Core Insights - The article emphasizes the importance of in-depth research in the casino and gaming sector, highlighting the value of subscribing to specialized resources for actionable insights [1] Group 1: Industry Expertise - Howard Jay Klein brings 30 years of experience in major casino operations, having worked with notable establishments such as Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace [2] - Klein focuses on value investing, utilizing management quality as a key factor in shaping investment ideas [2] - The House Edge, led by Klein, provides actionable research for investments in the casino, online betting, and entertainment industries, supported by an extensive intelligence network across the US gambling sector [2]

Company Announcement - Rogers Sugar Inc. (RSI) will hold a conference call to discuss their 2025 second quarter results on May 13, 2025, at 8:00 a.m. Eastern Time [1] - The conference call will be chaired by Mr. Michael Walton, Chief Executive Officer, and Mr. Jean-Sébastien Couillard, Chief Financial Officer [1] Participation Details - Interested participants can join the call by dialing 1-800-717-1738 [2] - A recording of the conference call will be available after the event by dialing 1-888-660-6264, access code 72827, until June 13, 2025 [2] - The discussion and presentation will also be accessible through a webcast [2] Contact Information - Jean-Sébastien Couillard serves as Vice President of Finance, Chief Financial Officer, and Corporate Secretary [3] - Contact number for further inquiries is (514) 940-4350 [3]

Revenue Performance - Revenue for Q1 2025 was $262,407,000, an increase of 20.6% compared to $217,428,000 in Q1 2024[19] - Total revenue for the three months ended March 31, 2025, was $262.4 million, a 20.6% increase from $217.4 million in the same period of 2024[57] - Revenue from online casino and online sports betting reached $260.9 million, up 20.9% from $215.6 million in the prior year[57] - Revenue from the United States and Canada was $224.9 million, representing a 19.3% increase from $188.5 million in the same period of 2024[57] Net Income and Earnings - Net income for Q1 2025 was $11,211,000, a significant improvement from a net loss of $2,209,000 in Q1 2024[20] - Earnings per share for Q1 2025 were $0.06 (basic), compared to a loss of $0.01 in Q1 2024[19] - Comprehensive income for Q1 2025 was $15,738,000, compared to a loss of $2,108,000 in Q1 2024[20] - The net income attributable to Rush Street Interactive, Inc. for the three months ended March 31, 2025 was $5.3 million, a significant recovery from a net loss of $727,000 in 2024[88] Assets and Liabilities - Total current assets increased to $287,611,000 as of March 31, 2025, compared to $285,046,000 as of December 31, 2024[17] - Total liabilities rose to $191,656,000 as of March 31, 2025, up from $181,150,000 as of December 31, 2024[17] - Players' receivables increased to $16,466,000 as of March 31, 2025, compared to $14,910,000 as of December 31, 2024[17] - The total stockholders' equity attributable to Rush Street Interactive, Inc. was $81,310,000 as of March 31, 2025, up from $78,678,000 as of December 31, 2024[17] Cash Flow and Operating Activities - Net cash provided by operating activities was $28,712,000 in Q1 2025, slightly down from $30,908,000 in Q1 2024[26] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $232,010,000, compared to $194,316,000 at the end of Q1 2024, showing improved liquidity[26] - Cash paid for income taxes in Q1 2025 was $3.1 million, compared to $2.2 million in Q1 2024, reflecting a 42.0% increase[37] - Cash paid for interest in Q1 2025 was $236,000, slightly down from $252,000 in Q1 2024[37] Expenses - Operating costs and expenses for Q1 2025 totaled $247,830,000, up from $215,896,000 in Q1 2024[19] - Share-based compensation expense increased to $8,813,000 in Q1 2025 from $8,425,000 in Q1 2024, reflecting ongoing investment in employee incentives[26] - Depreciation and amortization expense rose to $9,491,000 in Q1 2025, up from $7,101,000 in Q1 2024, indicating increased asset utilization[26] - Amortization expense for intangible assets rose to $8.5 million for the three months ended March 31, 2025, compared to $6.1 million for the same period in 2024[60] Stock and Shareholder Activities - The company repurchased 498,622 shares of Class A Common Stock for approximately $5.2 million at an average price of $10.35 during the three months ended March 31, 2025[70] - The total number of Class A Common Stock shares increased to 95,509,061 by March 31, 2025, from 90,511,441 shares at the end of 2024[22] - The company granted 714,723 restricted stock units (RSUs) with service conditions during the three months ended March 31, 2025, down from 1,813,694 RSUs in the same period of 2024[72] - The total share-based compensation expense for the three months ended March 31, 2025 was $8.8 million, slightly higher than $8.4 million in 2024[82] Deferred Revenue and Receivables - Deferred revenue associated with online casino and online sports betting includes unsettled customer bets, recorded within players' liabilities[57] - Deferred revenue decreased from $10,814,000 as of March 31, 2025, to $10,022,000, while revenue recognized from deferred revenue increased from $6,312,000 to $9,733,000 year-over-year[58] - The company had receivables from affiliated land-based casinos of $21.0 million as of March 31, 2025, compared to $18.2 million at December 31, 2024[96] Commitments and Legal Proceedings - The company has total commitments of $54,130,000 under non-cancelable contracts, including $32.2 million for license and market access commitments[100] - The company is not currently involved in any material legal proceedings[98]

Group 1 - Rush Street Interactive, Inc. (RSI) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and showing an increase from $0.03 per share a year ago, resulting in an earnings surprise of 12.50% [1] - The company posted revenues of $262.41 million for the quarter ended March 2025, which was slightly below the Zacks Consensus Estimate by 0.26%, but an increase from $217.43 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Group 2 - The stock has underperformed the market, losing about 9.9% since the beginning of the year compared to the S&P 500's decline of 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $248.25 million, and for the current fiscal year, it is $0.37 on revenues of $1.06 billion [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company's first quarter revenue was $262 million, representing a 21% year-over-year increase, while adjusted EBITDA was $33.2 million, nearly double compared to the same period last year [8][22]. - Gross profit margins increased by 125 basis points year-over-year to 34.9%, driven by revenue diversification and higher growth in more profitable markets [24]. - Marketing spend was $38.8 million, or 15% of revenue, down from 17% of revenue in the same quarter last year, indicating improved marketing efficiency [25][26]. Business Line Data and Key Metrics Changes - Online casino revenue grew by 25% year-over-year, while sports betting revenue increased by 11% [9][22]. - In North America, monthly active users (MAUs) grew by 17% year-over-year, with an average revenue per monthly active user (ARPMAU) of $368, up 3% year-over-year [10][22]. - Latin America saw MAUs increase by 61% year-over-year, reaching a new quarterly record of 354,000 [10][23]. Market Data and Key Metrics Changes - North American markets showed revenue growth in 15 out of 16 online markets, with Michigan revenue up 40% and Delaware exceeding 80% growth in its first year of comparisons [12]. - In Colombia, gross gaming revenue (GGR) was up 55% in local currency, despite a 19% value-added tax on player deposits [13][14]. - The company is optimistic about the potential growth in Alberta, Canada, as legislation for online gaming progresses [17]. Company Strategy and Development Direction - The company focuses on innovation and enhancing player experience to drive growth and profitability [8][20]. - The strategy includes differentiating offerings to improve user engagement and retention across product verticals [10][20]. - The company is monitoring legislative developments in various U.S. states to capitalize on potential online gaming opportunities [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges, including the impact of taxes in Colombia, while maintaining strong player activity and market share [14][32]. - The company anticipates continued growth in revenue and adjusted EBITDA for 2025, with guidance remaining between $1.1 billion and $1.8 billion in revenue [27][28]. - Management highlighted the resilience of the online gaming sector, particularly during challenging economic times, and the potential for increased tax revenues from legalized online casinos [19][20]. Other Important Information - The company ended the quarter with $228 million in unrestricted cash and no debt, generating approximately $25 million in cash during the quarter [26]. - The company repurchased approximately 500,000 shares at an average price of $10.35 under its share repurchase program [27]. Q&A Session Summary Question: Insights on Colombia's competitive landscape and market share - Management indicated that they are absorbing the tax through higher bonusing, similar to competitors, and are confident in retaining or growing market share despite the challenges [32]. Question: Growth expectations for Delaware in 2025 - Management expects continued growth in Delaware, although the growth rate may slow as the market matures [34][36]. Question: Adjustments to business model in Colombia - Management is continuously adjusting strategies to maximize net revenue and reduce deposit turnover in response to the VAT tax [42][44]. Question: Impact of Pennsylvania joining the multistate Internet gaming agreement - Management expressed excitement about the launch in Pennsylvania and the potential for increased player liquidity across platforms [46]. Question: Tax impact from Colombia on revenue and EBITDA - Management noted that the VAT tax has significantly impacted net revenue growth, with expectations for meaningful growth once the tax is removed [52][94]. Question: User growth concentration in North America - Management indicated that Delaware contributed mid-single digits to the overall 17% user growth, with most growth coming from higher-value markets [87][88].

Financial Data and Key Metrics Changes - The company's first quarter revenue was $262 million, representing a 21% year-over-year increase, while adjusted EBITDA was $33.2 million, nearly double compared to the same period last year [6][21]. - Gross profit margins increased by 125 basis points year-over-year to 34.9%, driven by revenue diversification and higher growth in more profitable markets [23]. - Marketing spend was $38.8 million, or 15% of revenue, down from 17% in the previous year, indicating improved marketing efficiency [24]. Business Line Data and Key Metrics Changes - Online casino revenue grew by 25% year-over-year, while sports betting revenue increased by 11% [6][21]. - In North America, monthly active users (MAUs) grew by 17% year-over-year, with an average revenue per monthly active user (ARPMAU) of $368, up 3% year-over-year [21]. - In Latin America, MAUs increased by 61% year-over-year, reaching a new quarterly record of 354,000 [22]. Market Data and Key Metrics Changes - North American markets saw revenue growth in 15 out of 16 online markets, with Michigan revenue up 40% and Delaware exceeding 80% growth [11][12]. - In Colombia, gross gaming revenue (GGR) was up 55% in local currency, despite a temporary 19% VAT on player deposits [12][13]. - The company anticipates that the Colombian VAT tax will impact net revenue but expects significant upside if the tax is removed [27][52]. Company Strategy and Development Direction - The company focuses on innovation and enhancing player experience to attract and retain high-value players [6][8]. - The iGaming Alberta Act is progressing, which could open new opportunities for online gaming in Alberta, transitioning from a monopoly to a regulated market [15]. - The company is well-positioned in the online casino and sports betting space, emphasizing the importance of legalizing online casinos for state revenue generation [16][17]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges, including the impact of the VAT tax in Colombia, while maintaining strong player activity and market share [12][42]. - The company remains optimistic about growth opportunities in existing markets and potential expansion into new international markets [76][78]. - Management reiterated full-year revenue guidance of $1.1 billion to $1.8 billion, with adjusted EBITDA expected between $115 million and $135 million, reflecting a 35% year-over-year increase [27][28]. Other Important Information - The company ended the quarter with $228 million in unrestricted cash and no debt, generating approximately $25 million in cash during the quarter [25][26]. - The company repurchased approximately 500,000 shares at an average price of $10.35 under its share repurchase program [27]. Q&A Session Summary Question: Insights on Colombia's competitive landscape and market share - Management confirmed that they are bonusing at higher rates to offset the VAT tax, similar to competitors, and expressed confidence in retaining or growing market share despite the challenges [31][32]. Question: Growth expectations for Delaware in 2025 - Management expects continued growth in Delaware, although growth rates may slow as the market matures, with potential for significant future revenue growth [35][36]. Question: Adjustments to business model in Colombia - Management is continuously adjusting strategies to maximize net revenue in Colombia, including reducing marketing spend and monitoring competitor actions [40][41]. Question: Impact of Pennsylvania joining the multistate Internet gaming agreement - Management expressed excitement about the launch in Pennsylvania and the potential for increased player liquidity across platforms [44][45]. Question: Marketing leverage in a competitive environment - Management attributed marketing leverage to a focus on customer experience and differentiation, allowing the company to maintain a reasonable customer acquisition cost [58][60]. Question: Guidance for revenue growth in 2025 - Management indicated that revenue growth may decelerate in Q2 and Q3 compared to Q1, with Q4 expected to be the strongest quarter of the year [62][63]. Question: Tax impact from Colombia on EBITDA - Management noted that the VAT tax has significantly impacted net revenue, but GGR growth remains strong, indicating potential for future revenue growth once the tax is removed [93][95].

Financial Highlights - RSI achieved record revenue of $262 million in 1Q25, up 21% year-over-year[8] - Adjusted EBITDA grew to a record $33 million in 1Q25, up 95% year-over-year[9] - The company reiterated FY25 revenue guidance of $1.01 billion - $1.08 billion, implying 13% year-over-year growth at the midpoint[9] - FY25 Adjusted EBITDA guidance is $115 million – $135 million, implying 35% growth at the midpoint[9] - $5.2 million of Class A common stock was repurchased under the Company's $50 million authorized buyback program in 1Q25[11] Business Growth - Online Casino revenue grew 25% and OSB (Online Sports Betting) revenue grew 11% year-over-year[12] - US and Canadian markets launched since 2021, combined with LATAM, saw revenue growth of 37% year-over-year[13] - Delaware GGR (Gross Gaming Revenue) annual run rate grew to over $135 million during 1Q25[13] - Revenue from markets outside of Illinois and Pennsylvania grew to 64% of total revenue in 1Q25[15] - LATAM MAUs grew 61% year-over-year, a new quarterly record[10] Market Position and Strategy - The company has a total addressable market of approximately $131 billion[20] - The U S market is estimated at $76.6 billion for OSB and $33.2 billion for iCasino[20] - Canada is estimated at $4.1 billion for OSB and $1.4 billion for iCasino[20] - Latin America is estimated at $7.9 billion for OSB and $8.0 billion for iCasino[20]

Financial Performance - First quarter revenue was $262 million, representing a 21% increase year-over-year from $217.4 million[5] - Net income for the first quarter was $11.2 million, compared to a net loss of $2.2 million in the same quarter of 2024[5] - Adjusted EBITDA reached $33.2 million, up 95% year-over-year from $17.1 million in Q1 2024[5] - Revenue for Q1 2025 was $262,407,000, a 20.7% increase from $217,428,000 in Q1 2024[24] - Net income for Q1 2025 was $11,211,000, compared to a net loss of $2,209,000 in Q1 2024[26] - Adjusted EBITDA for Q1 2025 was $33,226,000, up from $17,058,000 in Q1 2024, representing a 94.8% increase[28] - Comprehensive income for Q1 2025 was $15,738,000, compared to a loss of $2,108,000 in Q1 2024[26] - Adjusted net income for Q1 2025 was $20,369,000, significantly higher than $6,216,000 in Q1 2024[31] - Earnings per share (diluted) for Q1 2025 was $0.05, compared to a loss of $0.01 per share in Q1 2024[31] User Metrics - Monthly Active Users (MAUs) in the U.S. and Canada were approximately 203,000, a 17% increase year-over-year, while MAUs in Latin America were approximately 354,000, up 61% year-over-year[5] - Average Revenue per Monthly Active User (ARPMAU) in the U.S. and Canada was $368, a 3% increase year-over-year[5] Guidance and Projections - Full year 2025 revenue guidance is between $1,010 million and $1,080 million, maintaining the midpoint of prior guidance[4] - Full year 2025 Adjusted EBITDA guidance is reiterated at a range of $115 million to $135 million, with a midpoint of $125 million, reflecting a 35% growth compared to $92.5 million in 2024[6] Stock and Shareholder Actions - The company repurchased $5.2 million of Class A common stock under its $50 million buyback program[5] - Weighted average common shares outstanding (diluted) increased to 234,292,159 in Q1 2025 from 76,027,427 in Q1 2024[31] Operational Insights - The strong performance is attributed to innovation and enhanced player experience, alongside efficient acquisition and retention strategies[3] - RSI operates in fifteen U.S. states and several international markets, focusing on online gaming and sports betting[10] Expenses - Total operating costs and expenses for Q1 2025 were $247,830,000, an increase from $215,896,000 in Q1 2024[29] - The increase in sales and marketing expenses was $42,139,000 in Q1 2025, up from $38,404,000 in Q1 2024[29] Foreign Currency Impact - The company reported a foreign currency translation adjustment of $4,527,000 in Q1 2025[26]

Financial Performance - First quarter revenue reached $262 million, representing a 21% increase year-over-year from $217.4 million in Q1 2024 [1][8] - Net income for the first quarter was $11.2 million, a significant turnaround from a net loss of $2.2 million in the same period last year [1][8] - Adjusted EBITDA for the first quarter was $33.2 million, up 95% compared to $17.1 million in Q1 2024 [1][8] Guidance - The company reiterated its full-year 2025 revenue guidance, expecting it to be between $1,010 million and $1,080 million, with a midpoint of $1,045 million indicating a 13% growth from $924 million in 2024 [4] - Adjusted EBITDA guidance for the full year 2025 is set between $115 million and $135 million, with a midpoint of $125 million, which is a 35% increase from $92.5 million in 2024 [5] User Engagement - Monthly Active Users (MAUs) in the United States and Canada were approximately 203,000, reflecting a 17% year-over-year increase [8] - MAUs in Latin America reached approximately 354,000, marking a 61% increase year-over-year [8] - Average Revenue per Monthly Active User (ARPMAU) in the United States and Canada was $368, up 3% year-over-year, while ARPMAU in Latin America was $36, down from $44 last year [8] Stock Buyback - The company repurchased $5.2 million of Class A common stock under its $50 million authorized buyback program [8]

Company Information - Rogers Sugar Inc. (RSI) will hold a conference call to discuss their 2025 second quarter results on May 13, 2025, at 8:00 a.m. Eastern Time [1] - The conference call will be chaired by Mr. Michael Walton, Chief Executive Officer, and Mr. Jean-Sébastien Couillard, Chief Financial Officer [1] Participation Details - Interested participants can join the call by dialing 1-800-717-1738 [2] - A recording of the conference call will be available by dialing 1-888-660-6264, access code 72827, until June 13, 2025 [2] - The discussion and presentation will also be accessible through a webcast [2] Contact Information - Jean-Sébastien Couillard serves as Vice President of Finance, Chief Financial Officer, and Corporate Secretary [3] - Contact number for further inquiries is (514) 940-4350 [3] - Company website is www.lanticrogers.com [3]