RSI Stock Forecast & Price Target

Rush Street Interactive Inc. has demonstrated significant growth in gross gaming revenue, reaching $877.6 million, reflecting a year-over-year increase of 28% and a sequential rise of 5% from June. The company has experienced record customer growth in North America, particularly in key markets such as Michigan, Pennsylvania, and New Jersey, where results improved by 22% to 31% year-over-year, alongside remarkable gains from smaller markets. Additionally, the expansion of the user base has been robust, with monthly active users in North America and Latin America increasing by over 30% and 40% year-over-year, respectively, indicating a positive trajectory for the company's future performance.

Rush Street Interactive Inc is facing deteriorating market share trends that are worse than previously expected, which could negatively impact future growth prospects. The company has reduced its marketing spend to below 14% of revenue—the lowest level since its public debut—while still managing to attract record numbers of first-time depositors; however, this reduction is projected to contribute an annualized headwind of $25–30 million to Adjusted EBITDA. Additionally, a temporary 19% VAT on deposits in Colombia, introduced under an emergency decree, is estimated to exert a similar $25–30 million EBITDA headwind in 2025, indicating further challenges for the company's profitability in that market.