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Rush Street Interactive (RSI) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Discretionary· Apr 28, 2026

Source: earnings call transcript

Executive summary

Rush Street Interactive Q1 FY26 — Record Revenue & Adjusted EBITDA, Strong MAU Growth

Rush Street Interactive delivered a strong quarter, driven by its casino-first strategy and efficient player acquisition, leading to record revenue and adjusted EBITDA. The company saw robust MAU growth across North and Latin America, alongside market share gains in key online casino markets. Strategic expansion into Alberta and continued optimization of marketing spend position RSI for sustained profitable growth.

Highlights

5

  • Generated record revenue of $370 million, up 41% year-over-year.

  • Achieved record adjusted EBITDA of $60 million, up 81% year-over-year.

  • North America monthly active users (MAUs) grew 46% year-over-year to 296,000.

  • Latin America MAUs increased 54% year-over-year to 543,000.

  • Grew market share sequentially by around 90 basis points in North American online casino markets.

Concerns

2

  • North America ARPMAU was $317, down 14% year-over-year, due to the high volume of new player acquisition.

  • Significant investments planned for the Alberta launch and modestly higher marketing/G&A costs will partially offset EBITDA guidance raise.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Revenue
$1.49 billion to $1.54 billion
high materiality
High
Full-year 2026 Adjusted EBITDA
$230 million to $250 million
high materiality
High
Alberta Launch Timing
July 13
medium materiality
High
Alberta Investment Timing
Q2
medium materiality
High
Long-term Adjusted EBITDA Margin
low to mid-20%
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
North America
Revenue growth driven by strong MAU expansion, particularly in online casino markets. ARPMAU declined due to the high volume of new player acquisition.
MAUs: 296,000MAU growth YoY: 46%Online casino MAU growth YoY: 62%ARPMAU: $317ARPMAU change YoY: -14%
—26%——
Latin America
Exceptional revenue growth, largely driven by faster growth in Mexico and the removal of VAT bonusing in Colombia. ARPMAU increased due to higher player values in Mexico and reduced bonusing in Colombia.
MAUs: 543,000MAU growth YoY: 54%ARPMAU: $54ARPMAU change YoY: +51%
—134%——
Online Casino
Strong growth reflecting the company's casino-first strategy and market share gains.
—39%——
Online Sports Betting
Significant growth, serving as an important complementary product to the casino offering.
—47%——

RSI operating KPIs by quarter

RSI operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Monthly active users North America
296K Monthly active users in North America grew 46% year-over-year to 296,000, while Latin America MAUs increased 54% to 543,000. Source: earnings call transcript
296K+ Monthly active users in North America grew 51% year-over-year to over 296,000, with growth in our North American online casino market reaching 64% year-over-year. Source: earnings call transcript
—
Monthly active users Latin America
543K Monthly active users in North America grew 46% year-over-year to 296,000, while Latin America MAUs increased 54% to 543,000. Source: earnings call transcript
652K+ In Latin America, which includes Mexico, MAUs grew 62% year-over-year to over 652,000. Source: earnings call transcript
—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Alberta Online Gaming Platformlaunch

Risks & headwinds

North America ARPMAU decline due to new player acquisition Q1 FY26

North America ARPMAU was $317, down 14% year-over-year.

Mitigation:This is viewed as a 'healthy' trend as new players initially generate lower ARPMAU but represent high-quality cohorts acquired efficiently and retained effectively for long-term value creation.

Investments for Alberta launch and increased operating costs Q2 FY26 and back half of FY26

EBITDA guidance raise would have been closer to $30 million without the effect of our Alberta investment now being included in guidance. This will be a 14% increase over our previous guidance.

Mitigation:These are strategic investments for a significant expansion opportunity, with a disciplined approach to market entry focused on building a sustainable business. The company expects to get meaningful leverage over marketing spend and modest leverage over G&A.

Colombia temporary GGR tax and regulatory uncertainty Mid-March 2026 through year-end 2026

A new emergency decree was implemented that imposed a temporary 16% tax on GGR from mid-March through the end of the year.

Mitigation:The new decree and associated tax will undergo a new and distinct review by the Constitutional Court. The prior 19% tax was ruled unconstitutional. The company is watching the upcoming election and potential for the next administration to re-evaluate the decree.

What to watch in Q2 FY26

Alberta Launch Performance

Q3 FY26
Current Launch date set for July 13, 2026; marketing investments in Q2.
Target Initial revenue contribution and market share in Q3 FY26.

Why it matters

Alberta represents a significant expansion opportunity, and its initial performance will indicate the effectiveness of RSI's market entry strategy and investment.

Looking ahead, we are getting closer to launching Alberta. The regulator has set July 13 as the launch date. This represents a significant expansion opportunity for our business. As Kyle will also cover, our increased revenue and EBITDA guidance now includes the impact of the Alberta launch for the back half of the year. We expect to begin investing in marketing and brand building ahead of our launch in Alberta. This will occur in the second quarter, and Kyle will have more details.

Find out whether RSI delivers this. Inve re-checks your case every morning.

Q&A highlights

Who are the new customers driving the impressive 46% MAU growth in North America? Are they from different platforms or demographics, or concentrated in specific states?

The growth is primarily from new players, who initially dilute ARPMAU due to bonusing and partial month engagement. These new players are high-quality cohorts acquired efficiently from various channels, including those new to iCasino and those switching from competitors.

“The players we're acquiring, look -- I mean, if you look at our average revenue per monthly active user, while that's come down a little bit in recent quarters, that's because we're diluting it so much with these new players.”

asked by Daniel Politzer · answered by Kyle Sauers

2 min read 7 chapters

Detailed narrative

Casino-First Strategy Drives Growth

Rush Street Interactive's casino-first strategy continues to be a fundamental differentiator, focusing on online casino as the primary value driver with sports betting and poker as complementary products. This approach yields superior player economics, including more consistent engagement, higher lifetime values, and better retention characteristics, creating a virtuous cycle for revenue and profitability growth.

Record Player Acquisition and Marketing Efficiency

The company achieved record first-time depositors for the third consecutive quarter, demonstrating effective customer acquisition. Marketing expenses were $46.2 million, representing 12.5% of total revenue, down from 14.8% in the prior year, indicating improved marketing efficiency and lower customer acquisition costs.

North American Market Share Gains

RSI estimates it grew market share sequentially by approximately 90 basis points in the North American online casino markets where it operates. This was supported by accelerating year-over-year MAU growth in these markets, reaching 62% in Q1, demonstrating powerful underlying business strength.

Latin American Outperformance and Regulatory Clarity

Latin America delivered exceptional results, with MAU growth of 54% year-over-year. In Colombia, a strategic approach to absorb tax burdens through bonusing in 2025 proved effective. The Constitutional Court ruled the temporary 19% VAT unconstitutional, and a new temporary 16% tax was implemented, which is also under review, providing some clarity.

Mexico Market Ramp-Up

Mexico continues to ramp up nicely, becoming more meaningful from both a revenue and profitability perspective. The market has seen strong player acquisition, excellent retention, and healthy growth, with revenue increasing over 100% year-over-year for four consecutive quarters. The competitive environment is favorable for RSI's casino-first approach.

Strategic Expansion into Alberta

The upcoming launch in Alberta, Canada, set for July 13, represents a significant expansion opportunity. RSI plans to invest in marketing and brand building in Q2 ahead of the launch, applying lessons learned from prior market entries to build a sustainable business with strong unit economics.

Product Innovation and Player Experience

RSI emphasizes its commitment to product innovation, technology enhancements, and delivering a 'fun and fair' player experience. The company's app maintains a high rating of 4.9 out of 5 in app stores, validating the quality of its product and customer service, which contributes to strong player retention.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.