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Rush Street Interactive (RSI)
NYSE:RSI
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Rush Street Interactive
(NYSE:RSI)
Rating:72Outperform
Price Target:
$15.50
▲(4.03%Upside)
Positive Factors
Financial Outlook
RSI is backed by a cash-rich balance sheet and no debt, positioning it well with a differentiated iCasino-first strategy.
Legislation Impact
The potential expansion of iGaming legislation represents significant estimate upside if legislation comes to fruition.
Strategy and Performance
RSI is well positioned with a differentiated iCasino-first strategy and disciplined operating model.
Negative Factors
Revenue Impact
Colombia VAT is currently a headwind with a significant negative impact on revenue and adjusted EBITDA.
Tax Impact
Colombia remains a drag on growth and margins due to a temporary 19% VAT on player deposits.
Rush Street Interactive (RSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.37B
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)192.5
Beta (1Y)1.49
Revenue Growth29.86%
EPS GrowthN/A
CountryUS
Employees883
SectorConsumer Cyclical
Sector Strength57
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.09
Shares Outstanding95,616,490
10 Day Avg. Volume1,541,810
30 Day Avg. Volume1,218,480
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)4.07
Price to Sales (P/S)0.00
P/FCF Ratio-2.57
Enterprise Value/Market Cap0.01
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.15
Enterprise Value/Ebitda0.26
Forecast
1Y Price Target
$16.00Price Target Upside7.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
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:Apr 30, 2025
(Q1-2025)
| % Change Since: 22.84%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, both domestically and internationally, with strong performance in key markets such as Michigan and Delaware. Adjusted EBITDA nearly doubled, and there was effective marketing spend. There were positive legislative developments, but the VAT tax in Colombia posed challenges, affecting net revenue. Overall, the positive aspects significantly outweigh the negatives.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
First quarter revenue was $262 million, up 21% year-over-year, driven by growth of 25% in online casino and 11% in sports betting.
Record Adjusted EBITDA
Adjusted EBITDA was $33 million, almost double compared to the same period last year.
North American Market Expansion
Year-over-year revenue growth in 15 out of 16 North American online markets, with Michigan showing 40% growth and Delaware exceeding 80% growth.
International Market Success
Mexico saw year-over-year growth near 50%, and Colombia's GGR was up 55% despite the VAT tax.
Increased Marketing Efficiency
Marketing spend increased by only 3% year-over-year while achieving leverage over marketing spend, reducing it to 15% of revenue compared to 17% last year.
Positive Legislative Developments
Progress in Alberta's online gaming legislation and Pennsylvania joining the multistate Internet gaming agreement.
Negative Updates
Impact of Colombian VAT Tax
Colombia's net revenue was negatively impacted by higher bonusing to absorb the 19% VAT tax, with March net revenue slightly down and April flat year-over-year.
Company Guidance
During the Rush Street Interactive first quarter 2025 earnings call, the company provided robust guidance reflecting strong performance and strategic growth. The first quarter revenue reached $262 million, marking a 21% increase year-over-year, while adjusted EBITDA rose to $33 million, nearly doubling from the previous year. The company's online casino vertical grew by 25%, and sports betting increased by 11%, despite challenges such as player-friendly outcomes during March Madness and the Philadelphia Eagles' Super Bowl win. North American monthly active users (MAUs) grew by 17%, and Latin America saw a 61% increase in MAUs. The company reiterated its full-year 2025 revenue guidance, projecting between $1.010 billion and $1.080 billion, with an anticipated adjusted EBITDA between $115 million and $135 million, representing a 13% and 35% increase respectively. These metrics highlight Rush Street Interactive's strategic focus on innovation, player acquisition, and retention, as well as the company's adaptability in navigating market challenges, such as the temporary VAT tax in Colombia.Rush Street Interactive Financial Statement Overview
Summary
Rush Street Interactive shows strong revenue growth and improved profitability, turning profitable in 2024. The balance sheet is stable with no debt, but low equity relative to liabilities poses some risk. Exceptional cash flow management supports a positive financial outlook.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 | 74.00M | 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 | 0.00 | 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
14.90
Price Trends
12.76
Positive
12.40
Positive
12.43
Positive
Market Momentum
0.61
Negative
72.35
Negative
93.55
Negative
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 14.9 is above the 20-day moving average (MA) of 13.86, above the 50-day MA of 12.76, and above the 200-day MA of 12.43, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 72.35 is Negative, neither overbought nor oversold. The STOCH value of 93.55 is Negative, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.57B | 40.14 | 21.19% | 1.46% | 22.80% | 281.38% | |
77 Outperform | $8.10B | 25.68 | 46.19% | ― | 7.26% | 54.83% | |
72 Outperform | $3.37B | 192.51 | 11.87% | ― | 29.86% | ― | |
65 Neutral | $38.14B | ― | -46.78% | ― | 22.86% | 30.40% | |
62 Neutral | $16.65B | 11.16 | -7.38% | 3.11% | 1.59% | -23.30% | |
61 Neutral | $2.75B | ― | -2.81% | ― | 5.51% | 92.46% | |
60 Neutral | $6.00B | ― | -5.56% | ― | -1.25% | -130.83% |
* Consumer Cyclical Sector Average
Performance Comparison
RSI
Rush Street Interactive
14.90
5.77
63.20%
PENN
Penn National Gaming
18.24
-0.50
-2.67%
LNW
Light & Wonder
95.98
-8.16
-7.84%
CZR
Caesars Entertainment
29.61
-8.12
-21.52%
DKNG
DraftKings
41.99
4.55
12.15%
SGHC
Super Group (SGHC)
10.91
7.87
258.88%
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.