RSI Stock Forecast & Price Target

Rush Street Interactive Inc. has reported a robust performance in the online gaming sector, with gross gaming revenue reaching $877.6 million, marking a 28% year-over-year increase and a 5% sequential growth from the previous month. Notably, the company has achieved record new customer growth across North America, particularly in key states like Michigan, Pennsylvania, and New Jersey, where revenue growth ranged from 22% to 31% year-over-year, in addition to significant gains in smaller markets. Furthermore, the continued expansion of the user base has been impressive, with increases of over 30% in monthly active users in North America and over 40% in Latin America, indicating strong momentum going into the third quarter.

Rush Street Interactive Inc. is facing significant challenges, including unfavorable market share trends that are worse than previously anticipated. The company’s marketing spend has decreased to under 14% of revenue, the lowest since its IPO, which could translate to an estimated annualized headwind of $25–30 million to Adjusted EBITDA, despite achieving record first-time depositors. Additionally, a temporary 19% VAT on deposits in Colombia is expected to impose another $25–30 million EBITDA headwind in 2025, compounding the pressures on the company's financial outlook.