Company: RSI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001793659-25-000168
Chunk: 35

Company: Rush Street Interactive, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 35
---
:Three Months Ended June 30,Six Months Ended June 30,($ in thousands)2025202420252024Income tax (benefit) expense$(115,017)$6,396 $(109,952)$11,696 The Company recognized a federal, state and foreign income tax benefit of $115.0 million and $110.0 million during the three and six months ended June 30, 2025, respectively, compared to an income tax expense of $6.4 million and $11.7 million during the same respective periods in 2024. The effective tax rates for the three and six months ended June 30, 2025 were 133.5% and 157.3%, respectively, and were 104.6% and 127.1% during the same respective periods in 2024. The difference between the Company’s year-to-date effective tax rate and the U.S. statutory tax rate of 21% was primarily due to the release of the valuation allowance recorded on the Company’s U.S. deferred tax assets based on current year income, non-taxable income/(loss) attributable to non-controlling interest and income tax rate differences related to the Company’s foreign operations. During the three and six months ended June 30, 2025, the Company also recorded a tax benefit of $121.6 million discretely related to the release of the valuation allowance recorded on the Company’s U.S. deferred tax assets based on forecasted future income.On a quarterly basis, management considers new evidence, both positive and negative, that could affect its view of the future realization of its deferred tax asset and adjusts the valuation allowance when it is more likely than not that all or a portion of the deferred tax asset may not be realized. As of June 30, 2025, management determined that there is sufficient positive evidence to conclude that it is more likely than not that deferred tax assets of $145.8 million, primarily in the U.S., are realizable. For purposes of forecasting taxable income, the Company relied on historical pre-tax earnings trends and incorporated assumptions about future performance that are expected to impact pre-tax results. These historical results support the expectation that the Company will generate taxable income in future periods. The Company did not recognize all U.S. deferred tax assets because the Company determined that a portion of excess income tax basis in RSILP will only reverse upon the occurrence of certain events, such as a sale of the Company’s interest in RSILP, none of