NYSE:RSI
Rush Street Interactive, Inc.
A leading provider of regulated sports betting platforms and iGaming technology serving global operators with proprietary software solutions.
Key Metrics
Investment Thesis
Bull Case
RSI's explosive revenue growth trajectory and consistent path to profitability suggest a company well-positioned to capitalize on the expanding US legal sports betting market; The firm's proprietary technology stack creates high barriers to entry while its diversified geographic exposure mitigates single-market regulatory risks; Strong free cash flow generation provides ample capital for strategic acquisitions or share repurchases as seen in recent financing activities.
Bear Case
Significant volatility in profit before tax indicates potential hidden liabilities or aggressive accounting practices that could threaten future earnings stability; Heavy dependence on continuous regulatory approvals means missed legislative deadlines could cause immediate revenue contractions without clear replacement markets; Intense price wars among competitors may compress gross margins as market saturation approaches in key states despite overall industry growth.
About Rush Street Interactive, Inc.
Rush Street Interactive Inc. provides a comprehensive suite of online sports betting solutions, including regulated sportsbooks, iGaming platforms, and proprietary technology for operators worldwide. The company serves markets across North America and Europe, offering mobile-first wagering experiences and data-driven tools to bookmakers. Key revenue drivers include transaction fees from betting volume, platform licensing, and advertising services within the rapidly expanding legal online gambling sector.
Analysis
Management Discussion
The company demonstrated remarkable operational turnaround with net profit surging to $74.0M in 2025 from a loss of $60.1M the prior year, driven by robust revenue growth accelerating from $691.2M in 2023 to $1.13B in 2025. Operating cash flow reached an impressive $165.0M while managing significant non-cash adjustments of $80.7M, reflecting aggressive revenue recognition typical of high-volume betting platforms. Despite a slight dip in profit before tax to -$11.1M due to specific one-time charges or foreign exchange impacts, the underlying business profitability continues to strengthen with shareholders equity rising to $303.5M.
Industry Overview
The online sports betting industry is experiencing explosive expansion as more US states legalize wagering, creating a multi-billion dollar addressable market for technology providers and operators. Companies must navigate complex state-by-state regulatory frameworks while investing heavily in user acquisition and responsible gambling compliance to maintain licenses. Market consolidation is expected as smaller players struggle with customer acquisition costs and operational inefficiencies against larger vertically integrated competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $592.2M | $691.2M | $924.1M | $1.13B |
| Cost of Revenue | $414.7M | $465.0M | $602.0M | $741.7M |
| Gross Profit | $177.5M | $226.1M | $322.0M | $392.8M |
| Operating Expenses | $302.3M | $277.8M | $297.7M | $305.3M |
| Operating Income | $-124.8M | $-51.6M | $24.3M | $87.4M |
| G&A | $67.6M | $87.3M | $106.9M | $100.7M |
| Stock-Based Comp | $18.7M | $30.0M | $35.3M | $26.3M |
| D&A | $14.3M | $29.8M | $32.2M | $40.0M |
| Depreciation | $2.1M | $3.8M | $2.1M | $1.6M |
| Amortization | $11.6M | $24.7M | $28.3M | $36.0M |
| Other OpEx | $234.8M | $190.4M | $190.8M | $204.6M |
| Non-Operating Income | $-573.0K | $2.8M | $7.5M | $-98.5M |
| Interest Expense | $573.0K | — | — | — |
| Pre-Tax Income | $-125.4M | $-48.8M | $31.8M | $-11.1M |
| Income Tax | $9.0M | $11.2M | $24.6M | $-85.1M |
| Continuing Ops | $-134.3M | $-60.1M | $7.2M | $74.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-134.3M | $-60.1M | $7.2M | $74.0M |
| Minority Interest | $-95.7M | $-41.8M | $4.8M | $40.7M |
| Net to Common | $-38.6M | $-18.3M | $2.4M | $33.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $264.5M | $228.6M | $285.0M | $406.8M |
| Cash & Equivalents | $179.7M | $168.3M | $229.2M | $336.3M |
| Marketable Securities | — | $3.1M | $4.3M | $6.2M |
| Accounts Receivable | $11.2M | $10.5M | $14.9M | $15.9M |
| Prepaid Expenses | $11.3M | $13.7M | $19.2M | $30.5M |
| Other Current Assets | $62.3M | $33.0M | $17.5M | $18.0M |
| Long-Term Assets | $85.9M | $90.0M | $94.4M | $251.7M |
| PP&E (Net) | $6.9M | $4.6M | $3.1M | $2.4M |
| Operating Leases | $1.9M | $1.3M | $2.4M | $3.1M |
| Other LT Assets | $77.1M | $84.1M | $88.9M | $246.2M |
| Total Assets | $350.3M | $318.6M | $379.5M | $658.5M |
| Current Liabilities | $143.9M | $137.7M | $163.1M | $210.3M |
| Accounts Payable | $29.8M | $32.3M | $25.8M | $41.6M |
| Current Leases | $722.0K | $621.0K | $673.0K | $991.0K |
| Taxes Payable | $1.6M | $8.1M | — | — |
| Other Current Liab | $46.9M | $45.3M | $64.0M | $86.2M |
| Long-Term Liabilities | $15.5M | $14.8M | $18.0M | $144.7M |
| LT Operating Leases | $1.2M | $673.0K | $1.4M | $1.8M |
| Other LT Liab | $14.3M | $14.1M | $16.6M | $143.0M |
| Total Liabilities | $159.5M | $152.5M | $181.2M | $355.0M |
| Shareholders' Equity | $190.9M | $166.1M | $198.3M | $303.5M |
| Paid-In Capital | $177.7M | $192.2M | $217.7M | $251.6M |
| Retained Earnings | $-120.0M | $-138.3M | $-135.9M | $-102.6M |
| AOCI | $-1.6M | $-100.0K | $-3.1M | $1.4M |
| Total L&E | $350.3M | $318.6M | $379.5M | $658.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-134.3M | $-60.1M | $7.2M | $74.0M |
| Non-Cash Adjustments | $34.0M | $55.2M | $101.9M | $80.7M |
| Working Capital Changes | $40.0M | $-1.1M | $-2.7M | $10.2M |
| Cash from Operations | $-60.3M | $-5.9M | $106.4M | $165.0M |
| Capital Expenditures | $4.2M | $1.3M | $925.0K | $767.0K |
| Cash from Investing | $-29.0M | $-33.8M | $-33.4M | $-37.0M |
| Share Buybacks | $0 | $0 | — | $7.6M |
| Cash from Financing | $-1.2M | $-518.0K | $-2.7M | $-37.4M |
| FX Effect | $-3.7M | $5.1M | $-8.7M | $17.1M |
| Net Change in Cash | $-94.2M | $-35.1M | $61.8M | $107.7M |
| Beginning Cash | $300.3M | $206.1M | $171.0M | $232.8M |
| Ending Cash | $206.1M | $171.0M | $232.8M | $340.5M |
Frequently Asked Questions
How does Rush Street Interactive, Inc. make money?
Regulated Sportsbook Operations generating revenue through commissions on betting handles; iGaming Solutions providing white-label platforms and content to casino operators; Proprietary Technology Services offering data analytics, odds compilation, and risk management tools to third-party partners.
What are the main risks for RSI?
Regulatory uncertainty and potential delays in new state legislation approvals across the United States; Intense competition from established betting giants like FanDuel and DraftKings driving down margins; Cybersecurity threats targeting customer data and payment processing systems critical to trust-based gaming operations.
What is RSI's competitive advantage?
Strong regulatory head-start in key US states allowing early market capture before competitors; Proprietary real-time data infrastructure enabling faster odds adjustments than traditional bookmakers; Diversified revenue streams reducing reliance on any single jurisdiction's regulatory changes.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.