Rivalry Q1 2025: Monthly betting handle per user at all-time high, but net revenue down 71.1%
The company emphasizes that throughout this strategic redevelopment, it has reduced its monthly run rate operating expenses by approximately $1.7m.
Key Points
- Rivalry has pivoted the company to cater towards VIP players
- While this has resulted in a 71.1% decrease in net revenue, Rivalry remains hopeful this will grow in the long term
- The company has also applied for a Management Cease Trade Order over late audited financial statements
Rivalry has released its preliminary KPIs and some revenue figures for the Q1 2025 period.
The sportsbook and iGaming operator revealed that its betting handle in Q1 2025 was CA$58.2m (US$41.9m), which was “amplified by the company’s strategic pivot toward high-value and VIP players.”
However, looking back at the Q1 2024 reports, last year’s betting handle was $94.7m, which indicates a 38.5% decrease year-over-year.
Net revenue this quarter was $1.3m – which is a drop of 71.1% when compared to last year’s figures of $4.5m.
Finally, the net revenue margin this quarter was 2.3%, a far cry from the “highest in company history” 58.5% last year.
Steven Salz, Rivalry Co-Founder and CEO, said: “The KPIs are telling the real story – user value is up, efficiency is up and player engagement is the strongest we’ve seen in the company’s history. Even with soft margin outcomes in Q1 2025, the model is showing strong underlying signals.
“As sportsbook hold normalize and our cost base becomes leaner, we believe we’re moving in the right direction.”
Betting handle
Net revenue
As you may have noticed, figures from Q4 2024 are missing from this graph, and that is because Rivalry has yet to disclose them.
Good to know: This is the first quarter under Rivalry’s new operating model, which saw drastic changes made to product offerings, organisational structures, cost management and user acquisition strategies
The press release explained that: “Revenue in the quarter was lower than prior periods – a result of Rivalry’s deliberate shift to a leaner, more efficient model – creating a stronger foundation that the company is now building on.
“The shortfall also reflected temporary variance in sportsbook hold, amplified by a strategic focus on high-value and VIP players. The company believes that these segments drive significantly greater long-term value but can introduce short-term volatility as they scale.”
While that seemed to be the extent of the financial figures Rivalry was willing to share, it did also note some KPI highlights.
This includes a 400% operational efficiency, which means that the company generated 400% more net revenue per user per dollar of operating expense as compared to its average before the strategic overhaul.
Part of this strategic overhaul was focusing on VIP players, with this shift translating to average monthly deposits per player growing by 175% this Q1.
The average monthly deposit frequency per player also increased by 115%, while the monthly betting handle per user hit its all-time high in March 2025.
The monthly gross and net revenue per active use also reached record highs, extending a four-month streak of consistent revenue per active user growth.
Salz continued: “Our Q1 KPIs are delivering tangible results that validate our strategic shift.
“The structural changes we implemented over the past six months – from streamlining operations and refocusing the product, to modernising our platform and concentrating on high-value players – are now clearly reflected in our KPIs.
“We’re operating more efficiently than ever, generating significantly more revenue per user and moving closer to achieving sustainable profitability.”
However, two days ago, Rivalry also announced that it would be late in filing its audited financial statements and so it had filed for a Management Cease Trade Order, which would prohibit any member of management from trading in securities from the company until the financial documents were filed.
While the Ontario Securities Commission has made no decision yet on this order, the Annual Filings are not expected until 30 June, which leaves plenty of time.
This all relates to the strategic review that Rivalry published at the start of this month.
As explained in the documents: “The Company has determined that it is in the best interests of the Company to utilize its current management resources to advance the Strategic Review, resulting in a delay of completing the Annual Filings by the April 30, 2025 deadline.
“The Company is working on the preparation of the Annual Filings and expects to complete the Strategic Review and the Annual Filings by June 30, 2025.
“Until the Annual Filings are filed, the Company intends to satisfy the provisions of the Alternate Information Guidelines as set out in NP 12-203 for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a news release.”
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
