Rush Street Interactive stock took a hit today. The shares closed at US$13.62, down almost 10% on the session, after investors absorbed fresh Q3 2026 earnings. That short term drop sits awkwardly against a report headlined by adjusted EBITDA of US$62.2m and a 16.1% margin in a fiercely competitive online casino and sports betting arena.
For anyone looking beyond today's screen, the focus turns to profitability. The business delivered Q3 net income of US$28.7m on US$385.9m of revenue and runs debt free with a sizeable cash cushion. While the market focused on the quote, the results highlight the company's longer term profile.
Like the profitability profile at Rush Street Interactive but wary of earnings volatility and headline driven swings in the quote? Benchmark it against our list of solid balance sheet and fundamentals stocks (23 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):US$385.9m vs. US$277.9m (up about 39% year on year)
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Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025):US$11.8m vs. US$6.1m (up about 96%)
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Basic EPS (Q3 2026 vs. Q3 2025):US$0.10 vs. US$0.06 (up about 63%)
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Adjusted EBITDA Margin (Q3 2026 vs. Q3 2025):16.1%. The prior period level was not specified, and the result reflects the profitability focus highlighted by Rush Street Interactive management.
Latin America revenue tripled and now powers Rush Street Interactive's growth. Ask Charlie what Rush Street Interactive sees in Latin America next .
Rush Street Interactive Bull Case Meets Key Execution Tests
The bullish story on Rush Street Interactive rests on scaling a casino led model into new regions while turning user metrics into real earnings power.
"The main thing that has to go right is continued execution in Latin American markets and new regulated jurisdictions so that user growth, ARPMAU and marketing spend all convert into durable earnings and cash generation."
Q3 results give that claim concrete checkpoints. Latin America revenue rose more than 200% with MAUs up 46% and ARPMAU at US$58, while Alberta outperformed Ontario on population adjusted user metrics. Gross margin reached 36.4% and adjusted EBITDA margin hit 16.1%, suggesting this regional mix and acquisition playbook are currently translating into profit, not just headline growth.
One Narrative disagrees with today's price. → See where this Narrative says Rush Street Interactive should trade .
Rush Street Interactive: Bear Fears Face Mixed Signals
Bearish investors argue Rush Street Interactive could see rising reinvestment eat into profitability just as growth markets scale.
"While the company's proprietary platform and payment innovations support attractive customer acquisition costs and engagement, ongoing requirements to reinvest in technology, compliance and responsible gaming to keep pace with evolving regulation may absorb a growing share of gross profit."
Q3 shows that concern is not clearly playing out yet. Marketing and operating spend stepped up, yet gross margin reached 36.4% and adjusted EBITDA margin hit 16.1%. The risk has not disappeared. However, the latest quarter shows reinvestment sitting alongside, not overwhelming, earnings progress.
Hunt Quiet Compounders Before They Run
Rush Street Interactive just showed how a profitable quarter and a sharp share-price move can collide in surprising ways. The real opportunity is finding stocks that could be undervalued before the market closes that gap.
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Company 1 - 44% below our estimate - shifts from contract assembly work to co-designing complex hardware that embeds proprietary technology into industrial, automotive and medical programs.
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Company 2 - 26% below our estimate - anchors specialized chips and software at critical data bottlenecks where security, reliability and performance drive large-scale enterprise and hyperscale infrastructure decisions.
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Company 3 - 32% below our estimate - wins sizeable AI infrastructure mandates by renting tailored computing clusters that expand established cloud environments for training demanding generative models.
That is three of the list. See the full list of 30 companies trading below our fair value estimates →
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.
Companies discussed in this article include RSI .
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