RYVYL Inc. Reports 6.4% Revenue Decline and $8.4 Million Net Loss in Q2 2025

RYVYL Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue falling to $2.8 million, a decrease of 6.4% from $3.0 million in the same period last year. For the first half of 2025, revenue dropped 56.1% to $5.6 million compared to $12.6 million in the first half of 2024. The company attributed this decline primarily to changes in transaction volume and product mix, particularly following the discontinuation of its QuickCard product, which had previously generated substantial revenue from cannabis merchants. The gross profit for the quarter was $1.2 million, reflecting a gross margin of 43.8%, up from 37.9% a year earlier, largely due to a decrease in cost of revenue.

Operating expenses saw a dramatic reduction of 68.9% to $4.5 million for the second quarter, down from $14.5 million in the prior year. This decrease was driven by significant reductions in research and development costs, payroll, and professional fees, as well as the absence of a $6.7 million goodwill impairment charge that had impacted the previous year’s results. Despite these reductions, the company reported a net loss of $8.4 million for the quarter, compared to a loss of $12.1 million in the same quarter of 2024. The loss from continuing operations before income taxes was $3.7 million, a notable improvement from the previous year.

In terms of strategic developments, RYVYL completed the sale of its European subsidiary, Ryvyl EU, effective June 1, 2025, which has led to a restructuring of its operations focused solely on the North American market. The sale resulted in a loss of approximately $6.5 million and has necessitated a reevaluation of the company’s business model. The company is now concentrating on expanding its treasury management services and exploring new product offerings, including a licensing model for its payment processing platform.

Operationally, RYVYL has seen a shift in its transaction volume, with a notable increase in banking transaction volume, which rose by 86% year-over-year. However, the overall transaction volume for the company increased only slightly from $391.6 million in the first half of 2024 to $434.5 million in 2025, as declines in acquiring transactions offset gains in banking transactions. The company’s cash position has also deteriorated, with a reported cash balance of $0.2 million and restricted cash of $14.8 million as of June 30, 2025, leading to a negative working capital of $8.1 million.

Looking ahead, RYVYL's management has expressed substantial doubt about the company's ability to continue as a going concern, citing insufficient cash to fund operations beyond December 2025 without raising additional capital. The company is actively pursuing various funding opportunities, including public and private equity offerings, to address its liquidity challenges. Additionally, RYVYL is exploring strategic acquisitions to enhance its technology offerings and is considering a pivot towards cryptocurrency integration as part of its long-term growth strategy.