RSI Stock Forecast & Price Target

Rush Street Interactive Inc. has demonstrated robust financial growth, with a remarkable increase in gross gaming revenue (GGR) and monthly active users (MAUs), as evidenced by a year-over-year growth of 66% in GGR and 34% in MAUs during fiscal year 2025. The company significantly expanded its user base in Latin America, showing a 79% and 116% growth in users during the 2024 Copa America, as favorable legislation and increased per capita spending create a larger market opportunity for online sports betting (OSB) and iGaming. Additionally, with $336 million in cash at the end of fiscal 2025 and anticipated favorable tax developments that could enhance EBITDA by $25 million, the company is positioning itself for sustained growth with a projected nearly 50% compound annual growth rate in EBITDA over the next two years.

Rush Street Interactive Inc. faces declining market share trends that are worse than previously anticipated, as many states opt for limiting market access to only one or two operators, thereby constraining total addressable market (TAM) estimates despite legalizations. The company's balance sheet poses potential challenges for growth, highlighted by a substantial VAT on deposits that has created significant revenue headwinds alongside increasing technology reinvestment and customer acquisition costs threatening future profitability. Additionally, Rush Street Interactive's heavy reliance on market access agreements and third-party content exposes it to competitive risks, particularly if rivals secure exclusive contracts that could lead to customer attrition.