Rush Street Interactive, Inc. (NYSE:RSI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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$2.1b market-cap company posted a loss in its most recent financial year of US$18m and a latest trailing-twelve-month loss of US$12m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Rush Street Interactive will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 9 of the American Hospitality analysts is that Rush Street Interactive is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$15m in 2025. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 104% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Rush Street Interactive given that this is a high-level summary, though, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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:

This article is not intended to be a comprehensive analysis on Rush Street Interactive, so if you are interested in understanding the company at a deeper level, 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com