Rush Street Interactive’s second quarter results were met with a notably positive market reaction, as the company exceeded Wall Street’s revenue and profit expectations. Management pointed to strong growth in both online casino and sports betting, with CEO Richard Schwartz attributing the momentum to “broad-based performance across our business.” Notable market highlights included substantial year-over-year growth in Michigan, West Virginia, Delaware, and Ontario, as well as momentum in Latin America, particularly in Colombia and Mexico. Management also highlighted improved marketing efficiency and ongoing gross margin expansion.
Is now the time to buy RSI? Find out in our full research report (it’s free).
Rush Street Interactive (RSI) Q2 CY2025 Highlights:
- Revenue: $269.2 million vs analyst estimates of $250.2 million (22.2% year-on-year growth, 7.6% beat)
- Adjusted EPS: $0.11 vs analyst estimates of $0.06 (74.5% beat)
- Adjusted EBITDA: $40.25 million vs analyst estimates of $27.01 million (15% margin, 49% beat)
- The company lifted its revenue guidance for the full year to $1.08 billion at the midpoint from $1.05 billion, a 2.9% increase
- EBITDA guidance for the full year is $140 million at the midpoint, above analyst estimates of $127.8 million
- Operating Margin: 9%, up from 1.9% in the same quarter last year
- Monthly Active Users: 197,000, up 33,000 year on year
- Market Capitalization: $1.84 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Rush Street Interactive’s Q2 Earnings Call
- Bernard Jerome McTernan (Needham & Company) asked about tax assumptions in guidance; CFO Kyle Sauers confirmed all known tax impacts are included, and strategy in Illinois is still being evaluated.
- Jordan Maxwell Bender (Citizens) inquired about capital allocation and share repurchases; Sauers emphasized prioritizing investment in new iCasino markets over buybacks, with opportunistic capital return.
- Ryan Ronald Sigdahl (Craig-Hallum) questioned the impact of the Colombia VAT tax expiration; Sauers said revenue and margin would see an uplift if the tax is not extended.
- Jed Kelly (Oppenheimer) asked whether Ontario growth was from market share gains or displacement of gray operators; CEO Richard Schwartz said it is difficult to measure gray market impact but emphasized focus on player base growth.
- Chad C. Beynon (Macquarie) queried about live dealer product development; Schwartz described investment in exclusive content and improving user experience to differentiate from competitors.
Catalysts in Upcoming Quarters
Going forward, we are closely tracking (1) the launch timeline and early performance in Alberta, (2) the pace and sustainability of player growth in Mexico and other Latin American markets, and (3) management’s ability to navigate tax and regulatory developments, particularly in Colombia and key U.S. states. Progress on multistate poker engagement and marketing efficiency will also be important markers of execution.
Rush Street Interactive currently trades at $19.33, up from $16.04 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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