Rush Street Interactive grew profit 73% in the third quarter but missed sales forecasts for the first time in four years. Online sports betting led the rise, while North American revenue softened as ARPMAU fell 15% year over year.
Rush Street Interactive reported Q3 revenue of $385.9 million, up 39% but below the ~$388 million consensus. Adjusted EBITDA rose to $62.2 million from $36.0 million, a 73% increase. North America revenue grew 14% while ARPMAU fell to $309 from $365, and Latin American revenue grew 218%.
- Rush Street Interactive’s Q3 Numbers
- North America Slows as Latin America Accelerates
- Management Holds Guidance with Less Headroom
- Colombia Tax Relief and the 2027 Outlook
Rush Street Interactive grew profit 73% in the third quarter but missed sales forecasts for the first time in four years. Revenue rose 39% year over year to $385.9 million, below the approximately $388 million consensus cited by Citizens JMP. Adjusted EBITDA, a non-GAAP measure, increased to $62.2 million from $36 million, beating the $55 million consensus by 13%. GAAP net income rose 93% to $28.7 million.
The earnings call gave the clearest picture of the split: online casino generated 75% of revenue and grew 32%, while online sports betting revenue rose 70%. North American revenue increased 14%, against 218% growth in Latin America. North American monthly active users rose 34% to 300,572, but revenue per monthly active user fell 15% to $309.
Rush Street Interactive’s Q3 numbers
CEO Richard Schwartz called the moderation in online casino growth industry-wide, saying the slowdown “has been broad-based rather than concentrated in any one segment of players.” That framing matters because a single bad cohort would be an outlier. Broad-based moderation points to a structural softening in US demand.
Analysts pressed the number. Craig-Hallum’s Ryan Sigdahl said industry growth had “certainly decelerated after years and years and years” of consistency, while Stifel’s Jeff Stantial asked the CFO to “confirm for us the $4.3 million one-time gain in G&A.” Sauers confirmed the foreign-exchange gain. Citizens analysts Jordan Bender and Isabelle Slavin calculated that excluding it, the EBITDA beat narrowed from 13% to about 6%. In their Oct. 29 note, they called the quarter the company’s “first revenue miss in four years.”
North America slows as Latin America accelerates
Kyle Sauers, Rush Street’s CFO, said online sports betting revenue rose 70%, the fastest-growing line on the call. The contrast with North America is the story. North American revenue increased 14% but ARPMAU fell 15%, so the region added users while generating less revenue per user.
In contrast, Latin American revenue grew 218%, making it the engine of the quarter. Monthly active users rose 42% to 907,881 overall. The North American user base grew to 300,572, a 34% increase, but the quality metric moved the wrong way. Following this, the question for investors is whether US demand stabilises or continues to compress.
Management holds guidance with less revenue headroom
Sauers said October trends “would put us closer to the low end of revenue guidance,” while EBITDA was tracking near the midpoint. Rush Street kept 2026 guidance of $1.56 billion to $1.6 billion in revenue and $245 million to $265 million in adjusted EBITDA. Citizens said it was the first Rush Street Interactive time since early 2025 that guidance was not raised at the midpoint.
Quarterly revenue growth slowed to 39% from 46% in the second quarter. Adjusted gross margin still improved 240 basis points to 36.4%, and the company ended September with $382 million in cash and no debt. The Rush Street Interactive margin gain and the cash position remain solid, but the guidance language is the softer signal.
Colombia tax relief and the 2027 outlook
Management said Colombia’s 2027 budget omitted a new gaming tax, so the temporary 16% excise levy imposed by emergency decree is scheduled to expire at year-end, with the rate expected to revert to 15% absent further legislative change. Analysts differ on the relief’s value. Citizens estimated that no further tax increase could add about $40 million to 2027 EBITDA. Stifel, which cut its price target to $30 from $34 in an Oct. 26 note, estimated the levy’s expiry could add more than $50 million to its 2027 and 2028 adjusted EBITDA estimates.
AGBrief has been tracking the Rush Street Interactive Colombian gaming tax relief across the US iGaming market.
Citizens retained Market Outperform but cut its price target to $24 from $34 as growth estimates eased. That Rush Street Interactive is a sharp turn from April, when Rush Street delivered blowout revenue in its Q1 2026 results. Investors will now need evidence that North American casino demand is stabilising before treating the profit beat as an all-clear.
Frequently Asked Questions
What were Rush Street’s Q3 2026 results?
Revenue was $385.9 million, up 39% from $277.9 million. Adjusted EBITDA was $62.2 million, up 73% from $36.0 million. GAAP net income rose 93% to $28.7 million. The Rush Street Interactive beat was narrower than reported because the company recognised a $4.3 million foreign-exchange gain.
Why did North America miss despite user growth?
North American revenue rose 14% to a user base that grew 34% to 300,572, but revenue per monthly active user fell 15% to $309. Online casino revenue grew 32% and sports betting rose 70%, so the Rush Street Interactive segment beat while the North American revenue pool softened.
Is the slowdown industry-wide?
Richard Schwartz called the moderation industry-wide, saying the slowdown “has been broad-based rather than concentrated in any one segment of players.” Craig-Hallum’s Ryan Sigdahl said industry growth had “certainly decelerated after years and years and years” of consistent expansion.
Will Rush Street Interactive raise 2026 guidance?
No, the company kept 2026 revenue guidance at $1.56-1.6 billion and adjusted EBITDA guidance at $245-265 million. Sauers said October trends “would put us closer to the low end of revenue guidance,” and Citizens called it the first time since early 2025 that guidance was not raised at the midpoint.
How much does Colombia tax relief help 2027?
The temporary 16% Colombian excise levy expires at year-end, reverting to 15% without further legislative change. Citizens estimated the relief could add about $40 million to 2027 EBITDA. Stifel estimated it could add more than $50 million across 2027 and 2028 after cutting its price target to $30 from $34.
This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.
