Rush Street Interactive(RSI) - 2025 Q2 - Quarterly Results

Financial Performance and Outlook This section details RSI's strong financial results for Q2 2025, including record revenue, profitability, and updated full-year guidance Second Quarter 2025 Highlights RSI reported record Q2 2025 revenue of $269.2 million (up 22%), a significant net income of $28.8 million, and 88% Adjusted EBITDA growth to $40.2 million Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change | | :--- | :--- | :--- | :--- | | Revenue | $269.2 | $220.4 | +22% | | Net Income (Loss) | $28.8 | ($0.3) | N/A | | Adjusted EBITDA | $40.2 | $21.4 | +88% | - The strong performance was driven by broad-based growth, with online casino revenue up 25% and online sports betting revenue up 15% year-over-year[3] - The company repurchased $2.5 million of its Class A common stock during the quarter under its authorized buyback program, with approximately $42 million remaining[4] Key Operating Metrics RSI saw strong user growth, with U.S. & Canada MAUs up 21% to 197,000 and Latin America MAUs up 42% to 403,000, while U.S. & Canada ARPMAU reached a new high of $391 Q2 2025 Monthly Active Users (MAU) | Region | Q2 2025 MAUs | YoY Growth | | :--- | :--- | :--- | | United States & Canada | ~197,000 | +21% | | Latin America (incl. Mexico) | ~403,000 | +42% | Q2 2025 Average Revenue per Monthly Active User (ARPMAU) | Region | Q2 2025 ARPMAU ($) | Q2 2024 ARPMAU ($) | | :--- | :--- | :--- | | United States & Canada | $391 | Not Stated | | Latin America | $30 | $38 | Full Year 2025 Guidance RSI raised its full-year 2025 guidance, with revenue midpoint at $1,075 million (up 16%) and Adjusted EBITDA midpoint at $140 million (up 51%), reflecting strong confidence Updated Full Year 2025 Guidance | Metric | New Guidance Range ($M) | Midpoint ($M) | Implied YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $1,050 - $1,100 | $1,075 | +16% | | Adjusted EBITDA | $133 - $147 | $140 | +51% | - The guidance is based on the assumption that RSI continues to operate only in its currently live markets and under similar tax structures[6] Financial Statements This section presents RSI's Q2 2025 financial statements, highlighting significant revenue growth and a shift from net loss to substantial net income, further adjusted for foreign currency translation Condensed Consolidated Statements of Operations RSI's Q2 2025 revenue increased 22% to $269.2 million, with operating income rising to $24.3 million and net income attributable to RSI reaching $16.7 million or $0.12 per diluted share Q2 2025 vs Q2 2024 Statement of Operations | Line Item | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | | :--- | :--- | :--- | | Revenue | $269,217 | $220,379 | | Income from operations | $24,324 | $4,197 | | Net income (loss) | $28,830 | ($282) | | Net income (loss) attributable to RSI, Inc. | $16,688 | ($100) | | Diluted EPS | $0.12 | ($0.00) | Condensed Consolidated Statements of Comprehensive Income (Loss) RSI's Q2 2025 comprehensive income attributable to RSI was $16.9 million, a significant improvement from a $1.4 million loss in Q2 2024, including a $1.5 million foreign currency translation adjustment Q2 2025 vs Q2 2024 Comprehensive Income | Line Item | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | | :--- | :--- | :--- | | Net income (loss) | $28,830 | ($282) | | Foreign currency translation adjustment | $1,549 | ($3,734) | | Comprehensive income (loss) attributable to RSI, Inc. | $16,905 | ($1,427) | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP measures to non-GAAP metrics like Adjusted EBITDA, Adjusted Operating Costs, and Adjusted EPS, detailing adjustments for items such as share-based compensation and tax receivable agreement expense Adjusted EBITDA Reconciliation Q2 2025 Adjusted EBITDA was $40.2 million, reconciled from net income by adjusting for a $112.7 million tax receivable agreement expense, a $115.0 million income tax benefit, and other standard items Q2 2025 Adjusted EBITDA Reconciliation | Line Item | Q2 2025 ($ thousands) | | :--- | :--- | | Net income (loss) | $28,830 | | Interest income, net | ($2,181) | | Income tax (benefit) expense | ($115,017) | | Depreciation and amortization | $9,827 | | Share-based compensation expense | $6,098 | | Tax receivable agreement expense | $112,692 | | Adjusted EBITDA | $40,249 | Adjusted Operating Costs and Expenses Reconciliation Q2 2025 total adjusted operating costs and expenses were $238.8 million, derived from GAAP costs of $244.9 million by excluding $6.1 million in share-based compensation expense - For Q2 2025, total GAAP operating costs of $244.9 million were adjusted by removing $6.1 million in non-cash share-based compensation to arrive at total adjusted operating costs of $238.8 million[30] Adjusted Net Income and EPS Reconciliation Q2 2025 Adjusted Net Income was $26.5 million, yielding an Adjusted EPS of $0.11, after adjusting diluted net income for share-based compensation and tax receivable agreement expense Q2 2025 Adjusted Net Income & EPS | Metric | Q2 2025 ($) | Q2 2024 ($) | | :--- | :--- | :--- | | Adjusted Net Income | $26.5M | $9.4M | | Adjusted EPS | $0.11 | $0.04 | Supplementary Information This section provides background on Rush Street Interactive, definitions of non-GAAP financial measures, and important forward-looking statements About Rush Street Interactive RSI is an online gaming and sports entertainment company operating under BetRivers, PlaySugarHouse, and RushBet brands across fifteen U.S. states and international markets, recognized for its customer service - RSI operates real-money mobile and online gaming in fifteen U.S. states and regulated international markets such as Colombia, Ontario (Canada), Mexico, and Peru[10] - The company has received multiple industry awards, including EGR North America Awards Customer Services Operator of the Year for five consecutive years (2020-2024)[10] Non-GAAP Financial Measures and Key Metrics Definition This section defines non-GAAP financial measures like Adjusted EBITDA, Adjusted Operating Costs, and Adjusted EPS, along with key operating metrics such as Monthly Active Users (MAU) and Average Revenue per Monthly Active User (ARPMAU) - RSI uses non-GAAP measures like Adjusted EBITDA to evaluate core operating performance, make strategic decisions, and provide comparability with competitors[12][18] - Adjusted EBITDA is defined as net income (loss) excluding interest, taxes, depreciation & amortization, share-based compensation, and certain one-time or non-recurring items[14] - Key metrics are defined as: MAU (Monthly Active Users) are unique users placing at least one real-money bet per month, and ARPMAU is the average revenue divided by the average MAUs for the period[19] Forward-Looking Statements This section includes a standard safe harbor statement, cautioning that forward-looking statements regarding future performance and guidance involve significant risks and uncertainties, and actual results may differ materially - The report includes forward-looking statements concerning revenue and Adjusted EBITDA guidance, future results, strategic plans, and player growth[21] - Readers are cautioned not to place undue reliance on these statements as they involve significant risks and uncertainties, many of which are outside of RSI's control[21][22]