Rivalry Corp (RVLY) AI Stock Analysis

• Market Cap: C$5.82M
• Dividend Yield: N/A
• Average Volume (3M): 29.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -30.08%
• EPS Growth: 49.03%
• Country: CA
• Employees: 53
• Sector: Services
• Sector Strength: N/A
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.03
• Shares Outstanding: 87,268,940
• 10 Day Avg. Volume: 25,433
• 30 Day Avg. Volume: 29,285
• PEG Ratio: 0.05
• Price to Book (P/B): -0.84
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -1.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$0.05 ▲(6.00% Upside)

Rivalry Corp's overall stock score reflects significant financial challenges, with high leverage and ongoing losses being major concerns. However, recent corporate events show positive developments, including revenue growth and strategic initiatives to improve financial health. Technical indicators suggest cautious optimism, but valuation metrics highlight a high-risk profile.

Positive Factors

Innovative Business Model

Rivalry's focus on esports and online gaming positions it well in a growing industry, leveraging gamification and social interaction to attract a younger demographic.

Partnerships and Collaborations

Strategic partnerships enhance platform offerings and user base, providing a competitive edge and potential for revenue diversification.

High Gross Profit Margin

A high gross profit margin indicates effective cost management in core operations, allowing more flexibility in pricing and investment in growth initiatives.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in market penetration and customer retention, potentially impacting long-term sustainability and profitability.

High Leverage

High leverage and negative equity indicate financial instability, increasing risk of insolvency and limiting the company's ability to invest in growth.

Negative Cash Flow

Negative cash flow reflects inefficiencies in operations, limiting the company's ability to fund new initiatives and manage financial obligations effectively.

Rivalry Corp Business Overview & Revenue Model

Company Description

Rivalry Corp., through its subsidiary, Rivalry Limited, operates as a sport betting and sports media property that offers regulated online wagering on esports, traditional sports, and casino for bettors. It also offers Quest, an on-site engagement experience solution; and Rushlane, a casino game. The company was incorporated in 2016 and is headquartered in Toronto, Canada.

How the Company Makes Money

Rivalry Corp generates revenue primarily through its online betting operations, where users place wagers on esports and traditional sports events. The company earns money by taking a percentage of the total bets placed, known as the 'vig' or 'juice.' Additionally, Rivalry offers casino games, which also contribute to its revenue through a similar model of taking a portion of the wagers. The company has established partnerships with various esports organizations and gaming developers to enhance its platform offerings and attract a larger user base. Furthermore, Rivalry may also generate revenue through promotional partnerships and sponsorships within the esports ecosystem, providing additional income streams outside of direct betting operations.

Rivalry Corp Financial Statement Overview

Summary

Rivalry Corp is facing significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reveals high leverage and negative equity. Cash flow issues further exacerbate the company's financial difficulties. The overall financial health of Rivalry Corp is concerning, with risks of insolvency if current trends continue.

Income Statement

Rivalry Corp's income statement reveals significant challenges. The company has experienced a substantial decline in revenue, with a negative growth rate of -29.28% TTM. Profitability metrics are concerning, with negative net profit, EBIT, and EBITDA margins, indicating ongoing losses. The gross profit margin remains high at 100%, but this is overshadowed by the negative bottom-line figures. Overall, the income statement reflects a struggling financial performance with declining revenues and persistent losses.

Balance Sheet

The balance sheet of Rivalry Corp shows financial instability. The company has negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates that liabilities exceed assets, posing a risk to financial health. Return on equity is positive due to negative equity, but this is not a sign of strength. The equity ratio is also negative, further highlighting the company's precarious financial position. Overall, the balance sheet reflects high leverage and financial vulnerability.

Cash Flow

Rivalry Corp's cash flow statement indicates challenges in cash management. The company has negative operating and free cash flows, with a significant decline in free cash flow growth at -39.80% TTM. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income to cash. However, the free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported losses. Overall, the cash flow statement highlights cash management issues and ongoing financial strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.32M	13.55M	16.24M	9.81M	11.08M	1.55M
Gross Profit	7.32M	13.55M	16.24M	9.81M	2.19M	690.31K
EBITDA	-15.01M	-20.02M	-24.31M	-30.90M	-24.08M	-6.59M
Net Income	-17.02M	-22.41M	-23.80M	-31.12M	-24.30M	-6.90M
Balance Sheet
Total Assets	2.47M	4.09M	15.08M	18.06M	40.46M	7.62M
Cash, Cash Equivalents and Short-Term Investments	530.17K	1.57M	10.54M	12.19M	35.45M	620.16K
Total Debt	16.46M	12.22M	10.23M	484.99K	139.20K	320.64K
Total Liabilities	23.68M	20.88M	13.15M	3.36M	1.47M	814.62K
Stockholders Equity	-21.21M	-16.79M	-1.11M	14.70M	38.98M	6.81M
Cash Flow
Free Cash Flow	-6.05M	-12.18M	-21.55M	-21.39M	-10.93M	-12.06M
Operating Cash Flow	-6.02M	-12.04M	-21.48M	-21.28M	-10.87M	-12.03M
Investing Cash Flow	598.87K	-3.01K	-105.13K	-606.22K	-58.76K	-25.96K
Financing Cash Flow	3.21M	3.20M	20.64M	-124.39K	45.30M	9.31M

Rivalry Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.05 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GH	79 Outperform	C$241.95M	11.72	18.14%	5.13%	1.01%	6.68%
PBL	61 Neutral	C$545.68M	15.11	8.11%	1.03%	6.01%	-41.56%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RVLY	51 Neutral	C$5.82M	―	―	―	-30.08%	49.03%
RV	46 Neutral	C$1.59M	―	-113.59%	―	8.58%	61.56%
CGII	40 Underperform	$4.54M	-3.97	―	―	-25.05%	-19.86%

Rivalry Corp Corporate Events

Rivalry Corp Reports Strong Q3 2025 Results with Sustained Revenue Growth

Rivalry Corp reported its Q3 2025 financial results, highlighting a third consecutive quarter of revenue growth and significant reductions in operating expenses and net loss. The company has completed a debt restructure and recapitalization, positioning itself for a stronger entry into 2026. Key achievements include a 19% sequential increase in net revenue, a 58% reduction in operating expenses, and a 67% improvement in net loss year-over-year. The Ontario market has shown substantial growth, contributing nearly 40% of the company’s net revenue. Rivalry’s strategic focus on high-value users and product enhancements has led to record player economics and improved key performance indicators, underscoring its strengthened market position and operational efficiency.

Rivalry Corp. Extends Private Placement Closing Date to Bolster Growth

Rivalry Corp. has announced an extension of the closing date for its non-brokered private placement by 30 days, with the final tranche expected to be completed by December 15, 2025. The proceeds from this private placement are intended for corporate development and general working capital, reflecting the company’s strategic focus on growth and operational stability. This move is significant for Rivalry’s stakeholders as it underscores the company’s commitment to enhancing its market position and financial health in the competitive esports and online gambling industry.

Rivalry Corp. Completes Second Tranche of Private Placement

Rivalry Corp. announced the closure of the second tranche of its non-brokered private placement, raising C$1,380,000 through the issuance of 27,600,000 units. The funds will be used for corporate development and general working capital. The company plans additional closings and debt restructuring by October 24, 2025, which could impact its financial stability and market positioning.

Rivalry Corp. Secures Initial Funding in Private Placement, Plans Further Financial Moves

Rivalry Corp. has closed the first tranche of its non-brokered private placement, raising C$1,380,000 through the issuance of 27,600,000 units. Each unit includes one subordinate voting share and one share purchase warrant, with the proceeds intended for corporate development and general working capital. The company plans additional closings and a debt restructuring by October 24, 2025, which could impact its financial stability and strategic growth.

Rivalry Corp Announces Private Placement and Debt Restructuring

Rivalry Corp has announced a non-brokered private placement to raise up to C$5.52 million and a debt restructuring agreement with its senior lender. The private placement involves issuing units at C$0.05 each, with proceeds intended for corporate development and working capital. The debt restructuring will see the issuance of units to satisfy part of its indebtedness, with amendments to the terms of its secured debenture. This move will make the senior lender a control person of the company, requiring shareholder approval. The restructuring is expected to close around October 8, 2025, subject to necessary approvals.