | 18.26M | 2.39M | 12.45M |
Balance Sheet | ||||||
| Total Assets | 290.65M | 299.67M | 178.58M | 154.87M | 138.88M | 91.03M |
| Cash, Cash Equivalents and Short-Term Investments | 8.41M | 15.81M | 13.73M | 25.43M | 29.66M | 51.17M |
| Total Debt | 120.91M | 123.42M | 27.96M | 1.72M | 2.07M | 7.62M |
| Total Liabilities | 183.51M | 191.72M | 55.40M | 35.95M | 51.77M | 11.12M |
| Stockholders Equity | 107.15M | 107.95M | 123.19M | 118.92M | 87.11M | 79.91M |
Cash Flow | ||||||
| Free Cash Flow | 2.59M | 10.78M | 3.81M | 8.67M | 9.47M | 8.42M |
| Operating Cash Flow | 4.18M | 11.64M | 37.64M | 17.91M | 18.75M | 14.00M |
| Investing Cash Flow | -32.85M | -99.03M | -43.84M | -19.47M | -32.70M | -5.57M |
| Financing Cash Flow | 16.33M | 89.03M | -5.24M | -3.14M | -7.31M | 34.99M |
Grandstand Limited Risk Analysis
Grandstand Limited disclosed 54 risk factors in its most recent earnings report. Grandstand Limited reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Changes within the technology platforms of the operators we work with, as well as with our media partners, could alter the ability of our advertising technology to more accurately target and service NDCs which could adversely affect our business, financial condition, and results of operations. Q4, 2023
Grandstand Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.93B | 88.67 | 42.79% | ― | 34.29% | 14.69% | |
67 Neutral | $417.41M | 81.59 | 18.42% | ― | 6.33% | -150.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $183.53M | -11.59 | 147.77% | ― | 1.31% | -123.26% | |
49 Neutral | $681.86M | -1.03 | -115.26% | ― | 16.60% | -75.69% | |
46 Neutral | $67.74M | -1.42 | -37.13% | ― | 19.23% | -232.12% |
* Consumer Cyclical Sector Average
GRSD
Grandstand Limited
1.93
-8.33
-81.19%
INSE
Inspired Entertainment
6.88
-1.93
-21.91%
RSI
Rush Street Interactive
26.91
7.20
36.53%
CDRO
Codere Online
9.18
0.69
8.13%
BALY
Bally's Corporation
13.93
4.69
50.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.