Rush Street Interactive (RSI, Financial) has partnered with Integrity Compliance 360 to launch an educational initiative called Gaming Literacy Aiding Decisions. This program is crafted to support educators in enhancing gaming literacy among high school students and fostering a responsible approach to gaming, a growing social activity. Initially, the GLAD curriculum will be rolled out in New Jersey and Delaware. This spring, RSI and IC360 have collaborated with local school districts to implement a speaker series and deliver educational content. The feedback and success metrics gathered from these efforts will guide future improvements, aiming to extend the program's reach to educators more widely, ensuring the curriculum aligns effectively with student interests.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Rush Street Interactive Inc (RSI, Financial) is $15.63 with a high estimate of $17.00 and a low estimate of $12.00. The average target implies an upside of 33.09% from the current price of $11.74. More detailed estimate data can be found on the Rush Street Interactive Inc (RSI) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Rush Street Interactive Inc's (RSI, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Rush Street Interactive Inc (RSI, Financial) in one year is $2.78, suggesting a downside of 76.32% from the current price of $11.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Rush Street Interactive Inc (RSI) Summary page.
RSI Key Business Developments
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rush Street Interactive Inc (RSI, Financial) reported a 21% year-over-year increase in revenue for Q1 2025, reaching $262 million.
- Adjusted EBITDA nearly doubled compared to the same period last year, reaching $33 million.
- The company experienced strong growth in both online casino (25% growth) and sports betting (11% growth) verticals.
- RSI's North American monthly active users (MAUs) grew by 17% year over year, with Latin America MAUs increasing by 61%.
- The company maintained a strong cash position with $228 million in unrestricted cash and no debt.
Negative Points
- The newly imposed 19% VAT tax in Colombia negatively impacted net revenue growth, despite strong gross gaming revenue (GGR) performance.
- RSI's net revenue in Colombia was flat year over year in April, despite a 55% increase in GGR.
- The company anticipates facing tougher comparisons as the year progresses, particularly in markets like Delaware.
- Marketing spend increased by 3% compared to last year, although it was leveraged to achieve record EBITDA.
- The VAT tax in Colombia is expected to remain a headwind throughout the year, affecting net revenue and profitability.
