Is RSI's EPS growth sustainable long-term?

**Rush Street Interactive's (RSI) EPS growth appears to be on a sustainable long-term trajectory**, considering the following points:

1. **Consistent Revenue Growth**: RSI has demonstrated robust revenue growth, with a significant year-over-year increase of 34% in the second quarter of 2024, surpassing analyst expectations. The company's year-to-date revenue increase of 35% has outpaced competitors, solidifying its position in the online gaming sector.
2. **Improved Financial Performance**: RSI's financial results have been impressive, with a gross margins of 35% in Q3 2024, exceeding consensus expectations. The company's adjusted EBITDA of $25 million was $15 million above consensus expectations, indicating efficient operations.
3. **Strategic Focus and Market Expansion**: RSI's strategic focus on iGaming markets has been successful, positioning the company as the fifth largest in terms of EBITDA in the online gaming industry. The company's expansion efforts into new territories, such as Delaware, have contributed to its growth.
4. **Operational Efficiency**: RSI has shown improvements in operational efficiency, as evidenced by its ability to grow revenue while reducing net losses and improving adjusted EBITDA. The company's reduction in advertising and promotions expenses without sacrificing user growth suggests a more effective marketing strategy.
5. **Investor Confidence**: RSI's market capitalization of $738 million reflects investor confidence, and the company's share repurchase program, authorized at $50 million, demonstrates confidence in future growth and commitment to shareholder value.

In conclusion, RSI's sustainable EPS growth long-term is supported by its consistent revenue growth, improved financial performance, strategic focus, operational efficiency, and investor confidence. These factors collectively contribute to a positive outlook for RSI's future earnings potential.