Breakeven Is Near for Rush Street Interactive, Inc. (NYSE:RSI)

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$3.4b market-cap company’s loss lessened since it announced a US$18m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.4m, as it approaches breakeven. The most pressing concern for investors is Rush Street Interactive's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Rush Street Interactive

Consensus from 8 of the American Hospitality analysts is that Rush Street Interactive is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$31m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Rush Street Interactive given that this is a high-level summary, however, take into account that generally 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 usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

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 relevant aspects 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.