Core Viewpoint - RYVYL Inc. has successfully completed a debt-to-equity conversion, enhancing its balance sheet and reducing potential dilution for shareholders [1][2]. Group 1: Financial Restructuring - The securityholder of RYVYL's remaining 8% Senior Convertible Note converted the entire outstanding principal balance of $4.0 million and accrued interest of $136,000 into 7.1 million shares of common stock [1]. - The company redeemed its Series B Convertible Preferred Stock with a liquidation value of $53.1 million and $14.3 million of the Note for a payment of $13.0 million, avoiding over 90 million shares of potential dilution [2]. Group 2: Company Overview - RYVYL Inc. is an innovator in payment transaction solutions, focusing on electronic payment technology for various international markets [3]. - The company has developed applications that provide an end-to-end suite of financial products, emphasizing enhanced security, data privacy, and rapid settlement speeds [3].

Core Viewpoint - RYVYL Inc. has received an extension from Nasdaq to regain compliance with its listing requirements after reporting negative stockholders' equity [1][2][3] Group 1: Compliance and Financial Status - RYVYL reported stockholders' equity of negative $1.5 million as of December 31, 2024, which led to non-compliance with Nasdaq's minimum requirement of $2.5 million [2] - Nasdaq accepted RYVYL's compliance plan and granted an extension until October 6, 2025, to demonstrate compliance with the listing requirement [3] Group 2: Company Overview - RYVYL Inc. is an innovator in payment transaction solutions, focusing on electronic payment technology for various international markets [4] - The company, founded in 2017 as GreenBox POS, offers an end-to-end suite of financial products with enhanced security, data privacy, and rapid settlement capabilities [4]

Financial Performance - Revenue for Q1 2025 was $15,133,000, a decrease of 9.8% compared to $16,774,000 in Q1 2024[11] - Gross profit for Q1 2025 was $6,715,000, down from $7,031,000 in Q1 2024, reflecting a gross margin of 44.4%[11] - Net loss for Q1 2025 was $2,756,000, compared to a net loss of $2,689,000 in Q1 2024, indicating a slight increase in losses[11] - For the three months ended March 31, 2025, total revenue was $15,133,000, a decrease of 9.6% compared to $16,774,000 for the same period in 2024[147] - The gross profit for the same period was $6,715,000, down from $7,031,000, reflecting a decline of 4.5% year-over-year[147] - The company incurred a net loss of $2,273,000 for the three months ended March 31, 2025, compared to a loss of $2,499,000 for the same period in 2024[147] - The company had an accumulated deficit of $182,200,000 as of March 31, 2025, following a net loss of $2,800,000 for the three months ended[163] Operating Expenses and Cash Flow - Total operating expenses decreased to $7,563,000 in Q1 2025 from $8,937,000 in Q1 2024, a reduction of 15.4%[11] - Cash used in operating activities for Q1 2025 was $(15,581,000), compared to cash provided by operating activities of $15,525,000 in Q1 2024[17] - Operating expenses totaled $7.6 million, down 15.4% from $8.9 million in the previous year, with significant reductions in research and development expenses by 67.8%[181] - The company's consolidated working capital was negative $24.1 million as of March 31, 2025, with cash of $3.0 million and restricted cash of $74.5 million[188] - Net cash used in operating activities was $15.6 million for Q1 2025, compared to $15.5 million provided in Q1 2024, primarily driven by the timing of asset and liability settlements[191] Assets and Liabilities - Cash and restricted cash at the end of Q1 2025 totaled $77,490,000, down from $88,816,000 at the end of Q1 2024[17] - Total current assets decreased to $79,835,000 as of March 31, 2025, from $95,384,000 as of December 31, 2024, a decline of 16.3%[10] - Total liabilities decreased to $111,155,000 as of March 31, 2025, from $123,768,000 as of December 31, 2024, a reduction of 10%[10] - The Company has a long-term debt of $4.594 million as of March 31, 2025, compared to $17.363 million as of December 31, 2024[75] - The Company recorded $1.1 million of interest expense related to the note payable for the three months ended March 31, 2025[72] Business Operations and Strategy - RYVYL transitioned its QuickCard product from a terminal-based to an app-based processing model in early 2024, but later determined it was not viable for certain high-risk business verticals, leading to the termination of the app-based rollout[22][23] - The company began offering a licensing model for its QuickCard platform in Q3 2024 to serve its previous customer base through partners with better compliance capabilities, although no active licensing agreements are currently in place[23] - Management expects the recovery of lost revenues from the discontinuation of QuickCard to take longer than initially anticipated due to an uncertain business environment in the U.S.[24] - The discontinuation of QuickCard has negatively impacted the company's liquidity in North America, with management indicating that cash balances will not be sufficient to fund operations beyond June 30, 2025, unless additional capital is raised[25][26] - RYVYL is actively pursuing capital raising through private and public equity offerings and debt financings, with discussions ongoing with multiple banks[31] - The company is focusing on accelerated business development efforts to drive volumes in diversified business verticals, including the recently launched licensing of its payments processing platform[31] Legal Proceedings - The company is involved in ongoing legal proceedings, including a putative class action lawsuit alleging violations of the Securities Act and Exchange Act, with claims spanning from January 29, 2021, to January 20, 2023[142] - The company is cooperating with an SEC investigation regarding possible violations of federal securities laws, particularly concerning disclosures related to its blockchain technology and QuickCard product[143] - The company has reached an agreement in principle to settle claims in a shareholder derivative lawsuit, pending documentation and court approval[144] - The Company faces ongoing shareholder derivative complaints alleging failure to implement adequate internal controls and overpayment misconduct, with a settlement agreement reached in principle on May 8, 2025[206] Stock and Equity - The company issued 15,760 shares of common stock under equity incentive plans, resulting in an increase in additional paid-in capital to $179,222,000[13] - The Company has a full valuation allowance on its deferred tax assets as of March 31, 2025, indicating that it does not expect to realize these assets[57] - The 2023 Equity Incentive Plan allows for the grant of up to 5,098,262 shares of common stock, replacing previous incentive plans[131] - As of March 31, 2025, the outstanding stock options totaled 573,127 shares, with an average exercise price of $4.25[132] - The Company issued 6,000 shares of Series A Preferred Stock for $4.3 million and 55,000 shares of Series B Preferred Stock for $3.0 million, in exchange for $60.3 million of outstanding principal balance[122] Future Outlook - The company expects to incur a loss of at least $6,000,000 upon the closing of the pre-funded sale of its subsidiary, Ryvyl EU, which is expected to occur in Q2 2025[152] - The company has until May 23, 2025, to provide Nasdaq with a plan to regain compliance with listing requirements[148] - The company anticipates that its cash balance will only be sufficient to fund operations through approximately June 30, 2025, unless additional capital is raised[164]

Core Viewpoint - RYVYL Inc. has ceased discussions regarding the restructuring of the pre-funded asset sale of its RYVYL EU subsidiary, indicating that the buyer is expected to finalize the sale soon [1] Company Overview - RYVYL Inc. is a leading innovator in payment transaction solutions, focusing on electronic payment technology for international markets [2] - The company was founded in 2017 as GreenBox POS and has developed a suite of turnkey financial products that emphasize security, data privacy, and rapid settlement [2] - RYVYL's platform is capable of logging large volumes of immutable transactional records at internet speed for various partners, merchants, and consumers globally [2]

Core Viewpoint - RYVYL Inc. is negotiating to potentially restructure the terms of its pre-funded asset sale of its EU subsidiary, with a standstill period agreed until May 6, 2025, and a possible extension until May 27, 2025, contingent on a payment of $750,000 [1][2]. Group 1: Company Overview - RYVYL Inc. is a leading innovator in payment transaction solutions, focusing on electronic payment technology for international markets [3]. - The company was founded in 2017 as GreenBox POS and has developed a suite of financial products that emphasize security, data privacy, and rapid transaction settlement [3]. - RYVYL's platform can handle large volumes of immutable transactional records at high speeds, catering to various partners, merchants, and consumers globally [3]. Group 2: Financial Agreements - On January 24, 2025, RYVYL entered into a $15 million agreement structured as a pre-funded asset sale, with a 90-day closing period that could be terminated by a payment of $16.5 million before April 23, 2025 [2]. - The shares of the RYVYL EU subsidiary will remain in escrow during the ongoing standstill period [2].

Core Insights - RYVYL Inc. is rapidly onboarding new accounts through its digital banking partnerships, achieving over 10,000 accounts with an average of 1,000 new accounts per day [1][6] - The company anticipates onboarding 900,000 new customer accounts within the next 12 months through its second digital banking partner [2][3] - RYVYL's financial guidance for 2025 is based on retaining its RYVYL EU subsidiary and successfully terminating a pre-funded asset sale agreement [3] Company Developments - The first contract with a financial services provider is projected to exceed 50,000 active accounts in 2025 [2] - RYVYL has processed more than €10 million in transaction volume [6] - The company emphasizes its PaaS platform's value in accelerating growth and providing seamless onboarding and compliance expertise [3] Market Position - RYVYL Inc. is positioned as a leading innovator in payment transaction solutions, leveraging electronic payment technology for diverse international markets [4] - The company has developed an end-to-end suite of financial products that enhance security, data privacy, and speed to settlement [4]

Core Insights - RYVYL Inc. has reiterated its 2025 revenue guidance of $80 million to $90 million with a mid-40s percentage gross margin [1][3] - The company reported a significant increase in international revenue for 2024, reaching $37.8 million, which is a 124% increase compared to 2023 [2][21] - The company is actively onboarding new clients across multiple jurisdictions, enhancing its market presence and positioning for growth in 2025 [2][12] Business Overview and Competitive Position - RYVYL's competitive strengths include a unique value proposition and strategic focus that differentiate it in the fintech space [4][5] - The company is well-positioned to capitalize on the global shift towards credit cards, mobile wallets, and real-time payment platforms [4][5] - RYVYL serves nearly 1,500 business customers across 50 industries, targeting high-margin segments often overlooked by traditional processors [8][9] Technological Innovation - RYVYL is at the forefront of technological innovation, integrating various payment systems into a cohesive digital platform [7][10] - The company is enhancing its dual-sided payment platform to accommodate emerging use cases in acquiring, disbursements, and embedded finance [6][10] - RYVYL's advanced payment technology supports quick and compliant onboarding, crucial for digital banks [17] Financial Performance - For Q4 2024, RYVYL reported revenue of $14.1 million, down from $22.2 million in Q4 2023, with a gross margin of 38.2%, up from 35.0% [21][19] - The total revenue for 2024 was $56.0 million, a decrease from $65.9 million in 2023, with a notable reduction in cost of revenue [21][20] - The company reported a net loss of $26.8 million for 2024, compared to a net loss of $53.1 million in 2023 [25][31] Recent Developments - RYVYL completed key steps in its capital structure strategy, reducing potential dilution and improving financial flexibility [14] - The company has launched new services, including Visa Direct in 16 countries and co-branded debit cards in the EU [15] - RYVYL has secured two new Payments-as-a-Service contracts expected to bring in nearly one million new customer accounts [17][21]

Revenue Performance - Total revenue for the year ended December 31, 2024, decreased by $9.9 million, or 15%, compared to 2023, with North America segment revenue down by $30.8 million, or 62.9%, while International segment revenue increased by $20.9 million, or 123.5%[187]. - The company experienced a decline in revenues due to the transition of the QuickCard product, impacting liquidity in the North America segment[207]. Cost and Expenses - Total cost of revenue for 2024 decreased by $6.6 million, or 16.4%, with North America segment costs down by $19.0 million, or 63.8%, while International segment costs increased by $12.4 million, or 119.0%[189]. - Operating expenses for 2024 increased by $5.3 million, or 13.9%, driven by a $1.8 million increase in payroll and payroll taxes, and a $6.7 million impairment of goodwill[190][193]. - Impairment of intangible assets increased by $3.0 million, or 100%, as the Company wrote off 100% of those assets in North America during 2024[193]. Net Loss and Cash Flow - Net loss for the year ended December 31, 2024, was $26.8 million, a decrease of $26.3 million, or 49.5%, compared to a net loss of $53.1 million in 2023[187]. - Net cash provided by operating activities for 2024 was $21.2 million, down from $33.2 million in 2023[196]. - For the year ended December 31, 2024, net cash provided by operating activities was $21.2 million, a decrease from $33.2 million in 2023, primarily due to a net loss of $26.8 million[197][198]. Liquidity and Capital Management - The Company's consolidated working capital at December 31, 2024, was negative $8.2 million, including cash of $2.6 million and restricted cash of $89.4 million[191]. - Management plans to address liquidity shortfalls through accelerated business development, cost control measures, and raising capital through various means, including private and public equity offerings[194][195]. - Management plans to address liquidity shortfall in North America by repatriating approximately $17.6 million from European subsidiaries and exploring capital raising through equity offerings and debt financings[207][212]. - Management's liquidity plan includes cost control measures and the sale of noncore assets to manage spending effectively[212]. Investment Activities - Cash used in investing activities for 2024 was $1.8 million, compared to a net cash inflow of $2.3 million in 2023 from the sale of a building[199]. Product Transition and Development - The company transitioned its QuickCard product to app-based processing in February 2024, but later determined it may not be viable for certain high-risk business verticals[205][206]. - A new licensing product for the payments processing platform was introduced in Q3 2024, with expected revenue realization not until late 2025[206]. Other Comprehensive Loss - The company recorded an other comprehensive loss of $1.7 million in 2024 due to foreign currency translation adjustments, compared to a loss of $0.04 million in 2023[210]. Financing Activities - Net cash used in financing activities was immaterial in 2024, compared to $3.0 million in 2023 due to convertible note repayments[200]. Cash Due from Gateways - Cash due from gateways increased by $12.7 million in 2024, reflecting the company's reliance on payment processing services[197][202].

Core Insights - RYVYL Inc. has secured two significant Payments-as-a-Service (PaaS) contracts, expected to onboard nearly one million new accounts over the next 12 months, enhancing its presence in Europe and supporting long-term growth [1][2][6] - The first contract has already onboarded over 1,000 accounts, with an additional 50,000+ accounts anticipated in 2025, while the second contract aims to onboard over 900,000 accounts starting Q2 2025 [1][6] - These contracts reinforce the company's revenue guidance for 2025, projected to be between $80 million and $90 million, and are expected to contribute to operational efficiencies and increased gross margins [3][4] Company Overview - RYVYL Inc. is a leading provider of innovative payment solutions, focusing on enhancing business-to-business, consumer-to-business, and peer-to-peer transactions globally [5] - The company leverages electronic payment technology to create a comprehensive suite of financial products, emphasizing security, data privacy, and rapid transaction settlement [5] - RYVYL was founded in 2017 and has developed applications that support high-volume transactional records for various partners and consumers [5]

Core Viewpoint - The market anticipates Ryvyl (RVYL) to report a year-over-year increase in earnings despite lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Ryvyl is expected to report a quarterly loss of $0.26 per share, reflecting a year-over-year change of +77.8% [3]. - Revenues are projected to be $15.41 million, which is a decrease of 30.7% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Ryvyl is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -26.92%, suggesting a bearish sentiment among analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Ryvyl currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Ryvyl was expected to post a loss of $0.27 per share but actually reported a loss of $0.53, resulting in a surprise of -96.30% [12]. - Over the past four quarters, Ryvyl has only beaten consensus EPS estimates once [13]. Conclusion - Ryvyl does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].