Rivalry released preliminary key performance indicators (KPIs) and revenue data for the first quarter of 2025, highlighting the impact of its recent strategic transformation.
The quarter ended on March 31, 2025, marking the first full quarter under Rivalry's improved operational model. Despite facing temporary revenue challenges, signs of unit economic improvement were evident.
The Toronto-based operator reported that the betting amount for the first quarter of 2025 was CAD 58.2 million, with net revenue of CAD 1.3 million. This corresponds to a net revenue profit margin of 2.3%, significantly lower than the company's full-year net revenue profit margin of 4.4% in 2024.
According to Rivalry, this discrepancy is mainly attributed to short-term fluctuations in sports betting holdings, while the company's shift towards high-value and VIP player segments has exacerbated these fluctuations.
Despite lower-than-usual revenue figures, Rivalry's operational efficiency showed strong improvement, with net revenue generated per dollar of operating expenses increasing by over 400% compared to the average level before the transformation.
This efficiency gain was achieved after significant reductions in monthly operating expenses, which decreased by approximately USD 1.7 million over the past six months, including an additional cut of about USD 140,000 in early April 2025.
This strategic shift seems to have yielded positive results in user engagement metrics. Compared to data before October 2024, the average monthly deposit amount per player increased by 175%, and the monthly deposit frequency increased by 115%. Although the size of active users was smaller than previous peaks, total deposits in February increased by 36% month-over-month, and again by 12% in March.
Furthermore, in March 2025, the monthly betting amount per active user reached a new historical high, marking the fifth consecutive month of record-setting performance.
It is worth noting that these developments occurred after Rivalry announced a strategic review process, during which the company collaborated with XST Capital Group to explore options for maximizing long-term shareholder value.
Also, after standardizing for profit margin differences, total revenue and net revenue per active user in March reached historical highs, continuing the momentum of four consecutive months of growth in player monetization.
Active user growth has also resumed, and despite a significant reduction in marketing expenditures compared to the same period last year, the number of monthly active players in March increased by 9% following February.
Rivalry stated that based on normal profit margins, the net revenue for the first quarter of 2025 would cover about 75% of the current operating expense run rate, indicating progress in financial sustainability.
Rivalry's co-founder and CEO Steven Salz commented on these results: "The KPIs tell the real story—increased user value, increased efficiency, and player engagement at the highest levels in the company's history.
Even though the profit margin performance in the first quarter of 2025 was weak, the model still shows strong potential signals. As sports betting holdings normalize and our cost base becomes more streamlined, we believe we are moving in the right direction.
We have built a stronger, leaner, and more focused Rivalry. Our improved key performance indicators (KPIs) and stricter cost management have laid a healthier foundation for us. With continued operational momentum and a revitalized product, we believe we are on a promising path."
