Rush Street Interactive, Inc.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rush Street interactive second quarter, 2025 earnings conference call. All participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, July 30th, 2025. I will now turn the call over to Kyle Sowers, Chief Financial Officer.

Thank you, operator. And good afternoon. By now everyone should have access to our second quarter, 2025 earnings release. It can be found under the heading financials quarterly results in the investor 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 and 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 violence 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 useful 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 which we define as net income or loss before interest, income taxes, depreciation and amortization, share based compensation, adjustments for certain one time or non-recurring items, and other adjustments that are either non-cash or are 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 2025 earnings release and our investor deck which is available in the investor section of the RSI website at rushstreakinteractive.com. For purposes of today's call, unless noted otherwise when discussing profitability, EBITDA or other income statement measures other than revenue, we're referring to those items on a non-GAAP adjusted EBITDA basis. With me on the call today, we have Richard Schwartz, Chief Executive Officer. We will first provide some opening remarks and then open the call to questions. With that, I'll turn the call over to Richard.

Thanks, Kyle. Good afternoon and thank you for joining us today. I'm excited to report that we've delivered another record quarter across the board with new highs in revenue, profitability, EBITDA margins and active player counts. This marks our ninth consecutive quarter of improving both revenue and adjusted EBITDA for the preceding quarter, underscoring the consistency and strength of our business model. Notably, adjusted EBITDA grew 88% year over year driven by strong performance across our business, growing revenue 22% versus a year ago. This is an acceleration in growth compared to Q1 which is particularly notable given Q2 that we've had a full quarter of Colombian bonusing headwinds and we lapped the Delaware launch of beginning of this year. This impressive growth was driven by strong broad-based performance across our business. Online casino revenue grew 25% during the quarter while online sports betting grew 15% compared to the same period last year. This consistent balanced momentum across product verticals underscores our ability to create engaging high quality experiences that attract and retain high value players. In North America, our emphasis on markets that include online casino continues to drive exceptional performance. Mowls in these markets grew by over 30% in the second quarter. Even when excluding Delaware, we still saw growth in the high 20% range which marks our highest growth rate since 2022 for all of our other iCasino markets in North America. The strong momentum reflects the effectiveness of our focus on markets where we can deploy our post-Suite gaming offerings and maximize player value. In Latin America, we continue to see tremendous momentum with Mowl growth exceeding 40% year over year even when comparing to the Copa America period last year when we experienced higher player engagement. This growth continues to demonstrate the strength of our platform and brand in the region. Looking at some of the highlights and our standout market performances. In the US, Michigan grew 42% year over year accelerating from Q1. West Virginia grew 47% year over year, the fastest growth we've seen in several quarters. And Delaware grew 74% year over year showing continued momentum in our sixth full quarter since launching. In Canada, Ontario grew 25% year over year, the fastest growth rate since 2023. And in Latin America, Columbia continued its great momentum with GGR up over 70% year over year when that revenue was about flat due to higher bonus in response to temporary tax and Mexico grew over 125% year over year and that impressive 40% sequentially from Q1. Looking ahead in the near term, we're excited about our expansion plans in Alberta where we anticipate launching when the market opens next year. This market presents a significant opportunity for us to leverage our success in other North American online casino markets. Additionally, we recently launched multi-state poker with shared player pooling across markets. In a short period, we went from no presence in the poker space to establishing Bet Rivers as a high quality competitor across four states and we are very proud of our team and what they've accomplished. The product and operations are thoughtfully designed to deliver a great user experience while serving as a valuable amenity that supports cross sale and engagement to our casino and sportsbook offerings. Our platform features unique functionality that encourages fluid cross play enabling our poker customers to play casino games and bet on sports without leaving the poker table. In addition, our partnerships with poker ambassadors, Phil Helmuth and Phil Galvan, have generated significant brand recognition for Bet Rivers and created fun, authentic ways to connect with our customers. Looking ahead, we have great confidence in our business. The positive momentum across our markets are far away any headwinds from increased taxes in the US and Colombia. As a result, we are raising our full year revenue and EBITDA guidance which Kyle will cover in more detail. With that, I'll turn the