In Q1 2025, the earnings of Rivalry witnessed a decline, while their losses narrowed down.
In a bid to enhance revenue and profitability, Rivalry Corporation has embarked on a strategic shift towards targeting high-value users, marking the beginning of what CEO Steven Salz calls "Rivalry 2.0."
The company reported a net loss of $2.2 million in Q1 2025, a 43% decrease year-over-year, and a net revenue of CA$1.3 million ($948.7K USD), a 71% drop from Q1 2024. However, these figures mask a more promising story, as Rivalry has made significant strides in reducing operating expenses and improving performance metrics.
Operating expenses were slashed by 58% in Q1 2025 compared to the same time last year, with much of the spending reduction including one-off items such as audits and regulatory fees. The company cut operating expenses to $2.9 million in Q1 2025, down from $6.5 million in Q1 2024.
Salz believes Rivalry is now operating with more discipline, and the company is indeed showing signs of stronger performance. Deposit frequency in Q1 was up 115%, followed by a further 22% rise in Q2. Player engagement in Q2 hit record levels for deposits, wagers, and deposit frequency. The company reportedly hit breakeven levels in Q2 at around $600,000.
Rivalry's strategic shift is not just about cost-cutting. The company has undergone a comprehensive product overhaul, introducing a crypto-first strategy, revamped registration and login processes, and enhanced VIP rewards programs. These changes are intended to improve user engagement and loyalty.
Looking ahead, Rivalry plans to reactivate geographic markets and enhance CRM systems to better engage high-value players. The company also intends to expand casino engagement features and deploy a new promotional system. Initiatives for the second half of 2025 include deploying a new promo engine for more dynamic bonus structures and enhancing casino-led engagement mechanics.
Rivalry is also actively exploring strategic alternatives to maximize shareholder value, including non-dilutive capital options. The company's long-term strategy is focused on leveraging its streamlined operations, advanced product offerings, and strategic initiatives to drive growth and maximize shareholder value.
With a sharper product, tighter team, and better metrics, Rivalry Corporation is setting itself up for a more efficient future. As Salz puts it, "2025 is a fresh chapter for Rivalry, and I am excited about what the future holds."
- The strategic shift undertaken by Rivalry Corporation, which includes a comprehensive product overhaul and focusing on high-value users, emphasizes a stronger focus on business and finance, as well as implementing technology-driven changes such as crypto-first strategy and improving CRM systems.
- In order to maximize shareholder value, Rivalry Corporation is actively exploring strategic alternatives, such as non-dilutive capital options, while leveraging its streamlined operations, advanced product offerings, and strategic initiatives in technology and business, with the aim of driving growth and profitability in the future.
