Rush Street Interactive, Inc.
RSI
$26.17
+1.63%
Rush Street Interactive, Inc. (RSI) is an online gaming and entertainment company specializing in real-money online casinos, online sports betting, and social gaming, operating primarily in the U.S. and Latin American markets. As a digital-first player in the gambling industry, RSI differentiates itself through its proprietary technology platform and a strong focus on customer engagement, positioning it as a nimble competitor against larger rivals like DraftKings and FanDuel. The current investor narrative centers on the company's accelerating revenue growth and improving profitability, highlighted by record Q1 2026 results that beat expectations and led to a raised full-year guidance, while also navigating the competitive and regulatory dynamics of the rapidly evolving online betting landscape.…
RSI
Rush Street Interactive, Inc.
$26.17
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 $36.00 and implied upside of +37.6% versus the current price.
Average Target
$36.00
0 analysts
Implied Upside
+37.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$30 - $40
Analyst target range
The target price range spans from a low of $30.00 to a high of $40.00, with the average at $36.00. The low target of $30.00 still implies a 13.6% upside, reflecting expectations of continued growth but with potential risks such as increased competition or regulatory changes. The high target of $40.00 suggests a 51.5% upside, likely assuming accelerated market share gains and margin expansion. The spread between low and high targets is $10.00, or about 27.8% of the average target, indicating moderate uncertainty. The consensus Strong Buy rating and the recent price pullback from the 52-week high of $34.53 may present an attractive entry point for investors, though the stock's beta of 1.525 indicates higher volatility than the market, warranting careful position sizing.
Bulls vs Bears: RSI Investment Factors
RSI presents a compelling growth story with accelerating revenue and improving profitability, supported by a strong analyst consensus and a low PEG ratio. However, the stock's high trailing PE, recent price volatility, and intense competition from larger players introduce significant risks. Currently, the bull case has stronger evidence given the consistent growth trajectory and operational improvements, but the key tension lies in whether the company can sustain its 40%+ revenue growth and margin expansion in the face of competitive and regulatory headwinds. If growth decelerates or margins compress, the stock could face multiple compression, making the bear case more relevant.
Bullish
- Accelerating Revenue Growth: Q1 2026 revenue surged 41.1% YoY to $370.4M, marking the fourth consecutive quarter of accelerating growth (from $232.1M in Q3 2024 to $370.4M in Q1 2026). This demonstrates strong market share gains in the online gambling sector.
- Improving Profitability: Net income turned positive in Q1 2026 at $9.07M (net margin 2.4%), up from a loss in Q2 2024. Operating margin expanded to 11.6% in Q1 2026 from 4.8% in Q4 2024, showing operating leverage.
- Strong Analyst Consensus: Analysts rate RSI a Strong Buy with an average target of $36.00, implying 36.3% upside from the current price of $26.41. The low target of $30.00 still offers 13.6% upside.
- Undervalued on PEG Ratio: With a PEG ratio of 0.05, the stock is trading at a significant discount to its growth rate. Even if growth estimates are aggressive, the forward PE of 31.4x is reasonable for a company growing revenue at 40%+.
Bearish
- High Valuation on Trailing PE: The trailing PE of 55.5x is elevated, reflecting high expectations. The forward PE of 31.4x implies a 77% earnings growth, which may be difficult to sustain.
- Recent Price Volatility: The stock fell 14.2% in the past month and has a beta of 1.525, indicating higher volatility than the market. The pullback from the 52-week high of $34.53 to $26.41 suggests profit-taking and potential momentum reversal.
- Intense Competition: DraftKings and FanDuel dominate the market, and DraftKings' recent surge on prediction-market growth highlights competitive pressures. RSI's market share gains may be challenged by larger rivals' marketing spend.
- Regulatory Risks: The online gambling industry faces regulatory uncertainty across states and countries. Changes in tax rates or legal restrictions could impact RSI's growth and profitability.
RSI Technical Analysis
RSI's price trend over the past year reflects a strong recovery and sustained uptrend, with the stock up 18.27% over the 1-year period. Currently trading at $26.41, the stock sits at approximately 76.5% of its 52-week range (between $15.51 low and $34.53 high), indicating it is closer to the highs but has pulled back from its peak. This positioning suggests the stock has experienced significant momentum but is currently in a corrective phase, offering a potential entry point for investors who believe the long-term uptrend remains intact.
Beta
1.52
1.52x market volatility
Max Drawdown
-29.7%
Largest decline past year
52-Week Range
$16-$35
Price range past year
Annual Return
+22.3%
Cumulative gain past year
| Period | RSI Return | S&P 500 |
|---|---|---|
| 1m | -7.1% | +1.0% |
| 3m | -0.2% | +1.1% |
| 6m | +25.4% | +13.8% |
| 1y | +22.3% | +19.5% |
| ytd | +35.5% | +12.2% |
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RSI Fundamental Analysis
RSI's revenue trajectory is robustly accelerating, with Q1 2026 revenue of $370.4 million representing a 41.1% year-over-year growth rate, up from $262.4 million in Q1 2025. This marks the fourth consecutive quarter of accelerating growth, as revenue rose from $232.1 million in Q3 2024 to $254.2 million in Q4 2024, $269.2 million in Q2 2025, and $324.9 million in Q4 2025. The growth is primarily driven by the Online Wagering segment, which contributed $368.9 million of the total revenue, while Retail Sports Services and Social Gaming are minimal contributors. This accelerating top-line growth underscores RSI's expanding market share in the online gambling industry, supported by successful market entries and product enhancements.
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?
Given RSI's positive net income, the PE ratio is the primary valuation metric. The trailing PE stands at 55.5x, while the forward PE is 31.4x, indicating that the market expects significant earnings growth in the coming year. The gap between trailing and forward PE implies a projected earnings increase of approximately 77%, reflecting optimism about RSI's continued profitability expansion. This is supported by a PEG ratio of 0.05, which suggests the stock is undervalued relative to its growth rate, though such a low PEG may also signal that growth estimates are overly aggressive.
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
Financially, RSI's profitability is still thin, with a net margin of only 2.4% in Q1 2026, leaving little room for error. The company's high valuation (trailing PE of 55.5x) means any earnings miss could trigger a sharp selloff. While debt is low (D/E of 0.13), the company's cash flow generation is modest (FCF TTM of $135.7M), and its reliance on continued growth to justify the valuation is a key risk. Additionally, the company's revenue is heavily concentrated in online wagering, making it vulnerable to segment-specific downturns.
Market and competitive risks are substantial. RSI trades at a premium valuation (PS of 1.64x, EV/EBITDA of 145.4x) relative to its history and peers, leaving little margin for error. The online gambling market is fiercely competitive, with DraftKings and FanDuel spending heavily on marketing, and regulatory changes could disrupt operations. The stock's beta of 1.525 indicates high sensitivity to market swings, and the recent 14.2% monthly decline suggests momentum risk. Regulatory scrutiny on gambling advertising and taxation could also impact growth.
In a worst-case scenario, a combination of slowing growth, margin compression, and regulatory setbacks could drive the stock down to its 52-week low of $15.51, representing a -41.3% decline from the current price. This could occur if the company fails to meet raised guidance, loses market share to competitors, or faces adverse regulatory rulings. The realistic downside, based on the analyst low target of $30, is -13.6%, but the 52-week low shows the potential for deeper losses in a severe downturn.