Segment Reporting

6 Months Ended

Jun. 30, 2025

An operating segment is a component of an entity that (i) engages in business activities from which it may earn revenues and incur expenses; (ii) has discrete financial information available; and (iii) is regularly reviewed by the entity’s chief operating decision maker (“CODM”) for purposes of performance assessment and resource allocation.

The Company’s CODM is its chief executive officer. The Company manages its operations as a single operating segment that engages in online gaming and retail sports betting business activities. The Company derives its revenues from its gaming offerings such as real-money online casino, online sports betting and retail sports betting (i.e., sports betting services provided at bricks-and-mortar locations), as well as social gaming, which involves free-to-play games using virtual credits that users can earn or purchase. The accounting policies for this segment are consistent with those described in the summary of significant accounting policies. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets.

The Company’s revenue, significant expenses and net income (loss) for its consolidated segment are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Revenue	$	269,217	$	220,379	$	531,624	$	437,807
Less:
Costs of revenue(1)	174,068		144,182		344,888		288,435
Sales and marketing(1)	36,177		36,254		74,992		74,088
General and administrative(1)	18,723		18,500		38,269		36,783
Interest income	(2,410)		(2,168)		(4,345)		(3,979)
Interest expense	229		251		465		503
Depreciation and amortization	9,827		7,555		19,318		14,656
Income tax (benefit) expense	(115,017)		6,396		(109,952)		11,696
Other segment items(2)	118,790		9,691		127,948		18,116
Consolidated net income (loss)	$	28,830	$	(282)	$	40,041	$	(2,491)

_____________________________________

(1) Excludes share-based compensation expense.

(2) Other segment items include share-based compensation expense and tax receivable agreement expense.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Rush Street Interactive, Inc. 10-Q