What Happened?

Shares of online casino and sports betting company Rush Street Interactive (NYSE: RSI) jumped 7.1% in the afternoon session after the company reported strong fourth-quarter revenue and provided an upbeat forecast, which overshadowed a miss on earnings per share. 

The online gaming company posted fourth-quarter revenue of $324.9 million, a 27.8% increase from the same period in the prior year, surpassing analysts' expectations. However, its adjusted earnings per share of $0.08 fell short of the $0.11 that analysts had predicted. Investors appeared to focus on the company's positive outlook instead. For the full year 2026, Rush Street Interactive guided for revenue of $1.4 billion at the midpoint, which was ahead of consensus estimates. Furthermore, its full-year EBITDA guidance of $220 million also came in above expectations.

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What Is The Market Telling Us

Rush Street Interactive’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 7 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 down 6% since the beginning of the year, and at $18.15 per share, it is trading 19.4% below its 52-week high of $22.53 from September 2025. Investors who bought $1,000 worth of Rush Street Interactive’s shares 5 years ago would now be looking at an investment worth $958.34.

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