RYVYL Inc. Reports 9.8% Revenue Decline and $2.8 Million Net Loss in Q1 2025

RYVYL Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue of $15.1 million, down 9.8% from $16.8 million in the same period last year. The decrease was primarily driven by a significant drop in revenue from the North America segment, which fell by 71.4% to $2.8 million, attributed to the discontinuation of the QuickCard product that had previously catered to cash-based businesses, particularly in the cannabis sector. In contrast, the International segment saw a revenue increase of 74.1%, reaching $12.4 million, supported by growth in processing volumes across various verticals.

The company's gross profit for the quarter was $6.7 million, a decrease of 4.5% from $7.0 million in the prior year. Operating expenses also decreased by 15.4% to $7.6 million, primarily due to reduced research and development costs and lower general and administrative expenses. Despite these reductions, RYVYL reported a net loss of $2.8 million for the quarter, slightly higher than the $2.7 million loss recorded in the same period of 2024.

In terms of strategic developments, RYVYL is undergoing a significant transition, having shifted its QuickCard product from a direct offering to a licensing model in response to changing compliance requirements. The company is also in the process of selling its European subsidiary, Ryvyl EU, for $15 million, which is expected to close in the second quarter of 2025. This sale is critical as it represents a substantial portion of RYVYL's business, and the company has indicated that failure to complete the transaction could have severe financial implications.

Operationally, RYVYL's cash position as of March 31, 2025, included $3.0 million in cash and $74.5 million in restricted cash. However, the company reported a negative working capital of $24.1 million, raising concerns about its ability to fund operations in the near term. Management has indicated that without additional capital, the company may only be able to sustain operations through June 30, 2025. The company is actively seeking to raise funds through various means, including equity offerings and debt financing, to address its liquidity challenges.

Looking ahead, RYVYL's management has expressed uncertainty regarding its ability to continue as a going concern, contingent on successfully executing its plans to improve liquidity and operational efficiency. The company is also under scrutiny from Nasdaq for not meeting minimum stockholders' equity requirements, which could further complicate its financial situation if not resolved.