The sports betting and media company Rivalry Corp has cut operating expenses by a huge 62% year-over-year, its latest quarter report shows.
The brand is undergoing a ‘rebuilt, high-leverage model,’ with this being its second quarter under the new approach. The restructured business model was initiated in late 2024, with a focus on efficiency, improved player monetization, and deeper operational discipline.
“We’ve rebuilt Rivalry into a lean, high-performance engine,” said Steven Salz, Co-founder and CEO of Rivalry. “Player monetization is at all-time highs, the product is stronger than ever, and we’re doing more with less.”
In Q2 of 2025, net revenue increased 24% sequentially to CAD 1.6 million ($1.2 million) which is up from $1.3 million in Q1 of 2025 despite ‘a declining expense base and completely flat marketing spend.’
The operating expenses went down by 62% to CAD 3.6 million, down from CAD 9.5 million in Q2 2024. The average customer acquisition cost payback across H1 2025 was around 1.5 months which the company says reflects “improved funnel conversion, higher player value, and stronger retention – all achieved under constrained spend conditions.”
As for the run-rate monthly operating expenses, these remain approximately $600,000.
Rivalry Corp to continue strategic review and operational focus
The company’s previously announced evaluation of strategic alternatives remains ongoing, with the team continuing to explore a range of potential outcomes aimed at maximizing shareholder value.
“This Strategic Review is about enabling growth from a fundamentally stronger base,” said Salz. “We’ve rebuilt the engine. Now we’re focused on unlocking its full potential.”
The timing of the completion of the review hasn’t been shared, but three focuses have been highlighted. The first is “normalizing the cost base to the aforementioned run rate by resolving non-recurring liabilities and payables from prior periods.”
The second focus is activating a controlled growth strategy which will be supported by high marketing efficiency and a 1.5-month Customer Acquisition Cost payback average observed throughout 2025.
Thirdly, the company will be looking at targeted cost optimization, with additional reductions being assessed for H2 2025.
Featured Image: AI-generated via Ideogram
