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Rush Street Interactive (RSI)
NYSE:RSI
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Rush Street Interactive
(NYSE:RSI)
Rating:73Outperform
Price Target:
$22.50
▲(16.40% Upside)
Positive Factors
Earnings and Revenue
Rush Street delivered record Q2 2025 results, materially outperforming consensus expectations.
Financial Performance
The company raised full-year revenue guidance and AEBITDA, representing growth of 16% and 51%, respectively.
Market Expansion
Expansion into new jurisdictions such as Alberta and potential iCasino regulation in additional U.S. states could unlock significant upside.
Negative Factors
Geographical Challenges
Colombia remains a drag on growth and margins due to a temporary 19% VAT on player deposits.
Taxation Impact
Colombia enacted a temporary 19% VAT on player deposits, which is expected to reduce 2025 revenue and AEBITDA.
Rush Street Interactive (RSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.24B
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)92.1
Beta (1Y)1.31
Revenue Growth26.99%
EPS GrowthN/A
CountryUS
Employees883
SectorConsumer Cyclical
Sector Strength71
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.11
Shares Outstanding95,339,350
10 Day Avg. Volume2,989,492
30 Day Avg. Volume1,755,850
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue3.50
Enterprise Value/Gross Profit10.19
Enterprise Value/Ebitda47.17
Forecast
1Y Price Target
$20.56Price Target Upside6.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Rush Street Interactive Business Overview & Revenue Model
Company DescriptionRush Street Interactive (RSI) is a leading online gaming and sports entertainment company in the United States. Established in 2012, RSI operates in the digital gaming sector, offering a wide range of products including online casinos, sports betting, and social gaming platforms. The company is known for its flagship brand, BetRivers, which provides users with access to a variety of gaming options, from slot machines to table games and live sports betting, all accessible through web and mobile applications.
How the Company Makes MoneyRush Street Interactive generates revenue primarily through its online gaming and sports betting platforms. The company earns money by taking a percentage of the wagers placed on its casino games and sports betting offerings. This includes revenues from both the house edge on casino games and the vigorish or juice on sports bets. RSI's social gaming platform also contributes to revenue through in-app purchases and virtual goods. Additionally, the company benefits from partnerships with land-based casinos, which enable it to expand its online presence and enhance its brand recognition. RSI's strategic collaborations and licenses in various jurisdictions also play a crucial role in its capacity to operate legally and profitably across different markets.
Rush Street Interactive Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: 20.36%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
RSI reported a strong quarter with record revenue and growth across key markets, raising its full-year guidance despite facing challenges such as the temporary VAT tax in Colombia and increased state taxes. The positive momentum in key markets and marketing efficiency significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
RSI delivered another record quarter with revenue reaching $269 million, up 22% year-over-year. Adjusted EBITDA grew 88% year-over-year, marking the ninth consecutive quarter of improving both revenue and adjusted EBITDA.
Impressive Growth in Key Markets
In North America, MAUs grew by over 30% in markets with online casinos, and 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
Marketing spend was $36.2 million, representing less than 14% of revenue, 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.
Negative Updates
Temporary VAT Tax Impact in Colombia
Despite high GGR growth in Colombia, net revenue was flat due to temporary VAT tax, which is expected to last through the end of the year, impacting profitability.
Increased State Taxes
RSI faces increased state taxes in Illinois and New Jersey, which are included in the updated guidance, posing potential headwinds for profitability.
Company Guidance
During the second quarter of 2025, Rush Street Interactive 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, demonstrating the company's robust operational performance. Active player counts also hit new highs, with Monthly Active Users (MAUs) in North America growing by over 30%, while Latin America saw a 40% increase in MAUs. Specific market highlights included a 42% year-over-year growth in Michigan, a 74% increase in Delaware, and a significant 125% year-over-year growth in Mexico. The company maintained a strong balance sheet, ending the quarter with $241 million in cash and no debt. Looking ahead, RSI 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.Rush Street Interactive Financial Statement Overview
Summary
Rush Street Interactive has demonstrated a strong recovery with significant revenue growth and improved profitability metrics. The company showed enhanced operational efficiency, turning profitable in 2024. The balance sheet reflects stability with no leverage risk, though the low equity relative to liabilities poses potential financial risks. Strong cash flow generation highlights effective cash management.Income Statement
Rush Street Interactive has shown impressive revenue growth, with a significant increase from $691 million in 2023 to $924 million in 2024, marking a healthy growth trajectory. The gross profit margin improved to 34.8% in 2024 from 32.7% in 2023, indicating enhanced operational efficiency. The company turned profitable in 2024 with a net profit margin of 0.8%, showcasing a turnaround from previous losses. Although EBIT and EBITDA margins improved, they remain modest at 2.6% and 7.7% respectively, suggesting room for further profitability enhancements.75
Positive
Balance Sheet
The company's balance sheet is stable with a strong equity position, as evidenced by an equity ratio of 20.7% in 2024, up from 16.9% in 2023. The absence of debt indicates no leverage risk, although it limits opportunities for leveraging growth. Return on Equity improved to 9.2% in 2024 from a negative position in the previous year, reflecting improving profitability. However, the relatively low stockholders' equity compared to total liabilities suggests potential vulnerability to financial fluctuations.65
Positive
Cash Flow
Rush Street Interactive's cash flow statement is robust, with a significant turnaround in free cash flow from negative $37 million in 2023 to positive $105 million in 2024, indicating strong cash generation. The operating cash flow to net income ratio stands at 14.7, reflecting efficient conversion of net income to cash. The free cash flow to net income ratio is exceptionally high at 14.6, signifying excellent cash management and operational efficiency.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 969.06M | 924.08M | 691.16M | 592.21M | 488.11M | 278.50M |
| Gross Profit | 333.11M | 322.05M | 226.15M | 177.55M | 155.96M | 87.63M |
| EBITDA | 71.95M | 56.51M | -21.85M | -109.86M | -90.03M | -126.30M |
| Net Income | 8.43M | 2.39M | -18.30M | -134.33M | -71.09M | -138.81M |
Balance Sheet | ||||||
| Total Assets | 387.02M | 379.47M | 318.58M | 350.35M | 408.73M | 308.56M |
| Cash, Cash Equivalents and Short-Term Investments | 228.22M | 229.17M | 170.98M | 179.72M | 281.03M | 255.62M |
| Total Debt | 6.04M | 4.64M | 1.29M | 1.90M | 1.66M | 1.21M |
| Total Liabilities | 191.66M | 181.15M | 152.45M | 159.47M | 101.03M | 405.78M |
| Stockholders Equity | 81.31M | 78.68M | 53.77M | 56.05M | 85.44M | -22.47M |
Cash Flow | ||||||
| Free Cash Flow | 81.69M | 77.02M | -37.12M | -88.62M | -82.94M | 9.94M |
| Operating Cash Flow | 104.25M | 106.45M | -5.93M | -60.32M | -48.19M | 16.18M |
| Investing Cash Flow | -33.50M | -33.36M | -33.78M | -28.99M | -37.00M | -6.24M |
| Financing Cash Flow | -29.65M | -2.65M | -518.00K | -1.22M | 125.58M | 241.07M |
Rush Street Interactive Technical Analysis
Positive
19.33
Price Trends
15.28
Positive
13.47
Positive
13.26
Positive
Market Momentum
1.26
Negative
69.09
Neutral
64.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSI, the sentiment is Positive. The current price of 19.33 is above the 20-day moving average (MA) of 16.92, above the 50-day MA of 15.28, and above the 200-day MA of 13.26, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 69.09 is Neutral, neither overbought nor oversold. The STOCH value of 64.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSI.
Rush Street Interactive Risk Analysis
Rush Street Interactive disclosed 62 risk factors in its most recent earnings report. Rush Street Interactive 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 0 New Risks
Rush Street Interactive Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.24B | 92.11 | 27.07% | ― | 26.99% | ― | |
73 Outperform | $5.50B | 39.67 | 21.19% | 2.10% | 22.80% | 281.38% | |
69 Neutral | $7.29B | 21.98 | 46.91% | ― | 3.93% | 19.20% | |
59 Neutral | $38.34B | ― | -26.38% | ― | 25.80% | 27.64% | |
58 Neutral | $2.45B | ― | -2.50% | ― | 7.34% | 93.83% | |
56 Neutral | HK$25.39B | 4.88 | -2.69% | 5.70% | -0.49% | -53.32% | |
50 Neutral | $4.99B | ― | -4.76% | ― | -0.15% | 28.05% |
* Consumer Cyclical Sector Average
Performance Comparison
RSI
Rush Street Interactive
19.19
10.15
112.28%
PENN
PENN Entertainment
17.09
-1.43
-7.72%
LNW
Light & Wonder
86.85
-15.16
-14.86%
CZR
Caesars Entertainment
25.74
-9.04
-25.99%
DKNG
DraftKings
43.10
11.04
34.44%
SGHC
Super Group (SGHC)
11.56
8.55
284.05%
Rush Street Interactive Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Rush Street Interactive Holds Annual Stockholders Meeting
Neutral
May 30, 2025
On May 29, 2025, Rush Street Interactive, Inc. held its annual meeting of stockholders where several key matters were voted on. The stockholders elected three directors for a three-year term, ratified the appointment of WithumSmith+Brown, PC as the independent accounting firm for 2024, approved the compensation of executive officers, and decided on the frequency of advisory votes on executive compensation. These decisions are expected to influence the company’s governance and operational strategies moving forward.
The most recent analyst rating on (RSI) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Rush Street Interactive stock, see the RSI Stock Forecast page.
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.