Rush Street Interactive(US:RSI)2026-02-18 22:04Financial Performance - Adjusted EBITDA for the year ended December 31, 2025, was $153.655 million, a significant increase from $92.539 million in 2024 and $8.168 million in 2023 [393]. - The company generated a net income of $74.029 million in 2025, compared to a net income of $7.236 million in 2024 and a net loss of $60.055 million in 2023 [393]. - Revenue for the year ended December 31, 2025, reached $1,134,428, representing a 23% increase from $924,083 in 2024 [428]. - Net income surged to $74,029 in 2025, a remarkable increase of 923% compared to $7,236 in 2024 [428]. - Income from operations rose significantly by 249% to $87,424 in 2025 from $25,048 in 2024 [428]. User Metrics - Monthly Active Users (MAUs) in the United States and Canada increased year-over-year, driven by strong customer retention and effective marketing strategies [378]. - Average Revenue Per Monthly Active User (ARPMAU) remained flat in the United States and Canada for 2025, despite a significant increase in MAUs [386]. - The year-over-year increase in MAUs in Latin America was attributed to strong customer retention and the launch in Peru during Q3 2024 [382]. Market and Competition - The company operates in 16 U.S. states and four international markets, focusing on online casino and sports betting [368]. - The online gaming market is still in its early stages, with many U.S. states and foreign jurisdictions exploring legalization and regulation [396]. - The company faces competition from established industry players, but leverages its proprietary platform and marketing strategies to maintain a competitive edge [394]. Revenue and Costs - Costs of revenue increased by 23% to $741,664 in 2025 from $602,036 in 2024 [428]. - Revenue increased by $210.3 million, or 23%, to $1,134.4 million in 2025 compared to $924.1 million in 2024, driven by growth in existing markets and expansion into new markets like Peru [429]. - Costs of revenue rose by $139.6 million, or 23%, to $741.6 million in 2025, with gaming taxes, market access costs, and payment processing costs contributing significantly to the increase [430]. Expenses - Sales and marketing expenses increased by 4% to $164,650 in 2025, up from $158,590 in 2024 [428]. - General and administrative costs decreased by 5% to $100,720 in 2025 from $106,206 in 2024 [428]. - Depreciation and amortization expenses increased by $7.8 million, or 24%, to $40.0 million in 2025, with the percentage of revenue rising to 4% from 3% in 2024 [433]. Cash Flow and Financial Position - As of December 31, 2025, the company had $336.3 million in cash and cash equivalents, excluding restricted customer cash deposits [445]. - Net cash provided by operating activities increased by $58.6 million to $165.0 million in 2025, compared to $106.4 million in 2024, primarily due to higher net income of $66.8 million [456]. - The company expects material cash requirements in the next 12 months to include $18.3 million in non-cancellable purchase obligations with marketing vendors and $4.1 million in minimum license and market access fees [446]. Stock and Shareholder Returns - The stock repurchase program authorized up to $50 million, with 733,019 shares repurchased in 2025 at an average price of $10.41, totaling approximately $7.6 million [454]. Tax and Regulatory Environment - The company is subject to varying tax rates on online casino and sports betting across different jurisdictions, which can impact profitability [398]. - Income tax benefit was $85.1 million in 2025, compared to an expense of $24.6 million in 2024, primarily due to the release of a valuation allowance [436]. Economic Factors - Inflation has not materially affected the company's financial condition or results of operations as of December 31, 2025, but potential inflationary pressures could impact costs and customer spending [476]. - Foreign currency exposure accounted for less than 20% of revenue for the fiscal years ended December 31, 2025, and 2024, with no material effect from a 10% change in currency values [475].