Rush Street Interactive, Inc. ((RSI)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Rush Street Interactive, Inc. (RSI) recently held its earnings call, revealing a strong quarter characterized by record revenue and growth across key markets. Despite facing challenges such as a temporary VAT tax in Colombia and increased state taxes, the company raised its full-year guidance, highlighting positive momentum and marketing efficiency that significantly outweigh the lowlights.
Record-Breaking Revenue and Growth
RSI delivered another record quarter with revenue reaching $269 million, up 22% year-over-year. The company also reported an 88% increase in adjusted EBITDA compared to the previous year, marking the ninth consecutive quarter of improving both revenue and adjusted EBITDA.
Impressive Growth in Key Markets
The company experienced remarkable growth in key markets, particularly in North America and Latin America. Monthly Active Users (MAUs) in North America grew by over 30% in markets with online casinos, while Latin America saw MAU growth exceeding 40% year-over-year. Notably, Michigan grew 42%, West Virginia 47%, Delaware 74%, and Mexico over 125% year-over-year.
Strong Marketing Efficiency
RSI achieved strong marketing efficiency, with marketing spend at $36.2 million, representing less than 14% of revenue. This is the lowest mark since going public, while achieving the largest quarter in history for first-time depositing customers.
Raising Full-Year Guidance
RSI raised its full-year revenue guidance to be between $1.05 billion and $1.1 billion and adjusted EBITDA between $133 million and $147 million, representing a 16% and 51% year-over-year increase, respectively. This upward revision reflects the company’s confidence in its continued growth trajectory.
Temporary VAT Tax Impact in Colombia
Despite high Gross Gaming Revenue (GGR) growth in Colombia, net revenue was flat due to a temporary VAT tax, which is expected to last through the end of the year. This tax poses a challenge to profitability in the region.
Increased State Taxes
RSI faces increased state taxes in Illinois and New Jersey, which are included in the updated guidance. These taxes present potential headwinds for profitability, yet the company remains optimistic about its overall performance.
Forward-Looking Guidance
During the second quarter of 2025, RSI reported record-breaking metrics across various performance indicators. The company saw its revenue reach $269 million, marking a 22% year-over-year increase. Adjusted EBITDA grew by an impressive 88% compared to the same period last year. Active player counts also hit new highs, with MAUs in North America growing by over 30%, while Latin America saw a 40% increase in MAUs. RSI maintained a strong balance sheet, ending the quarter with $241 million in cash and no debt. Looking ahead, the company raised its full-year revenue and EBITDA guidance, now expecting revenues between $1.05 billion and $1.1 billion and adjusted EBITDA between $133 million and $147 million.
In summary, Rush Street Interactive, Inc. has demonstrated a strong performance in its latest earnings call, with record revenue and growth across key markets. Despite challenges such as the temporary VAT tax in Colombia and increased state taxes, the company remains optimistic, raising its full-year guidance and highlighting its positive momentum and marketing efficiency. Investors and stakeholders can look forward to continued growth and robust operational performance from RSI.