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Rivalry Corp (TSE:RVLY)
:RVLY
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Rivalry Corp (RVLY) AI Stock Analysis

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TSE:RVLY

Rivalry Corp

(RVLY)

Rating:45Neutral
Price Target:
C$0.00
▼(-100.00% Downside)
Rivalry Corp's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. While strategic realignment and positive corporate events offer some optimism, the stock's bearish technical indicators and poor valuation metrics weigh heavily on its attractiveness.
Positive Factors
Revenue Growth
Average net revenue per user has reached a record high, up 51% compared to the 2024 average, and up 70% from the trailing 3-year average.
User Engagement
RVLY's crypto/token users exhibit 2x+ the value of non-crypto users and 30% higher retention rates.
Negative Factors
Financial Performance
RVLY reported lower-than-expected 3Q24 results as the company prioritized significant cost reductions and accelerated its strategic realignment.

Rivalry Corp (RVLY) vs. iShares MSCI Canada ETF (EWC)

Rivalry Corp Business Overview & Revenue Model

Company DescriptionRivalry Corp (RVLY) is a Canadian-based online gambling and entertainment company focused primarily on esports and sports betting. The company operates a platform that offers betting opportunities on various esports events, traditional sports, and casino games, catering to a growing demographic of young, tech-savvy consumers. With a commitment to providing a user-friendly interface and engaging content, Rivalry aims to enhance the betting experience through innovative features and community-driven initiatives.
How the Company Makes MoneyRivalry Corp generates revenue primarily through its online betting platform, which allows users to place wagers on esports and traditional sports events. The company's main revenue streams include betting margins from winning and losing bets, as well as commissions from casino games offered on its platform. Additionally, Rivalry may engage in promotional partnerships with game publishers and esports organizations to enhance its visibility and attract new users. The company's focus on the esports market, along with its targeted marketing strategies, has positioned it to capitalize on the growing popularity of online gaming and betting, contributing to its overall earnings.

Rivalry Corp Earnings Call Summary

Earnings Call Date:Jul 14, 2025
(Q3-2024)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in product offerings and operational efficiency, with record increases in net revenue per user and successful cost reductions. However, these achievements were tempered by a decrease in betting handle and a slight increase in net loss. The positive developments in the crypto segment and successful capital raise indicate a strong foundation for future growth.
Q3-2024 Updates
Positive Updates
Record Increase in Net Revenue Per User
Average net revenue per user hit all-time records, increasing by 51% compared to the 2024 year-to-date average and by 70% compared to the trailing 3-year average.
Successful Product Overhaul
Completed the largest product overhaul in Rivalry's history, including a revamped registration flow, sportsbook, new crypto-first cashier, redesigned casino offering, and a comprehensive VIP rewards program.
Cost Reduction and Efficiency Improvements
Reduced operating expenses by approximately 50% and achieved a more robust and higher output organization with measurable output climbing over 200%.
Positive Developments in Crypto Segment
Rivalry's native crypto token, NUTZ, generated $3 million in deferred revenue in Q3, signaling positive market reception among target audiences.
Successful Capital Raise
Closed the second tranche of a non-broker private placement, raising $3 million, strengthening the balance sheet and supporting the trajectory to profitability.
Negative Updates
Decrease in Betting Handle
Betting handle was $79.9 million in the third quarter, representing a 9% sequential decrease from quarter 2 of 2024, primarily due to a reduction in marketing expenses.
Net Loss Increase
Net loss of $5.8 million, representing a small increase of $0.2 million from quarter 3 of 2023.
Decline in 9-Month Net Revenue
The 9-month ended net revenue was $12.1 million, down 8% from the comparable period in 2023, attributed to a reduction in marketing spend.
Company Guidance
During the Q3 2024 earnings call for Rivalry Corp (RVLY.V), significant guidance was provided on the company's strategic realignment and financial performance. The executives highlighted a dramatic reduction in operating expenses by approximately 50% and a substantial organizational overhaul, including a 50% reduction in headcount. The company completed a major product overhaul within 90 days, featuring a revamped registration flow, sportsbook, and a new crypto-first cashier, which contributed to a 51% increase in average net revenue per user compared to the 2024 year-to-date average. Additionally, Rivalry's native crypto token, NUTZ, generated $3 million in deferred revenue during Q3. The company also reported a 9% sequential decrease in betting handle to $79.9 million and adjusted revenue of $6 million, including the deferred revenue from NUTZ. These efforts align with Rivalry's aim to capture crypto gambling market share and achieve near-term profitability.

Rivalry Corp Financial Statement Overview

Summary
Rivalry Corp faces significant financial challenges with persistent losses, high leverage, and negative cash flows. While there is some revenue growth, the company struggles with cost management and profitability. The negative equity and high debt levels increase financial risk, suggesting the need for strategic shifts to improve financial health and operational efficiencies.
Income Statement
30
Negative
Rivalry Corp shows a concerning financial trajectory with negative profit margins across multiple years. The TTM gross profit margin is positive at 68.5%, but the net profit margin is negative at -115.1%, indicating high costs relative to revenues. Revenue growth from 2023 to TTM was 34.1%, which is positive, but previous years have shown inconsistency. The persistent negative EBIT and EBITDA margins reflect operational inefficiencies, suggesting a challenging path to profitability.
Balance Sheet
20
Very Negative
The balance sheet reveals significant risks with a negative equity position in the TTM, exposing the company to financial instability. The debt-to-equity ratio is not meaningful due to negative equity, indicating high leverage. A negative return on equity further underscores financial challenges. While the cash position has decreased significantly, liabilities have increased, straining financial health.
Cash Flow
25
Negative
Cash flow analysis shows continuous negative operating and free cash flow, indicating sustainability issues. The operating cash flow to net income and free cash flow to net income ratios are negative, pointing to cash flow inefficiencies. While there was a slight reduction in free cash flow deficit from 2023 to TTM, overall cash management remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.35M13.55M16.24M26.63M11.08M1.55M
Gross Profit10.35M13.55M16.24M9.81M2.19M690.31K
EBITDA-17.79M-20.02M-24.31M-30.90M-24.08M-6.59M
Net Income-20.19M-22.41M-23.80M-31.12M-24.72M-6.90M
Balance Sheet
Total Assets2.77M4.09M15.08M18.06M40.46M7.62M
Cash, Cash Equivalents and Short-Term Investments687.38K1.57M10.54M12.19M35.45M620.16K
Total Debt13.65M12.22M10.23M484.99K139.20K320.64K
Total Liabilities22.08M20.88M13.15M3.36M1.47M814.62K
Stockholders Equity-19.31M-16.79M-1.11M14.70M38.98M6.81M
Cash Flow
Free Cash Flow-10.06M-12.18M-21.55M-21.39M-10.93M-12.06M
Operating Cash Flow-9.94M-12.04M-21.48M-21.28M-10.87M-12.03M
Investing Cash Flow531.60K-3.01K-105.13K-606.22K-58.76K-25.96K
Financing Cash Flow3.20M3.20M20.64M-124.39K45.30M9.31M

Rivalry Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.04
Negative
100DMA
0.05
Negative
200DMA
0.10
Negative
Market Momentum
MACD
<0.01
Positive
RSI
39.16
Neutral
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RVLY, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.04, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RVLY.

Rivalry Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$573.83M14.3512.45%0.94%11.03%18.83%
72
Outperform
C$236.78M11.9117.99%5.00%-1.19%-2.42%
54
Neutral
C$45.05M57.8815.08%4.47%1.42%-15.68%
46
Neutral
C$2.50M-144.49%1.03%53.12%
45
Neutral
C$3.58M
-36.88%24.59%
40
Underperform
C$4.76M95.90%-4.66%28.51%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RVLY
Rivalry Corp
0.04
-0.24
-85.71%
TSE:PBL
Pollard Banknote
21.38
2.75
14.76%
TSE:GH
Gamehost
11.41
1.31
12.97%
TSE:CGII
CleanGo Innovations
0.80
0.30
60.00%
TSE:RV
Pathfinder Ventures Inc
0.06
-0.02
-25.00%

Rivalry Corp Corporate Events

Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Rivalry Corp Resumes Trading as Cease Trade Order Revoked
Positive
Jul 17, 2025

Rivalry Corp announced that the Ontario Securities Commission has revoked the management cease trade order, allowing management to resume trading the company’s securities. This follows the successful filing of its annual and interim financial statements, marking a significant step in maintaining transparency and operational stability, which could enhance its industry positioning and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
Rivalry Corp’s Q1 2025 Results Showcase Strategic Transformation and Growth
Positive
Jul 14, 2025

Rivalry Corp reported significant improvements in Q1 2025, with a 58% reduction in operating expenses and a 43% decrease in net loss, indicating a successful transformation into a leaner and more efficient company. The strategic overhaul has led to record-setting user metrics and improved unit economics, positioning Rivalry for future growth and shareholder value maximization.

Business Operations and StrategyFinancial Disclosures
Rivalry Corp’s Strategic Turnaround Shows Positive Impact in 2025
Positive
Jul 2, 2025

Rivalry Corp reported its financial results for the fiscal year 2024, highlighting a strategic turnaround that has begun to show positive impacts in 2025. The company reduced operating expenses by 17% and narrowed its net loss, positioning itself for a leaner and more financially disciplined 2025. Key initiatives such as restructuring the VIP program, expanding casino products, and upgrading platform infrastructure have driven improvements in key performance indicators, including record levels of net revenue per active user and increased deposit growth. The company continues to focus on increasing player value and tightening operational efficiency to accelerate revenue growth.

Financial DisclosuresRegulatory Filings and Compliance
Rivalry Corp. Updates on Management Cease Trade Order Amid Filing Delays
Negative
Jun 18, 2025

Rivalry Corp. has provided an update on the management cease trade order (MCTO) issued by the Ontario Securities Commission due to delays in filing its annual financial statements. The company expects to complete these filings by June 30, 2025, and its Q1 filings by July 14, 2025. The MCTO will remain until these requirements are met, impacting the company’s regulatory compliance status.

Delistings and Listing ChangesRegulatory Filings and Compliance
Rivalry Corp. Updates on Management Cease Trade Order and Filing Delays
Negative
Jun 13, 2025

Rivalry Corp. has provided an update on its management cease trade order, initially granted due to a delay in filing its annual financial statements for the fiscal year ending December 31, 2024. The company expects to complete these filings by June 30, 2025, and there have been no material changes since the initial announcement. The cease trade order will remain until Rivalry meets its filing requirements, impacting its operational compliance and potentially affecting investor confidence.

Private Placements and FinancingFinancial DisclosuresRegulatory Filings and Compliance
Rivalry Corp. Updates on Financial Filings and Secures Strategic Loan
Neutral
May 30, 2025

Rivalry Corp. has announced a delay in filing its annual financial statements due to a management cease trade order issued by the Ontario Securities Commission. The company expects to complete these filings by June 30, 2025. Additionally, Rivalry has secured a US$650,000 loan to support its ongoing strategic review process, providing financial flexibility to pursue initiatives aimed at maximizing long-term stakeholder value.

The most recent analyst rating on (TSE:RVLY) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Rivalry Corp stock, see the TSE:RVLY Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
Rivalry Corp. Updates on Management Cease Trade Order Amid Filing Delays
Neutral
May 16, 2025

Rivalry Corp. has provided an update on the management cease trade order (MCTO) issued by the Ontario Securities Commission due to a delay in filing its annual financial documents for the fiscal year ended December 31, 2024. The company expects to complete these filings by June 30, 2025, and there have been no material changes since the initial announcement. The MCTO will remain in effect until Rivalry fulfills its filing obligations, with no anticipated additional defaults. This situation highlights the company’s current regulatory challenges but also underscores its commitment to compliance and transparency.

The most recent analyst rating on (TSE:RVLY) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Rivalry Corp stock, see the TSE:RVLY Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 12, 2025