Rush Street Interactive Revenue Climbs 39% as October Signals Slower Growth

Rush Street Interactive’s third-quarter results show a business still adding players and expanding profit, while its October outlook points to softer revenue growth. With online casino accounting for three-quarters of sales, the shift offers a useful signal of cooling demand in a key part of its business.

Revenue is growing, but the pace has eased

Rush Street Interactive, the BetRivers owner, reported $385.9 million in third-quarter revenue on October 28, up 39% from $277.9 million a year earlier. That’s a solid increase, but it falls short of the 46% growth recorded in the second quarter, when revenue reached a record $393.8 million and the company raised its full-year outlook. The comparison suggests that the business is still expanding quickly, though its year-over-year growth rate has begun to cool.

Quarterly revenue also came in below the prior quarter’s record. One quarter’s sequential decline doesn’t establish a trend, especially in a business where customer activity and timing can shift. But paired with management’s comments about October, it gives investors a reason to look past the headline growth rate and ask how much momentum is carrying into the next reporting period.

Management kept its 2026 revenue guidance, which implies annual growth of 38% to 41%, but said October trends point toward the low end. Adjusted EBITDA guidance remains $245 million to $265 million; October activity is tracking toward the midpoint of that range. The gap between those signals makes the coming quarter a test of whether stronger profitability can offset slower sales growth.

That distinction matters. Revenue reflects the scale of customer activity, while adjusted EBITDA offers a view of operating performance after certain costs are excluded. If revenue slows while earnings hold up, the company may be managing its expense base effectively. Yet a sustained slowdown could eventually make that balance harder to maintain.

Profit growth and player gains continue

Net income nearly doubled, rising 93% to $28.7 million from $14.8 million. Adjusted EBITDA increased 73% to $62.2 million, while sales and marketing costs rose 43% to $56 million, compared with $39 million a year ago. Profit growth outpaced revenue growth, and marketing spending rose at a slower rate than revenue, a combination that suggests the quarter’s expansion wasn’t driven by spending increases alone.

Still, marketing remains a substantial cost. Customer acquisition and retention often require ongoing investment in online gaming, so a single quarter can’t show whether current spending is producing durable customer relationships. The more useful measure will be whether earnings continue to grow as the company adds users and competes for their attention.

Online casino made up 75% of revenue, up from 72% in the prior quarter. Casino revenue grew 32%, though that figure includes Latin America and therefore doesn’t isolate US demand. The concentration still makes Rush Street a useful indicator of online casino trends, with the regional mix in mind.

That 75% share also makes the company’s results more exposed to changes in casino activity than a business with a more balanced revenue mix. It’s a meaningful shift in the composition of sales, even if the share moved only a few percentage points between quarters. (And this is the part most people overlook.) Growth in the combined casino figure can mask differences between regions, so readers shouldn’t treat it as a clean measure of US demand.

Customer activity continued to expand. North American monthly active users hit a record 300,572, a 34% year-over-year increase. Latin American monthly active users rose 46% to 607,308, bringing the company’s total to 907,881. Those figures show that the customer base is growing across both regions, but user totals alone don’t show how much each customer spends or how consistently they return.

More players can support future revenue, but they don’t guarantee it. If you’re working in this space, the distinction between a growing user count and stronger revenue per user is central: a company can add customers while the market’s growth rate softens, or while the cost of attracting and retaining those customers rises.

Management points to market softness

The company attributed its lower-end revenue outlook to slower growth in the North American online casino market, rather than a loss of market share. It also described Michigan as more competitive. State data offer some context: Michigan iGaming adjusted gross receipts were $288.15 million in September, down 0.9% from August.

That monthly decline is modest, and one state’s results can’t establish what’s happening across North America. It does, however, fit management’s account that conditions have become more demanding. The explanation remains the company’s own; the figures here don’t independently confirm whether slower market growth, competition, or other factors account for the change in its outlook.

Rush Street shares closed down 1.82% on October 28 at $15.13, then fell below their 52-week low in after-hours trading. The company repurchased about $14 million in stock during the quarter and another $11 million afterward. Its authorization has $75 million remaining.

The buybacks show that the company has continued returning capital through repurchases while its outlook has softened. They don’t answer the operating question raised by October’s trend, though: whether revenue can reach the level implied by annual guidance. The share price reaction suggests investors were paying attention to that uncertainty, even as earnings and customer counts increased.

What the guidance implies for the next quarter

The guidance applies only to markets where Rush Street is already operating and assumes current tax arrangements remain in place. That includes Colombia’s temporary 16% excise tax through year-end. In other words, the company’s forecast depends partly on conditions in its existing markets and tax assumptions continuing as specified; it doesn’t describe a broader expansion scenario.

Investing.com estimates the reaffirmed annual outlook requires fourth-quarter revenue of roughly $410 million to $450 million. That range puts the focus on whether October’s softer trend persists through the quarter, even as user numbers and earnings continue to grow. The lower end of the revenue outlook would still represent a substantial quarterly total, but reaching it depends on activity recovering or holding up after October.

Here’s the thing: the quarter presents two different signals. Profit and customer counts are rising, while revenue growth has slowed and management’s near-term commentary has turned cautious. That isn’t a contradiction; the measures capture different parts of the business. But it does mean that strong earnings growth shouldn’t be read as proof that demand is accelerating.

This is more significant than it looks because online casino now accounts for most of the company’s sales, while the reported casino growth combines North American and Latin American activity. If you’re trying to judge whether the business is gaining momentum, the next results will need to clarify how those pieces are behaving and whether October was a brief soft patch or a more persistent signal.

For now, the company has held its annual targets and posted higher earnings alongside a larger customer base. The next quarter will show whether those gains can carry revenue toward the level implied by guidance. A useful test, but not a settled answer.

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