Rush Street Interactive Q2 2025 slides: Record revenue and EBITDA drive raised guidance

Published 30/07/2025, 21:46
Rush Street Interactive Q2 2025 slides: Record revenue and EBITDA drive raised guidance

Introduction & Market Context

Rush Street Interactive (NYSE:RSI) delivered record financial results in the second quarter of 2025, according to its investor presentation released on July 30, 2025. The online gaming company reported substantial growth across key metrics, building on the momentum from its strong first-quarter performance.

RSI shares responded positively to the results, with the stock trading up 2.75% during the regular session and adding another 2.05% in after-hours trading to reach $15.95. The stock has performed exceptionally well over the past year, with a 52-week range of $8.52 to $16.78, reflecting growing investor confidence in the company’s iCasino-focused strategy.

Quarterly Performance Highlights

RSI reported record revenue of $269 million in Q2 2025, representing a 22% year-over-year increase. This growth outpaced the company’s Q1 2025 revenue of $262.4 million, demonstrating continued momentum. More impressively, Adjusted EBITDA surged 88% year-over-year to a record $40 million, highlighting significant margin expansion.

The strong performance was driven by robust user growth, with Monthly Active Users (MAUs) in the U.S. and Canada increasing 21% year-over-year, while Latin American MAUs jumped 42%. This user growth, combined with effective monetization strategies, contributed to the company’s exceptional financial results.

As shown in the following chart of company highlights:

The company’s iCasino business continued to outperform, growing 25% year-over-year, while online sports betting revenue increased by 15%. Markets launched since 2021, combined with Latin American operations, delivered even stronger growth at 38% year-over-year, indicating the success of RSI’s expansion strategy.

Strategic Initiatives

RSI’s presentation emphasized its iCasino-centric strategy as a key differentiator in the competitive online gaming landscape. The company highlighted that iCasino offers broader demographics (52% female users compared to 14% for sports betting), better monetization (17.9x higher GGR from iCasino+OSB users vs. OSB-only), and addresses a larger total addressable market (iCasino TAM is more than 3x the size of online sports betting).

As illustrated in this demographic and economic comparison:

The company’s success in Delaware stands out as a particularly compelling case study. After taking over as the exclusive state operator in late December 2023, RSI has dramatically increased the market’s performance, achieving an iCasino Gross Gaming Revenue annual run rate of over $146 million during Q2 2025. This represents more than seven times the revenue the previous operator achieved in their best quarter.

The following chart illustrates this remarkable transformation in Delaware:

International expansion remains a strategic priority, with RSI highlighting its beachhead position in Latin America. The company achieved record MAUs in Colombia during Q2 2025 while growing GGR by 80% year-over-year in local currency. RSI’s LATAM strategy targets a potential $28.9 billion TAM by 2028, with existing operations in Colombia, Mexico, and Peru, and potential expansion into Brazil, Chile, Ecuador, and Argentina.

Detailed Financial Analysis

RSI’s financial strength is evident in its raised full-year guidance. The company now expects FY2025 revenue between $1.05 billion and $1.1 billion, implying 16% year-over-year growth. Adjusted EBITDA guidance was also raised to between $133 million and $147 million, suggesting 51% growth at the midpoint.

The company’s geographic diversification strategy is bearing fruit, with revenue from markets outside of Illinois and Pennsylvania now representing 65% of total revenue in Q2 2025. This reduced concentration risk and created multiple growth avenues across different jurisdictions.

RSI’s player economics continue to improve, with lifetime value reaching approximately $5,000 per player in under 5 years. Strong retention metrics and cohort performance suggest sustainable long-term growth, as shown in this chart:

The company’s growth across regions demonstrates the effectiveness of its expansion strategy, with both user growth and monetization improving in North America and Latin America:

Competitive Industry Position

RSI positions itself as a top-tier operator in the iCasino space, ranking among the top 4 operators for net revenue in online casino in the United States. The company operates in as many states as any other operator in the U.S. iCasino market, with a presence in Delaware, Pennsylvania, West Virginia, Michigan, New Jersey, Ontario, Mexico, and Colombia.

The company’s competitive advantages stem from its proprietary technology platform, developed over 12+ years, which includes a Player Account Management system and vertically integrated tech stack. This platform enables robust architecture, regulatory compliance, advanced bonusing/CRM/loyalty programs, and multi-brand/multi-vertical capabilities.

As illustrated in this market positioning overview:

RSI’s total addressable market at maturity is estimated at approximately $145 billion, with significant opportunities in iCasino and online sports betting across the United States, Canada, and Latin America. The company’s extensive market access positions it well to capitalize on this opportunity as more jurisdictions regulate online gaming.

Forward-Looking Statements

Looking ahead, RSI is focused on several growth initiatives, including expanding its BetRivers Poker platform, which recently launched with multi-state liquidity in Pennsylvania, Michigan, Delaware, and West Virginia. The platform features associations with poker celebrities Phil Galfond and Phil Hellmuth and offers cross-sell integration with other gaming offerings.

The company also highlighted its award-winning customer service, having won EGR’s "Customer Service Operator of the Year" for five consecutive years. Continuous platform and self-service enhancements have led to faster response times and elevated customer satisfaction, with year-over-year improvements in Net Promoter Score, First Contact Resolution, and Customer Satisfaction for 2024.

RSI’s strong Q2 2025 performance and raised guidance suggest continued momentum throughout 2025, building on the company’s Q1 success when it reported EPS of $0.09 (exceeding expectations by 28.6%) and revenue of $262.4 million. With its focus on the higher-margin iCasino segment, geographic diversification, and proprietary technology platform, RSI appears well-positioned to continue its growth trajectory in the competitive online gaming market.

Full presentation:

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