Rush Street Interactive (NYSE:RSI) Issues Earnings Results

Key Points

• Rush Street Interactive delivered a strong second quarter: Revenue rose 46% year over year to $393.8 million, while adjusted EBITDA increased 61% to $64.6 million. Earnings per share matched analysts’ $0.15 estimate, and revenue exceeded expectations.
• Management raised full-year guidance to $1.56 billion–$1.60 billion in revenue and $245 million–$265 million in adjusted EBITDA, supported by market-share gains, Latin American growth and strong World Cup performance.
• Near-term profitability may face pressure: Higher second-half marketing spending and costs from the Alberta launch are expected to make third-quarter EBITDA the company’s low point for the year, while insiders have sold approximately $74.2 million of stock over the past 90 days.

Rush Street Interactive (NYSE:RSI - Get Free Report) announced its earnings results on Wednesday. The company reported $0.15 earnings per share for the quarter, meeting analysts' consensus estimates of $0.15, FiscalAI reports. The business had revenue of $393.78 million during the quarter, compared to analyst estimates of $368.06 million. Rush Street Interactive had a net margin of 2.98% and a return on equity of 17.21%.

Here are the key takeaways from Rush Street Interactive's conference call:

• Record Q2 performance: Revenue rose 46% year over year to $393.8 million and adjusted EBITDA increased 61% to $64.6 million, supported by the casino-first strategy, Latin America and strong execution around the World Cup.
• RSI raised full-year guidance to $1.56 billion–$1.60 billion in revenue and $245 million–$265 million in adjusted EBITDA, citing market-share gains, Latin American strength and World Cup outperformance.
• Player growth remained robust, with North American MAUs up 51% and Latin American MAUs up 62%; more than 25% of Latin American World Cup-acquired depositors also engaged with casino products, indicating improved cross-selling.
• RSI launched online casino and sports betting in Alberta on July 13 and said early first-time-depositor and daily-active-user trends are tracking at roughly twice Ontario’s levels at a comparable point, though management expects a gradual build.
• Management plans to increase second-half marketing spending, potentially by $7 million–$10 million sequentially in Q3, and expects Q3 EBITDA to be the year’s low point as Alberta launch costs and higher investment weigh on profitability; Colombia’s 16% tax remains an additional uncertainty.

Rush Street Interactive Stock Performance

Shares of NYSE RSI traded up $0.39 during trading on Wednesday, hitting $31.08. The company had a trading volume of 2,641,744 shares, compared to its average volume of 2,261,415. The stock has a 50 day simple moving average of $29.82 and a 200 day simple moving average of $24.17. Rush Street Interactive has a 12 month low of $15.51 and a 12 month high of $34.53. The firm has a market capitalization of $7.23 billion, a P/E ratio of 100.27 and a beta of 1.56.

Wall Street Analysts Forecast Growth

RSI has been the topic of a number of research reports. Wall Street Zen downgraded Rush Street Interactive from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 16th. Needham & Company LLC increased their target price on Rush Street Interactive from $25.00 to $33.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Jefferies Financial Group raised their target price on Rush Street Interactive from $30.00 to $32.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. JPMorgan Chase & Co. boosted their price target on Rush Street Interactive from $26.00 to $30.00 and gave the company a "neutral" rating in a research note on Wednesday, July 15th. Finally, Susquehanna upped their price target on shares of Rush Street Interactive from $30.00 to $36.00 and gave the company a "positive" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $33.89.

Insider Activity

In related news, Chairman Neil Bluhm sold 1,371,150 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $24.96, for a total transaction of $34,223,904.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Richard Todd Schwartz sold 710,000 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $24.96, for a total transaction of $17,721,600.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 2,887,328 shares of company stock valued at $74,151,223 in the last ninety days. Corporate insiders own 52.89% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of RSI. Kemnay Advisory Services Inc. purchased a new stake in Rush Street Interactive in the 4th quarter worth $47,000. Empowered Funds LLC purchased a new position in shares of Rush Street Interactive in the fourth quarter valued at about $55,000. Osaic Holdings Inc. lifted its position in shares of Rush Street Interactive by 62.2% in the second quarter. Osaic Holdings Inc. now owns 4,872 shares of the company's stock valued at $73,000 after acquiring an additional 1,868 shares in the last quarter. US Bancorp DE bought a new position in shares of Rush Street Interactive in the third quarter worth about $115,000. Finally, Lazard Asset Management LLC bought a new position in shares of Rush Street Interactive in the second quarter worth about $90,000. Hedge funds and other institutional investors own 24.78% of the company's stock.

Rush Street Interactive Company Profile

Rush Street Interactive NYSE: RSI is a digital gaming and sports betting company that develops and operates online wagering platforms in regulated markets. As a subsidiary of Rush Street Gaming, the company specializes in delivering interactive casino games, live dealer experiences, and sports betting services through desktop and mobile applications. Its technology infrastructure is designed to support real-time wagering, secure transactions, and responsible gaming tools across multiple jurisdictions.

The company’s flagship brand, BetRivers, offers a range of casino titles—including slots, table games, and virtual sports—alongside a comprehensive sportsbook featuring pre-game and in-play betting markets.

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