RSI

MGM Resorts International MGM is scheduled to report third-quarter 2026 results on Oct. 28, after the closing bell. MGM's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 24%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 13 cents, indicating a deterioration of 45.8% from 24 cents reported in the year-ago quarter. MGM Resorts International price-consensus-eps-surprise-chart | MGM Resorts International Quote For revenues, the consensus mark is pegged at nearly $4.25 billion, suggesting growth of 0.1% from the prior-year quarter's figure. Let's look at how things have shaped up in the quarter. MGM Resorts' third-quarter performance is likely to have benefited from continued momentum across its Las Vegas Strip Resorts, supported by group and convention bookings, premium gaming demand and an expanded entertainment calendar. Management highlighted a favorable group booking environment entering the quarter, alongside a larger calendar of sports and entertainment events compared with the year-ago period. These factors are expected to have supported casino activity, hotel demand and non-gaming spending. The company's Las Vegas Strip Resorts are likely to have benefited from the recovery at MGM Grand, supported by renovated room inventory and favorable gaming trends. Continued demand for premium gaming experiences and investments in luxury offerings are expected to have aided performance. Management also highlighted encouraging trends in high-end customer spending, which may have supported gaming revenues and overall profitability in the quarter under review. The Zacks Consensus Estimate for third-quarter Las Vegas Strip revenues is pegged at $1.99 billion, compared with $1.98 billion reported in the prior-year quarter. Segment-adjusted property EBITDA is projected at $582 million, down from $601 million reported in the year-ago quarter. MGM China's third-quarter performance is likely to have benefited from a recovery in gaming volumes following the temporary disruption caused by the World Cup in June. Continued investments in premium gaming facilities, renovated suites and luxury hospitality offerings are expected to have supported customer engagement and gaming activity. The recently upgraded suites at MGM Cotai and expanded premium gaming areas may also have strengthened the company's competitive position in Macao. However, higher intercompany branding fees may have weighed on segment profitability. MGM China's adjusted property EBITDA is projected at $254 million, down from $284 million in the prior-year quarter. Digital operations are likely to have supported revenue growth, driven by the launch of MGM Digital's proprietary sportsbook in Sweden and growing traction for BetMGM-branded offerings internationally. Encouraging trends in first-time deposits, active players and net gaming revenues in Brazil may also have aided performance. The consensus estimate for digital revenues is pegged at $207 million, up from $174 million a year ago. However, softness in lower-end leisure demand may have weighed on Las Vegas hotel performance. Management acknowledged continued demand challenges at Luxor and Excalibur, despite some stabilization from value-oriented packages. Subdued international visitation, cautious spending among value-conscious consumers and seasonal fluctuations in leisure demand may also have constrained hotel revenues and gaming activity. Regional Operations' performance is likely to have reflected continued benefits from targeted capital investments and premium gaming upgrades. However, the absence of contributions from Northfield Park following its divestiture may have weighed on reported revenues and profitability. The consensus estimate for regional revenues is pegged at $870 million, down from $957 million reported in the prior-year quarter, while adjusted property EBITDA is expected to decline to $253 million from $296 million. Our proven model does not conclusively predict an earnings beat for MGM Resorts this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat. MGM's Earnings ESP: MGM Resorts has an Earnings ESP of -22.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. MGM's Zacks Rank: The company currently has a Zacks Rank #5 (Strong Sell). Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat. Cinemark Holdings, Inc. CNK currently has an Earnings ESP of +4.49% and a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here. Cinemark's earnings for the to-be-reported quarter are expected to increase 127.5%. CNK reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average miss being negative 11.4%. Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 2. RSI's earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%. Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 3 at present. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, with the average surprise being 1.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGM Resorts International (MGM) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Cinemark Holdings Inc (CNK) : Free Stock Analysis Report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hilton Worldwide Holdings Inc. HLT is scheduled to report third-quarter 2026 results on Oct. 27, before the opening bell. HLT's earnings surpassed estimates in three of the trailing four quarters and met estimates in one, with the average surprise being 4.6%. The Zacks Consensus Estimate for the third quarter's adjusted EPS has declined slightly in the past 30 days to $2.34 from $2.35. The revised estimated figure indicates 10.9% growth from the year-ago reported figure of $2.11 per share. Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote For revenues, the consensus mark is pegged at nearly $3.39 billion. The metric implies an 8.5% rise from the year-ago quarter's figure. Hilton's third-quarter 2026 performance is likely to have reflected improving travel demand across key segments, supported by strength in business-transient and group travel. The company expects system-wide comparable RevPAR to increase approximately 4% year over year on a currency-neutral basis. Business-transient demand, particularly from small and medium-sized businesses, is likely to have supported performance, while leisure demand is expected to have remained steady. Favorable calendar effects and World Cup-related demand are also expected to have contributed to RevPAR growth. Group and business travel are expected to have been key drivers of hotel performance during the quarter. Hilton reported strengthening midweek business-transient demand and solid growth from small and medium-sized businesses entering the third quarter. These trends, alongside continued demand across leisure travel, are likely to have supported occupancy and pricing. Hilton's fee-based, capital-light model is expected to have supported revenue growth. Continued hotel openings, conversions and a record development pipeline are likely to have contributed to management and franchise fees. Our model predicts third-quarter revenues from Franchise and Licensing Fees to rise 12.1% year over year to $828.6 million. We expect revenues from Base and Other Management Fees to rise 8% year over year to $100.5 million. In addition, Hilton's focus on owner profitability and operating efficiency is likely to have supported its asset-light business model. Initiatives to reduce loyalty and program fees, along with efforts to use technology and AI to improve hotel-level operations, are intended to help owners manage costs and strengthen hotel profitability. However, third-quarter performance is likely to have faced some headwinds. The ongoing conflict in the Middle East is expected to have weighed on performance, while significant renovations at hotels in Hilton's ownership portfolio and timing-related items are also expected to have affected earnings. China's demand environment remains challenging, with weaker group travel contributing to lower RevPAR. These factors are likely to have partly offset strength in other regions and travel segments. From an earnings perspective, Hilton expects third-quarter 2026 net income between $502 million and $516 million. Adjusted EBITDA is expected to range from $1.035 billion to $1.055 billion, while adjusted earnings per share are projected between $2.28 and $2.34. The company's guidance also reflects the expected impact of the Middle East conflict and significant renovations in its ownership portfolio. Overall, Hilton's third-quarter 2026 results are expected to reflect improving business-transient and group demand, continued growth from its fee-based model and a strong development pipeline. However, geopolitical uncertainty, hotel renovations and uneven demand across regions are likely to have moderated the quarterly performance. Our proven model predicts an earnings beat for Hilton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. Earnings ESP for HLT: Hilton currently has an Earnings ESP of +0.58%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Hilton's Zacks Rank: The company has a Zacks Rank #3 at present. Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat. Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%. Marriott International, Inc. MAR currently has an Earnings ESP of +3.43% and a Zacks Rank of 3. MAR's earnings for the to-be-reported quarter are expected to increase 15.4%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 2.5%. Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 3. RSI's earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report Marriott International, Inc. (MAR) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Royal Caribbean Cruises Ltd. RCL is scheduled to report third-quarter 2026 results on Oct. 27, before the opening bell. RCL's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, and missed on one occasion with an average surprise of 4.9%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $6.38, indicating a rise of 11% from $5.75 reported in the year-ago quarter. Royal Caribbean Cruises Ltd. price-eps-surprise | Royal Caribbean Cruises Ltd. Quote For revenues, the consensus mark is pegged at nearly $5.59 billion. The metric suggests a rise of 8.7% from the year-ago quarter's figure. Let's take a look at how things have shaped up in the quarter. Top Line: Royal Caribbean's third-quarter revenues are likely to have benefited from robust demand for cruise vacations, increased capacity and sustained consumer spending on premium travel experiences. Strong booking volumes, record pricing and continued momentum in onboard spending and pre-cruise purchases are expected to have supported revenues. The company's differentiated fleet, private destinations and expanding loyalty programs likely contributed to guest engagement and spending. Our model estimates third-quarter passenger ticket revenues to rise 5.8% year over year to $3.8 billion. We expect onboard and other revenues to rise 14.9% year over year to $1.7 billion. However, prolonged geopolitical tensions in the Middle East are likely to have weighed on booking momentum and yield growth for select European itineraries, particularly Mediterranean sailings. Higher international air travel costs and consumers' preference for closer-to-home destinations may have further influenced booking patterns. Deployment mix, new-ship timing and dry-dock comparisons are expected to have created an approximately 200-basis-point headwind to third-quarter yields. Our model predicts third-quarter net yields at $301.7 (on a reported basis) and $300.5 (constant-currency basis). Margins: Royal Caribbean's third-quarter profitability is likely to have benefited from disciplined cost management, operational efficiencies and continued efforts to optimize spending. The company's focus on leveraging technology and artificial intelligence to improve productivity, alongside its expanding scale, is expected to have supported earnings growth. However, elevated fuel prices and the timing of operating expenses may have posed challenges. Certain costs that shifted from the first half into the second half of 2026 could have affected quarterly expenses. Our model projects third-quarter 2026 total cruise operating expenses to rise 10.4% year over year to $2.7 billion. Nonetheless, fuel hedging arrangements likely provided some protection against market volatility. Royal Caribbean expects third-quarter net cruise costs per available passenger cruise day, excluding fuel, to decline 1.1%-1.6% in constant currency. The company expects third-quarter adjusted EPS to be between $6.26 and $6.36. Our proven model predicts an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Royal Caribbean's Earnings ESP: Royal Caribbean has an Earnings ESP of +0.13%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. RCL's Zacks Rank: The company currently has a Zacks Rank #3. Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat. Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%. Marriott International, Inc. MAR currently has an Earnings ESP of +3.43% and a Zacks Rank of 3. MAR's earnings for the to-be-reported quarter are expected to increase 15.4%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 2.5%. Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 3. RSI's earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Marriott International, Inc. (MAR) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Rush Street Interactive, Inc. (RSI) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +55.6%. Revenues are expected to be $394.72 million, up 42% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.08% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Rush Street Interactive, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.44%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Rush Street Interactive will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Rush Street Interactive would post earnings of $0.15 per share when it actually produced earnings of $0.15, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Rush Street Interactive appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Las Vegas Sands Corp. LVS is scheduled to report third-quarter 2026 results on Oct. 21, after the closing bell. LVS' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average earnings surprise of 8.5%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at 77 cents, indicating a decline of 1.3% from 78 cents reported in the year-ago quarter. Las Vegas Sands Corp. price-eps-surprise | Las Vegas Sands Corp. Quote For revenues, the consensus mark is pegged at nearly $3.4 billion. The figure indicates an increase of 2.2% from the year-ago quarter. Let's take a look at how things might have shaped up in the quarter. Las Vegas Sands' third-quarter performance is likely to have benefited from strong premium gaming demand, enhanced hospitality offerings and improving customer engagement across its Singapore and Macao operations. The company's focus on attracting high-value patrons through upgraded accommodations, improved service levels and targeted marketing initiatives is expected to have supported gaming volumes and revenues in the to-be-reported quarter. In Singapore, Marina Bay Sands is likely to have remained a key growth driver, supported by sustained demand from affluent travelers and its expanded premium suite offerings. Management highlighted that suite renovations, enhanced customer service and improved gaming experiences have strengthened the property's earnings potential. Continued momentum in mass gaming, alongside efforts to attract high-value customers and optimize suite yields, is expected to have supported third-quarter performance. Macao operations are also likely to have benefited from improving gaming volumes and market-share gains, particularly in the premium mass and VIP segments. Sands China's investments in customer service, expanded gaming table operating hours and upgraded hospitality offerings are expected to have supported visitation and gaming activity. Strong customer response to enhancements at The Londoner Macao and Four Seasons, along with a favorable entertainment calendar, is likely to have aided gaming and non-gaming revenues. Our model projects Macao revenues to increase 5% year over year to $2 billion, while revenues from Plaza Macao and Four Seasons Macao are expected to fall 20.4% to $163.9 million in the third quarter. On the profitability front, intense competition in Macao's premium gaming market and elevated customer reinvestment requirements are likely to have pressured margins. Ongoing renovations at The Venetian Macao may also have constrained room availability. Additionally, fluctuations in gaming hold rates and high-value patron visitation could have created volatility in revenues and earnings. Continued spending on service enhancements may have further weighed on profitability, although management expects operating expense growth to moderate in the second half of 2026. However, efforts to optimize customer reinvestment and moderate operating expense growth are expected to have aided margins. Management indicated that the pace of operating expense increases in Macao should slow during the second half of 2026 following significant investments in staffing, gaming table operating hours and service enhancements. Reflecting these investments, our model projects total operating expenses to increase 1.2% year over year to $2.64 billion in the third quarter. Our proven model does not conclusively predict an earnings beat for Las Vegas Sands this time around. The company does not have the right combination of the two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat. LVS' Earnings ESP: Las Vegas Sands has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. LVS' Zacks Rank: The company carries a Zacks Rank #3 at present. Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat. Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%. Lindblad Expeditions Holdings, Inc. LIND currently has an Earnings ESP of +11.08% and a Zacks Rank of 1. LIND's earnings for the to-be-reported quarter are expected to increase 24.2%. Lindblad Expeditions reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 222.3%. Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 3. RSI's earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Lindblad Expeditions (LIND) : Free Stock Analysis Report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hasbro, Inc. HAS is scheduled to report third-quarter 2026 results on Oct. 20, before the opening bell. In the last reported quarter, the company's earnings surpassed the Zacks Consensus Estimate by 9.4%. HAS' earnings have topped the consensus mark in each of the trailing four quarters, the average surprise being 23.6%. The Zacks Consensus Estimate for earnings is pegged at $1.88 per share, indicating an 11.9% increase from $1.68 reported a year ago. For revenues, the consensus estimate is pegged at $1.47 billion, implying a 6.2% increase from the prior-year quarter's reported figure. Hasbro's top line in the third quarter of 2026 is likely to have benefited from continued strength in its Wizards of the Coast and Digital Gaming segment, driven by demand for Magic: The Gathering. The franchise's expanding player base, reengagement of lapsed players and wider distribution might have supported sales. Strong demand for new releases, including Marvel Super Heroes, along with continued interest in the Final Fantasy franchise, might have contributed to consumer spending on cards and collectibles. The upcoming The Hobbit release could also have supported revenues, although its sales potential is expected to have been lower than that of some larger sets. Hasbro's Consumer Products business is likely to have supported revenue growth through product innovation, brand strength and improved retail execution. Management expected low-single-digit growth in this segment during the second half of 2026, supported by holiday-related product launches and normal retail shelf-reset patterns. The company's focus on gamified, entertainment-driven, multi-purchase and multigenerational products might have helped attract collectors and other consumers beyond traditional toy buyers. New offerings such as Blooms by Play-Doh, along with products tied to popular franchises like Marvel and Star Wars, might have strengthened consumer interest and retailer demand. Hasbro's top line is also likely to have benefited from licensing partnerships, broader distribution and continued growth in its digital platforms. The company has been expanding its brands into new categories and channels through collaborations with external partners. Its MAGIC franchise might have gained from growing availability across hobby stores, mass-market retailers and international markets. Meanwhile, Dungeons & Dragons and its D&D Beyond platform offered additional growth opportunities. Demand for entertainment-related merchandise and the company's strategy of extending established intellectual property into new product categories might also have supported sales. Management's full-year 2026 revenue growth outlook of 5-7% on a constant-currency basis reflects expectations of growth across all segments. Our model predicts total Wizards of the Coast & Digital Gaming revenues are likely to increase 2.5% year over year to $586.4 million. Our model predicts total Consumer Products revenues are likely to increase 6.3% year over year to $847.3 million. Hasbro's bottom line is likely to have benefited from higher sales volumes, a favorable product mix and continued cost-control measures. Strong MAGIC sales might have supported profitability, while savings in supply-chain operations, product development and operating expenses might have helped offset inflation and higher royalty costs. Management also expected cost productivity across distribution, advertising, promotions and operating expenses to support Consumer Products margins. However, increased royalties, input costs and marketing expenses associated with upcoming video game releases are expected to have limited profit growth. Hasbro's efforts to prioritize promising digital projects, collaborate with external development partners and improve operating efficiency might have helped contain expenses and support margins. Our proven model doesn't predict an earnings beat for Hasbro this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. HAS' Earnings ESP: Hasbro has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. HAS' Zacks Rank: The company has a Zacks Rank #4 (Sell) at present. Hasbro, Inc. price-eps-surprise | Hasbro, Inc. Quote Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat. Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%. Lindblad Expeditions Holdings, Inc. LIND currently has an Earnings ESP of +11.08% and a Zacks Rank of 1. LIND's earnings for the to-be-reported quarter are expected to increase 24.2%. Lindblad Expeditions reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 222.34%. Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 3. RSI's earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed once and reported in line once, with the average surprise being 6.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hasbro, Inc. (HAS) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Lindblad Expeditions (LIND) : Free Stock Analysis Report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer discretionary - gaming solutions industry, including Rush Street Interactive (NYSE:RSI) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Gaming solutions companies provide the technology infrastructure behind gambling—slot machines, table game systems, lottery terminals, sports-betting platforms, and back-end software for casinos and online operators. Tailwinds include the ongoing legalization of sports betting across U.S. states and international markets, growing adoption of digital and mobile wagering, and casino operators' demand for data-driven player engagement tools. However, headwinds include stringent and evolving regulatory requirements across jurisdictions, high upfront R&D costs to develop next-generation platforms, and customer concentration risk given the limited number of large casino operators. Increasing competition from in-house technology development by major operators also pressures demand. The 6 consumer discretionary - gaming solutions stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.7% since the latest earnings results. Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms. Rush Street Interactive reported revenues of $393.8 million, up 46.3% year on year. This print exceeded analysts’ expectations by 7.1%. Overall, it was a very strong quarter for the company with full-year revenue and EBITDA guidance topping analysts’ expectations. Richard Schwartz, Chief Executive Officer of RSI, said, "We delivered another record quarter, setting all-time highs once again for revenue and Adjusted EBITDA, driven by continued share gains in online casino and our sports betting markets benefiting from the World Cup.” Rush Street Interactive scored the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.3% since reporting and currently trades at $25.76. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free. Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues. Accel Entertainment reported revenues of $368.1 million, up 9.6% year on year, outperforming analysts’ expectations by 3.3%. The business had a strong quarter with a beat of analysts’ EPS and EBITDA estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.3% since reporting. It currently trades at $11.64. Is now the time to buy Accel Entertainment? Access our full analysis of the earnings results here, it’s free. Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games. PlayStudios reported revenues of $54.99 million, down 7.3% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates. As expected, the stock is down 23.2% since the results and currently trades at $0.52. Read our full analysis of PlayStudios’s results here. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. DraftKings reported revenues of $1.44 billion, down 4.6% year on year. This print lagged analysts’ expectations by 4.5%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates. DraftKings had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 3.6 million users, up 9.1% year on year. The stock is up 9.6% since reporting and currently trades at $24.31. Read our full, actionable report on DraftKings here, it’s free. Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States. Churchill Downs reported revenues of $980 million, up 4.9% year on year. This number was in line with analysts’ expectations. More broadly, it was a mixed quarter as it failed to impress in some other areas of the business. The stock is down 1.1% since reporting and currently trades at $87.52. Read our full, actionable report on Churchill Downs here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 6 p.m. ET Chief Executive Officer - Richard Todd Schwartz President and Chief Financial Officer - Kyle L. Sauers Operator: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rush Street Interactive second quarter 26 earnings conference call. All participants are in listen only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, July 29, 2026. I will now turn the call over to Kyle L. Sauers, President and Chief Financial Officer. Please go ahead. Kyle L. Sauers: Thank you, operator, and good afternoon. By now, everyone should have access to our second quarter 26 earnings release. It can be found under the heading Financials Quarterly Results in the Investors section of the RSI website at rushstreetinteractive.com. Some of our comments will be forward looking statements within the meaning of the federal securities laws. Forward looking statements are not statements of historical fact, are usually identified by the use of words such as will, expect, should, or other similar phrases and are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We assume no responsibility for updating any forward looking statements. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. During the call, we will discuss our non GAAP measures, which we believe can be in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. We will be discussing adjusted EBITDA, we define as net income or loss before interest, income taxes, depreciation and amortization, share based compensation, adjustments for certain onetime or nonrecurring items, and other adjustments that are either noncash or not related to our underlying business performance. A reconciliation of these non GAAP measures to the most directly comparable GAAP measure is available in our second quarter 26 earnings release and our investor deck, which is available in the Investors section of the RSI website at rushstreetinteractive.com. For purposes of today's call, unless noted when discussing profitability, EBITDA or other income statement measures other than revenue, we are referring to those items on a non GAAP adjusted EBITDA basis. With me on the call today, we have Richard Todd Schwartz, Chief Executive Officer who will first provide some opening remarks and then open the call to questions. And with that, I will turn the call over to Richard. Richard Todd Schwartz: Thanks, Kyle and good afternoon, everyone. Before I dive into our second quarter results, I want to take a moment to acknowledge that while Kyle and I have the opportunity to present these results each quarter, our continued success is driven by the exceptionally smart dedicated, and experienced management team we work with every day. As well as our talented employees across the organization. I want to thank the entire team for all their hard work and dedication and for once again delivering record revenue and adjusted EBITDA which continues our consistent track record of strong performance. I am particularly proud that we deliver our fast quarterly revenue growth in over 4 years. Even while operating from a significantly larger revenue base. We generated revenue of $394 million up 46% year over year. And adjusted EBITDA of $64.6 million up 61% year over year. Our results this quarter reflect the continued strength of our casino first strategy, disciplined execution across operating regions, alongside a well planned and strongly executed World Cup period. Our casino first approach remains the foundation of our business model. Online casino continues to be our primary value driver. With sports betting and poker serving as important complementary products to drive incremental profitability brand awareness, and bring new players into our ecosystem. Online casino continues to be our fastest growing products segment in both North America and Latin America. This quarter, online casino represented 72% of our revenue, with online sports betting contributing most of the remaining 28%. A mix that continues to support the consistent engagement higher lifetime values, stronger retention that come with our casino players. Player growth remained strong across both regions. Monthly active users in North America grew 51% year over year. To over 296 thousand with growth in our North American online casino market reaching 64% year over year. In Latin America, which includes Mexico, miles grew 62% year over year, to over 652 thousand. Across the company, we again delivered record first time depositors and continue to deliver attractive player acquisition costs. Reflecting the ongoing advancements in our brand awareness, and marketing efficiency. We just finished a month of exciting World Cup soccer. And I am incredibly proud of our teams and the results we produced. There was incredible effort and execution that went into our marketing programs, player engagement and operations, merchandising our offerings in a compelling way to our players and, of course, ensuring our technology performed fast and reliably at record volumes. The end result was very successful outcomes. Both in terms of near term financial impact and more importantly, impressive acquisition and reactivation efforts. Especially in Latin America. In June and so far in July, our monthly active users in Latin America are up over 80%. Another good sign is that >25% of our new first time depositors that joined us during the World Cup have engaged with our casino product as well. This is about 50% higher than what we saw during the Copa America 2 years ago. So this is an encouraging sign and validating that the work we have put into improving the cross sell flows have delivered positive results. When it comes to the specific results, both handle and hold came in very nicely for the World Cup in June. In fact, Q2 was our highest sports hold in Colombia since inception. Driven by solid World Cup results. In North America, we also again, had our highest sports holds since inception, driven by both NBA playoffs and positive World Cup results. This was not just good outcomes. it is a reflection of an improving product and improving mix of parlays and prop bets. That drive higher hold. Turning to the political situation in Colombia specifically, In June, Colombia held its widely anticipated presidential election. With the winning candidate scheduled to take office, at the end of next week, We believe that his pro business agenda will provide a constructive backdrop for our industry and for the broader operating environment in the country. These policies appear to be in stark contrast to the existing and opposing party. To be clear, the results of this election have no impact on our reported numbers or guidance today. The new government's broader review of prior tax decrees and future budgeting decisions remain outstanding. Therefore, consistent with our prior earnings call, our full year guidance continues to assume that the 16% GGR tax remains in effect through year end. We will keep you updated if there are changes on the regulatory front within Columbia. We are also excited to announce that we successfully launched online and sports in Alberta on July 13th. And while it is still very early days, we are encouraged by what we have seen so far. As a reminder, Alberta is transitioning out of an unlicensed market So consistent with our experience in Ontario, expect this to be a gradual build. On a population adjusted basis, first time depositors and daily active users are currently tracking at approximately 2x the levels we saw in Ontario, at the same point following launch. it is, of course, very early, but we are excited to watch the Alberta market build over the coming quarters. Moving on to the topic of prediction markets. This past quarter, we filed an application for a CFTC designated contract market license. As we have stated previously, we continue to operate with a casino first focus and do not intend to lean into the crowded sports focused prediction market space. However, prediction markets landscape is highly dynamic we will continue to monitor developments in the space. And this filing ensures we have the flexibility to navigate all possible outcomes. As we look to the second half of 2026, we remain confident in the strength and continued durability of our business. We are executing well and taking market share across our core markets. We are off to a strong start in Alberta, a market with meaningful long term opportunity. And we see continued significant growth ahead in the other markets where we operate. With that, I will turn it back to Kyle to discuss the financial details. Kyle L. Sauers: Thanks, Richard. Let me walk you through the details of our second quarter performance. Record second quarter revenues of $394 million represents 46% year over year growth. A continuation of our accelerating growth and a new watermark for our fastest growth rate in over 4 years. This performance was driven by strong execution across all of our business, particularly in our 2 areas of primary focus, online casino, and Latin America. Gross margins for the quarter came in at 35.5%, a continuing improvement reflecting our faster growth in higher margin markets. But still negatively impacted by the temporary tax in place in Colombia. Marketing efficiency continues to be a key component of our success, with marketing expenses of $48.6 million in the quarter, an increase of 34% year over year and representing 12.3% of total revenue compared to 13.4% in the prior year period. As Richard mentioned, we continue to see attractive player acquisition costs alongside strong player growth. Therefore, we expect to continue investing marketing dollars throughout the second half of the year particularly as we ramp in Alberta. In fact, because our efficiency continues to improve, even as we have been scaling up, we now expect to spend more on marketing than previously planned in the second half. So we have always said when we find strong ROI opportunities, we will increase our marketing spend. G&A for the second quarter was $26.5 million or 6.7% of revenue compared to 7% in the prior year period. As previously discussed, while we are achieving leverage over this line item, have been increasing our investments in people and technology in 2026 to support our growth. Turning to profitability. Adjusted EBITDA reached a record $64.6 million representing 61% year over year growth and 16.4% margins. We continue to demonstrate scalable profitability expansion through the operating leverage built into our business model. Additionally, while our year over year adjusted EBITDA growth remains strong, it is worth noting that on a sequential basis, Q1 had the benefit of no extra tax in Colombia for about 2.5 months during the constitutional court's reversal of the prior emergency decree whereas Q2 and the remainder of 2026 assumes a 16% VAT in Colombia. And for context, that benefit in the first quarter was around $7 million. Net income for the period was $29.3 million compared to $28.8 million in the prior year period. Representing a 2% year-over-year increase. User acquisition and retention continue to be key pillars of our success. As Richard mentioned, our user growth this quarter hit record levels once again, while also setting another record for first time depositors. In North America, monthly active users grew 51% year over year to over 296 thousand with miles in online casino markets growing 64% year over year. In Latin America, MAUs grew 62% year over year to over 652 thousand North American ARTMO was $320 in the second quarter, down 18% year-over-year over year, but up modestly from the first quarter. As we discussed last quarter, this reflects the impact of our player acquisition levels, Newer player cohorts start at lower value than our established base, but we continue to see this as both healthy and consistent with our historical experience as these cohorts mature over time. In Latin America, ARTMAU was $55, up 82% year over year. Reflecting continued strength across the region, the elimination of bonusing in Columbia to offset last year's VAT on deposits, and favorable movements in the Colombian currency. Breaking down our performance by geography and product, we saw continued strength across all areas. In the second quarter, online casino revenues grew 40% and sports betting revenue grew 64%. Regionally, revenue in North America grew 23% in the second quarter, and revenue in Latin America grew 195%. Growth remained broad based across regions and products, and we continue to see the benefits of the brand awareness and player loyalty that we continue to build Our balance sheet remains strong with $340 million in cash on hand as of June 30th, and we still have 0 debt on our books. In May, we completed a secondary offering of which we repurchased approximately $29 million worth of shares under our $50 million share repurchase program And then in addition, our board authorized a new $100 million share repurchase program, which allows us to continue to be opportunistic with share repurchases. Now turning to guidance. We now expect revenue in the range of $1.56 billion to $1.6 billion representing year over year growth of 38-41%. At the midpoint of $1.58 billion, this represents a $65 million increase from our previous guidance and 39% year-over-year growth. This increase reflects continued share gains in North American iCasino, sustained outperformance across Latin America, and a well managed World Cup period. For adjusted EBITDA guidance, we now expect it to be in the range $245 million to $265 million representing year over year growth of 59-72% At the midpoint of $255 million, this represents a $15 million increase from our previous guidance, and 66% year-over-year growth. This is inclusive of our plans to further lean in that efficiency by increasing our marketing investments in the second half of the year. We are pleased by the continued strength of our business, We are growing both rapidly and profitably, and we remain confident in our ability to deliver on our full year guidance. And with that, operator, we are ready to take questions. Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimal sound quality If you are muted locally, remember to unmute your device. Please stand by while we compile the Q&A roster. Your first call is from Bernard McTernan from Needham. Your line is open. Please go ahead. Bernard McTernan: Great. Thanks for taking the questions. Just had a question on the World Cup customers that you were acquiring. Any thought I know it is early days, but any thoughts on the LTV of those customers maybe versus, you know, customers you are acquiring previously? And then I have a follow-up. Kyle L. Sauers: Yeah. it is a good question, Bernie. I think I think you are right. It is to probably too early to tell for sure. You know, it certainly, you are going to have some players who are joining just for the, you know, the cultural moment and the excitement around their country and their team. But I think we have proven in the past that in events like this, we can bring people in get them excited about the platform, and keep them around. We mentioned on the on the prepared remarks that we had really good success early on with cross sell in Latin America over to the casino side. Quite a bit, more so than we did Copa America a couple of years ago. So we are we are really excited about that. But, you are right. it is it is it is pretty early on that. Bernard McTernan: Okay. Understood. And then wanted to double click on the marketing commentary in the second half of the year. Now investing more than previously planned. Can you just dive into that a little bit more? Is that all Alberta or anywhere else, that you are spending? Thank you. Kyle L. Sauers: Yeah. No. Good question. I think as you already know, we have we have increased marketing pretty significantly. This year. I think we are up for the whole first half. Maybe it is around 25-26% so far. But I think as the data we have continued to share, the results are really, really strong out of our marketing teams and the strategies they are using. So we just feel like it makes sense to push harder. The player values are still really good. We have continued to push our cost to acquire players lower. So the, certainly, there is more spend because of Alberta and because of that launch a couple of weeks ago. But really what we were referencing in the call is that we are going to push harder on spend in other markets where we see opportunities. We are gonna like we always have, we are gonna move quickly and be dynamic. So if thing something is not working, we will probably pull back. And at the same time, if other things are working really well, we are gonna lean in further. So maybe just to put a number around it, which I will I will go back to the fact that we are going to remain flexible. But maybe sequentially from Q2 to Q3, we might spend something like $7 million to $10 million more On marketing in Q3 compared to Q2. And that is that is inclusive of the Alberta launch. Bernard McTernan: Understood. Thanks, Kyle. Operator: Your next question is from the line of David Katz at Jefferies. Your line is open. Please go ahead. Richard Todd Schwartz: As a reminder, please remember to unmute your handset. And if we go to the next person operator, and we will can circle back to David. Operator: Your next call is from Zachary Silverberg at Wells Fargo. Your line is now open. Please go ahead. Zachary Silverberg: Hey. Good afternoon, and thank you for taking my In the press release and some of the management commentary, you mentioned that you continue to see meaningful long term opportunities ahead of you guys. To drive shareholder value. Can you maybe quantify or qualify some of that, and, provide some color on what those opportunities might be. Richard Todd Schwartz: Yeah. Hey, Zach. it is Richard. I think the 2 areas that I would just focus on clearly is that we have a large percentage of the population in America, North America, are not yet legal for online casino and it is Alberta just launching on July 13th and represents a really meaningful new opportunity for us. What I would also indicate is that within existing markets where we are operating, today, I think because historically our brand does not have the same high awareness as some the other brands we compete with, there is a large percentage of the population in these jurisdictions that have not really had their first experience with us And when they do have it, it is a it is a positive experience for the most part which is why we have been able to deliver the type of results where we are growing share and getting exposure from new players to our platform the first time in many cases. So I think we are really excited for the ability for us to continue to grow share in our existing markets And also, naturally, we have these other 88% of The US population, which today is not yet able to play online casinos. So I think between those things and then you bring it to Latin America, all the jurisdictions down there that are legal and regulated that we have not entered yet. Certainly are really excited by all the opportunities ahead of us. Kyle L. Sauers: Yeah. And the only thing I would add to that is that is going to drive that the top line, which is obviously key to the success. But as we have been doing, for several years now, pretty consistently, we would expect to be able to get leverage over all of our different P and L line items, as we continue to grow. Zachary Silverberg: Got you. Appreciate that. And just for my follow-up, maybe if you guys have any updated view or outlook on the potential legalization landscape. You know, we have heard from 1 of your peers that they are kind of expecting Virginia, DC, Obviously, we know about Maine's, Maryland, maybe just any commentary on that would be great. Thank you. Richard Todd Schwartz: Sure. Yeah. I mean, for us, each new online casino market is meaningful to us. So we are working hard as you we have said in the past to try to educate legislators to try to improve the pace of legalization. We remain optimistic with a long term outlook for iGaming and believe that jurisdictions will legalize over time. I think 1 of the key drivers is going to certainly be that reduction in federal support and some increased fiscal responsibilities for states over the next 2 fiscal years. it is going to create even more pressure on funding gaps that we think the reductions in major social programs in many states including some of the very large population states like Illinois and New York, are going to create opportunities for a greater emphasis on new and sustainable sources of recurring revenue. So we believe that is going to drive the discussion around proven revenue generating policy proposals like online casino legalization. I think between that protecting consumers and for the first time, starting in October of this year, you are going to start to see some impacts from of these major social programs reductions. And so I think that is going to become real and that is going to be a in terms of deficits and gaps that the states are gonna have. And so we feel like it is a good time to kind of have a momentum being built. So we feel in terms of specific states, I know that MGM referenced a couple of states yesterday. I think Virginia clearly is 1 that progressed furthest during the 2026 legislative sessions and each chamber passed its own authorization bill before they failed to reconcile it before they adjourned but there is certainly going to be another effort this next year. You know DC you referenced certainly that is an active opportunity. Indiana, Ohio, our other markets that we have an eye on and we are monitoring and being active when possible to try to accelerate some adoption opportunities there. Zachary Silverberg: Thanks for all the call. Operator: Your next question is from the line of Jed Kelly at Oppenheimer. Your line is now open. Please go ahead. Jed Kelly: Hey, great. Thanks for taking my questions. Just circling back on MAUs. Are you seeing any change in the CAC or what is going on with the spending? And can you just talk about more where you are north American MAUs is coming from? Is it more slots first, or are or are you adding more success with some of your sports first customers that might be a little more table game centric? Thanks. Kyle L. Sauers: No, good question, Jed. I think the reality is that the our cost to acquire players has continued to go down. Most of our spend in North America has been in the markets that include iCasino. And a lot of that is, you know, slots first type creative. Obviously, we welcome all kinds of players and we are catering to table players as well. And we clearly, we are still doing quite well in sports. But most of it is casino first and the cost to acquire players has continued to go down. it is it is the and the player values continue to hold up. As well. So it is it is the primary reason that we are going to be spending more in the in the back half because it is there is a there is a lot of opportunity there. Jed Kelly: Got it. And then just as a follow-up, you kind of look at the sports that are getting most of the prediction market share, You know, tennis, I think, is doing about 2x the amount of baseball Do you have any insight on what is going on there, and are you seeing certain pockets of your sports handle maybe you know, I mean, down sort of because it is going more to a sharper player or anything you are seeing in some of kind of tennis in particular, if there is anything to call out. Thanks. Richard Todd Schwartz: Yeah. I do not think we have anything to call out there. That we have seen as a big a big change. But it is an interesting an interesting call out. Jed Kelly: Thank you, and good job. Thanks, Jed. Operator: Your next call is from the line of David Katz from Jefferies. Your line is now open. Please go ahead. David Katz: Hi. Thanks. Hi. Good evening. Appreciate coming back around. It was a misunderstanding with the mute button. I wanted to just go back good evening. I just wanted to go back to the retention of you know, these high volumes of players that you are capturing, you know, during the World Cup I think, Richard, in your prepared remarks, you talked about the ability to cross-sell them over to casino, being 50% higher than from Copa. But if we look out into the future, your ability to retain those people in your system over time, is there any perspective or any data you can give us to that end? Kyle L. Sauers: Yeah. So I think it is challenging to have a great comparable to this event. You know, the World Cup, as we all know, was in the right time zone this time around for people in The Americas to watch it and engage a lot more meaningful way. Our business has changed dramatically. Since the last World Cups, even since the COPA, which was more of a LATAM event for us. In the North in North America, we had really, really good engagement It was more about a reactivation and using the World Cup as a, you know, a pop culture event to engage people across the platform. And in Latin America, it was a really big player acquisition opportunity for us, and we are really pleased with how that turned out. 1 thing I will I will point out is that after COPA, even though I just mentioned, it is not the greatest comparable because we are so much larger at this point. The product's better. We saw a nice inflection after COPA, in our casino volumes down in Columbia And so we are we are certainly hoping to be able to capitalize on a similar situation this time around. So I think good early signals, but too early to give too much detail. David Katz: Understood. And if I can ask 1 follow-up from a longer term nature, You know, I noticed some of the other Latin American countries that you have listed as potential future opportunities So at least the last couple of quarters in your deck, You know, how far away or what are the gating factors for those to become a reality? Richard Todd Schwartz: Yeah. Thanks for that question. So as you can imagine, we are very thorough here, and we are very focused on making sure that we pick the right markets to enter and we do so in the proper way where prepared for success. And so there are markets down there that, as you know, are legal and regulated that are exciting, but we are having to sort of have a lot of growth as you see in our existing markets and we have to be very thoughtful about how we invest in additional markets. But there are, you know, thoughts and efforts going into additional expansion in other markets down there. Certainly it is not something we are prepared to share at this time. David Katz: Okay. Thank you very much. Thanks, David. Operator: Your next call is from the line of Daniel Politzer from JPMorgan. Your line is now open. Please go ahead. Daniel Politzer: Hey, good afternoon, everyone, thanks for the questions. First, I want to touch on the prediction-- the application you filed with CFTC. Can I know you mentioned that you do not intend to lean into the crowded sports area here? But I guess, you talk about maybe what this allow you to do specifically? Do you envision yourself as you know, a taker or a maker? Is this kind of, you know, just kind of a way to kinda give optionality? How are you thinking about this kind of in the medium or longer term? Richard Todd Schwartz: Yeah. We do view the applications as a way to preserve our strategic flexibility to maintain our optionality as you just mentioned. Ensure that we are not caught flat footed should the market or regulatory environment evolve in a way that becomes relevant for our business. So it is really just being prepared and preserving optionality. Daniel Politzer: Okay. Great. And then can you talk about maybe what you are seeing in terms of the competitive environment within iGaming? Obviously, you have been acquiring a lot of users. I know that you are seeing it sounds like strong LTVs and CACs. But in Michigan or any other states, have you seen any incremental competition or even wallet impact from prediction markets? Kyle L. Sauers: So I think on your last piece on the prediction markets, I think the answer is we do not believe so. Obviously, it is hard to know for sure. Think on the on the competitive intensity, listen. there is-- it depends on the numb the number of operators in a given state or market, in North America, of course. But there is really good competition, and we have had to deal with that for a long time. There are some new competitors that have entered in a couple of our markets. Which certainly increases the competition. And we have had some of our competitors who have I think, recognized that iCasino is a is a great place to focus on and have talked about putting more efforts there. But all the while that is been happening, we have been consistently growing market share for I think, 4 straight quarters here. So we are very proud of that. Daniel Politzer: Understood. Thanks so much. Thanks, Daniel. Operator: Your next question is from the line of Ryan Sigdahl from Craig Hallum Capital Group. Your line is now open. Please go ahead. Ryan Sigdahl: Hey, good afternoon, Richard, Kyle. I wanna double click on the World Cup. The activations Well, let's start reactivations in North America. Just given that strong 25% cross-sell to iCasino. Was there a specific focus on players that maybe had a higher potential to play at casino, or is it just product, everything, you know, is kind of guerilla across the board? And then maybe secondly on that, just the Latin America activations. Was there also you know, specific player targeting for players that may be had a higher likelihood of playing iCasino or that you thought would? Kyle L. Sauers: Yeah. So just for clarification on that data point that Richard had given, that was related to Latin America. So I just wanna make sure that was that was clear. And I think you are right. There was a lot of different efforts And different styles of marketing and trying to attract different types of players. We definitely leaned into sports first and World Cup first in the Latin American markets and obviously had a lot of success with that. I do not know, maybe clarify if I missed a piece of your question there. Ryan Sigdahl: Yeah. Just on the reactivations in North America. If there was a specific focus on maybe players that had gone-- you know, were not active anymore, gone inactive, but had I guess, you know, in the past if they were a greater focus. Just curious how you kind of focused from an activation or reactivation on iCasino players. Richard Todd Schwartz: Yeah. It was across the board. Right? I mean, when you think about reactivations, you know who the people are and you know information about them so you can tailor the message and the creative to them based on what you know about their past experiences and their interests. So it was I think it was kind of all of the above there. Ryan Sigdahl: Very good. Just for a quick follow-up, Kyle. The increased marketing spend, that is pure kind of marketing spend through OpEx, right? Curious how you think about promotions in conjunction with that. Kyle L. Sauers: Yeah. So, yes, that increase is that is intended to show up in the in the marketing line on the p and l. Correct? From a bonusing perspective, you know, obviously, the more new players we are bringing in, that can have an impact on bonusing. I think we have continued to refine our bonusing strategies. Adjust those as we go, and it is different depending on the market. The rules, the how taxes are affected by bonusing. How players engage with bonusing. I will point out that our bonusing sequentially this is this is a North American comment, but bonusing sequentially is down In Q2. Up a little bit year over year. But it is an area we spend a lot of money on bonusing. Right? We pay a lot of attention to it, and we wanna make sure the right bonuses are going to the right people. Other than hopefully, extra new players coming in because of extra marketing spend, and some associated bonusing with them. I would not I would not, think about a big change in bonusing strategy otherwise. You know, outside of typical seasonality heading into the football season. Ryan Sigdahl: Great. Guys. Nice job. Thanks, Ryan. Operator: Your next question is from the line of Mike Hickey at Stonex. Your line is now open. Please go ahead. Michael Hickey: Hey, Richard, Kyle. Congrats, guys. Awesome quarter. I guess the first topic, Kyle, the second half revenue and EBITDA cadence post 2Q here, how should we think about I guess, post February and your raised numbers for the year, how should we think about the relative cadence of revenue and EBITDA between 3Q and 4Q? Kyle L. Sauers: Yeah. Good question, Mike. I think first thing I will point out, we mentioned that we had really strong hold in Q2 from on the sports side. So Q2 was aided by that and probably benefited revenue. by around $10 million. So after you net that out of Q2 results, to think about the sequential look going forward. At the midpoint of our guidance, I would probably expect Q3 revenue to be relatively flat with Q2. So ex-that $10 million, Q3 being up by around $10 million over Q2. Obviously, there is a there is a range of around that, but that is the way I think about it. And then like we typically do, we would we would expect a real nice uptick in revenue from Q3 into the fourth quarter. And if I move to EBITDA cadence, if you think about a revenue that is kind of flat from Q2 to Q3, We are talking about additional marketing spend in Q3, particularly with the Alberta launch. And then spending even more in marketing than we previously planned. I think it is likely that Q3 EBITDA will be the low quarter of the year for us. And then with Q4 being a sizable step up in EBITDA due to, you know, much larger revenue, And then moving away from the Alberta launch costs, So I think that is largely in line with what analysts are already modeling. Given our previous, commentary and kinda historical results. I guess maybe you did not ask this 1, but while I am at it, I will I will talk about adjusted EPS real quick because as we become kinda consistently growing and profitable it is a metric that some investors are looking at in addition to EBITDA. So just a few components for people to be able to, have some help with modeling. And I will give I am gonna give you exact amounts. But keep in mind, there is a range of outcomes associated with each of these. But depreciation and amortization is probably around $47 million for the full year. Stock comp expense is around $30 million for the year. Interest income around $12 million. Tax expense of around $74 million. And then a fully diluted share count, of around 237 million. So at the midpoint of guidance, if you if it is just all those numbers, midpoint of the guidance, that gets you to about $0.62 in adjusted EPS for the year. So as people are modeling, hopefully, that gives a little more, color that everyone can look back at. Michael Hickey: Nice. Thanks, Kyle. Keep you talking here. Maybe Richard too. Just on your 2028 growth opportunity, sort of as you are today, what you think are sort of the most important drivers that could help you sustain that double digit revenue growth from your current base and you know, at least on 2028, how much further can you take EBITDA margins or maybe how we should think about those will take shape for you. And I guess just overall, Kyle, how we think about the World Cup as a comp and in 2028. I mean, is it sort of the unlock for growth if you retain and cross sell like you expect? Or is that elevated volume and the success that you had sort of more of a challenge for you as you look at 2028 Thanks, guys. Kyle L. Sauers: Yeah. So I will take that last piece first maybe. I would certainly a comp element there. I think we are we are because it added significant number of games to the meaningful soccer schedule for the world, in 2026. Right? So there is a it does impact comps next year, and we and we had nice hold. So that is an element I feel very good that with the rest of our growth profile, and the number of players we have added and reactivated, through that big event that will help us push through those, those tougher comps, next year. You said 2028, and we are assuming you are talking about 2027. Did mean 20 July. Sorry about that. So we do not skip the year here. Go ahead. So, you know, we will we will it is a little early for that. We will we will give 2027 guidance in a couple quarters, but I think here's here's a few things to think about. You know, we are obviously in a growth industry, a really nice growth industry. And we have been able to consistently take share the North American iCasino market where we where we are focused in North America. So I think in 2027, think we feel good about taking our fair share of the industry growth. In North American sports, I would not expect, as much growth from us. That part of the industry has slower growth, and we are not investing as much or that much in player acquisition in the sports only markets. And then if you go south to Latin America, again, the markets that we are live in are growing really nicely. We believe we are taking share in all of those markets. And we would expect those to be significant growth drivers for us. And then you know, if you move down the p and l, I would I would expect that we will continue to see operating leverage again next year, just like we have seen over the last 4 years. We are growing more quickly in our higher margin markets. So with all else being similar, the revenue mix alone should improve our gross margins. And even when adding in the investment market of Alberta, we would expect to get leverage over marketing spend next year. I suspect the same would be the case with GNA as well. And the only wild card I would throw in is if back to a question Richard was responding to earlier, If we have an a new, state or 2 in The United States legalized, and launch iGaming next year that would change the profile a little bit. But I am sure that is something we would all welcome. Michael Hickey: Nice. Thanks, guys. Good luck. Mike. Operator: Your next question is from the line of Joseph Stauff at Susquehanna. Your line is now open. Please go ahead. Joseph Stauff: Good after or good evening. Richard, Kyle. You know, your North American active growth is impressive. But I was wondering if you could talk just structurally about you know, how this pays off and when it pays off in terms of, you know, say, ARPMAU. If and I do not know how you wanna discuss that, but certainly, you know, it is been fertile. You know, you are active growth has accelerated it is even higher this quarter. Seems likely to continue given the investment and it is paid off. Just wondering how to think about if you were to normalize your level of marketing, you know, the how we see that sorta in the ARPMAU? Is it you know, does a new customer that you acquired, call it, you know, the third quarter, do they contribute maybe a corporate level of ARPMAU a year later, just talking about details of how an iCasino new customer ramps in that spending. I do not know what you could share with us. Kyle L. Sauers: Yeah. I so without getting into exact numbers, it is a it is a good question, Joe. First of all, I would say I think it is already paying off. When you look at our growth across the business. Our player counts are driving our added players are driving a lot of growth. Right? In terms of the progression of the value of players or maybe a player cohort there is there is 2 things that happen. The longer players stay with us, the more valuable they become. And also, the retention improves dramatically. So there is a there is a natural falloff for us and for this industry of players that get acquired and early on, you are going to lose a decent amount of those players at least for a while. And then their value builds over time. In iCasino, that payback is faster than in sports. At least that is that is been our experience. In terms of what you know, I do not want to get in the habit of forecasting ARPMAU. You know, future quarters, future years. If and when our player growth slows, which we are at a pretty high clip right now, so that is that is probably natural that it is going to happen at some point. that is when it is more likely to see that ARPU might increase. You know, it was I think we pointed out that it was it improved a little bit sequentially. Which I think is great. This is actually this is more on the mouse side, but you know, on the denominator. But this is the first quarter in 6 years where or first, second quarter in 6 years where we had a higher player count In North America in the second quarter than the first quarter. So it just tells you how much we are driving growth there, and how much of it is casino led and not as dependent on the sports season. So, hopefully, that gives you a little bit to think about there, without going into a lot of quantification. Joseph Stauff: Yeah. No. I appreciate that. And just to clarify, you and Columbia, Richard, you had mentioned sort of the pathway. See next week, you know, where the, I guess, the executive branch of the Colombian government and how they-- you know, if they are going to remove that text or not. But it just remind me, is there a constitutional court pathway as well that is active similar to the last 1? Richard Todd Schwartz: Yeah. There is. And there is a opportunity to be heard again. The current temporary tax that exists will be heard by the constitutional court, and there is always a possibility that they rule against it, which would mean, you know, there could be a change in that tax impact for us. Joseph Stauff: Okay. Thanks very much, guys. Thanks, Joe. Operator: Your next question is from the line of Jordan Bender at Citizens. Your line is now open. Please go ahead. Jordan Bender: Hey, everyone. Thanks for the question. Maybe to start more broadly, you have obviously had a ton of success down in Latin America under the RushBet brand. Would you guys ever look to bring that to the US just to kind of cater to some of the Spanish speaking population here? Richard Todd Schwartz: Yeah. Jordan, it is a conversation we do have internally. At times. And certainly, it is something we have considered and thought about. I think certainly a multi brand strategy is something that every operator should consider at some point. Some have already pulled the trigger on that. Certainly, I think that for us, comes down to the right timing to try to address multiple brands in the similar market. Some jurisdictions are easier to have multiple brands, some are more challenging. But ultimately, I do think that we have an, you know, opportunity to really cater to some of the Spanish speaking Americans certainly would probably prefer at times to play a site that is very native for their preferred language. Jordan Bender: Great. Thank you. And just to follow-up, just to kinda take another swing at some of the incremental marketing costs. 3Q, that comes at a time when you are normally ahead of the NFL season, you get a ton of spend from the sports betting industry this year. We all kind of can imagine how much is going to be spent on the prediction market side. Is the increase in marketing going into March, is there anything with that to say, you know, maybe that is a little reactionary to what is to come, or is it truly the customer economics of what you are seeing or just very attractive and you are just stepping in ahead of that. Kyle L. Sauers: I would say zero of it is in reaction to what others are doing and where they are spending and that we feel like we have to match something. It is all about the player economics the player values, and the economics around acquiring those players and how successful we have been and actually improvements we have continued to make within our marketing programs and technology where we think we can, we can spend more and do it at the same rates. Jordan Bender: Understood. Thank you. Thanks, Jordan. Operator: As a reminder, if you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. Your next question is from the line of Chad Beynon from Macquarie. Your line is now open. Please go ahead. Chad Beynon: Hi, afternoon. Thanks for taking my question. Just 1 from us. Tonight, just around the prediction markets again. More related to guess, what you saw at the end of the second quarter during the World Cup and maybe into the third quarter, we have seen you know, lots of data in terms of prediction market volumes that are out there. I think most of it is probably in The States where you do not participate. But just wondering if you could add any additional commentary if you believe that in The States where you have sports betting, so ~28% of your business, if you have seen, you know, decelerating volume trends or anything else that you can kinda talk to help us think about the trajectory of OSB into the back half? Thanks. Kyle L. Sauers: Yeah. I can-- I will start I think the answer is no. We have not seen that impact. But it is also true that we probably do not have perfect visibility into it. I think the fact that we are not focusing on new player acquisition in sports only markets, and we are doing as well as we are. In sports relative to our peers. Probably tells you that we are not being impacted by it. By it a whole lot. Richard Todd Schwartz: I would just add as well that we are not catering to the Sharp customers either, you know, potentially the way they may find the prediction markets more appealing and maybe conventional sports book. Kyle L. Sauers: Yeah. The 1 other thing I was just gonna clarify for you because you did say, you know, you mentioned 28%. Of our revenue. But you gotta keep in mind that about half of that, maybe more than half of it, if I went back and checked, is coming from Latin America. So that is that is not at risk in the areas that you are referring to? Chad Beynon: Thank you both. Appreciate it. Thanks a lot. Operator: There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to Richard Todd Schwartz for closing remarks. Richard Todd Schwartz: Thank you again for joining us today. We look forward to updating you on our progress when we share our third quarter results in the fall. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Rush Street Interactive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rush Street Interactive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. RSI (RSI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

DraftKings (NASDAQ:DKNG), a digital sports betting, fantasy sports, and iGaming platform, closed at $24.03, up 8.39%. Investors focused on prediction-market and customer-activity growth after Q2 results missed expectations. Trading volume reached 36.1M shares, coming in about 173% above its three-month average of 13.2M shares. DraftKings IPO'd in 2019 and has grown 145% since going public. The S&P 500 (SNPINDEX:^GSPC) rose 0.59% to 7,756, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.28% to 26,686. Among online gaming, sports betting, and digital entertainment peers, Flutter Entertainment (NYSE:FLUT) closed at $94.74, up 1.86%, while Rush Street Interactive (NYSE:RSI) finished at $24.86, down 0.88%, highlighting mixed trading across sector rivals. While the headline of DraftKings’ sales dropping 5% may look bad at first blush, it was actually a pretty solid quarter. In a quarter where many favorites won, or “customer-friendly sport outcomes” occurred (as DraftKings called it), most of the company’s non-sales figures were fine: sports consumer volume rose 15% monthly unique payers (MUPs) jumped 9% annualized total volumes on its predictions services quintupled from April to July maintained 2026 guidance announced core betting business to generate $1 billion in adjusted EBITDA this year That said, I’m surprised the market is this optimistic about the results, especially given that the company whiffed on both the top and bottom lines relative to analysts’ estimates. Sure, prediction markets may be the future for DKNG stock -- and it seems to be off to a good start in that arena -- there are still a lot of regulatory hurdles to clear. And that is before we figure out if there ends up being any cannibalization between sports betting and predictions. I understand the excitement surrounding the stock, but I’m not rushing to buy today. Before you buy stock in DraftKings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DraftKings wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends Flutter Entertainment Plc. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 7: DraftKings Surges 8% on Prediction-Market Growth After Q2 Results was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the fastest quarterly revenue growth in over 4 years, driven by a 'casino-first' strategy where online casino now represents 72% of total revenue. Performance was bolstered by a well-executed World Cup period, which served as a significant catalyst for player acquisition and reactivation, particularly in Latin America. North American growth is being fueled by market share gains in existing jurisdictions, despite high competitive intensity and the presence of larger-brand competitors. The company successfully launched in Alberta on July 13th, noting that initial player acquisition and activity levels are tracking at approximately 2x the levels seen during the Ontario launch. Management attributes record sports hold in both Colombia and North America to improved product mix, specifically a higher volume of parlays and prop bets. Operational leverage is improving as the company scales, with marketing and G&A expenses decreasing as a percentage of total revenue despite increased absolute spending. Full-year revenue guidance was raised by $65 million at the midpoint, reflecting sustained momentum in North American iCasino and Latin American outperformance. Management plans to increase marketing spend in the second half of 2026, specifically targeting a $7 million to $10 million sequential increase in Q3 to support the Alberta launch and other high-ROI opportunities. Financial modeling for the remainder of 2026 assumes the 16% GGR tax in Colombia remains in effect, though management is monitoring potential shifts under the new presidential administration. Q3 EBITDA is expected to be the low point of the year due to the timing of marketing investments, with a significant step-up projected for Q4 driven by seasonal revenue growth. The company filed for a CFTC license to maintain strategic flexibility regarding prediction markets, though it does not intend to prioritize this crowded space over its core casino focus. The temporary tax decree in Colombia negatively impacted gross margins in Q2; the prior quarter had benefited from a ~$7 million reversal that did not recur. Management highlighted the upcoming reduction in U.S. federal support for states as a potential catalyst for future iCasino legalization as jurisdictions seek new recurring revenue sources. While North American ARTMAU decreased 18% year-over-year, management clarified this is a function of high new-player acquisition volumes, as newer cohorts typically start at lower values. The board authorized a new $100 million share repurchase program to allow for opportunistic capital allocation following a $29 million repurchase in May. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the increased spend is not a reaction to competitors but a result of improving player acquisition costs and strong lifetime value data. The $7 million to $10 million sequential increase in Q3 marketing will cover the Alberta launch and deeper penetration in existing markets where efficiency remains high. Over 25% of new depositors acquired during the World Cup have already engaged with casino products, a 50% improvement over the cross-sell rate seen during the previous Copa America. While it is early to determine long-term LTV, management noted that the 'cultural moment' of the World Cup provided a unique reactivation opportunity for the North American base. Management stated they have not seen a decelerating volume trend in their sports betting business due to prediction markets. They noted that RSI does not cater to 'sharp' bettors who might find prediction markets more appealing, focusing instead on recreational casino-first users. Virginia is identified as a top prospect for 2027 following legislative progress in 2026, with DC, Indiana, and Ohio also being closely monitored. Management believes state funding gaps emerging in late 2026 will force a more serious discussion regarding iGaming as a proven revenue-generating policy.

RSI Stock Soars 22% On Q2 Blowout—Will PENN Match the Momentum? Rush Street Interactive (NYSE:RSI) reported record second-quarter revenue and adjusted EBITDA as growth in online casino, Latin America and player acquisition accelerated during the period. Revenue for the second quarter of 2026 rose 46% year over year to $393.8 million, while adjusted EBITDA increased 61% to $64.6 million. Net income was $29.3 million, compared with $28.8 million in the prior-year quarter. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Rush Street Interactive May Hit the Jackpot on a Sale CEO Richard Schwartz said the company delivered its fastest quarterly revenue growth in more than four years, supported by its casino-first strategy, operating execution across regions and activity surrounding the World Cup. Online casino represented 72% of Rush Street Interactive’s quarterly revenue, with online sports betting accounting for most of the remaining 28%. Schwartz said online casino remains the company’s primary value driver and its fastest-growing product segment in both North America and Latin America. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 2 laggard sports betting stocks that gained from the Super Bowl Online casino revenue increased 40% year over year during the quarter, while online sports betting revenue rose 64%. North American revenue grew 23%, and Latin American revenue increased 195%. Monthly active users in North America rose 51% from a year earlier to more than 296,000. Active users in the company’s North American online casino markets increased 64%. In Latin America, including Mexico, monthly active users climbed 62% to more than 652,000. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? North American average revenue per monthly active user, or ARPMAU, was $320, down 18% year over year but modestly higher than the first quarter. President and CFO Kyle Sauers said the decline reflected elevated player acquisition, as newer customer cohorts initially generate lower value than more established players. Latin American ARPMAU increased 82% to $55, reflecting regional strength, the elimination of bonusing in Colombia to offset the prior year’s deposit tax, and favorable Colombian currency movements, Sauers said. Management said the World Cup produced favorable results in player acquisition, reactivation, sports betting handle and hold. In June and through July, monthly active users in Latin America were up more than 80%, according to Schwartz. More than 25% of first-time depositors acquired during the World Cup engaged with the company’s casino product, a rate about 50% higher than during the Copa América two years earlier. Schwartz said the figure supported the company’s view that its cross-sell improvements have been effective. The company reported its highest sports hold in Colombia since inception during the second quarter, driven by World Cup results. North America also posted its highest sports hold since inception, supported by the NBA playoffs and World Cup activity, as well as an improving mix of parlays and prop bets. Sauers said favorable sports hold contributed approximately $10 million to second-quarter revenue. Excluding that benefit, he said the company expects third-quarter revenue at the midpoint of its outlook to be about $10 million higher than the second quarter. Marketing expense totaled $48.6 million, up 34% year over year, but declined as a percentage of revenue to 12.3% from 13.4%. Sauers said the company continued to reduce player acquisition costs while player values remained strong. As a result, Rush Street Interactive plans to increase marketing investment during the second half, including in Alberta following its July 13 launch of online casino and sports betting in the province. Sauers said third-quarter marketing spending could be approximately $7 million to $10 million above the second-quarter level, including Alberta-related spending. He said the additional investment was not a reaction to competitors’ spending or prediction markets, but rather reflected attractive customer economics and improvements in the company’s marketing programs and technology. The Alberta launch is still in its early stages, but Schwartz said population-adjusted first-time depositors and daily active users were tracking at roughly twice the level observed in Ontario at the same point after its launch. Management expects Alberta’s market development to be gradual as it transitions from an unlicensed market. Rush Street Interactive raised its full-year revenue outlook to a range of $1.56 billion to $1.60 billion, representing growth of 38% to 41%. The midpoint of $1.58 billion is $65 million above the company’s previous outlook. The company also lifted its adjusted EBITDA forecast to $245 million to $265 million, representing year-over-year growth of 59% to 72%. The midpoint of $255 million is $15 million above previous guidance and incorporates increased second-half marketing spending. Second-quarter gross margin: 35.5% Second-quarter adjusted EBITDA margin: 16.4% Cash as of June 30: $340 million Debt: Zero In May, the company repurchased approximately $29 million of shares through its existing $50 million repurchase authorization. Its board also approved a new $100 million share repurchase program. Management maintained its assumption that Colombia’s 16% gross gaming revenue tax will remain in effect through year-end. Schwartz said Colombia’s newly elected president is expected to take office shortly and that the company views the incoming administration’s pro-business agenda as a potentially constructive development. However, he said the government’s review of prior tax decrees and future budget decisions remains unresolved. Rush Street Interactive also said it filed an application for a Commodity Futures Trading Commission Designated Contract Market license during the quarter. Schwartz said the filing is intended to preserve strategic flexibility as prediction markets develop, while emphasizing that the company does not intend to focus on the sports-oriented prediction market segment. Rush Street Interactive (NYSE: RSI) is a digital gaming and sports betting company that develops and operates online wagering platforms in regulated markets. As a subsidiary of Rush Street Gaming, the company specializes in delivering interactive casino games, live dealer experiences, and sports betting services through desktop and mobile applications. Its technology infrastructure is designed to support real-time wagering, secure transactions, and responsible gaming tools across multiple jurisdictions. The company’s flagship brand, BetRivers, offers a range of casino titles—including slots, table games, and virtual sports—alongside a comprehensive sportsbook featuring pre-game and in-play betting markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rush Street Interactive Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Rush Street Interactive, Inc. (RSI) came out with quarterly earnings of $0.15 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.12 per share when it actually produced earnings of $0.14, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Rush Street Interactive, which belongs to the Zacks Gaming industry, posted revenues of $393.78 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.87%. This compares to year-ago revenues of $269.22 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rush Street Interactive shares have added about 58% since the beginning of the year versus the S&P 500's gain of 8.5%. While Rush Street Interactive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rush Street Interactive was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $380.48 million in revenues for the coming quarter and $0.60 on $1.54 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Red Rock Resorts (RRR), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -65.3%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. Red Rock Resorts' revenues are expected to be $496.53 million, down 5.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research