Company: RSI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001793659-25-000111
Chunk: 61

Company: Rush Street Interactive, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 61
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Costs of revenue170,883 144,523 26,360 18 %Sales and marketing42,139 38,404 3,735 10 %General and administrative25,317 25,868 (551)(2)%Depreciation and amortization9,491 7,101 2,390 34 %Income from operations14,577 1,532 13,045 852 %Interest income, net1,699 1,559 140 9 %Income before income taxes16,276 3,091 13,185 427 %Income tax expense5,065 5,300 (235)(4)%Net income (loss)$11,211 $(2,209)$13,420 608 %

Revenue. Revenue increased by $45.0 million, or 21%, to $262.4 million for the three months ended March 31, 2025 as compared to $217.4 million for the same period in 2024. The increase was mainly due to and directly correlated with our 

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continued growth across existing markets and expansion into the new markets, such as Peru. The increase reflects higher period-over-period online casino and sports betting revenue and social gaming revenue of $45.3 million and $0.1 million, respectively, which was partly offset by a decrease in retail sports betting revenue of $0.4 million.

Costs of Revenue. Costs of revenue increased by $26.4 million, or 18%, to $170.9 million for the three months ended March 31, 2025 as compared to $144.5 million for the same period in 2024. The increase was mainly due to and directly correlated with our expansion and continued growth as noted above. Market access costs, gaming taxes, payment processing costs and operating expenses contributed $11.0 million, $8.6 million, $4.3 million and $2.3 million, respectively, to the period-over-period increase in costs of revenue. Personnel costs contributed to the remainder of the period-over-period increase. Costs of revenue as a percentage of revenue decreased to 65% for the three months ended March 31, 2025 as compared to 66% for the same period in 2024.

Sales and Marketing. Sales and marketing expense increased by $3.7 million, or 10%, to $42.1 million for the three months ended March 31, 2025