Rush Street Interactive, Inc. Q1 FY2026 earnings call

• Record revenue and adjusted EBITDA in Q1, with 41% revenue growth and 81% adjusted EBITDA growth.
• Casino First strategy driving player engagement, lifetime values, and retention. North America and Latin America player bases expanded significantly.
• Market share growth in North American online casino markets, with 90 basis points sequential growth. Latin America, especially Colombia, had strong results despite regulatory challenges, and Mexico is ramping nicely.
• Closer to launching in Alberta on July 13th, with plans to invest in marketing and brand building ahead of launch.
• Investing in product innovation, technology enhancements, and geographic expansion while maintaining financial discipline.

In the first quarter, record revenue of $370 million was generated, up 41% year over year. Adjusted EBITDA reached a record $60.2 million, up 81% year over year. Online casino revenue grew 39%, online sports betting revenue grew 47%. Regionally, North America revenue grew 26% and Latin America revenue grew 134%. North America monthly active users grew 46% to 296,000, Latin America monthly active users grew 54% to 543,000. North American online casino markets saw monthly active user growth of 62%. First-time depositors reached a record this quarter.

• Raised full year 2026 revenue guidance to $1.49 to $1.54 billion, representing 31% to 36% year-over-year growth. Midpoint at $1,515,000,000.
• Raised adjusted EBITDA guidance to $230 to $250 million, representing 50 to 63% year-over-year growth. Midpoint at $240 million.
• Guidance includes impact of Alberta launch for the back half of the year, and benefits from Latin America outperformance and sports outcomes in North America and Latin America.

• Regulatory uncertainties in Latin America, such as the status of the 16% tax in Colombia and potential reviews of emergency decrees.
• Competitive environment in new markets like Alberta and Mexico, including incumbent gray market operators.
• Potential impact of changes in customer acquisition channels and competitive dynamics on marketing efficiency and player acquisition.

Q: Dan Politzer with JP Morgan asked about North America MAUs, who the customers are and their demographics.

A: They're pleased with MAU growth, new players are like previous ones with modest long-term value lowering, from various channels.

Q: Bernie McTernan with Needham asked about customer acquisition channels and World Cup impact.

A: Added CMO, using various channels, World Cup has incremental upside with past Copa America driving growth in Colombia.

Q: Jordan Bender with Citizens asked about Columbia malgrowth, exit rate, and Peru/Mexico trends.

A: Strategy in Colombia helped growth, taking share in Latin America, Mexico ahead of Colombia post-launch, Peru behind.

Q: Ryan Sigdal with Craig Hellum Capital asked about industry growth vs theirs and Columbia VAT refunds.

A: Teams work hard, not getting easier, VAT refunds not relevant for them as they didn't pay unconstitutional tax.

Q: Mike Hickey with StoneX asked about Mexico competition and LATAM new markets.

A: Mexico has casino-first advantage, LATAM has attractive opportunities but not ready to share details yet.

Q: Jed Kelly with Oppenheimer asked about North America ARPMOMs and CPA.

A: Decline due to new players with bonusing, CPAs due to team improving player journey not big competitive factor.

Q: Zach Silverberg with Wells Fargo asked about Mexico competitor license blocks and Columbia election.

A: Competitor blocks helped acquire customers, watching Columbia election closely for tax outlook.

Q: Joseph Stauff with Sasquana asked about iCasino product parity and app scores.

A: Leading in product innovation, app scores high due to attention to details and retention focus.

Q: Chad Bainan with Macquarie asked about Virginia and CPA pressure.

A: Interested in Virginia, no CPA pressure from prediction market entrants as they target different players.

Q: David Katz with Jefferies asked about flow through and aspirational margins.

A: Aspirational margins to low to mid 20%, flow through solid in 2026, impact of Alberta launch and tax changes considered.