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Rivalry implementing ‘substantial cost reductions’ amid performance volatility

The operator stated it is currently assessing a ‘range of potential alternatives,’ such as asset-level transactions, corporate transactions and restructuring initiatives.

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Rivalry implementing ‘substantial cost reductions’ amid performance volatility
Key Points
The cost reductions will include a ‘significant’ reduction in Rivalry’s workforce as well as reduced operating expenditures
Rivalry stated there can be ‘no assurance’ that potential strategic alternatives will be completed or if operations will continue in current form

Following recent performance volatility for Rivalry Corporation, the operator will immediately begin implementing “substantial cost reductions” across its operating activity, including a “significant” reduction in workforce and reduced operating expenditures. 

Rivalry is also currently engaged with third party companies regarding potential transactions, but has decided to materially reduce its scale of operations while assessing if a strategic transaction or fellow alternative can be advanced. 

The operator has paused player activity across its gaming platform and has begun facilitating player withdrawals “in the ordinary course.”

Rivalry will also assess multiple strategic alternatives while reducing operations, such as asset-level transactions, corporate transactions, restructuring initiatives or other strategic outcomes. 

Due to the anticipated reduction in operations and its ongoing evaluation process, Rivalry stated there can be “no assurance” as to whether any strategic alternative will be completed or if operations will be carried out in its current form. 

The decision may come as a surprise to the industry, given the operator most recently produced a net revenue of CA$1.9m (US$1.4m) during Q3 2025, equating to an increase of 19% year-over-year. 

Rivalry managed to improve its net loss for Q3 2025 by 67%, having generated a loss of just under $2m for the period.

The operator's regulated market in Ontario produced its highest grossing quarter across all core key performance indicators, accounting for nearly 40% of Rivalry's total revenue after representing less than 20% of profits during the prior year period.

The positive Q3 2025 results were said to reflect the "ongoing impact" of Rivalry's operating model having been rebuilt during the fourth quarter of 2024, as well as emphasize high-value users, structured acquisition, improved product performance and enhanced consumer retention.

Good to know

Rivalry provided an update on its projected performance in Ontario for Q4 2025 in December, as the operator expects to hit new quarterly highs in gross revenue, handle and net revenue across the province

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