Online casino and sports betting company Rush Street Interactive (NYSE: RSI) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 22.2% year on year to $269.2 million. The company’s full-year revenue guidance of $1.08 billion at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $0.11 per share was 74.5% above analysts’ consensus estimates.

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Company Overview

Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Rush Street Interactive grew its sales at an incredible 47.7% compounded annual growth rate. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Rush Street Interactive’s annualized revenue growth of 26% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

Rush Street Interactive also discloses its number of monthly active users, which reached 197,000 in the latest quarter. Over the last two years, Rush Street Interactive’s monthly active users averaged 21.2% year-on-year growth. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen.

This quarter, Rush Street Interactive reported robust year-on-year revenue growth of 22.2%, and its $269.2 million of revenue topped Wall Street estimates by 7.6%.

Looking ahead, sell-side analysts expect revenue to grow 10.5% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will face some demand challenges.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Rush Street Interactive’s operating margin has been trending up over the last 12 months and averaged 2.6% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports lousy profitability for a consumer discretionary business.

This quarter, Rush Street Interactive generated an operating margin profit margin of 9%, up 7.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Rush Street Interactive’s full-year EPS flipped from negative to positive over the last four years. This is encouraging and shows it’s at a critical moment in its life.

In Q2, Rush Street Interactive reported adjusted EPS at $0.11, up from $0.04 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Rush Street Interactive to perform poorly. Analysts forecast its full-year EPS of $0.32 will hit $0.38.

Key Takeaways from Rush Street Interactive’s Q2 Results

We were impressed by how significantly Rush Street Interactive blew past analysts’ EBITDA and EPS expectations this quarter. Looking ahead, guidance was also encouraging and ahead of Wall Street Consensus. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 16.5% to $18.68 immediately following the results.

Indeed, Rush Street Interactive had a rock-solid quarterly earnings result, but is this stock a good investment here? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.