Rivalry Reports Q2 2025 Results Highlighting Record Unit Economics, Structural Efficiency, and Strategic Progress

Core Insights - Rivalry Corp. has reported significant improvements in its financial performance for Q2 2025, including a 62% reduction in operating expenses year-over-year and a 59% narrowing of net loss, indicating the effectiveness of its restructured business model initiated in late 2024 [1][2][7] Financial Performance - Net revenue for Q2 2025 increased by 24% sequentially to CAD 1.6 million, up from CAD 1.3 million in Q1 2025, despite a flat marketing spend [7] - Operating expenses decreased to CAD 3.6 million in Q2 2025 from CAD 9.5 million in Q2 2024, reflecting a substantial focus on cost reduction [7] - The net loss for Q2 2025 was CAD 2.19 million, down from CAD 5.37 million in Q2 2024 and improved from CAD 2.99 million in Q1 2025 [7] Player Economics - Record player monetization was achieved, with net revenue per player increasing by 49% quarter-over-quarter and 210% higher than the historical average prior to the Q4 2024 transformation [8] - Average monthly deposits per player rose by 28% quarter-over-quarter, following a 175% increase in Q1 from historical levels [8] Strategic Initiatives - The company is undergoing a Strategic Review to explore various potential outcomes aimed at maximizing shareholder value, with a focus on enabling growth from a fundamentally stronger base [9] - Rivalry is assessing targeted cost optimization strategies for H2 2025, with a run-rate monthly operating expense of approximately USD 600,000 [14] Operational Focus - The company has emphasized improved player onboarding, retention, and engagement, contributing to enhanced player segmentation and overall performance [5][6] - Adjusted General and Administration expenses were reported at CAD 1.7 million, compared to CAD 2.5 million, indicating effective cost management [7]