Wednesday's after-hours gaming winner is Rush Street Interactive (NYSE: RSI), whose stock is up more than 11% on an improvement in the digital gaming operator's 2025 financial outlook.
Rush Street released updated revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) expectations for 2025 along with its strong second-quarter earnings report. That sparked a surge in a stock that is already on an incredible run, as evidenced by its 17% increase so far this year.
Investors were informed by Chicago-based Rush Street Interactive that it now projects sales of $1.05 billion to $1.1 billion in 2025, with adjusted EBITDA of $133 and $147 million. These measures are predicted to rise by 51% and 16%, respectively, at the midpoints of those ranges.
These projections only apply to the jurisdictions where RSI presently operates; they do not account for the potential for tax changes in those areas.
Rush Street Advice The Most Recent Indication of Digital Gaming Power
The most recent positive indication from the iGaming/online sports betting industry is Rush Street Interactive's improvement of its 2025 financial forecast. Significantly, those encouraging signals have been increasing recently.
The action began earlier this month when Boyd Gaming (NYSE: BYD) sold Flutter Entertainment (NYSE: FLUT) the 5% of FanDuel that it did not previously hold for a reasonable price that also suggests substantial value in that online betting giant.
RSI competitors BetMGM and Caesars Digital offered positive feedback just this week. Due in part to iGaming's success, the former also increased its 2025 top-line and EBITDA guidance. This is significant to RSI investors because the operator has performed exceptionally well in that market.
Caesars Entertainment (NASDAQ: CZR) informed investors on Tuesday that its digital division had one of its best-ever second quarters.
“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%,” said RSI CEO Richard Schwartz in a statement.
RSI was also impressive in Q2
Market players are interested in Rush Street Interactive's forward-looking guidance, but the company's second-quarter results were also impressive. After losing $300,000 in the same period last year, the operator reported net income of $28.8 million for the April–June quarter.
Revenue increased by 22% to $269.2 million, while adjusted EBITDA increased by 88% to $40.2 million. Rush Street Interactive also stated that it has $42 million left on a $50 million repurchase plan that was launched in October of last year and that it repurchased $2.5 million worth of its own shares during the second 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%,” added Schwartz.
