Rush Street Interactive, Inc.
RSI
$34.52
+6.22%
Rush Street Interactive, Inc. is an online gaming and entertainment company specializing in real-money online casinos, online sports betting, and social gaming across the U.S. and Latin America. As a pure-play iGaming and sports betting operator, it differentiates itself through a direct-to-consumer digital platform and a growing presence in regulated markets. The stock is currently attracting investor attention following a record first-quarter 2026 earnings report that significantly exceeded expectations, driving a surge in the share price and a substantial upward revision to full-year guidance.…
RSI
Rush Street Interactive, Inc.
$34.52
Related headlines
RSI 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Rush Street Interactive, Inc.'s 12-month outlook, with a consensus price target around $31.36 and implied upside of -9.1% versus the current price.
Average Target
$31.36
0 analysts
Implied Upside
-9.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$29 - $38
Analyst target range
The stock is covered by 11 analysts, with a consensus recommendation of 'Strong Buy' (mean rating 1.36 on a 1-5 scale). The average target price is $30.82, implying a -6.4% downside from the current price of $32.93. Despite the strong buy consensus, the average target is below the current price, suggesting analysts see limited near-term upside or that the stock has run ahead of their estimates. The target range spans from a low of $29.00 to a high of $33.00, a spread of $4.00 or 13.8% of the average target, indicating moderate uncertainty. The high target of $33.00 is just above the current price, implying potential for further gains if the company continues to execute, while the low target of $29.00 suggests downside risk if growth disappoints. Recent ratings actions have been uniformly positive, with firms like Citizens, Benchmark, and Needham reiterating bullish ratings after the Q1 2026 earnings beat. The wide target spread relative to the average reflects some divergence in analyst views on the sustainability of the growth rate.
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Bulls vs Bears: RSI Investment Factors
Rush Street Interactive presents a compelling growth story with accelerating revenue (41.1% YoY), improving profitability, and a strong balance sheet. The bull case is supported by robust operational momentum and positive analyst sentiment. However, the stock trades at a premium valuation (P/E 55.5x vs. industry 22.0x) and above the average analyst target, suggesting limited near-term upside. The key tension is whether the company's accelerating growth can sustain its high valuation—if revenue growth decelerates or margins fail to expand, the stock could face significant multiple compression. Currently, the bull case has stronger evidence given the accelerating trends and low PEG ratio, but investors should monitor execution closely.
Bullish
- Accelerating Revenue Growth: Q1 2026 revenue grew 41.1% YoY to $370.4M, accelerating from 32.5% in Q4 2025 and 19.7% in Q3 2025, indicating strong market share gains and robust demand in iGaming and sports betting.
- Improving Profitability and Margins: Net income rose to $9.1M in Q1 2026 from $5.2M in Q4 2025, with gross margin expanding to 35.7% from 34.4%, demonstrating operating leverage as the company scales.
- Strong Balance Sheet and Cash Flow: The company has a current ratio of 1.93, debt-to-equity of 0.125, and trailing free cash flow of $135.7M, providing financial flexibility to invest in growth without excessive leverage.
- Positive Analyst Sentiment: 11 analysts rate the stock a Strong Buy (mean 1.36 on 1-5 scale), with recent upgrades after Q1 earnings beat, reflecting confidence in the growth trajectory.
Bearish
- Stock Trades Above Analyst Targets: At $32.93, the stock is 6.4% above the average analyst target of $30.82 and near the high target of $33.00, implying limited near-term upside and potential overvaluation.
- High Valuation vs. Industry Peers: The trailing P/E of 55.5x is 152% above the industry average of 22.0x, indicating the stock prices in aggressive growth expectations that may not materialize.
- Low Net Margin and Earnings Volatility: Despite improvement, net margin is only 2.4% in Q1 2026, and net income has fluctuated significantly (e.g., $16.7M in Q2 2025 vs. $5.2M in Q4 2025), making earnings less predictable.
- High Beta and Market Sensitivity: With a beta of 1.56, the stock is 56% more volatile than the S&P 500, amplifying downside risk during market downturns or sector rotation.
RSI Technical Analysis
RSI is in a powerful sustained uptrend, with a 1-year price change of +123.4% and a 6-month change of +70.6%. The current price of $32.93 sits at 95.5% of its 52-week range ($14.38–$34.51), indicating the stock is near its highs and reflecting strong momentum. This positioning near the top of the range suggests bullish conviction but also raises the risk of overextension in the near term. The 1-month price change of +9.3% shows accelerating short-term momentum, while the 3-month change of +45.3% confirms a robust upward trajectory. The 1-month relative strength versus the S&P 500 is +8.7%, indicating the stock is significantly outperforming the broader market. This divergence between the stock's strong gains and the market's modest returns highlights its exceptional relative strength. The 52-week high of $34.51 serves as immediate resistance; a breakout above this level would signal a continuation of the uptrend and likely attract further buying. Support lies at the 52-week low of $14.38, though the stock is far above that level. With a beta of 1.56, RSI is 56% more volatile than the S&P 500, meaning larger price swings that amplify both gains and losses, requiring careful position sizing.
Beta
1.56
1.56x market volatility
Max Drawdown
-29.5%
Largest decline past year
52-Week Range
$14-$35
Price range past year
Annual Return
+137.9%
Cumulative gain past year
| Period | RSI Return | S&P 500 |
|---|---|---|
| 1m | +18.7% | -0.6% |
| 3m | +48.5% | +5.4% |
| 6m | +86.8% | +8.3% |
| 1y | +137.9% | +18.3% |
| ytd | +78.8% | +8.8% |
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RSI Fundamental Analysis
Revenue growth is accelerating strongly, with Q1 2026 revenue of $370.4 million representing a 41.1% year-over-year increase, up from 32.5% YoY growth in Q4 2025 ($324.9 million) and 19.7% in Q3 2025 ($277.9 million). The primary driver is the Online Wagering segment, which generated $368.9 million in Q1 2026, dwarfing Retail Sports Services ($0.3 million) and Social Gaming ($1.2 million). This accelerating top-line trajectory underscores strong market share gains and robust demand in iGaming and sports betting. Profitability is improving markedly. Net income in Q1 2026 was $9.1 million, up from $5.2 million in Q4 2025 and $6.1 million in Q3 2025, while gross margin expanded to 35.7% from 34.4% in Q4 2025. The net margin of 2.4% in Q1 2026, though still low, is trending upward from 1.6% in Q4 2025 and 2.2% in Q3 2025, indicating operating leverage is beginning to materialize. The company's balance sheet is healthy with a current ratio of 1.93 and a low debt-to-equity ratio of 0.125. Free cash flow for the trailing twelve months is $135.7 million, and operating cash flow of $20.1 million in Q1 2026 comfortably covers capital expenditures of just $0.3 million. ROE stands at 22.6%, reflecting strong returns on equity despite the early stage of profitability.
Quarterly Revenue
$370361000.0B
2026-03
Revenue YoY Growth
+41.1%
YoY Comparison
Gross Margin
35.7%
Latest Quarter
Free Cash Flow
$135693000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is RSI Overvalued?
Since net income is positive, the trailing P/E ratio of 55.5x is the primary valuation metric, with a forward P/E of 40.2x. The gap between trailing and forward P/E implies the market expects significant earnings growth in the coming year, consistent with the company's upward guidance revision. Compared to the industry average P/E of 22.0x (estimated from sector data), RSI trades at a 152% premium, reflecting its high growth expectations and improving profitability. The PEG ratio of 0.05x suggests the stock is undervalued relative to its earnings growth rate, though this extreme low value may be due to very high near-term growth expectations. Historically, RSI's trailing P/E has ranged from negative (during loss-making periods) to over 188x in Q3 2024. The current 55.5x is well below its historical highs of 90.8x in Q4 2025 and 188.4x in Q3 2024, indicating the multiple has compressed as earnings have grown. This suggests the stock is not excessively valued by its own historical standards, especially given the accelerating growth trajectory.
PE
55.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 21x~188x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
145.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: The company's low net margin of 2.4% in Q1 2026 leaves little room for error; any cost overruns or revenue shortfalls could quickly turn profits to losses. While debt is low (D/E 0.125), the reliance on a single segment (Online Wagering, 99.6% of Q1 revenue) creates concentration risk. Earnings volatility is evident—net income swung from $16.7M in Q2 2025 to $5.2M in Q4 2025—making forecasting difficult. The high trailing P/E of 55.5x means any earnings miss could trigger a sharp de-rating.
Market & Competitive Risks: The stock's beta of 1.56 implies significant macro sensitivity; a broad market selloff could amplify losses. The iGaming and sports betting industry is highly competitive with well-capitalized rivals (e.g., DraftKings, FanDuel), and regulatory changes (e.g., tax hikes or advertising restrictions) could pressure margins. The stock's 152% premium to the industry P/E leaves it vulnerable to valuation compression if growth slows or sentiment shifts.
Worst-Case Scenario: If revenue growth decelerates below 20% due to increased competition or regulatory headwinds, and margins fail to expand, the stock could re-rate to a P/E more in line with the industry average (22x). Applying that multiple to forward EPS of $0.82 (estimated) yields a target of ~$18, representing a -45% decline from the current price of $32.93. The 52-week low of $14.38 implies a potential -56% loss, though this scenario would require a severe operational or market downturn.
