Rush Street Interactive’s third quarter results were shaped by continued growth in its online casino segment and ongoing strength in Latin America, but the company missed Wall Street’s revenue expectations. Management highlighted that a measured pace of growth in the North American market, along with competitive intensity—especially in Michigan—led to industry-wide moderation. CEO Richard Schwartz credited the casino-first strategy and effective marketing in Latin America for record player engagement, noting, “Online casino remains the foundation of our business model, and it was once again the core driver of growth and profitability this quarter.”
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Rush Street Interactive (RSI) Q3 2026 highlights:
- Revenue $385.9 million vs S&P analysts’ estimates of $388.6 million (38.8% year-on-year growth, 0.7% miss)
- Adjusted EPS $0.15 vs S&P analysts’ estimates of $0.13 (12.1% beat)
- Adjusted EBITDA $62.22 million vs analyst estimates of $54.67 million (16.1% margin, 13.8% beat)
- Revenue guidance The company reconfirmed its revenue guidance for the full year of $1.58 billion at the midpoint
- EBITDA guidance $255 million at the midpoint for the full year, in line with analyst expectations
- Operating margin 11.1%, up from 7% in the same quarter last year
- Market capitalization $1.57 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Rush Street Interactive’s Q3 earnings call
- David Katz (Jefferies) asked about Rush Street Interactive’s strategy for potential entry into Brazil and thoughts on U.S. state legalization timelines. CEO Richard Schwartz said they remain cautious but open to Brazil, and optimistic about opportunities in Virginia, Ohio, D.C., Indiana, Illinois, and New York.
- Ryan Sigdahl (Craig-Hallum) questioned the cause of industry growth moderation and whether marketing spend would increase further. CFO Kyle Sauers explained the slowdown was broad-based across player cohorts and said marketing investment will remain dynamic, adjusted for market conditions.
- Dan Politzer (J.P. Morgan) pressed on rising promotions and the tax outlook in Colombia. Sauers clarified higher bonusing was tied to market launches and new players, while the Colombian tax situation remains stable but will be closely monitored into 2027.
- Zach Silverberg (Wells Fargo) asked about post-World Cup player retention and what could drive results to the higher end of guidance. Sauers shared that cross-sell to online casino was strong for World Cup-acquired players and that better industry trends or share gains could boost results.
- Mike Hickey (StoneX) inquired about margin expansion amid slowing growth and the strategy for proprietary game development. Sauers and Schwartz confirmed no cost-cutting is planned, with ongoing investment in proprietary games expected to support margins.
Catalysts in upcoming quarters
In upcoming quarters, the StockStory team will be monitoring (1) progress on player acquisition and retention in new and existing markets, especially Alberta and Latin America; (2) the pace of online casino legalization efforts across key U.S. states; and (3) the company’s ability to achieve further margin expansion through product differentiation and marketing leverage. Shifts in regulatory or competitive dynamics will also remain important markers of execution.
Rush Street Interactive currently trades at $12.23, down from $15.13 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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