RYVYL Inc. Reports 38.7% Revenue Decline and Plans Merger with RTB Digital

RYVYL Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2025, with total revenue of $11.1 million, a decrease of 38.7% from $18.2 million in 2024. The company attributed this drop primarily to the discontinuation of its QuickCard product, which had previously contributed to its revenue stream. Despite the revenue decline, the cost of revenue also decreased by 45.9% to $5.8 million, resulting in a gross profit of $5.3 million, which represented 47.7% of total revenue, compared to 40.7% in the prior year.

Operating expenses for RYVYL decreased significantly by 46.7% to $18.5 million, down from $34.6 million in 2024. This reduction was largely due to a substantial decrease in research and development costs, which fell by 85.5% as the company completed the development of its NEMS Core platform. However, general and administrative expenses increased by 47.8% to $4.4 million, primarily due to impairments related to operating leases. The company reported a net loss of $17.5 million for the year, an improvement from the $26.8 million loss in 2024.

In terms of strategic developments, RYVYL is in the process of merging with RTB Digital, Inc., a move aimed at enhancing its business operations and expanding its market presence. The merger agreement, signed on September 28, 2025, is expected to close in the second quarter of 2026. Upon completion, RTB's shareholders are projected to own approximately 84.85% of the combined company, significantly diluting the ownership of existing RYVYL shareholders, who will hold about 15.15%.

Operationally, RYVYL has focused on expanding its customer base in underserved and higher-risk industry verticals, including retail and insurance. The company currently employs approximately 15 full-time staff and has engaged in cost-control measures to align its workforce with its reduced operations. The merger with RTB is anticipated to bring additional resources and capabilities, particularly in the digital asset space, which RYVYL is exploring as a growth avenue.

Looking ahead, RYVYL's management has expressed concerns regarding its ability to continue as a going concern, particularly if the merger does not proceed as planned. The company has outlined a strategy to address its liquidity challenges, which includes raising additional capital and exploring further strategic initiatives. However, there are no guarantees that these efforts will be successful, and the company has indicated that its cash reserves may not be sufficient to fund operations for the next 12 months without additional financing.