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Rush Street Interactive, Inc. (RSI)
:RSI
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Rush Street Interactive
(NYSE:RSI)
Select Model
Select Model
Rating:75Outperform
Price Target:
$22.50
▲(3.59% 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
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.
Market Expansion
Expansion into new markets and product offerings like multistate poker enhance RSI's competitive position and potential customer base, driving future growth.
Cash Flow Management
Efficient cash flow management ensures RSI can fund operations and growth initiatives, enhancing financial stability and reducing reliance on external financing.
Negative Factors
Profitability Challenges
Low net profit margins indicate ongoing challenges in achieving higher profitability, which may affect long-term financial health and investment appeal.
Tax Headwinds
Increased tax burdens can reduce net income and cash flow, impacting RSI's ability to invest in growth and maintain competitive pricing.
Colombian Market Challenges
Regulatory and competitive pressures in Colombia could hinder market performance and require strategic adjustments to maintain market share.
Rush Street Interactive (RSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.96B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)107.7
Beta (1Y)1.27
Revenue Growth26.99%
EPS GrowthN/A
CountryUS
Employees883
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.11
Shares Outstanding95,339,350
10 Day Avg. Volume1,321,439
30 Day Avg. Volume1,471,706
Financial Highlights & Ratios
PEG Ratio-4.23
Price to Book (P/B)14.26
Price to Sales (P/S)1.21
P/FCF Ratio14.57
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue3.50
Enterprise Value/Gross Profit10.19
Enterprise Value/Ebitda47.17
Forecast
1Y Price Target
$20.86Price Target Upside-3.96% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Rush Street Interactive Business Overview & Revenue Model
Company DescriptionRush Street Interactive, Inc. operates as an online casino and sports betting company in the United States and Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers.com, PlaySugarHouse.com, and RushBet.co brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyRush Street Interactive generates revenue primarily through online sports betting and casino gaming. The company earns money by taking a percentage of wagers placed on its platforms, known as the 'hold' or 'vig,' which is the difference between the total amount wagered and the winnings paid out. Key revenue streams include sports betting, where customers place bets on various sporting events, and casino gaming, which encompasses a range of games such as slots, table games, and live dealer experiences. Additionally, RSI benefits from partnerships with various sports leagues and teams, as well as collaborations with third-party technology providers that enhance its offerings and expand its market reach. The company also focuses on customer acquisition through promotions and bonuses, driving user engagement and increasing its revenue potential.
Rush Street Interactive Key Performance Indicators (KPIs)
Rush Street Interactive Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
Rush Street Interactive reported a record-breaking quarter with significant revenue and EBITDA growth, driven by strong performance in North America and Latin America. The company is expanding its operations and raised its full-year guidance despite facing challenges such as the VAT tax in Colombia and increased state taxes. The positive momentum in market expansion and growth metrics outweigh the headwinds faced.Q2-2025 Updates
Positive Updates
Record Quarter Across All Key Metrics
Rush Street Interactive reported record highs in revenue, profitability, EBITDA margins, and active player counts. Adjusted EBITDA grew 88% year-over-year, and revenue was up 22% compared to the previous year.
Strong Online Casino and Sports Betting Growth
Online casino revenue grew 25% during the quarter, and online sports betting grew 15% compared to the same period last year.
Exceptional Growth in North America and Latin America
MAUs in North America grew over 30%, and in Latin America, they exceeded 40% year-over-year. Michigan grew 42% year-over-year, West Virginia 47%, and Delaware 74%. In Canada, Ontario grew 25%, and in Latin America, Colombia's GGR was up over 70%.
Expansion Plans and New Launches
Plans to expand into Alberta and the recent launch of multistate poker with shared player pooling across markets are notable achievements.
Raised Full-Year Revenue and EBITDA Guidance
Rush Street Interactive raised its full-year revenue guidance to $1.05 billion to $1.1 billion and adjusted EBITDA guidance to $133 million to $147 million, representing a 51% year-over-year increase.
Negative Updates
Headwinds from VAT Tax in Colombia
The temporary VAT tax in Colombia impacted net revenue, which remained flat despite a 70% increase in GGR. The tax is assumed to last through the end of the year.
Impact of Higher State Taxes
The company faced higher state taxes in various regions, including Illinois and New Jersey, which were factored into the raised guidance.
Challenges in the Colombian Market
Despite strong growth, the VAT tax and competitive dynamics in Colombia continue to pose challenges. The company's strategy includes absorbing the VAT tax to maintain market position.
Company Guidance
During the Rush Street Interactive Second Quarter 2025 Earnings Conference Call, the company reported record performance metrics, including a 22% year-over-year revenue increase to $269 million and a remarkable 88% growth in adjusted EBITDA. Richard Schwartz, the CEO, highlighted strong revenue growth in online casino and sports betting, with respective increases of 25% and 15%. North America saw a 30% rise in monthly active users (MAUs), excluding Delaware, while Latin America experienced a 40% MAU growth. Key markets such as Michigan, West Virginia, and Delaware showed significant year-over-year growth of 42%, 47%, and 74%, respectively. The company raised its full-year guidance, now expecting revenue between $1.05 billion and $1.1 billion and adjusted EBITDA between $133 million and $147 million. Despite headwinds like increased taxes, RSI remains optimistic, particularly about expansion plans in Alberta and its multistate poker launch. The company maintains a strong balance sheet with $241 million in cash and no debt.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.75
Positive
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.70
Positive
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.78
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 | 168.33M | 179.72M | 281.03M | 255.62M |
| Total Debt | 6.04M | 4.64M | 3.51M | 1.90M | 1.66M | 1.21M |
| Total Liabilities | 191.66M | 181.15M | 152.45M | 159.47M | 101.03M | 575.89M |
| Stockholders Equity | 81.31M | 78.68M | 53.77M | 56.05M | 85.44M | -61.78M |
Cash Flow | ||||||
| Free Cash Flow | 74.56M | 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
21.72
Price Trends
19.67
Positive
16.57
Positive
14.70
Positive
Market Momentum
0.55
Positive
58.35
Neutral
45.64
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 21.72 is above the 20-day moving average (MA) of 21.50, above the 50-day MA of 19.67, and above the 200-day MA of 14.70, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 45.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSI.
Rush Street Interactive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.96B | 107.74 | 27.07% | ― | 26.99% | ― | |
71 Outperform | 6.67B | 49.30 | 20.29% | 2.03% | 26.85% | 1963.28% | |
63 Neutral | 7.13B | 21.51 | 49.72% | ― | 3.93% | 19.20% | |
55 Neutral | 318.57M | 509.49 | 16.24% | ― | ― | ― | |
52 Neutral | 37.64B | -64.85 | -30.16% | ― | 25.80% | 27.64% | |
49 Neutral | 530.04M | -0.95 | -1837.27% | ― | -1.10% | -1.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
RSI
Rush Street Interactive
21.72
11.00
102.61%
LNW
Light & Wonder
84.96
-7.42
-8.03%
DKNG
DraftKings
42.32
1.96
4.86%
SGHC
Super Group (SGHC)
13.30
9.90
291.18%
CDRO
Codere Online
6.98
-1.02
-12.75%
BALY
Bally's Corporation
10.79
-11.28
-51.11%
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.
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.