RSI Stock Soars 22% On Q2 Blowout—Will PENN Match the Momentum?

Key Points

• Rush Street Interactive delivered a breakout Q2 2025 with record revenue and EBITDA, outperforming peers amid strong growth in online casino and sports betting.
• The company’s rising MAUs and strong monetization, especially in North America, point to operational efficiency and growing user value.
• As PENN prepares to report earnings, its ability to match RSI’s momentum could either validate sector-wide growth or reinforce RSI as a standout.

Online casino and sports betting firm Rush Street Interactive Inc. NYSE: RSI has been one of the biggest surprises of the second-quarter earnings period. The company's impressive earnings report sent shares skyrocketing by nearly 22% in the span of just five days.

With major wins for both Rush Street's online casino business and its sports betting operations, the company seems poised for continued growth going forward.

Beyond the implications of a strong quarter for Rush Street in particular, however, is the suggestion that this could be the first of several online casino names to win this earnings season. Indeed, advances in AI and user experience, growing certainty surrounding regulations, the rise of data-driven personalization of casino experiences, and a customer shift toward a younger demographic may all be contributing to a noteworthy moment for online gaming companies.

As major competitors like PENN Entertainment Inc. NASDAQ: PENN deliver their most recent quarterly updates, investors will get a clearer picture of whether Rush Street was an indicator of wins for the industry as a whole or a standout player on its own.

Rush Street Sees Wins Across the Board, Expanding Global Market

Before comparing RSI to others in the space, it’s important to understand the full scope of Rush Street's recent earnings win. The company's revenue grew by 22% year-over-year (YOY), reaching record levels, while its EBITDA jumped by an impressive 88% over the same period. These gains were driven by 25% and 15% increases, respectively, in revenue from the firm's online casino and sports betting segments.

Rush Street's global popularity is expanding, as the company saw a YOY surge in monthly active users (MAUs) in North America (30%) as well as Latin America (40%).

While it was growing at a rapid pace, Rush Street also managed to stay debt-free and continue building its stockpile of $241 million in cash reserves. The company expects slightly more modest full-year revenue and EBITDA growth of 16% and 51%, respectively, as it raised its full-year guidance.

Analysts are largely bullish on Rush Street, as eight out of 10 rated RSI a Buy, despite the fact that the recent rally sent the stock price just above the consensus price target of around $18 per share.

PENN: Betting on Physical Expansion and Platform Integration

Despite being just over half the size of Rush Street, PENN Entertainment's smaller size, the company is expanding rapidly. It has multiple growth projects in development for the next several quarters, including a land-based casino planned in Iowa valued at up to $200 million. 

On the digital front, PENN continues to invest in its iCasino and online sports betting offerings, particularly after its acquisition of theScore and strategic pivot away from Barstool Sportsbook. These moves aim to tighten integration across platforms and appeal to younger digital-first audiences. Its partnership with ESPN for ESPN BET has garnered attention but also heightened expectations.

When PENN reports second-quarter earnings, investors will hope to see signs of continued progress on its multiple developments and, ideally, a strong improvement in top- and bottom-line performance.

Despite some volatility in earnings performance in past quarters, the company’s liquidity remains strong, and it continues to execute on long-term growth plans.

All told, though, analysts feel positively about PENN shares, with 11 out of 19 calling the company a Buy and setting a consensus price target suggesting about 33% in upside potential.

Still, concerns persist around execution risk, brand differentiation in a crowded space, and the delayed payoff of long-term strategic bets.

What This Means for Investors

Rush Street’s Q2 performance shows that an online casino firm can deliver growth and profitability at scale, both domestically and internationally, with disciplined marketing and rising user value. With strong fundamentals and raised guidance, RSI is currently setting the pace in its segment.

As investors await PENN’s upcoming earnings report on Aug. 7, the key question is whether it can mirror RSI’s momentum or forge a different path to growth through its hybrid land-based and digital strategy. PENN’s execution will be especially important given the competitive and evolving landscape.

Notably, casino competitor DraftKings NASDAQ: DKNG reported a surprise slight earnings miss this quarter. Despite its scale and dominant sportsbook footprint, the company reported an EPS of 38 cents, slightly short of the analyst expectations of 41 cents. That miss raises the possibility that RSI’s performance isn’t just a rising tide lifting all boats, but rather a sign of company-specific outperformance. It also puts added pressure on PENN to demonstrate clear strategic gains.

All told, RSI's breakout quarter could be a turning point for investor confidence in mid-tier digital gaming firms, especially if PENN can validate the trend. But if PENN underwhelms, it may reinforce the notion that Rush Street is the outlier, not the bellwether.