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Rivalry Reports Q1 2025 Results Highlighting Strengthened Unit Economics, Operating Leverage, and Strategic Progress

Operating expenses reduced 58% YoY and net loss narrowed 43% as Rivalry emerges a lean, high-performance engine built for scale, with Q2 setting new records in key user metrics

TORONTO, July 14, 2025 (GLOBE NEWSWIRE) -- Rivalry Corp. (the 鈥淐ompany鈥� or 鈥淩ivalry鈥�) (TSXV: RVLY), an internationally regulated sports betting and media company, today announced financial results for the three-month period ended March 31, 2025 (鈥淨1 2025鈥�). All dollar figures are quoted in Canadian dollars unless otherwise noted.

Q1 2025 was the first full quarter operating under Rivalry鈥檚 restructured model, following a company-wide transformation that began in Q4 2024. This included a strategic shift toward high-value users, deep cost rationalization, significant product upgrades, and tighter execution across every layer of the business. The result is a streamlined, modernized operating model with materially improved performance and long-term leverage.

鈥淭his quarter marks the full emergence of Rivalry 2.0 - leaner, sharper, and structurally stronger,鈥� said Steven Salz, Co-Founder and CEO of Rivalry. 鈥淲e鈥檝e rebuilt the foundation of the business around high-efficiency acquisition, high-value users, and a proprietary product - and we鈥檙e already seeing the impact. Rivalry today is not just a leaner version of itself - it鈥檚 a fundamentally different company built for scalability.鈥�

Key Highlights

• Net revenue of $1.3 million, consistent with the preliminary results announced on April 16, 2025. While temporary sportsbook margin variance impacted topline outcomes, underlying KPIs continued to improve and validate the strength of Rivalry鈥檚 rebuilt model.

• Operating expenses decreased 58% year-over-year to $4 million in Q1 2025, down from $9.6 million in Q1 2024.

• Net loss reduced by 43% to $3.0 million in Q1 2025 from $5.2 million in the prior-year quarter.

• A meaningful portion of Q1 expenses were non-recurring or non-operational in nature, including annual audit costs, regulatory fees, and legacy payables from prior periods. The Company鈥檚 adjusted marketing spend during the quarter was approximately $175,000, materially lower than the reported figure due to these factors.

• Average Customer Acquisition Cost payback across H1 2025 was approximately 1.5 months, reflecting improved funnel conversion, higher player value, and stronger retention - all achieved under constrained spend conditions.

• Q2 2025 set new all-time records across key user economics¹:
  
  
  • Net revenue per player increased 49% versus Q1 2025, and was 210% higher than the historical average prior to the Q4 2024 transformation.
    
  • Wagers per player rose 7% quarter-over-quarter, and nearly 300% above the pre-rebuild average.
    
  • Average monthly deposits per player in Q1 2025 were over 175% higher than the historical average. In Q2 2025, this increased a further 28%.
    
  • Monthly deposit frequency per player in Q1 2025 was up 115% over the historical average, and rose another 22% in Q2 2025.

• Ongoing improvements in VIP identification, segmentation, and servicing, driven by Rivalry鈥檚 proprietary Business Intelligence (鈥淏I鈥�) tools and Customer Relationship Management (鈥淐RM鈥�) infrastructure, further contributed to gains in deposit behavior and overall player value.
  

These improvements reflect the effectiveness of Rivalry鈥檚 strategic overhaul - including product modernization, in-house BI tooling, optimized segmentation, and CRM systems that support higher-value customer behavior and lifecycle retention.

Streamlined Operations

Rivalry鈥檚 breakeven net revenue is now approximately $600,000 USD per month, down from more than $2 million USD per month a year ago, based on current run rate operating expenses, with further cost optimizations planned in Q3 2025. The rebuilt business is operating on a structurally lower fixed-cost base with proven user economics and performance-ready infrastructure.

鈥淲e鈥檝e created an operating model that is not only lean and disciplined, but also high-leverage,鈥� Salz added. 鈥淭his is a structurally better business than it was a year ago. The team is tighter, the product is stronger, and the KPIs are outperforming - all with limited capital deployment. The engine is rebuilt.鈥�

Strategic Review & Outlook

Rivalry is actively exploring strategic alternatives aimed at maximizing shareholder value. As part of this ongoing process, the Company is also evaluating non-dilutive capital options as part of broader strategic initiatives to accelerate growth. These are intended to complement the broader review and enable Rivalry to fully capitalize on the performance capacity of its rebuilt model.

As the Company progresses into H2 2025, key initiatives include:

• Deployment of a new promo engine, enabling more dynamic and cost-efficient bonus structures.

• Casino-led engagement mechanics, including lootboxes, missions, and summer campaigns to drive offseason activation.

• Geographic reactivations and enhanced CRM, focused on high-value player segmentation and deeper lifecycle engagement.

• Further operating cost reductions in Q3 2025, aimed at lowering the breakeven point and increasing flexibility.
  

Rivalry鈥檚 transformation over the past three quarters has positioned the business with a distinct set of structural advantages: a deeply aligned and experienced team, proprietary technology and BI systems, strong regulatory licenses in Ontario and the Isle of Man, and a globally recognized brand with demonstrated reach. These strengths now form the basis of a highly scalable and differentiated operator in the global online gambling market.

鈥淩ivalry today is a high-performance engine - structurally rebuilt, road-tested, and positioned to scale,鈥� said Salz. 鈥淲e鈥檙e focused on unlocking the next chapter of growth, and the strategic review process is designed to support that path.鈥�

About Rivalry

Rivalry Corp. wholly owns and operates , a leading sport betting and media company offering fully regulated online wagering on esports, traditional sports, and casino for the digital generation. Based in Toronto, Rivalry operates a global team in more than 20 countries and growing. Rivalry Limited has held an Isle of Man license since 2018, considered one of the premier online gambling jurisdictions, as well as an internet gaming registration in Ontario, and is currently in the process of obtaining additional country licenses. With world class creative execution and brand positioning in online culture, a native crypto token, and demonstrated market leadership among digital-first users Rivalry is shaping the future of online gambling for a generation born on the internet.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Company Contact:
Steven Salz, Co-founder & CEO
[email protected]

Investor Contact:

Financial Outlook

This news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for key user economics for the three month period ending June 30, 2025 and may not be appropriate for any other purpose. Preliminary and unaudited financial results are subject to customary financial statement procedures. Actual results could be affected by subsequent events or determinations. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading 鈥淐autionary Note Regarding Forward-Looking Information and Statements鈥�. The actual results of the Company鈥檚 operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Cautionary Note Regarding Forward- Looking Information and Statements", it should not be relied on as necessarily indicative of future results.

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (鈥渇orward-looking statements鈥�). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as 鈥渁nticipate鈥�, 鈥渁chieve鈥�, 鈥渃ould鈥�, 鈥渂elieve鈥�, 鈥減lan鈥�, 鈥渋ntend鈥�, 鈥渙bjective鈥�, 鈥渃ontinuous鈥�, 鈥渙ngoing鈥�, 鈥渆stimate鈥�, 鈥渙utlook鈥�, 鈥渆xpect鈥�, 鈥減roject鈥� and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions 鈥渕ay鈥� or 鈥渨ill鈥� occur. These statements are only predictions. Forward-looking statements in this news release include, but are not limited to, the impact of the Company鈥檚 strategic overhaul across its cost base, product, player strategy, and operational structure on its operating results, key user economics for the three months ending June 30, 2025 and the results of the Company鈥檚 ongoing strategic review.

Forward-looking statements are based on the opinions and estimates of management of the Company at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company鈥檚 actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include regulatory or political change such as changes in applicable laws and regulations; the ability to obtain and maintain required licenses; the esports and sports betting industry being a heavily regulated industry; the complex and evolving regulatory environment for the online gaming and online gambling industry; the success of esports and other betting products are not guaranteed; changes in public perception of the esports and online gambling industry; failure to retain or add customers; the Company having a limited operating history; negative cash flow from operations and the Company鈥檚 ability to operate as a going concern; operational risks; cybersecurity risks; reliance on management; reliance on third parties and third-party networks; exchange rate risks; risks related to cryptocurrency transactions; risk of intellectual property infringement or invalid claims; the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and general economic, market and business conditions. For additional risks, please see the Company鈥檚 management鈥檚 discussion and analysis for the 12 months ended December 31, 2024 under the heading 鈥淩isk Factors鈥�, and other disclosure documents available on the Company鈥檚 SEDAR+ profile at .

No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

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¹ These preliminary user economics represent forward-looking information. See 鈥淐autionary Note Regarding Forward-Looking Information and Statements鈥� and 鈥淔inancial Outlook鈥�.