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    RSI
    Earnings call· Mar 2026(Q1 FY26)

    Rush Street Interactive Q1 FY26 earnings call RSI

    Apr 28, 2026 Source

    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

    5
    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

    4
    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%——

    Operational metrics

    13
    Revenue
    $370.4 million41% year-over-year growth
    Q1 FY26

    Record first quarter revenue, significant acceleration from 2025 growth rates.

    Adjusted EBITDA
    $60.2 million81% year-over-year growth
    Q1 FY26

    Record adjusted EBITDA, demonstrating operating leverage.

    Gross Margin
    35.7%80 basis point improvement year-over-year
    Q1 FY26

    Improvement driven by operational efficiencies.

    Marketing Expenses
    $46.2 million19% year-over-year increase
    Q1 FY26

    Disciplined marketing spend combined with record player acquisition levels.

    G&A Expenses
    $25.8 million
    Q1 FY26

    Achieved leverage over the G&A line despite increased investments in people and technology.

    Cash on Hand
    $331 million
    as of March 31

    Strong balance sheet with no debt.

    Debt
    0
    as of March 31

    Company maintains a debt-free balance sheet.

    Share Repurchase Program
    $50 million$0 repurchased in Q1
    authorized

    No shares repurchased under the program during the first quarter.

    First-Time Depositors
    recordbeating previous 2 quarters by wide margin
    Q1 FY26

    Combination of record new player acquisition with improving marketing efficiency.

    North American Online Casino Market Share
    90 basis pointssequential growth
    Q1 FY26

    Demonstrates the effectiveness of the company's focus on player experience and operational excellence.

    Colombia GGR Tax
    16%new temporary tax
    mid-March through year-end

    New emergency decree implemented, imposing a temporary 16% tax on GGR, which will undergo review by the Constitutional Court.

    Mexico Revenue Growth
    over 100%year-over-year
    each of last 4 quarters

    Market continues to ramp nicely, becoming more meaningful from revenue and profitability perspectives.

    Adjusted EBITDA Flow-through
    mid-20%
    FY26

    Solid flow-through expected at the midpoint of the guidance, despite specific impacts from Colombia tax and Alberta investments.

    Product announcements

    1
    ProductTypeDetails
    Alberta Online Gaming Platformlaunch

    Risks & headwinds

    3
    North America ARPMAU decline due to new player acquisitionQ1 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 costsQ2 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 uncertaintyMid-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

    5

    Alberta Launch Performance

    Q3 FY26
    CurrentLaunch date set for July 13, 2026; marketing investments in Q2.
    TargetInitial 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.

    Q&A highlights

    7

    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 read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.