Rivalry reports strong Q1 2025 KPI growth despite revenue challenges
While revenue for the quarter was down compared to previous periods, the company reports strong underlying metrics that suggest increasing operational efficiency and sustainability.
Key points:
– Rivalry’s Q1 2025 KPIs show strong growth in user value and engagement, despite lower overall revenue
– Operational costs have dropped by 65%, with a 400% increase in revenue per user per dollar of expense
– Player value metrics have significantly improved, with average monthly deposits up 175% and deposit frequency increasing 115% compared to pre-transformation figures
Rivalry has released preliminary key performance indicators (KPIs) and revenue figures for Q1 2025, highlighting the impact of its recent strategic transformation.
The quarter, which ended 31 March 2025, represents the first full period under Rivalry’s revamped operating model, revealing signs of improved unit economics despite temporary revenue challenges.
The Toronto-based operator reported a betting handle of $58.2m for Q1 2025, generating net revenue of $1.3m. This translated to a net revenue margin of 2.3%, notably below the company’s full-year 2024 net revenue margin of 4.4%.
According to Rivalry, this variance was primarily attributed to short-term fluctuations in sportsbook hold, amplified by the company’s shift toward high-value and VIP player segments.
Despite lower-than-usual revenue figures, Rivalry’s operational efficiency showed strong improvement, with the company generating over 400% more net revenue per user per dollar of operating expense compared to pre-transformation averages.
This efficiency boost comes after significant reductions in monthly run rate operating expenses, which have decreased by approximately $1.7m per month over the past six months, including additional cuts of approximately $140,000 implemented in early April 2025.
The strategic pivot appears to be yielding positive results in user engagement metrics. Average monthly deposits per player increased by 175% compared to pre-October 2024 figures, while monthly deposit frequency rose by 115%. Total deposits also grew 36% month-over-month in February and another 12% in March, despite a smaller active user base than in previous peak periods.
Additionally, monthly betting handle per active user reached an all-time high in March 2025, marking the fifth consecutive month of record engagement.
Good to know: These developments follow Rivalry’s announcement of a strategic review process, during which the company engaged XST Capital Group to explore options for maximising long-term stakeholder value
Similarly, both gross and net revenue per active user hit record levels in March when normalised for margin variance, extending a four-month streak of consistent growth in player monetisation.
Active user growth has also resumed, with monthly active players increasing by 9% in March following a similar increase in February, despite significantly reduced marketing expenditure compared to the same period last year.
On a normalised margin basis, Rivalry indicated that Q1 2025 net revenue would have covered approximately 75% of current run rate operating expenses, suggesting progress toward financial sustainability.
Commenting on these results, Steven Salz, Co-Founder and CEO of Rivalry, stated: “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 normalises and our cost base becomes leaner, we believe we’re moving in the right direction.
“We’ve built a stronger, leaner and more focused Rivalry. Our improved KPIs and disciplined cost management have created a healthier foundation. With continued operational momentum and a re-energised product, we believe we’re on a promising path forward.”
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