Rush Street Interactive (RSI) AI Stock Analysis

• Market Cap: $5.10B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 110.6
• Beta (1Y): 1.29
• Revenue Growth: 26.99%
• EPS Growth: N/A
• Country: US
• Employees: 883
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.11
• Shares Outstanding: 95,339,350
• 10 Day Avg. Volume: 1,608,884
• 30 Day Avg. Volume: 1,905,824
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 10.19
• Enterprise Value/Ebitda: 47.17
• 1Y Price Target: $20.29
• Price Target Upside: -9.01% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $22.50 ▲(0.90% Upside)

Rush Street Interactive's strong earnings performance and technical momentum are the primary drivers of its stock score. Despite a high valuation and some financial stability concerns, the company's growth prospects and positive earnings sentiment support a favorable outlook.

Positive Factors

Financial Performance

Rush Street delivered record Q2 2025 results, materially outperforming consensus expectations.

Guidance

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

Revenue Impact

Colombia enacted a temporary 19% VAT on player deposits, which is expected to reduce 2025 revenue and AEBITDA.

Taxation

Colombia remains a drag on growth and margins due to a temporary 19% VAT on player deposits.

Rush Street Interactive Business Overview & Revenue Model

Company Description

Rush 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 Money

Rush 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 Financial Statement Overview

Summary

Rush Street Interactive shows improvements in revenue growth and operational efficiency with positive margins and cash flow generation. However, past profitability challenges and volatility in equity remain concerns.

Income Statement

Rush Street Interactive shows a positive trajectory in revenue growth, with a TTM (Trailing-Twelve-Months) revenue growth rate of 4.87%. The company has improved its profitability over time, with a TTM gross profit margin of 34.38% and a net profit margin of 0.87%. The EBIT margin stands at 3.99% and the EBITDA margin is 7.43%, indicating operational efficiency improvements. However, the net profit margin remains relatively low, and historical EBIT and EBITDA have been negative in prior years, suggesting past profitability challenges.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 21.01% and a low debt-to-equity ratio of 0.07, indicating low leverage. With a return on equity (ROE) of 10.38%, the company is effectively generating profits from its equity. However, stockholders' equity has shown volatility over the years, and total liabilities have been relatively high compared to assets, impacting financial stability.

Cash Flow

The cash flow statement highlights strong free cash flow generation with a positive free cash flow growth rate of 6.06%. The operating cash flow to net income ratio is 12.36, and the free cash flow to net income ratio is 9.68, underscoring efficient cash flow management. While past years showed negative free cash flow, the current positive trajectory reflects improved cash management strategies.

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

• Technical Analysis Sentiment: Positive
• Last Price: 22.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 22.3 is above the 20-day moving average (MA) of 20.14, above the 50-day MA of 17.30, and above the 200-day MA of 13.95, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 86.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSI.

Rush Street Interactive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGHC	77 Outperform	$5.83B	43.01	21.57%	2.09%	21.11%	272.97%
RSI	75 Outperform	$5.10B	110.62	27.07%	―	26.99%	―
LNW	62 Neutral	$7.76B	23.41	46.91%	―	3.93%	19.20%
Sector *	61 Neutral	$17.87B	13.25	-4.92%	3.05%	1.25%	-14.67%
DKNG	61 Neutral	$42.68B	―	-26.38%	―	25.80%	27.64%
PENN	57 Neutral	$2.95B	―	-2.50%	―	7.34%	93.83%
CZR	52 Neutral	$5.57B	―	-4.76%	―	-0.15%	28.05%

Rush Street Interactive Corporate Events

Rush Street Interactive Holds Annual Stockholders Meeting

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.