Rush Street 2025 Q2 Earnings Exceptional Turnaround as Net Income Surges 10,323.4%

Rush Street Interactive (RSI) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company exceeded expectations with a remarkable turnaround in net income, achieving a record $28.83 million compared to a loss in the previous year. RSI also raised its full-year guidance, forecasting revenue between $1,050 million and $1,100 million, reflecting a 16% growth. Adjusted EBITDA is anticipated to range between $133 million and $147 million, marking a 51% increase at the midpoint.

Revenue
Rush Street's total revenue for Q2 2025 increased by 22.2% to $269.22 million compared to the previous year. Online casino and sports betting accounted for the bulk of the revenue, contributing $267.52 million. Retail sports betting added $464,000, while social gaming brought in $1.23 million, culminating in a total revenue of $269.22 million.

Earnings/Net Income
Rush Street maintained stable EPS at $0.18 in 2025 Q2, consistent with the previous year. The company achieved a dramatic turnaround in net income, reaching $28.83 million in Q2 2025, compared to a net loss of $-282,000 in Q2 2024. The EPS reflects a stable financial performance despite recent challenges.

Price Action
The stock price of Rush Street surged 8.68% on the latest trading day, reflecting strong investor confidence. Over the past week, the stock has increased by 37.14%, while month-to-date gains stand at 35.30%.

Post-Earnings Price Action Review
The strategy of buying stocks with high Relative Strength Index (RSI) values and strong recent performance has shown poor results. Backtesting reveals significant underperformance compared to the market, with a strategy return of -77.93% and an excess return of -121.81%. The strategy's negative Sharpe ratio of -0.41 indicates substantial risk and volatility, although the maximum drawdown remains controlled at 0.00%. This suggests that while there are measures in place to limit losses, the strategy still exposes investors to considerable risk and potential volatility.

CEO Commentary
"I'm excited to report that we've delivered another exceptional quarter with records across the board, marking our 9th consecutive quarter of improving both revenue and adjusted EBITDA from the preceding quarter. Our impressive record Adjusted EBITDA growth of 88% year-over-year was driven by strong, broad-based performance across our business, with online casino revenue growing 25% and online sports betting up 15%. The consistency and strength of our business model is evident in our results, particularly in North American markets that include online casino, where we saw Monthly Active User growth exceeding 30%. Our strategic focus on markets where we can deploy our full suite of gaming offerings continues to drive exceptional performance and maximize player value." - Richard Schwartz, Chief Executive Officer of RSI.

Guidance
RSI is raising its full-year ending December 31, 2025 guidance for revenue and Adjusted EBITDA. Revenue is now expected to be between $1,050 million and $1,100 million, with a midpoint of $1,075 million, representing 16% year-over-year growth compared to $924 million for 2024. Adjusted EBITDA is projected to be between $133 million and $147 million, with a midpoint of $140 million, reflecting a 51% year-over-year growth compared to $92.5 million for 2024.

Additional News
Rush Street Interactive recently expanded its BetRivers Poker platform to include Delaware, Michigan, and West Virginia, creating a unified multi-state network. This expansion allows players to compete across state lines, offering larger tournament prize pools and more diverse gaming options. The platform, developed with input from poker legends, features innovative elements like Dynamic Avatars and Cub3d Sit & Go Tournaments. Additionally, RSI repurchased $2.5 million of Class A common stock during the second quarter under its $50.0 million authorized buyback program, leaving approximately $42 million available under the current authorization.