Rush Street Interactive’s third quarter results surpassed Wall Street expectations, driven by robust performance in its online casino segment and disciplined marketing execution. Management credited the acceleration in North American market growth to a significant increase in monthly active users, particularly in higher-value states, and to record new depositor activity. CEO Richard Schwartz highlighted the “continued acceleration of our growth in North American online casino markets, where we see the highest player value and retention.” The company also noted that successful customer acquisition was achieved at lower costs, underscoring marketing efficiency and operational leverage during the quarter.
Is now the time to buy RSI? Find out in our full research report (it’s free for active Edge members).
Rush Street Interactive (RSI) Q3 CY2025 Highlights:
- Revenue: $277.9 million vs analyst estimates of $266.4 million (19.7% year-on-year growth, 4.3% beat)
- Adjusted EPS: $0.09 vs analyst estimates of $0.07 (24.5% beat)
- Adjusted EBITDA: $36.04 million vs analyst estimates of $31.74 million (13% margin, 13.5% beat)
- The company lifted its revenue guidance for the full year to $1.11 billion at the midpoint from $1.08 billion, a 3.3% increase
- EBITDA guidance for the full year is $150 million at the midpoint, above analyst estimates of $145.6 million
- Operating Margin: 7%, up from 2.8% in the same quarter last year
- Market Capitalization: $1.64 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 Q3 Earnings Call
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Sam (JPMorgan) asked about lower incremental margins implied in Q4 guidance and whether higher marketing spend or unfavorable sports outcomes were to blame. President and CFO Kyle Sauers confirmed increased marketing and ongoing VAT tax in Colombia as the main factors.
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Bernard McTernan (Needham & Co.) inquired about the likelihood and impact of Colombia’s proposed online gaming tax reform. CEO Richard Schwartz reiterated his view that Congressional support is lacking and expects normal tax conditions to resume.
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Jordan Bender (Citizens) questioned increased promotions in sports betting and shifts in strategy. Sauers clarified there was no major change, attributing higher bonusing to football season dynamics and market-specific refinements.
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Ryan Sigdahl (Craig-Hallum) asked about adoption and benefits of new payment partnerships. Schwartz highlighted early progress but offered no specific adoption metrics, emphasizing improved user experience and future cost efficiencies.
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David Katz (Jefferies) sought clarity on Rush Street Interactive’s stance toward prediction markets and potential entry. Schwartz said the company is monitoring developments but will not pioneer offerings in this area due to compliance priorities.
Catalysts in Upcoming Quarters
In the upcoming quarters, StockStory analysts will watch (1) the success of Alberta market entry and initial user adoption, (2) legislative progress and any new U.S. states advancing online casino legalization, and (3) the resolution of regulatory and tax issues in Colombia and Mexico. The effectiveness of recent leadership changes, as well as ongoing product innovation and payment integrations, will also be important signposts for sustained growth.
Rush Street Interactive currently trades at $16.78, down from $18.20 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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