Rivalry narrows losses and boosts player monetization in Q2 amid leaner operating model

Toronto-headquartered sports betting and media company Rivalry Corp. reported a considerably improved second quarter for 2025, highlighting the impact of its streamlined business structure implemented late last year.

The company posted a 62% reduction in operating expenses year-on-year, bringing them down to $3.6 million from $9.5 million in Q2 2024. Net loss for the quarter was $2.19 million, a 59% decrease from the $5.37 million loss recorded during the same period last year. Compared to the first quarter of 2025, losses also shrank from $2.99 million.

“We’ve rebuilt Rivalry into a lean, high-performance engine,” said Co-Founder and CEO Steven Salz. “Player monetisation is at an all-time high, the product is stronger than ever, and we’re doing more with less.”

Revenue gains were achieved despite flat marketing investment, with net revenue rising 24% over the previous quarter to reach $1.6 million. The increase was attributed to improved onboarding processes, segmentation strategies, and retention efforts that contributed to record levels in player monetization.

Net revenue per player jumped 49% from Q1 2025 and marked a 210% improvement compared to Q4 2024, prior to the company’s internal restructuring. In addition, wagers per customer were up 7% quarter-on-quarter and nearly 300% compared to historical averages. 

Average monthly deposits also rose by 28%, following a 175% spike in Q1, while deposit frequency increased by 22% after having climbed 115% in the prior quarter.

Across the first half of 2025, Rivalry’s Customer Acquisition Cost (CAC) payback period averaged just 1.5 months, indicating higher funnel conversion and retention rates even amid limited marketing expenditure. A breakdown of expenses revealed that some costs incurred in Q2 were non-recurring or external to core operations. These included audit-related charges, regulatory compliance fees, and legacy vendor payments. 

When adjusted, general and administrative (G&A) expenses stood at $1.7 million compared to the reported $2.5 million. Technology and Content costs came in at around $440,000, adjusted from a reported $854,000. The adjusted expense profile places Rivalry closer to its breakeven point, with monthly operating costs holding steady at roughly $600,000, in line with its first-quarter guidance.

Key focus areas moving into the second half of 2025 include resolving outstanding payables, sustaining controlled growth through cost-efficient marketing, and identifying further opportunities to reduce expenditures. Meanwhile, the company’s Strategic Review, announced earlier this year, is still underway. The process aims to determine the best options for maximizing shareholder value.