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    RSI
    Earnings call· Jun 2026(Q2 FY26)

    Rush Street Interactive Q2 FY26 earnings call RSI

    Jul 29, 2026 Source

    Executive summary

    Rush Street Interactive Q2 FY26 — Record Revenue & EBITDA Driven by Casino-First Strategy and LatAm Growth

    Rush Street Interactive delivered a robust second quarter, driven by its casino-first strategy and strong execution across North and Latin America, resulting in record revenue and adjusted EBITDA. The company successfully leveraged the World Cup for player acquisition and cross-sell, while also launching in Alberta with promising early results. Strategic increases in marketing spend are planned for the second half, reflecting confidence in player economics and continued market share gains, despite a temporary dip in North American ARPMAU from new player cohorts.

    Highlights

    5

    • Generated record revenue of $393.8 million, up 46% year-over-year, marking the fastest quarterly revenue growth in over 4 years.

    • Achieved record adjusted EBITDA of $64.6 million, up 61% year-over-year, with a 16.4% margin.

    • North America Monthly Active Users (MAUs) grew 51% year-over-year to over 296,000, with online casino MAUs up 64% YoY.

    • Latin America MAUs grew 62% year-over-year to over 652,000, with strong World Cup acquisition and cross-sell to casino products.

    • Successfully launched online casino and sports in Alberta, tracking at approximately twice the first-time depositors and daily active users seen in Ontario at the same point post-launch.

    Concerns

    2

    • North American Average Revenue Per Monthly Active User (ARPMAU) was $320, down 18% year-over-year, reflecting the impact of newer player cohorts starting at lower values.

    • Q3 EBITDA is expected to be the low quarter of the year due to increased marketing investments, particularly related to the Alberta launch and overall efficiency-driven spend.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $1.56 billion to $1.60 billion
    high materiality
    High
    Full-year 2026 Revenue Growth
    38% to 41% year-over-year
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $245 million to $265 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Growth
    59% to 72% year-over-year
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Online Casino
    Online casino remains the primary value driver and fastest-growing product segment in both North America and Latin America, supporting consistent engagement, higher lifetime values, and stronger retention.
    Revenue contribution: 72% of total revenue
    		—40%——
    Online Sports Betting
    Online sports betting serves as an important complementary product, driving incremental profitability and brand awareness. The segment saw record sports hold in Colombia and North America, driven by NBA playoffs and World Cup results.
    Revenue contribution: 28% of total revenue
    		—64%——
    North America
    Revenue growth was driven by strong user acquisition, particularly in online casino markets. ARPMAU declined due to newer player cohorts but showed modest sequential improvement.
    Monthly Active Users (MAUs): >296,000MAU growth YoY: 51%Online casino MAU growth YoY: 64%ARPMAU: $320
    		—23%——
    Latin America
    Exceptional revenue growth driven by strong user acquisition, especially during the World Cup, and improved ARPMAU due to strength across the region, elimination of bonusing in Colombia, and favorable currency movements.
    Monthly Active Users (MAUs): >652,000MAU growth YoY: 62%ARPMAU: $55
    		—195%——

    Operational metrics

    24
    Revenue
    $393.8 millionUp 46% year-over-year
    Q2 FY26

    Record revenue, fastest quarterly growth in over 4 years.

    Adjusted EBITDA
    $64.6 millionUp 61% year-over-year
    Q2 FY26

    Record adjusted EBITDA, demonstrating scalable profitability expansion.

    Gross margins
    35.5%Continuing improvement
    Q2 FY26

    Reflective of faster growth in higher-margin markets, but still negatively impacted by temporary tax in Colombia.

    Marketing expenses
    $48.6 millionIncrease of 34% year-over-year
    Q2 FY26

    Marketing efficiency continues to be a key component of success, with attractive player acquisition costs.

    G&A
    $26.5 million
    Q2 FY26

    Achieving leverage over this line item while increasing investments in people and technology.

    Net income
    $29.3 million2% year-over-year increase
    Q2 FY26

    Compared to $28.8 million in the prior year period.

    Monthly Active Users
    >296,000Grew 51% year-over-year
    Q2 FY26

    User acquisition and retention continue to be key pillars of success, hitting record levels.

    Online Casino Monthly Active Users Growth
    64%Year-over-year
    Q2 FY26

    Strong growth in the North American online casino market.

    Monthly Active Users
    >652,000Grew 62% year-over-year
    Q2 FY26

    Includes Mexico, reflecting strong player growth across the region.

    Average Revenue Per Monthly Active User (ARPMAU)
    $320Down 18% year-over-year, up modestly from Q1
    Q2 FY26

    Reflects the impact of player acquisition levels, with newer cohorts starting at lower value but maturing over time.

    Average Revenue Per Monthly Active User (ARPMAU)
    $55Up 82% year-over-year
    Q2 FY26

    Reflecting continued strength, elimination of bonusing in Colombia to offset VAT, and favorable movements in Colombian currency.

    Online Casino Revenue Growth
    40%
    Q2 FY26

    Continued strength across products.

    Online Sports Betting Revenue Growth
    64%
    Q2 FY26

    Continued strength across products.

    Cash on hand
    $340 million
    As of June 30

    Balance sheet remains strong with zero debt.

    Share repurchase program executed
    $29 million
    Q2 FY26

    Repurchased shares under the existing program.

    New share repurchase program authorized
    $100 million
    Q2 FY26

    Allows the company to continue being opportunistic with share repurchases.

    Colombia tax benefit
    ~$7 million
    Q1 FY26

    Benefit from the Constitutional Court's reversal of the prior emergency decree, which was not present in Q2.

    Expected marketing spend increase
    $7 million to $10 millionSequentially from Q2
    Q3 FY26

    Inclusive of the Alberta launch, driven by strong ROI opportunities.

    Full-year Depreciation and Amortization
    ~$47 million
    FY26

    For modeling purposes.

    Full-year Stock Compensation Expense
    ~$30 million
    FY26

    For modeling purposes.

    Full-year Interest Income
    ~$12 million
    FY26

    For modeling purposes.

    Full-year Tax Expense
    ~$74 million
    FY26

    For modeling purposes.

    Fully Diluted Share Count
    ~237 million
    FY26

    For modeling purposes.

    Adjusted EPS
    ~$0.62
    FY26

    At the midpoint of guidance, for modeling purposes.

    Product announcements

    1
    ProductTypeDetails
    Online Casino and Online Sportslaunch

    Deals & partnerships

    1
    CFTCApplication for a Designated Contract Market license

    Filed an application to preserve strategic flexibility and maintain optionality in the prediction market landscape, without intending to lean into the crowded sports-focused prediction market space.

    Risks & headwinds

    4
    Colombia 16% GGR taxThrough year-end 2026

    16% VAT

    Mitigation: Full-year guidance assumes the tax remains in effect; potential for future changes if the Constitutional Court rules against it.

    North American ARPMAU declineQ2 FY26

    Down 18% year-over-year to $320

    Mitigation: Reflects impact of newer player cohorts starting at lower value; historical experience shows these cohorts mature over time.

    Q3 EBITDA expected to be low quarterQ3 FY26

    Q3 EBITDA will be the low quarter of the year

    Mitigation: Due to additional marketing spend, particularly with the Alberta launch and increased investments in efficiency; Q4 expected to see a sizable step-up in EBITDA.

    Federal support reduction and increased fiscal responsibilities for statesNext 2 fiscal years, starting October 2026

    Funding gaps for states

    Mitigation: Expected to drive greater emphasis on new, sustainable revenue sources like online casino legalization, creating opportunities for RSI.

    What to watch in Q3 FY26

    5

    Alberta market build-out

    Next quarter
    CurrentTracking at ~2x Ontario levels for first-time depositors and daily active users (population-adjusted)
    TargetContinued gradual build and growth in user metrics

    Why it matters

    Alberta represents a meaningful new market opportunity, and its successful build-out will contribute to future revenue growth.

    It's of course very early, but we are excited to watch the Alberta market build over the coming quarters.

    Q&A highlights

    6

    What are the early thoughts on the lifetime value (LTV) of customers acquired during the World Cup, compared to previous acquisitions?

    It's too early to definitively tell, but early signs are positive, especially with strong cross-sell to casino products in Latin America, which was significantly higher than during Copa America. The company expects to retain players and capitalize on similar inflections in casino volumes as seen after past events.

    “We mentioned on the prepared remarks that we had really good success early on with cross-sell in Latin America over to the casino side, quite a bit more so than we did in the Copa America a couple of years ago. So we're really excited about that.”

    asked by Bernard McTernan · answered by Kyle Sauers

    2 min read6 chapters

    Detailed Narrative

    01

    Casino-First Strategy & Product Mix

    Rush Street Interactive's core business model is centered on a casino-first approach, with online casino products serving as the primary value driver. This segment represented 72% of total revenue in Q2 FY26, demonstrating consistent engagement, higher lifetime values, and stronger player retention. Online sports betting and poker act as complementary products, contributing 28% of revenue, driving incremental profitability and brand awareness, and facilitating new player acquisition into the ecosystem.

    02

    World Cup Impact & Cross-Sell Success

    The recent World Cup period was highly successful for RSI, particularly in Latin America, where monthly active users increased over 80% in June and early July. Notably, more than 25% of new first-time depositors acquired during the World Cup engaged with casino products, a 50% improvement compared to the Copa America two years prior. This indicates successful cross-sell flows and strong acquisition/reactivation efforts, contributing to record sports hold in both Colombia and North America.

    03

    Alberta Launch & Early Performance

    RSI successfully launched online casino and online sports betting in Alberta, Canada, on July 13. While still in its early stages, the market is showing encouraging signs, with first-time depositors and daily active users tracking at approximately twice the levels observed in Ontario at a similar point post-launch, on a population-adjusted basis. The company anticipates a gradual build-out in Alberta, consistent with its experience in transitioning from an unlicensed market.

    04

    Marketing Efficiency & Investment Strategy

    The company continues to prioritize marketing efficiency, with marketing expenses at 12.3% of total revenue in Q2 FY26, down from 13.4% in the prior year. Due to continued improvements in player acquisition costs and strong ROI opportunities, RSI plans to increase marketing investments in the second half of the year, including an estimated $7 million to $10 million sequential increase in Q3. This strategic spend aims to capitalize on attractive player economics and further drive market share gains.

    05

    Regulatory Landscape & iGaming Legalization

    RSI remains optimistic about the long-term outlook for iGaming legalization in additional jurisdictions. The company believes that impending reductions in federal support and increased fiscal responsibilities for states will create funding gaps, driving greater emphasis on new, sustainable revenue sources like online casino legalization. Virginia, D.C., Indiana, and Ohio are identified as potential markets for future iGaming expansion, with legislative efforts expected to continue.

    06

    Balance Sheet & Capital Allocation

    RSI maintains a strong balance sheet with $340 million in cash on hand and zero debt as of June 30. The company completed a $29 million share repurchase under its existing program in May and authorized a new $100 million share repurchase program, demonstrating an opportunistic approach to capital returns. This financial strength supports continued investment in growth initiatives and shareholder value creation.

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