Rush Street Interactive (RSI) AI Stock Analysis

• Market Cap: $3.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 171.1
• Beta (1Y): 1.50
• Revenue Growth: 29.86%
• EPS Growth: N/A
• Country: US
• Employees: 883
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.09
• Shares Outstanding: 95,616,490
• 10 Day Avg. Volume: 1,161,594
• 30 Day Avg. Volume: 1,159,297
• 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 Cap: 0.02
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.15
• Enterprise Value/Ebitda: 0.26
• 1Y Price Target: $15.80
• Price Target Upside: 19.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $14.00 ▲(5.74%Upside)

Rush Street Interactive is on a positive trajectory with strong financial performance and growth prospects, bolstered by strategic expansions and market presence. However, high valuation and some market risks temper the overall outlook.

Positive Factors

Legislation Expansion

The potential expansion of iGaming legislation represents significant estimate upside if legislation comes to fruition.

Market Growth

The overall market growth in the US could be conservative, implying potential for better performance.

Product Differentiation

Product differentiation is leading to better retention and higher customer lifetime values.

Negative Factors

Colombia VAT

Colombia VAT is currently a headwind with a significant negative impact on revenue and adjusted EBITDA.

Colombia VAT Legislation

In February, the Colombian government enacted a 19% VAT on online gambling deposits, which could impact RSI's revenue and AEBITDA if upheld.

Tax Impact

The recently announced higher OSB taxes are expected to have a relatively insignificant impact on the company.

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 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.

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.

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.

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
	EBIT
38.65M	24.31M	-51.61M	-124.80M	-94.28M	-133.42M
	EBITDA
74.00M	56.51M	-21.85M	-109.86M	-90.03M	-126.30M
	Net Income Common Stockholders
8.43M	2.39M	-18.30M	-134.33M	-71.09M	-138.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
228.22M	229.17M	170.98M	179.72M	281.03M	255.62M
	Total Assets
387.02M	379.47M	318.58M	350.35M	408.73M	308.56M
	Total Debt
0.00	4.64M	1.29M	1.90M	1.66M	1.21M
	Net Debt
-222.18M	-224.53M	-167.04M	-177.82M	-279.37M	-254.42M
	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: 13.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.24 is above the 20-day moving average (MA) of 12.71, above the 50-day MA of 12.08, and above the 200-day MA of 12.15, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 70.64 is Neutral, 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
LNW	77 Outperform	$7.30B	21.98	46.19%	―	7.26%	54.83%
SGHC	77 Outperform	$4.82B	34.36	21.19%	1.68%	22.80%	281.38%
RSI	71 Outperform	$3.16B	171.06	11.87%	―	29.86%	―
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
PENN	61 Neutral	$2.48B	―	-2.81%	―	5.51%	92.46%
DKNG	59 Neutral	$33.78B	―	-46.78%	―	22.86%	30.40%
CZR	57 Neutral	$5.68B	―	-5.56%	―	-1.25%	-130.83%

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.

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.

Rush Street Interactive Expands Board with New Appointments

On March 19, 2025, Rush Street Interactive expanded its board of directors from nine to eleven members, appointing Jack Markell and Andrew Bluhm as new directors. Markell, a former Governor of Delaware and U.S. Ambassador, brings extensive experience in government and corporate development, while Bluhm, a finance and investment expert, has a background in private equity and real estate. These appointments are expected to strengthen RSI’s strategic direction as it continues to expand its presence across the Americas.