Rush Street Interactive, Inc.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rush Street Interactive First Quarter 2026 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, April 28, 2026. I will now turn the call over to Kyle Sowers, President and Chief Financial Officer. Please go ahead.

Thank you, operator, and good afternoon. By now, everyone should have access to our first quarter 2026 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 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 filings for a more detailed discussion of the risks that could impact our future operating results in 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 not related to our underlying business performance. A RECONCILIATION OF THESE NON-GAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAP MEASURE IS AVAILABLE IN OUR FIRST QUARTER 2026 EARNINGS RELEASE AND OUR INVESTOR DECK, WHICH IS AVAILABLE IN THE INVESTOR SECTION OF THE RSI WEBSITE AT RUSHSTREET INTERACTIVE DOT 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-GAP 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 for questions. And with that, I'll turn the call over to Richard.

Thank you, Kyle, and good afternoon, everyone. For the first quarter, we generated record revenue of $370 million, up 41% year over year, and a record adjusted EBITDA of $60 million, up 81% year over year. Our continued momentum demonstrates the strength of our Casino First strategy, the effectiveness of our operational execution, and the powerful momentum we're building across our business. We're scaling revenue off a much larger base at very strong growth rates while improving profitability at about double that pace. The Casino First approach continues to be a fundamental differentiator of our business model. a business model focused on online casino as our primary value driver, with sports betting and poker serving as important complementary products. This strategic choice delivers meaningful advantages in player economics. Our casino players engage more consistently, demonstrate higher lifetime values, and exhibit superior retention characteristics. These structural advantages compound over time, creating a virtuous cycle that drives both growth in revenue and profitability. Our player base expanded dramatically during the quarter. Extremely impressive results from our teams. Monthly active users in North America grew 46% year over year to 296,000, while Latin America mouths increased 54% to 543,000. In our North American online casino markets, specifically, MAL growth reached 62%, eclipsing the 51% growth we just experienced last quarter. We've now seen accelerating year-over-year player growth in these markets, each of the last four quarters, demonstrating the powerful underlying strength of our business. We also achieved record first-time depositors this quarter. beating our previous record set in each of the last two quarters by a wide margin. The combination of record new player acquisition with improving marketing efficiency creates a powerful dynamic that will drive our business to new heights. We're filling the top of the funnel faster, we're doing it more efficiently than ever, and our retention remains strong. Customer acquisition and retention efficiency continues to be a key pillar of our success. Our brand awareness is increasing, which gives us a meaningful advantage in acquiring players at favorable rates. This isn't about any single initiative. It's the result of systematic improvements across customer acquisition strategy, product and user experience, loyalty programs, data analytics, and customer service. This quarter, we estimate we grew market shares sequentially by around 90 basis points in the North American online casino markets where we operate. Our established markets continue performing well, and we're seeing the benefits of our relentless focus on player experience and operational excellence. The consistency of these results across both mature and newer jurisdictions validates that our approach is working well. Latin America also delivered exceptional results. In Colombia, despite navigating a complex regulatory environment, we posted our fastest malgrowth in the past four quarters. The strategic approach we took throughout 2025, absorbing the tax burden through increased bonusing rather than passing costs to players, has proven to be an effective decision. Our commitment to our players and retaining their trust has positioned us well for 2026. As discussed at our prior earnings call, the Constitutional Court suspended the emergency decree of 19% VAT on GGR in late January. Furthermore, there was another positive development earlier this month whereby the Constitutional Court determined the 19% VAT to be unconstitutional and therefore ruled that no tax was to be imposed under that decree. In mid-March, a new emergency decree was implemented that imposed a temporary 16% tax on GGR. This new emergency decree and associated tax decrees will also undergo a new and distinct review by the Constitutional Court during the coming months. The result of all this is that the original temporary 19% tax that was determined to be unconstitutional was not applied to us. Therefore, during the first two and a half months of the first quarter, we had no additional taxes. Moving forward, we have assumed that we will have a new temporary 16% tax from mid-March through the end of the year when considering our raised guidance. Turning to Mexico, this market continues to ramp nicely and to be more meaningful for us both from a revenue and profitability perspective. Along with increasing brand awareness, we're seeing strong player acquisition, excellent retention metrics, and healthy growth and profitability. The competitive environment remains favorable and we're gaining share by delivering the superior player experience that has made us successful in other markets. We have grown revenue by over 100% in each of the last four quarters and remain excited about the long-term opportunity. and substantial size of this growing market. Looking ahead, we are getting closer to launching in Alberta. The regulator has set July 13th as the launch date. This represents a significant expansion opportunity for our business. As Kyle will also cover, our increased revenue and EBITDA guidance now includes the impact of the Alberta launch for the back half of the year. We expect to begin investing in marketing and brand building ahead of our launch in Alberta. This will occur in the second quarter, and Kyle will have more details. With each new market launch, we build on and improve what we've learned in prior launches. Here, we're taking a deliberate, measured approach to market entry, focusing on building a sustainable business with strong unit economics. This discipline approach has served us well in other markets, and we're confident it would drive long-term value in Alberta as well. As we look to the remainder of 2026 and beyond, I'm incredibly excited about the opportunities ahead of us. We're operating from a position of strength with momentum across our business, a clear and focused strategic roadmap, and the operational capabilities to continue executing at a high level. We're continuing to invest in product innovation, technology enhancements, and geographic expansion while maintaining the financial discipline that has long characterized our approach. We believe that this balanced strategy positions us to continue to deliver sustainable growth and increasing profitability over the long term. Our first quarter performance and the momentum we're seeing across the business gives us increased confidence We remain focused on delivering exceptional player experiences while creating long-term value for our shareholders. With that, I'll turn it back to Kyle to discuss the financial details.