One-glance verdict
Undervalued
$35.09 our estimate vs market $12.12
Wall Street consensus: $24.21 (-31.0% lower than our fair-value estimate)
65% below our estimate, below the bear case
Fundamentals snapshot
Rush Street Interactive, Inc.
RSI · NYQ · Consumer Cyclical · Gambling
Current price
$12.12
52-week range
$11.88 - $34.53
Market cap
$2.96B
Balance sheet
Healthy
152.57x Strong cushion
Net cash $381.91M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 30.0% last year.
- Reward Returns 32.5% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 2.6% (peer median: 6.0%).
What this company does
Rush Street Interactive, Inc.
Rush Street Interactive (RSI) is a company that runs online casinos and sports betting platforms, like BetRivers and PlaySugarHouse, in various countries. Their main income comes from people playing casino games and placing bets online, which is important because it shows how well their gaming services are attracting and keeping customers. This business model relies on keeping players engaged with a variety of games and betting options.
How the company got here
Rush Street Interactive (RSI) was founded in 2012 by gaming industry veterans who were already involved with established land-based casinos like Rivers and SugarHouse. They saw the potential in online gaming as more states began to legalize it. A significant early step was launching PlaySugarHouse in New Jersey in 2016, which gave them a foothold in the online casino market. After the U.S. Supreme Court made it easier for states to offer sports betting in 2018, RSI expanded rapidly under the BetRivers brand into these newly opened markets. The company went public in December 2020 through a special purpose acquisition company (SPAC) merger, which provided capital for further growth and a public profile.
What it actually does
Rush Street Interactive operates online casino and sports betting platforms for real-money play. Think of it like having a casino and a sportsbook right on your phone or computer. Customers create accounts, deposit money, and then can play various casino games or bet on sports events. The company makes money from the wagers placed, keeping a portion after paying out winning bets and covering operational costs. They operate under brands like BetRivers, PlaySugarHouse, and RushBet, focusing on regulated markets in the United States, Canada, and Latin America.
Online Casino
This is Rush Street Interactive's primary focus and a significant driver of its revenue. It offers a wide variety of casino games, including slots, table games like blackjack and roulette, and live dealer games where you can play with a real person via video stream. The company emphasizes a strong user experience and customer retention in this segment, as casino players tend to be more consistent. This part of the business is crucial because online casino games generally have more predictable revenue streams compared to sports betting, which can be influenced by game outcomes and betting volumes.
Online Sports Betting
Through this segment, customers can bet on a wide range of sports events, both before games start and as they are happening live. This includes popular sports and leagues. While sports betting can attract a large number of users, especially around major events, it's also a more volatile business. Revenue here depends on the accuracy of odds set by the company and the outcomes of the games, as well as promotional offers to attract bettors. It often serves as a way to acquire new customers who might then also engage with the online casino offerings.
Retail Sportsbook Services
Rush Street Interactive also provides services to physical, land-based casinos to help them offer sports betting. This is a smaller part of their business, mainly involving setting up and managing the retail sportsbooks within these existing casino properties. They earn revenue through commissions from these partnerships. This segment allows RSI to leverage its expertise in sports betting in physical locations, complementing its digital operations.
Social Gaming
This segment offers a free-to-play version of their casino and sports betting products. It's designed to let people experience the fun of gaming without using real money. Social gaming often acts as a way to attract potential customers in markets where real-money online gambling isn't yet legal. Users might make in-game purchases for virtual currency, providing a revenue stream while also serving as a top-of-funnel tool to build brand awareness and gather player data for future real-money engagement.
What management is betting on now
Management is focused on a 'casino-first' strategy, prioritizing the online casino business because it tends to be more profitable and has more stable revenue than sports betting. They are also concentrating on disciplined customer acquisition and retention, aiming for efficient marketing spending and building long-term player loyalty. Expanding into new regulated markets, both within the U.S. and internationally, is also a key priority. By focusing on these areas, Rush Street Interactive aims to achieve sustainable growth and profitability in the competitive online gaming industry.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$25.73M
FY2025 Q1
$28.55M
FY2025 Q2
$25.59M
FY2025 Q3
$41.19M
FY2025 Q4
$68.91M
FY2026 Q1
$19.86M
FY2026 Q2
$51.71M
FY2026 Q3
$70.28M
Revenue
$385.85M
Net income
$11.83M
Diluted EPS
0.10
Operating cash flow
$71.16M
Free cash flow
$70.28M
Fetching…
Sources
Revenue
$393.78M
Net income
$11.55M
Diluted EPS
0.10
Operating cash flow
$52.06M
Free cash flow
$51.71M
Fetching…
Sources
Revenue
$370.36M
Net income
$9.07M
Diluted EPS
0.08
Operating cash flow
$20.11M
Free cash flow
$19.86M
Fetching…
Sources
Revenue
$324.89M
Net income
$5.25M
Diluted EPS
0.08
Operating cash flow
$69.09M
Free cash flow
$68.91M
Fetching…
Sources
Revenue
$277.91M
Net income
$6.05M
Diluted EPS
0.06
Operating cash flow
$41.42M
Free cash flow
$41.19M
Fetching…
Sources
Revenue
$269.22M
Net income
$16.69M
Diluted EPS
0.12
Operating cash flow
$25.79M
Free cash flow
$25.59M
Fetching…
Sources
Revenue
$262.41M
Net income
$5.32M
Diluted EPS
0.05
Operating cash flow
$28.71M
Free cash flow
$28.55M
Fetching…
Sources
Revenue
$254.17M
Net income
$2.02M
Diluted EPS
0.03
Operating cash flow
$25.90M
Free cash flow
$25.73M
Fetching…
Sources
Is it cheap or expensive?
Fair value $35.09 vs current price $12.12
Wall Street consensus is the average analyst price target: $24.21 (-31.0% lower than our fair-value estimate).
Our most-likely fair value is $35.09 a share — about 189.5% above today's price of $12.12, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $381.9M - more cash than debt. Interest coverage 152.6x.
Net debt
$-381.91M
Interest coverage
152.57x
Rush Street Interactive, Inc.'s profit covers its interest bill about 152.6 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RSI
BASELINE
Rush Street Interactive, Inc.
Total debt $0.00 Interest coverage 152.57x This is the baseline the peer rows are being compared against.
Total debt $1.92B Interest coverage -5.35x -100% vs RSI This peer has almost no interest-payment cushion compared with RSI.
Total debt $11.06B Interest coverage 0.67x -100% vs RSI Carries about 227.9x less debt cushion than RSI.
Total debt $12.58B Interest coverage 0.94x -99% vs RSI Carries about 162.2x less debt cushion than RSI.
Total debt $25.81B Interest coverage 0.89x -99% vs RSI Carries about 170.6x less debt cushion than RSI.
Total debt $4.81B Interest coverage 2.47x -98% vs RSI Carries about 61.7x less debt cushion than RSI.
What you should know
The case for and against RSI
3 Rewards
1 Risk
Rewards
-
Revenue grew 30.0% last year.
-
Returns 32.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 2.6% (peer median: 6.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.63x
Forward P/E
14.71x
P/B
7.16x
P/S
2.01x
EV/EBITDA
5.78x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
35.5%
Operating margin
11.1%
Net margin
2.6%
ROE
32.5%
ROA
14.1%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
2.22x
Quick ratio
2.02x
Total debt
$0.00
Total cash
$381.91M
Growth
How the business has been compounding
Revenue TTM
$1.47B
Revenue 5Y CAGR
23.5%
EPS TTM
0.35
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$212.42M
Free CF TTM
$164.24M
FCF margin
11.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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