Rush Street Interactive, Inc.
RSI
$25.08
-3.24%
Rush Street Interactive, Inc. is an online gaming and entertainment company specializing in online casinos, online sports betting, and social gaming, operating primarily in the U.S. and Latin American markets. As a pure-play iGaming operator, it differentiates itself through its proprietary technology platform and a strong focus on customer engagement, positioning itself as a nimble competitor against larger, more diversified gaming conglomerates. The current investor narrative centers on the company's accelerating revenue growth and improving profitability, highlighted by a record Q1 2026 performance that beat expectations and led to a substantial guidance raise, while the stock's recent volatility reflects both the excitement around its growth trajectory and concerns about valuation after a sharp run-up.…
RSI
Rush Street Interactive, Inc.
$25.08
Related headlines
Investment Opinion: Should I buy RSI Today?
Based on the analysis, RSI is rated a Buy. The company's accelerating revenue growth (41.1% YoY), improving profitability, and strong analyst consensus (Strong Buy, average target $35.18) support this view. The stock offers ~30.7% upside to the average target, and the PEG ratio of 0.05 suggests undervaluation relative to growth. However, the high trailing PE of 55.5x and recent price volatility warrant caution. The rating would be upgraded if growth accelerates further or valuation becomes more attractive, and downgraded if growth decelerates below 20% or competition intensifies. Overall, RSI is fairly valued to slightly undervalued given its growth prospects.
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RSI 12-Month Price Forecast
The AI assessment is bullish, driven by the company's strong fundamental momentum and positive analyst sentiment. However, the high valuation and recent price weakness introduce uncertainty. The stance would be upgraded if the company continues to beat expectations and raises guidance, or if the stock pulls back to more attractive levels. It would be downgraded if growth decelerates or if the stock breaks below key support levels.
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 +43.5% versus the current price.
Average Target
$36.00
0 analysts
Implied Upside
+43.5%
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 $35.18. The high target of $40.00 assumes continued strong revenue growth and margin expansion, potentially driven by market share gains in Latin America and new state launches in the U.S. The low target of $30.00 suggests a more conservative scenario, possibly factoring in increased competition or regulatory headwinds. The spread of $10 between low and high targets indicates moderate uncertainty, but the overall bullish skew of targets and the lack of recent downgrades suggest analysts are confident in the company's ability to execute on its growth plans.
Bulls vs Bears: RSI Investment Factors
RSI presents a compelling growth story with accelerating revenue, improving profitability, and strong analyst support. However, the stock trades at a premium valuation, and recent volatility suggests some uncertainty. The bull case is currently stronger, driven by fundamental momentum and a clear path to profitability, but the key tension is whether the company can sustain its growth trajectory to justify the high multiple. If growth decelerates or competition intensifies, the stock could face significant downside.
Bullish
- Revenue growth accelerating sharply: Q1 2026 revenue surged 41.1% YoY to $370.4M, up from 23.8% growth in Q4 2025, demonstrating strong momentum in the iGaming market.
- Record profitability and raised guidance: Q1 2026 net income of $9.1M and EPS of $0.09 beat expectations, leading management to raise full-year guidance, signaling confidence in continued growth.
- Strong analyst consensus and upside: With a Strong Buy rating (1.36 mean) and an average target of $35.18, the stock offers ~30.7% upside from the current price of $26.91.
- Undervalued on PEG basis: The PEG ratio of 0.05 suggests the stock is undervalued relative to its expected earnings growth, though this is based on forward estimates.
Bearish
- High valuation with trailing PE of 55.5x: The trailing PE of 55.5x is elevated, and the forward PE of 31.5x still implies high expectations that may not be met if growth slows.
- Recent price volatility and pullback: The stock fell 13.9% in the last month and 5.0% in three months, indicating profit-taking and potential consolidation after a strong run.
- Intense competition in iGaming: Larger competitors like DraftKings and FanDuel have significant resources, which could pressure RSI's market share and marketing costs.
- Regulatory risks in key markets: Changes in U.S. state regulations or Latin American policies could impact operations, as seen in other gaming companies.
RSI Technical Analysis
The prevailing trend for Rush Street Interactive is a strong uptrend, with the stock up 33.48% over the past year and currently trading at 77.9% of its 52-week range (between $15.51 low and $34.53 high). This positioning near the upper end of the range indicates robust momentum, though the recent pullback from the high suggests the stock may be consolidating after a powerful advance. The 52-week low of $15.51 and high of $34.53 provide clear reference points for assessing the stock's long-term trajectory.
Beta
1.52
1.52x market volatility
Max Drawdown
-29.5%
Largest decline past year
52-Week Range
$16-$35
Price range past year
Annual Return
+28.1%
Cumulative gain past year
| Period | RSI Return | S&P 500 |
|---|---|---|
| 1m | -22.4% | +2.8% |
| 3m | -9.6% | +4.2% |
| 6m | +41.9% | +11.3% |
| 1y | +28.1% | +21.5% |
| ytd | +29.9% | +12.7% |
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RSI Fundamental Analysis
Revenue growth is accelerating sharply, with Q1 2026 revenue of $370.4 million representing a 41.1% year-over-year increase, up from $324.9 million in Q4 2025 and $262.4 million in Q1 2025. The sequential acceleration from 23.8% YoY growth in Q4 2025 to 41.1% in Q1 2026 demonstrates strong momentum, driven primarily by the Online Wagering segment, which contributed $368.9 million of the total revenue. This growth trajectory supports the investment case for a company scaling rapidly in a growing iGaming market.
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 that Rush Street Interactive is profitable, the PE ratio is the primary valuation metric. The trailing PE stands at 55.5x, while the forward PE is 31.5x, indicating the market expects significant earnings growth. The gap between trailing and forward PE implies an expected earnings growth rate of approximately 76%, which is aggressive but supported by the company's recent performance and guidance. The PEG ratio of 0.05 suggests the stock is undervalued relative to its growth rate, though this low PEG is likely due to the forward EPS estimate being based on a single quarter's annualized earnings.
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 debt is minimal (D/E 0.13), but the company's profitability is still thin, with a net margin of only 2.9% in Q1 2026. The high EV/EBITDA of 145.4x indicates that the market is pricing in substantial future earnings growth, leaving little room for error. Cash burn is not a concern as FCF is positive at $135.7M TTM, but the reliance on marketing spend to drive growth could pressure margins if competition escalates. Revenue concentration in online wagering (99.6% of Q1 revenue) exposes the company to regulatory changes in that segment.
FAQ
Key risks include: 1) High valuation, which could lead to sharp declines if growth disappoints; 2) Intense competition from larger players like DraftKings and FanDuel; 3) Regulatory changes in the U.S. and Latin America; 4) Macroeconomic factors affecting consumer spending. The most severe risk is a growth slowdown, which could cause the stock to fall to the 52-week low of $15.51, a -42% downside from current levels.
The 12-month forecast is bullish, with a base case target of $30-$35 (50% probability), a bull case of $35-$40 (30% probability), and a bear case of $20-$26 (20% probability). The most likely scenario is continued growth, supported by strong Q1 results and raised guidance. However, the stock's high valuation means any miss could lead to significant downside.
RSI's trailing PE of 55.5x is high, but the forward PE of 31.5x suggests the market expects significant earnings growth. The PEG ratio of 0.05 indicates undervaluation relative to growth, but this is based on forward estimates that may be optimistic. Compared to peers, RSI trades at a premium, but its growth rate justifies some premium. Overall, the stock is fairly valued to slightly undervalued, depending on execution.
RSI is a good buy for investors with a high risk tolerance, given its strong growth prospects and analyst upside of ~30.7%. However, the stock is volatile and trades at a premium valuation, so it may not suit conservative investors. The biggest risk is a slowdown in growth, which could lead to multiple compression. Overall, it is a buy for those who believe in the iGaming growth story and can withstand short-term fluctuations.
RSI is more suitable for long-term investment, given its growth stage and high volatility (beta 1.56). Short-term trading is possible but risky due to price swings. The company is investing for growth, so earnings may be volatile, but the long-term potential is significant. A minimum holding period of 3-5 years is recommended to ride out volatility and capture the growth trajectory.