Rush Street Interactive’s executive chair, chief executive, and chief operating officer have launched an underwritten secondary public offering of 10 million Class A shares priced at $26 per share. The stock had closed at a record high of $29.17 on May 5, and news of the transaction triggered a 12% drop in after-hours trading.
Offering structure and pricing
Neil Bluhm, Richard Schwartz, and Mattias Stetz are each selling less than 10% of their current respective holdings. RSI said the trio are offering the shares “for personal financial planning and estate planning purposes.” At $26 per share, the offering represents a 10.9% discount to Tuesday’s record close. The transaction is expected to close on May 7.
Underwriters have a 30-day option to purchase an additional 1.5 million shares from the three executives. RSI will not receive any proceeds from the offering but will bear its costs.
Wells Fargo Securities and Morgan Stanley are serving as lead book-running managers. Jefferies, Craig-Hallum, Macquarie Capital, Needham & Company, and Oppenheimer & Co. are acting as joint book-running managers. Benchmark, a StoneX Company, Citizens Capital Markets, and Oakvale Capital are co-managers.
Concurrent repurchase and new buyback programme
RSI said it intends to use cash on hand to repurchase 1,153,846 shares from the underwriters at closing for $30m. The board has separately approved a new $100m stock repurchase programme.
Bluhm, who has served as executive chair since 2021 and also chairs land-based entity Rush Street Gaming, will retain more than 40% of RSI’s outstanding stock after the transaction. The company said he will remain the firm’s largest shareholder by a “significant margin.”
Record momentum behind the sale
RSI shares have risen approximately 150% over the past 12 months, giving the Chicago-based operator a market capitalisation of roughly $7bn at Tuesday’s close. The secondary offering follows one week after the company reported its strongest quarter on record.
Q1 2026 revenue reached $370.4m, up 41% year on year and 12% ahead of analyst consensus of $332.9m. Net income climbed 134% to $26.2m. Adjusted EBITDA rose 81% to $60.2m, at a 16.3% margin. Monthly active users grew 51% to approximately 839,000.
Growth was driven by RSI’s casino-first strategy across North American regulated online casino markets and continued expansion through its RushBet brand in Latin America. Adjusted sales and marketing expenses fell to 12.5% of revenue from 14.8% in Q1 2025, with the company reporting record first-time depositor acquisition in the quarter.
Following those results, RSI raised full-year 2026 revenue guidance to between $1.49bn and $1.54bn, growth of 31% to 36% at the midpoint. Adjusted EBITDA guidance was lifted to between $230m and $250m, representing growth of 50% to 63% from 2025. The company ended Q1 with $331m in unrestricted cash. Guidance assumes existing regulated markets plus an expected Alberta launch in July 2026.
We achieved record first-time depositors this quarter, beating our previous records set in each of the last two quarters by a wide margin. The combination of record new player acquisition with improving marketing efficiency is what allowed us to raise our full-year 2026 revenue guidance.
Kyle Sauers, CFO, Rush Street Interactive, Q1 2026 earnings call, April 28, 2026
RSI operates BetRivers and PlaySugarHouse in regulated US states and RushBet across Latin American markets. The new $100m repurchase programme signals board confidence at current price levels, even as the secondary offering places 10 million shares into the market. The stock’s trajectory from the May 6 open will indicate how investors weigh the insider sales against the concurrent buyback and the company’s underlying growth profile.
Source: Rush Street Interactive
