## The print wasn’t just “good”—it signaled operating leverage showing through Rush Street Interactive’s Feb. 17, 2026 earnings disclosure (furnished via 8-K) shows a business that is converting growth into profitability more cleanly than the headline “Q4 beat/miss” framing implies. ["issued a press release"](0001793659-26-000003|0) ["FOURTH QUARTER AND FULL YEAR 2025 RESULTS"](0001793659-26-000003|1) ## 1) Growth quality: record revenue with tangible profit conversion (not just volume) RSI posted record Q4 revenue of **$324.9 million (+28% YoY)** and **Adjusted EBITDA of $44.1 million (+44% YoY)**—a spread that matters because EBITDA grew materially faster than revenue, implying incremental margin expansion beneath the surface. ["Record Quarterly Revenue of $324.9 Million, up 28%"](0001793659-26-000003|1) ["Adjusted EBITDA… $44.1 million… increase of 44%"](0001793659-26-000003|1) For full-year 2025, the pattern is even clearer: revenue rose to **$1,134 million (+23% YoY)** while Adjusted EBITDA climbed to **$153.7 million (+66% YoY)**—a classic signature of scale benefits and better unit economics rather than a one-quarter anomaly. ["Revenue for full year 2025 was $1,134 million… up 23%"](0001793659-26-000003|1) ["Adjusted EBITDA… $153.7 million… increase of 66%"](0001793659-26-000003|1) ## 2) “Hidden” efficiency: marketing intensity stayed controlled even as the user base accelerated A key tell in the release is that sales & marketing remained a disciplined share of revenue at the same time the platform scaled users: **Q4 adjusted sales & marketing was 14% of revenue**, and **full-year adjusted sales & marketing was also 14% of revenue (down 290 bps vs. 2024)**. That combination suggests RSI is not “buying” growth at any price—an underappreciated source of alpha in competitive iGaming. ["Adjusted sales and marketing expense… representing 14% of Revenue"](0001793659-26-000003|1) ["representing 14% of Revenue, a decrease of 290 basis points"](0001793659-26-000003|1) Meanwhile, RSI disclosed **U.S./Canada MAUs >278,000 (+37% YoY)** and **Latin America MAUs >493,000 (+47% YoY)**, indicating demand momentum across geographies (and reducing reliance on any single market). ["Total Monthly Active Users… over 278,000, up 37%"](0001793659-26-000003|1) ["MAUs in Latin America… over 493,000, up 47%"](0001793659-26-000003|1) ## 3) The most “alpha” line: guidance implies margin expansion is expected, not hoped for RSI initiated **2026 revenue guidance of $1,375–$1,425 million** and **Adjusted EBITDA guidance of $210–$230 million**. If you take midpoints, that implies an **Adjusted EBITDA margin of ~15.7% in 2026 (computed)** versus **~13.6% in 2025 (computed)**—i.e., management is effectively telling you the model should keep scaling profitably even after a record year. ["Revenue… expected to be in the range of $1,375 and $1,425 million"](0001793659-26-000003|1) ["Adjusted EBITDA… expected to be in the range of $210 and $230 million"](0001793659-26-000003|1) ["Adjusted EBITDA1 for full year 2025 was $153.7 million"](0001793659-26-000003|1) ["Revenue for full year 2025 was $1,134 million"](0001793659-26-000003|1) Notably, the company also framed guidance as reflecting “prudent assumptions” around competition/market maturation and explicitly referenced operating assumptions tied to current live jurisdictions and tax structures (including Colombia’s emergency VAT decree). That reads less like exuberance and more like confidence with guardrails—often where the market under-discounts upside. ["prudent assumptions about market maturation and competitive dynamics"](0001793659-26-000003|1) ["including the emergency VAT tax decree in Colombia"](0001793659-26-000003|1) ## 4) Balance sheet “optionality” quietly improved RSI ended 2025 with **$336 million of unrestricted cash and cash equivalents**, up **$107 million** over the year—providing flexibility to lean into product, geography, or customer economics without forcing near-term tradeoffs. ["unrestricted cash and cash equivalents were $336 million"](0001793659-26-000003|1) ["up $107 million"](0001793659-26-000003|1) ## 5) The EPS nuance: the release points you to the metric RSI wants investors to underwrite The company’s disclosure includes **Adjusted earnings per share of $0.08 for Q4 2025 (vs. $0.07 in Q4 2024)** and provides its definition of Adjusted EPS (Adjusted Net Income / Adjusted shares). That’s important because it signals management’s preferred lens for underlying earnings power (especially given capital structure complexity embedded in the reconciliation). ["Adjusted earnings per share… $ 0.08"](0001793659-26-000003|1) ["RSI defines Adjusted Earnings Per Share"](0001793659-26-000003|1)

## The print wasn’t just “good”—it signaled operating leverage showing through Rush Street Interactive’s Feb. 17, 2026 earnings disclosure (furnished via 8-K) shows a business that is converting growth into profitability more cleanly than the headline “Q4 beat/miss” framing implies. ["issued a press release"](0001793659-26-000003|0) ["FOURTH QUARTER AND FULL YEAR 2025 RESULTS"](0001793659-26-000003|1) ## 1) Growth quality: record revenue with tangible profit conversion (not just volume) RSI posted record Q4 revenue of **$324.9 million (+28% YoY)** and **Adjusted EBITDA of $44.1 million (+44% YoY)**—a spread that matters because EBITDA grew materially faster than revenue, implying incremental margin expansion beneath the surface. ["Record Quarterly Revenue of $324.9 Million, up 28%"](0001793659-26-000003|1) ["Adjusted EBITDA… $44.1 million… increase of 44%"](0001793659-26-000003|1) For full-year 2025, the pattern is even clearer: revenue rose to **$1,134 million (+23% YoY)** while Adjusted EBITDA climbed to **$153.7 million (+66% YoY)**—a classic signature of scale benefits and better unit economics rather than a one-quarter anomaly. ["Revenue for full year 2025 was $1,134 million… up 23%"](0001793659-26-000003|1) ["Adjusted EBITDA… $153.7 million… increase of 66%"](0001793659-26-000003|1) ## 2) “Hidden” efficiency: marketing intensity stayed controlled even as the user base accelerated A key tell in the release is that sales & marketing remained a disciplined share of revenue at the same time the platform scaled users: **Q4 adjusted sales & marketing was 14% of revenue**, and **full-year adjusted sales & marketing was also 14% of revenue (down 290 bps vs. 2024)**. That combination suggests RSI is not “buying” growth at any price—an underappreciated source of alpha in competitive iGaming. ["Adjusted sales and marketing expense… representing 14% of Revenue"](0001793659-26-000003|1) ["representing 14% of Revenue, a decrease of 290 basis points"](0001793659-26-000003|1) Meanwhile, RSI disclosed **U.S./Canada MAUs >278,000 (+37% YoY)** and **Latin America MAUs >493,000 (+47% YoY)**, indicating demand momentum across geographies (and reducing reliance on any single market). ["Total Monthly Active Users… over 278,000, up 37%"](0001793659-26-000003|1) ["MAUs in Latin America… over 493,000, up 47%"](0001793659-26-000003|1) ## 3) The most “alpha” line: guidance implies margin expansion is expected, not hoped for RSI initiated **2026 revenue guidance of $1,375–$1,425 million** and **Adjusted EBITDA guidance of $210–$230 million**. If you take midpoints, that implies an **Adjusted EBITDA margin of ~15.7% in 2026 (computed)** versus **~13.6% in 2025 (computed)**—i.e., management is effectively telling you the model should keep scaling profitably even after a record year. ["Revenue… expected to be in the range of $1,375 and $1,425 million"](0001793659-26-000003|1) ["Adjusted EBITDA… expected to be in the range of $210 and $230 million"](0001793659-26-000003|1) ["Adjusted EBITDA1 for full year 2025 was $153.7 million"](0001793659-26-000003|1) ["Revenue for full year 2025 was $1,134 million"](0001793659-26-000003|1) Notably, the company also framed guidance as reflecting “prudent assumptions” around competition/market maturation and explicitly referenced operating assumptions tied to current live jurisdictions and tax structures (including Colombia’s emergency VAT decree). That reads less like exuberance and more like confidence with guardrails—often where the market under-discounts upside. ["prudent assumptions about market maturation and competitive dynamics"](0001793659-26-000003|1) ["including the emergency VAT tax decree in Colombia"](0001793659-26-000003|1) ## 4) Balance sheet “optionality” quietly improved RSI ended 2025 with **$336 million of unrestricted cash and cash equivalents**, up **$107 million** over the year—providing flexibility to lean into product, geography, or customer economics without forcing near-term tradeoffs. ["unrestricted cash and cash equivalents were $336 million"](0001793659-26-000003|1) ["up $107 million"](0001793659-26-000003|1) ## 5) The EPS nuance: the release points you to the metric RSI wants investors to underwrite The company’s disclosure includes **Adjusted earnings per share of $0.08 for Q4 2025 (vs. $0.07 in Q4 2024)** and provides its definition of Adjusted EPS (Adjusted Net Income / Adjusted shares). That’s important because it signals management’s preferred lens for underlying earnings power (especially given capital structure complexity embedded in the reconciliation). ["Adjusted earnings per share… $ 0.08"](0001793659-26-000003|1) ["RSI defines Adjusted Earnings Per Share"](0001793659-26-000003|1)