Rush Street Interactive’s foreign investments helped the company become one of the few major U.S.-based sportsbook operators to report a profitable fourth quarter 2024.
In its earnings release Wednesday, Rush Street saw new highs for revenues, net income, and Adjusted EBITDA during a three-month stretch that saw many of its larger competitors struggle financially.
“We experienced broad-based growth and success across all our geographies and products,” CEO Richard Schwartz said in a statement Wednesday announcing the company earnings. “We continued to accelerate player growth, acquiring more players efficiently while maintaining industry leading player values.
“Our commitment to focusing on player needs and leveraging cutting-edge technology to deliver a world-class user experience continues to drive significant growth and profitability.”
Rush Street’s big fourth quarter
Continued growth of the company’s foreign divisions, especially in Mexico and Latin America, helped Rush Street post multiple quarterly financial records during the last three months of 2024. Earnings report figures indicated the non-U.S. divisions appeared to help offset a strong NFL betting season for the betting public, which major operators including DraftKings, BetMGM, and Caesars attributed its year-over-year declines to in the financials of their respective fourth quarters.
Rush Street grew its monthly active Latin American and Mexico customer base to nearly 350,000 players in the fourth quarter of 2024, a 71% year-over-year increase. This comes as its U.S. and Canada customer base grew 28% to just over 200,000 customers during that same time frame.
The NFL is the most wagered-upon sport in the U.S. Though Rush Street’s Latin America customer base draws significantly less revenue per customer than its U.S. and Canadian divisions, the diverse nationalities of its customers helped offset projected declines due to the NFL.
BetRivers parent $RSI breaks the trend of a rough Q4 for US sportsbooks:
— Ryan Butler (@ButlerBets) February 26, 2025
- Revenue: $254.2m in Q4 2024, an increase of 31% compared to $193.9m during Q$ 2023
- Net income: $6.5m in Q$ 2024 v a net loss of ($5.5)m In Q4 2023
- AEBITDA was $30.6m in Q4 2024 v $11.5m in Q4 2023
In Q4 of 2024, Rush Street garnered $254 million in revenue, an increase of 31% from the nearly $194 million generated in Q4 2023. Net income grew during that same year-over-year time frame to $6.5 million from a loss of $5.5 million.
The company’s metric for adjusted earnings before interest, taxes, depreciation, and amortization grew to $30.6 million in Q4 2024 from $11.5 million in Q4 2023.
Rush Street Interactive stock was one of the biggest gainers among U.S. gaming stocks by percentage in 2024 and early 2025 before beginning a decline (along with much of the rest of the market) in mid-February. Rush Street-owned BetRivers digital sportsbook and online casino is projected to have low single digit national market share, trailing U.S. nationwide leaders FanDuel, DraftKings, BetMGM, and Caesars as well as several other competitors.
The company has been a rumored acquisition target, especially due to its Latin American strength. Wednesday’s earnings gave little indication the company was looking to be sold.
“As we enter 2025, we are excited about the opportunities ahead,” Schwartz wrote in the earnings announcement. “Our investments in technology, strategic partnerships, and providing an exceptional customer experience have set a solid foundation for sustained growth and profitability.
“We remain dedicated to delivering long-term value to our customers and shareholders, and we are confident in our ability to maintain this momentum.”
Full-year financials also see growth
The fourth-quarter gains capped off a strong year for the company in 2024.
Rush Street’s revenue was $924.1 million during full year 2024, an increase of 34%, compared to $691.2 million during full year 2023. Its net income was $7.2 million during full year 2024, against a net loss of $60.1 million during full year 2023.
The company’s strong fourth quarter accounted for nearly all of Rush Street’s full-year net revenues.
Adjusted EBITDA was $92.5 in 2024, compared to $8.2 million during the full year 2023.
Rush Street’s financial increases came as adjusted advertising and promotional expenses decreased by 1.6% to $155.8 million in 2024 compared to $158.4 million in 2023. Though many Rush Street competitors have far larger gross revenues and customer bases, many of these companies have struggled to break even in net revenues due to massive promotional, advertising, and other marketing costs.
The company announced its expected 2025 Adjusted EBITDA would be between $115 million and $135 million. At the midpoint of this range, Adjusted EBITDA of $125 million would represent a 35% year-over-year growth when compared to $92.5 million of Adjusted EBITDA for 2024.
