Analysts Expect Breakeven For Rush Street Interactive, Inc. (NYSE:RSI) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Rush Street Interactive, Inc.'s (NYSE:RSI) future prospects. Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. The US$2.1b market-cap company posted a loss in its most recent financial year of US$18m and a latest trailing-twelve-month loss of US$12m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Rush Street Interactive will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Rush Street Interactive

According to the 9 industry analysts covering Rush Street Interactive, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$15m in 2025. The company is therefore projected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 104%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Rush Street Interactive's upcoming projects, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Rush Street Interactive currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Rush Street Interactive to cover in one brief article, but the key fundamentals for the company can all be found in one place – Rush Street Interactive's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Rush Street Interactive worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Rush Street Interactive is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Rush Street Interactive’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com