Here's Voss Capital's Update on Genius Sports (GENI)

Voss Capital, LLC, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +1.0% and +0.6% to investors net of fees and expenses respectively, in the second quarter compared to a +8.5% return for the Russell 2000 Index, +5.0% return for the Russell 2000 Value Index, and +10.9% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 165.6% and the net long exposure was 68.9% as of June 30, 2025. The weight of the fund’s top 10 longs was 66.9% and the top 10 shorts were -40.8%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Voss Capital highlighted stocks such as Genius Sports Limited (NYSE:GENI). Genius Sports Limited (NYSE:GENI) is a leading provider of technology-led products and services to the sports, sports betting, and sports media industries. The one-month return of Genius Sports Limited (NYSE:GENI) was 13.96%, and its shares gained 66.71% of their value over the last 52 weeks. On August 27, 2025, Genius Sports Limited (NYSE:GENI) stock closed at $12.82 per share, with a market capitalization of $3.057 billion.

Voss Capital stated the following regarding Genius Sports Limited (NYSE:GENI) in its second quarter 2025 investor letter:

"Genius Sports Limited (NYSE:GENI), a leading global provider of sports data, technology, and media solutions to sportsbooks, sports leagues, and brands that has monopolies on data rights across several sports leagues and has been rapidly diversifying their business. The company recently reported in-line Q2 results with revenue and EBITDA matching expectations, while raising its 2025 outlook 4% ahead on revenue consensus and 7.5% ahead on EBITDA, implying 26% growth and ~21% margins by year-end. The new guidance would drive a record 47% “Rule of 40” score and implies significant accelerating momentum in the Media segment (~60% growth implied in 2H 2025) where deals with Walmart, Pepsi, Dairy Queen, and Yeti complement exclusive NFL ad inventory GENI secured as part of its recent renewal with the NFL through 2030. This ad inventory for the upcoming NFL season is already sold out, seemingly all but securing management’s back half Media segment guidance. Strategically, GENI also secured some marquee rights including Italy’s soccer league Serie A, cementing its position as the top European soccer data provider, as well as NCAA March Madness (starting 2026). On the negative side, stock-based compensation ballooned to $85M in the quarter, primarily a one-time NFL warrant issuance, though SG&A SBC also rose meaningfully; with management emphasizing no further equity grants to leagues are planned. Lastly, CFO Nicholas Taylor will step down with Bryan Castellani, a veteran of Disney, ESPN, and Warner Music, set to replace him—an evolution aligned with the company’s U.S. pivot that could facilitate S&P index inclusion and broaden institutional ownership. Everyone knows that to routinely succeed in betting you must not only pick the winner but also cover the spread. Similarly, the root of our investment philosophy is seeking surprises relative to consensus expectations and very few companies are as adept as Genius Sports at continually surprising us to the upside. Shares remain at a ~5x EV/EBITDA multiple discount versus direct peer Sportsradar Group despite identical growth and margin profiles, offering ~70% upside if GENI plays catch-up."

Genius Sports Limited (NYSE:GENI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Genius Sports Limited (NYSE:GENI) at the end of the second quarter, which was 43 in the previous quarter. In the second quarter, Genius Sports Limited (NYSE:GENI) generated a 24% growth in group revenue and a record high group adjusted EBITDA margin of 29%. While we acknowledge the potential of Genius Sports Limited (NYSE:GENI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Genius Sports Limited (NYSE:GENI) and shared Choice Equities Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.