Rush Street Interactive’s fourth quarter results drew a positive market reaction, driven by robust user growth and segment strength in online casino operations. Management attributed the quarter’s momentum to consistent improvements in customer acquisition, retention initiatives, and a focus on enhancing the player experience across all geographies. CEO Richard Schwartz emphasized the success of their casino-first strategy, noting, “Our North American online casino markets continue to drive exceptional growth, with MAUs increasing 51% in the fourth quarter, representing our second highest quarterly growth rate during the past 4.5 years.” Management highlighted that these gains were achieved without launching in any new markets, suggesting the company’s operational enhancements are translating into broad-based growth.
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) Q4 CY2025 Highlights:
- Revenue: $324.9 million vs analyst estimates of $304.8 million (27.8% year-on-year growth, 6.6% beat)
- Adjusted EPS: $0.08 vs analyst expectations of $0.11 (24.8% miss)
- Adjusted EBITDA: $44.15 million vs analyst estimates of $42.56 million (13.6% margin, 3.7% beat)
- EBITDA guidance for the upcoming financial year 2026 is $220 million at the midpoint, above analyst estimates of $213.2 million
- Operating Margin: 8.8%, up from 4.8% in the same quarter last year
- Market Capitalization: $1.88 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 Q4 Earnings Call
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Daniel Politzer (JPMorgan) asked for more detail on the impact of Colombia’s 2025 VAT tax and how the new revenue-based tax structure might affect 2026 results. CFO Kyle Sauers explained that the VAT on deposits cost roughly $75 million in revenue and $25–30 million in EBITDA, but expects less impact under the new regime.
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Bernard McTernan (Needham) questioned the drivers behind Latin America ARPU trends and the impact of currency fluctuations. Sauers clarified that normalization for currency and the end of deposit bonusing would support a rebound in ARPMAU, with Mexico’s growing contribution lifting overall player values.
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Jordan Bender (Citizens) inquired about the rationale for raising minimum bets in Illinois and whether this would be replicated in other markets facing higher taxes. Sauers said the minimum bet strategy was not directly tied to the Chicago tax and could be deployed elsewhere, depending on local conditions.
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David Katz (Jefferies) pressed management about the relevance of prediction markets and whether Rush Street Interactive might integrate such products. CEO Richard Schwartz responded that while they are monitoring developments, prediction markets are not a priority and require careful regulatory consideration.
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Ryan Sigdahl (Craig-Hallum) asked about the sources of North American online casino user growth and whether new acquisition channels were being used. Sauers credited improved acquisition efficiency, record first-time depositors, and enhanced customer service for the gains, rather than expansion into new channels.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the pace and profitability of the Alberta market launch, (2) updates on Colombia’s evolving tax framework and its resolution by the Constitutional Court, and (3) continued monthly active user growth in core North American casino markets. We’ll also track the impact of proprietary game releases and progress on U.S. online casino legalization initiatives as additional catalysts.
Rush Street Interactive currently trades at $18.34, up from $16.94 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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