Rivalry narrows Q2 2025 losses and strengthens player economics

Toronto-based sports betting and media operator Rivalry has published its Q2 2025 results, showcasing the benefits of its leaner, high-efficiency business model.

The quarter – Rivalry’s second since implementing its restructured operating framework late last year – saw the company deliver record player monetisation alongside a sharp reduction in costs.

Operating expenses dropped 62% year-on-year to $3.6m (Q2 2024: $9.5m), while net loss was cut by 59% to $2.19m, compared to $5.37m in the same period last year. Sequentially, losses also narrowed from $2.99m in Q1 2025.

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

Stronger unit economics

Revenues continued to climb despite flat marketing expenditure, with net revenue up 24% quarter-on-quarter to $1.6m (Q1 2025: $1.3m).

The business also reported record-breaking player economics, supported by enhanced onboarding, segmentation and retention initiatives. Net revenue per player surged 49% against Q1 2025 and was 210% above Rivalry’s pre-rebuild average in Q4 2024.

Other player metrics also moved upwards: wagers per customer increased 7% sequentially and nearly 300% versus historical levels, while average monthly deposits rose 28% QoQ after a 175% increase in the prior quarter. Deposit frequency climbed 22% QoQ, building on a 115% uplift recorded in Q1.

Across H1 2025, Customer Acquisition Cost payback averaged just 1.5 months, reflecting improved funnel conversion and retention despite constrained spending.

Adjusted cost base

A portion of Q2’s reported expenses were one-off or non-operational, such as audit costs, regulatory fees, and legacy vendor payments. On an adjusted basis, G&A was $1.7m (reported: $2.5m), while Technology and Content expenses stood at approximately $440,000 (reported: $854,000).

This adjusted run-rate brings Rivalry structurally closer to breakeven, with monthly operating costs tracking at around $600,000 USD – consistent with Q1 guidance.

Founded in Toronto in 2017, Rivalry operates in Ontario – Canada’s only regulated multi-licence betting market – alongside Australia and various international grey jurisdictions under an Isle of Man licence.

The company has built its brand around esports wagering and has carved out a niche by targeting digitally native Gen Z and millennial audiences. Its marketing is often light-hearted, leaning on influencers and internet culture to drive engagement.

Strategic review continues

The firm’s previously announced Strategic Review remains ongoing, with the operator weighing potential pathways to maximise shareholder value.

Key priorities include resolving historical payables to normalise costs, maintaining its controlled growth strategy built on high marketing efficiency, and identifying additional savings for H2 2025.

“This Strategic Review is about enabling growth from a fundamentally stronger base,” Salz added. “We’ve rebuilt the engine. Now we’re focused on unlocking its full potential.”

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