One-glance verdict
Undervalued
$40.62 our estimate vs market $25.89
Wall Street consensus: $36.00 (-11.4% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
Rush Street Interactive, Inc.
RSI · NYQ · Consumer Cyclical · Gambling
Current price
$25.89
52-week range
$15.51 - $34.53
Market cap
$6.32B
Balance sheet
Healthy
152.57x Strong cushion
Net cash $340.27M. 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 20.5% last year.
- Reward Returns 30.3% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 3.0% (peer median: 5.9%).
What this company does
Rush Street Interactive, Inc.
Rush Street Interactive operates online casino and sports betting platforms, like BetRivers and PlaySugarHouse, where people can bet real money on games and sports. The company makes its money by keeping a small portion of all the wagers placed by its users. This is important because its growth depends on more regions legalizing online gambling and its ability to attract players in a very competitive market.
How the company got here
Founded in 2012 by gaming industry veterans, Rush Street Interactive (RSI) was created to jump into the then-new world of legal online gambling. A key moment was its 2016 launch in New Jersey, which gave it an early start in the U.S. online casino market. After the Supreme Court allowed states to legalize sports betting in 2018, RSI expanded its sports betting operations under the brand BetRivers. To get more money to grow, the company became publicly traded on the New York Stock Exchange in December 2020 through a merger with a special purpose acquisition company (a faster way to get on the stock market than a traditional IPO).
What it actually does
Rush Street Interactive runs online gambling websites and smartphone apps where people can bet real money. Think of it as a casino and a sportsbook that you can carry in your pocket. Customers in places where it's legal, like certain U.S. states and parts of Latin America, can play casino games like slots and table games or bet on sports. The company makes money from the difference between what players bet and what they win, which is known as the house win or gross gaming margin.
Online Casino
This is the company's largest and most emphasized business, making up the majority of its revenue. It offers digital versions of games you would find in a physical casino, like slot machines, blackjack, and roulette, which people can play on their phones or computers. A popular feature is its "live dealer" games, where customers interact with a real person dealing cards or spinning a wheel through a video stream, making it feel more like a real casino. The company sees this as its most important area for growth and profitability.
Online Sports Betting
Through its BetRivers, PlaySugarHouse, and RushBet brands, the company offers online sports betting, where customers can wager on the outcomes of sporting events. This part of the business is strategically important because it attracts a wide range of customers who might then also try the online casino games. While a significant part of the business, management has often emphasized a "casino-first" strategy, suggesting sports betting is a key tool to bring in new players for their more profitable casino segment.
Retail Sportsbook and B2B Services
This is a very small slice of the company's business, contributing less than 1% of total revenue. In this segment, RSI provides the technology and services for physical, in-person sports betting locations, such as at land-based casinos that are partners. Essentially, they run the sports betting operations for another company in their physical location and in return receive a commission or a share of the revenue.
What management is betting on now
Management's main focus is on growing the online casino business, which they believe has better and more stable profitability than sports betting. They are concentrating on expanding into new geographic markets as more states and countries make online gambling legal, with a particular emphasis on Latin America and new U.S. states. The company is also investing in its own technology to create unique games and features, aiming to keep players engaged and loyal to their brands. A key part of their strategy is to grow profitably by being disciplined with marketing spending, rather than trying to attract customers at any cost.
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 Q3
$29.31M
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
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
Revenue
$232.11M
Net income
$1.19M
Diluted EPS
0.01
Operating cash flow
$29.43M
Free cash flow
$29.31M
Fetching…
Sources
Is it cheap or expensive?
Fair value $40.62 vs current price $25.89
Wall Street consensus is the average analyst price target: $36.00 (-11.4% lower than our fair-value estimate).
Our most-likely fair value is $40.62 a share — about 56.9% above today's price of $25.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $340.3M - more cash than debt. Interest coverage 152.6x.
Net debt
$-340.27M
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 $5.15M 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 $25.92B Interest coverage 0.89x -99% vs RSI Carries about 170.6x less debt cushion than RSI.
Total debt $4.86B 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 20.5% last year.
-
Returns 30.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 3.0% (peer median: 5.9%).
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)
83.52x
Forward P/E
30.75x
P/B
16.15x
P/S
4.63x
EV/EBITDA
15.63x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
35.0%
Operating margin
11.7%
Net margin
2.3%
ROE
30.3%
ROA
12.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.12x
Quick ratio
1.92x
Total debt
$5.15M
Total cash
$345.42M
Growth
How the business has been compounding
Revenue TTM
$1.37B
Revenue 5Y CAGR
23.5%
EPS TTM
0.31
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$182.68M
Free CF TTM
$164.24M
FCF margin
12.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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