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Rush Street Interactive (RSI)
NYSE:RSI
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Rush Street Interactive
(NYSE:RSI)
66Neutral
Positive Factors
Cash Reserves
RSI ended 2024 with $229M in cash and no debt, a $61M increase in cash over the year.
Financial Performance
RSI delivered a record quarter, exceeding both revenue and AEBITDA consensus estimates.
Market Share
RSI has demonstrated an ability to outmaneuver larger peers with its iCasino product mechanics, helping it defend its market share.
Negative Factors
Competitive Pressure
RSI faces headwinds in its Latin American segment due to higher VAT in Colombia and increased competition in North America.
Regulatory Challenges
The recent start of the VAT tax in Colombia creates a headwind with a wide range of possible outcomes.
Valuation Concerns
The current multiple of 16x our 2026E EBITDA represents one of the most expensive names across the gaming, lodging, and leisure space.
Rush Street Interactive (RSI) vs. S&P 500 (SPY)
Market Cap
$2.65B
Dividend YieldN/A
Average Volume (3M)2.13M
Price to Earnings (P/E)564.5
Beta (1Y)1.58
Revenue Growth33.70%
EPS GrowthN/A
CountryUS
Employees883
SectorConsumer Cyclical
Sector Strength55
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.02
Shares Outstanding94,555,180
10 Day Avg. Volume1,752,449
30 Day Avg. Volume2,125,932
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.70
Price to Cash Flow (P/CF)24.10
P/FCF Ratio23.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.50Price Target Upside33.39% Upside
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 MoneyRSI generates revenue primarily through its online casino gaming and sports betting operations. The company earns money by offering a wide variety of betting options, including casino games like slots and table games, as well as sports betting on numerous sports events. Players place bets, and RSI earns a percentage of these wagers, known as the 'hold.' Additionally, RSI capitalizes on social gaming, where users can purchase virtual currency to enhance their gaming experience. Key partnerships with land-based casinos and technology providers also support RSI's revenue model by expanding its market reach and enhancing its technological capabilities. Furthermore, RSI leverages marketing agreements and brand partnerships to increase its visibility and attract new customers, contributing to its revenue growth.
Rush Street Interactive Financial Statement Overview
Summary
Rush Street Interactive demonstrates a strong recovery with significant revenue growth and improved profitability metrics, indicating a positive trajectory. The balance sheet is stable with no debt, though the low equity relative to liabilities could pose risks during downturns. The company's cash flow generation is particularly strong, providing a solid foundation for future growth initiatives.Income Statement
Rush Street Interactive has shown impressive revenue growth, with a significant increase from $691 million in 2023 to $924 million in 2024, marking a healthy growth trajectory. The gross profit margin improved to 34.8% in 2024 from 32.7% in 2023, indicating enhanced operational efficiency. The company turned profitable in 2024 with a net profit margin of 0.8%, showcasing a turnaround from previous losses. Although EBIT and EBITDA margins improved, they remain modest at 2.6% and 7.7% respectively, suggesting room for further profitability enhancements.75
Positive
Balance Sheet
The company's balance sheet is stable with a strong equity position, as evidenced by an equity ratio of 20.7% in 2024, up from 16.9% in 2023. The absence of debt indicates no leverage risk, although it limits opportunities for leveraging growth. Return on Equity improved to 9.2% in 2024 from a negative position in the previous year, reflecting improving profitability. However, the relatively low stockholders' equity compared to total liabilities suggests potential vulnerability to financial fluctuations.65
Positive
Cash Flow
Rush Street Interactive's cash flow statement is robust, with a significant turnaround in free cash flow from negative $37 million in 2023 to positive $105 million in 2024, indicating strong cash generation. The operating cash flow to net income ratio stands at 14.7, reflecting efficient conversion of net income to cash. The free cash flow to net income ratio is exceptionally high at 14.6, signifying excellent cash management and operational efficiency.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 924.08M | 691.16M | 592.21M | 488.11M | 278.50M | Gross Profit |
| 322.05M | 226.15M | 177.55M | 155.96M | 87.63M | EBIT |
| 24.31M | -51.61M | -124.80M | -94.28M | -133.42M | EBITDA |
| 56.51M | -21.85M | -109.86M | -90.03M | -126.30M | Net Income Common Stockholders |
| 2.39M | -18.30M | -134.33M | -71.09M | -138.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 229.17M | 170.98M | 179.72M | 281.03M | 255.62M | Total Assets |
| 379.47M | 318.58M | 350.35M | 408.73M | 308.56M | Total Debt |
| 4.64M | 1.29M | 1.90M | 1.66M | 1.21M | Net Debt |
| -224.53M | -167.04M | -177.82M | -279.37M | -254.42M | Total Liabilities |
| 181.15M | 152.45M | 159.47M | 101.03M | 405.78M | Stockholders Equity |
| 78.68M | 53.77M | 56.05M | 85.44M | -22.47M |
| Cash Flow | Free Cash Flow | |||
| 77.02M | -37.12M | -88.62M | -82.94M | 9.94M | Operating Cash Flow |
| 106.45M | -5.93M | -60.32M | -48.19M | 16.18M | Investing Cash Flow |
| -33.36M | -33.78M | -28.99M | -37.00M | -6.24M | Financing Cash Flow |
| -2.65M | -518.00K | -1.22M | 125.58M | 241.07M |
Rush Street Interactive Technical Analysis
Positive
11.62
Price Trends
12.32
Negative
13.06
Negative
11.55
Negative
Market Momentum
-0.48
Negative
44.54
Neutral
44.78
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 11.62 is above the 20-day moving average (MA) of 10.93, below the 50-day MA of 12.32, and above the 200-day MA of 11.55, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 44.78 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.50B | 28.63 | 21.14% | 4.15% | 18.10% | ― | |
71 Outperform | $7.08B | 21.19 | 47.97% | ― | 9.82% | 109.44% | |
66 Neutral | $2.65B | 564.50 | 3.61% | ― | 33.70% | ― | |
60 Neutral | $32.00B | ― | -54.81% | ― | 30.07% | 39.93% | |
59 Neutral | $11.76B | 10.11 | -0.70% | 3.92% | 1.27% | -16.30% | |
46 Neutral | $5.85B | ― | -6.38% | ― | -2.45% | -135.17% | |
44 Neutral | $2.49B | ― | -10.27% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
RSI
Rush Street Interactive
11.29
4.43
64.58%
PENN
Penn National Gaming
14.69
-2.22
-13.13%
LNW
Light & Wonder
78.09
-17.70
-18.48%
CZR
Caesars Entertainment
25.45
-16.77
-39.72%
DKNG
DraftKings
34.73
-10.71
-23.57%
SGHC
Super Group (SGHC)
6.82
3.65
115.14%
Rush Street Interactive Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -12.63% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, highlighting significant revenue and EBITDA growth, strong performance across North America and Latin America, and improvements in margin and cash position. Despite these successes, there are challenges related to tax changes in Colombia, potential tax increases in New Jersey, and slow iGaming legalization. The company remains optimistic about future growth and strategic initiatives.Highlights
Record-Setting Revenue and EBITDA
Concluded the year with a record-setting quarter in both revenue and adjusted EBITDA, exceeding the high end of the most recent guidance. Full year 2024 revenue grew by 34% year-over-year.
Significant EBITDA Growth
Adjusted EBITDA for the full year increased more than 11 times compared to the prior year, reaching $92.5 million.
Strong Performance in North America and Latin America
North America online grew 29% and Latin America grew 54% year-over-year. MAUs in North America reached a record of 205,000, up 28% year-over-year. In Latin America, MAUs increased by 71% to 348,000.
Improved Gross Profit Margin
Gross profit margin increased to 36.5% in the fourth quarter, with a full-year improvement of over 200 basis points compared to the prior year.
Positive Outlook for 2025
Initiating full-year 2025 revenue guidance of $1.01 billion to $1.08 billion, representing a 13% year-over-year increase at the midpoint. Adjusted EBITDA expected to grow 35% year-over-year.
Strong Cash Position
Ended the year with $229 million in unrestricted cash and no debt, an increase of approximately $61 million for the year.
Lowlights
Colombian Tax Implications
Recent tax changes in Colombia involve a tax on player deposits, which could impact revenue and EBITDA. The constitutionality of the tax is under review, which creates uncertainty.
Potential Tax Increases in New Jersey
Discussion of potential tax increases in New Jersey and how it might impact operations and marketing strategies.
Regulatory Challenges in iGaming Expansion
Slow progress in iGaming legalization across new states, despite efforts and the existing unregulated online casino activities in the U.S.
Company Guidance
In the recent earnings call for Rush Street Interactive, the company reported substantial growth across various metrics for the fiscal year 2024. The revenue increased by 34% year-over-year, and the company achieved an 11-fold increase in adjusted EBITDA. The fourth quarter alone saw a 31% rise in revenue to $254.2 million, with a gross profit margin of 36.5%. The company's user metrics also showed impressive growth, with North American monthly active users (MAUs) reaching a record 205,000, marking a 28% increase year-over-year, and Latin American MAUs surged by 71% to 348,000. The average revenue per monthly active user (ARPMAU) in North America rose to $346. For 2025, RSI projects revenue between $1.01 billion and $1.08 billion, marking a 13% growth at the midpoint, and expects adjusted EBITDA between $115 million and $135 million, indicating a 35% increase year-over-year. The guidance considers potential impacts from a new deposit tax in Colombia but anticipates ongoing growth through strategic investments and operational efficiencies.Rush Street Interactive Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Rush Street Interactive Expands Board with New Appointments
Positive
Mar 21, 2025
On March 19, 2025, Rush Street Interactive expanded its board of directors from nine to eleven members, appointing Jack Markell and Andrew Bluhm as new directors. Markell, a former Governor of Delaware and U.S. Ambassador, brings extensive experience in government and corporate development, while Bluhm, a finance and investment expert, has a background in private equity and real estate. These appointments are expected to strengthen RSI’s strategic direction as it continues to expand its presence across the Americas.
Executive/Board Changes
Rush Street Interactive Announces CIO Transition Plan
Neutral
Jan 17, 2025
On January 14, 2025, Rush Street Interactive, Inc. announced the mutual termination of Einar Roosileht’s role as Chief Information Officer, effective by December 31, 2025, or upon the completion of the transition to his successor. The transition is amicable, with no disagreements cited, and the company has hired a global executive search firm to find a replacement. As part of the separation agreement, Mr. Roosileht will continue to receive his salary and other benefits until the end of 2025, including stock options and performance share units, subject to certain conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.