Leading sports betting and media company Rivalry has published its belated Q1 results, highlighting significant progress. The company’s restructured model has been a success, according to the leadership, which lauded the “full emergence of Rivalry 2.0.”
Rivalry Opens a New Chapter
Rivalry, which underwent a significant restructuring, announced that these efforts have helped it reduce its Q1 operating expenses by 58% year-on-year to CAD 4 million ($2.9 million). At the same time, the company reported that its net loss narrowed 43% to CAD 10 million ($7.3 million).
The company noted that a significant portion of its Q1 expenses were non-recurring or non-operational in nature and included annual audit costs, regulatory fees, and legacy payables from prior periods.
Rivalry’s marketing spend for Q1 stood at CAD 175,000 ($127K). Additional metrics include CAD 1.3 million ($950K) in net revenue, which was consistent with the company’s preliminary report. Net revenue per player was up 49% YOY and 210% higher than the historical average before the company’s transformation. This reflected a 7% increase in wagers per player on a quarter-on-quarter basis.
Rivalry added that its average monthly deposits per player were over 175% higher than the historical average in Q1 and increased a further 28% in Q2. Monthly deposit frequency per player was up 115% over the historical average in Q1 and increased an additional 22% in Q2.
Rivalry noted that its breakeven net revenue is now roughly $600,000 per month. While this figure is lower than previous results, it reflects the company’s significant transformation and cost optimization.
The Engine Is Rebuilt
Rivalry’s transformation began in 2024 as the company sought a strategic shift toward higher value users, deep cost rationalization, better products and excellent execution of the company’s strategy across every facet of the business. Q1 was the first quarter in which the company operated under this new model.
Among other things, Rivalry introduced significant Business Intelligence-powered improvements in VIP identification, segmentation and servicing. The company modernized its product, introduced proprietary BI tooling and deployed improved segmentation and CRM systems.
The result, according to CEO Steven Salz, is an operating model that is “not only lean and disciplined, but also high-leverage.”
This quarter marks the full emergence of Rivalry 2.0 – leaner, sharper, and structurally stronger. We’ve rebuilt the foundation of the business around high-efficiency acquisition, high-value users, and a proprietary product – and we’re already seeing the impact.
Steven Salz, CEO, Rivalry
According to Salz, Rivalry is now a new company that has been built for scalability.
Rivalry Hopes to Lower the Breakeven Point Further
The company stated that it is looking forward to H2 and has planned a variety of initiatives, including the deployment of a new promo engine, the introduction of new features and mechanics and improved CRM efforts.
The company is also looking forward to lowering the breakeven point and further increasing its flexibility.