Rush Street beats Q3 profit expectations, growth slows

Rush Street Interactive increased its third-quarter adjusted EBITDA by 73% to $62.2 million. However, revenue came in at $385.9 million, below analysts' expectation of about $388 million. This was the company's first revenue miss in the last four years.

Revenue grew 39% year over year, but this rate trailed the 46% recorded in the second quarter. Online casino revenue grew 32% and accounted for 75% of total revenue. Revenue in North America rose 14%, while growth in Latin America reached 218%.

Monthly active users in North America increased 34% to 300,572. However, revenue per active user fell 15% to $309. CEO Richard Schwartz said the slowdown was happening across the sector and was not limited to a single player group.

Analysts noted that part of the profit increase came from a one-time currency gain. According to Citizens, excluding this gain, the EBITDA difference narrowed from 13% to about 6%.

The company maintained its 2026 guidance of $1.56 billion to $1.6 billion in revenue and $245 million to $265 million in adjusted EBITDA. CFO Kyle Sauers said October trends kept revenue near the lower end of the guidance range. According to Citizens, this is the first quarter since the start of 2025 in which guidance was not raised from the midpoint. The company had $382 million in cash at the end of September and no debt.