Rush Street Interactive (RSI) opened 2026 with Q1 revenue of US$370.4 million and basic EPS of US$0.09, and on a trailing twelve month view it has generated US$1.2 billion of revenue and basic EPS of US$0.38 as investors weigh these results against a share price of US$27.98. The company has seen quarterly revenue move from US$262.4 million in Q1 2025 to US$370.4 million in Q1 2026, while basic EPS over the same quarters went from US$0.06 to US$0.09. This sets up a conversation around how much of that performance is flowing through to margins and where they might trend next.

See our full analysis for Rush Street Interactive.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the prevailing Rush Street Interactive narratives, and where the story investors follow might diverge from what the figures actually show.

TTM earnings jump and margin settles at 3%

• On a trailing twelve month view, Rush Street Interactive generated US$1.2b of revenue and US$37.1 million of net income, which works out to basic EPS of about US$0.38 and a net margin of roughly 3% compared with 0.9% the prior year period.
• What stands out for the bullish narrative is that this very large 339.4% earnings increase over the past year lines up with the view that online casino expansion and marketing efficiency can support stronger profitability. However, the net margin at 3% still sits well below the bullish assumption that margins could move toward 6.5%, so the current results only partly back up that more optimistic case.
  • Bulls point to efficient marketing and higher value casino play as drivers, and the move from a sub 1% to 3% margin goes in that direction but still leaves a sizeable gap to the 6.5% margin that optimistic forecasts reference.
  • Analysts looking for earnings to grow at around 33.5% per year will likely watch whether this margin can climb further or if it stays closer to current levels while revenue follows the forecast of about 15.6% growth per year.

On these numbers, bulls see a business that has moved into consistent profitability but still needs further margin expansion to match the optimistic forecasts, and they frame today’s 3% margin as an early step rather than the finish line. 🐂 Rush Street Interactive Bull Case

High growth story meets rich 77.9x P/E

• With the share price at US$27.98 and trailing EPS at roughly US$0.38, the trailing P/E of about 77.9x sits well above the cited peer multiple of 28.4x and industry level of 21.1x, even though a DCF fair value of roughly US$33.85 is higher than the current price.
• Critics highlight that such a rich P/E leaves little room for disappointment, and this supports the bearish narrative that even if earnings grow as expected, the required multiple in some bearish forecasts, in the mid 60s by the late 2020s, would still be higher than the 21.1x industry reference. This means the present valuation already bakes in a strong growth story rather than offering much room for error.
  • Bears argue that if revenue tracks closer to the 13.5% annual growth assumption and margins only edge around the current 3% level instead of pushing higher, it becomes harder to justify paying far above industry and peer P/E levels.
  • The tension for cautious investors is that the DCF fair value of US$33.85 suggests upside compared with US$27.98, while the high 77.9x P/E sends a reminder that the market is already paying several times the peer and industry multiples for that potential.

For readers weighing the cautious view, the key question is whether the current 77.9x P/E can hold if the business tracks closer to the more modest growth path that skeptics outline. 🐻 Rush Street Interactive Bear Case

Q1 2026 builds on multi quarter revenue climb

• Q1 2026 revenue of US$370.4 million follows US$324.9 million in Q4 2025 and US$262.4 million in Q1 2025, while net income over those same quarters moved from US$5.3 million to US$9.1 million and trailing revenue climbed from US$969.1 million a year ago to US$1.2b, which is broadly in line with forecasts for mid teens annual revenue growth.
• Consensus narrative notes that strong user growth across North America and Latin America is expected to support about 17.2% annual revenue growth and a margin lift from roughly 2.9% to 4.1% over the next few years. The current pattern of quarterly revenue moving from the mid US$260 million range in early 2025 to over US$370 million in Q1 2026, with trailing margins around 3%, broadly fits that balanced view while still leaving work to reach the higher margin levels analysts are modeling.
  • Supporters of the consensus view can point to the trailing net income of about US$37.1 million versus US$8.4 million a year earlier as evidence that profitability is now more established rather than a one off spike.
  • At the same time, the margin shift from 0.9% to around 3% still sits below the 4.1% level analysts are targeting, which gives the story some room to play out before the current price and the consensus target of US$28.73 converge.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Rush Street Interactive on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed views across bull, bear and consensus narratives, now is the moment to look through the numbers yourself and move quickly to your own balanced conclusion. Start with 3 key rewards and 1 important warning sign.

See What Else Is Out There

Rush Street Interactive is profitable but runs on a slim 3% net margin and a rich 77.9x P/E, leaving limited room for earnings or valuation missteps.

If you are uneasy about paying up for thin margins and a premium multiple, shift your focus toward companies screened as 52 high quality undervalued stocks to see where pricing looks more forgiving.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.