When Will Rush Street Interactive, Inc. (NYSE:RSI) Breakeven?

We feel now is a pretty good time to analyse Rush Street Interactive, Inc.'s (NYSE:RSI) business as it appears the company may be on the cusp of a considerable accomplishment. 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$2.6b 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$6.7m, as it approaches breakeven. As path to profitability is the topic on Rush Street Interactive's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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$14m in 2025. Therefore, the company is expected to breakeven just over a year from now. 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 113%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Rush Street Interactive's growth isn’t the focus of this broad overview, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Rush Street Interactive has no debt on its balance sheet, which is quite unusual for a cash-burning 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 key fundamentals of Rush Street Interactive which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Rush Street Interactive, take a look at Rush Street Interactive's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

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.