What Happened?
Shares of online casino and sports betting company Rush Street Interactive (NYSE:RSI) jumped 14.1% in the afternoon session after the company reported first-quarter 2026 results that surpassed analyst expectations and raised its full-year financial guidance.
The online gaming operator announced quarterly revenue of $370.4 million, a 41.1% increase year-over-year that beat forecasts by 11.3%. Profitability also exceeded expectations, with adjusted earnings per share of $0.14 beating estimates by 17.6%. In addition, adjusted EBITDA—a measure of profitability—was $60.2 million, coming in 24.9% ahead of consensus.
Buoyed by the strong quarter, Rush Street Interactive lifted its full-year revenue guidance to $1.52 billion at the midpoint. The company also raised its full-year adjusted EBITDA guidance to a midpoint of $240 million, which was above what analysts had estimated.
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What Is The Market Telling Us
Rush Street Interactive’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Rush Street Interactive and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 19.1% on the news that the company reported second-quarter results that topped Wall Street estimates and raised its full-year revenue guidance.
The company's revenue climbed 22% to $269.2 million, and it reported a net income of $28.8 million, a significant turnaround from a net loss in the same quarter last year. This growth stemmed from a 25% increase in its online casino business and a 15% rise in online sports betting.
The strong performance bucked a wider trend, as traditional casino operators' stocks declined, highlighting a divergence within the gaming industry. In response to the strong quarter, Wall Street analysts from firms like Needham and Oppenheimer raised their price targets on the stock.
Rush Street Interactive is up 41.3% since the beginning of the year, and at $27.28 per share, has set a new 52-week high. Investors who bought $1,000 worth of Rush Street Interactive’s shares 5 years ago would now be looking at an investment worth $1,967.
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