RSI Stock Forecast & Price Target

Rush Street Interactive Inc. demonstrates a positive financial outlook, evidenced by a significant year-over-year growth in gross gaming revenue, which reached $877.6 million, marking a 28% increase. The company has achieved record customer growth in North America, with major markets such as Michigan, Pennsylvania, and New Jersey experiencing robust growth rates between 22% and 31% YoY, while smaller markets like West Virginia and Rhode Island achieved gains exceeding 50%. Additionally, the expansion of its user base is notable, with iCasino monthly active users in North America growing over 30% YoY and those in Latin America increasing by over 40% YoY, indicating a strong trajectory for future engagement and revenue generation.

Rush Street Interactive Inc. is facing unfavorable market share trends that are worse than anticipated, which could negatively impact future performance. The company has reduced its marketing expenses to less than 14% of revenue, the lowest ratio since its public offering, potentially contributing to an estimated $25–30 million annualized headwind to Adjusted EBITDA. Furthermore, a temporary 19% VAT on deposits in Colombia is expected to create an additional $25–30 million EBITDA headwind in 2025, compounding the financial challenges the company is currently experiencing.