RYVYL Inc. Reports 15% Revenue Decline and Strategic Changes for Fiscal Year 2024

RYVYL Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue of $55.998 million, a decrease of 15% from $65.869 million in 2023. The North America segment experienced a particularly sharp drop in revenue, plummeting by 62.9% to $18.159 million, primarily due to the transition of its QuickCard product from terminal-based to app-based processing, which was ultimately deemed unviable for certain high-risk business verticals. In contrast, the International segment saw a substantial increase in revenue, rising 123.5% to $37.839 million, driven by a surge in processing volume from $1.7 billion in 2023 to $3.7 billion in 2024.

The company's gross profit also fell, totaling $22.426 million, down from $25.712 million the previous year. Operating expenses increased by 13.9% to $43.311 million, influenced by restructuring charges and impairments of goodwill and intangible assets totaling $6.675 million and $3.028 million, respectively. The net loss for the year was $26.825 million, compared to a loss of $53.101 million in 2023, reflecting a 49.5% improvement in loss year-over-year, despite the overall decline in revenue.

Strategically, RYVYL has undergone significant changes, including the introduction of a licensing model for its payments processing platform, which is expected to generate revenue in late 2025. The company has also focused on expanding its international operations, particularly in Europe, where it has established a strong presence through its EMI license in Bulgaria and operational hub in Portugal. This expansion is aimed at enhancing its treasury management services and cross-border payment infrastructure.

Operationally, RYVYL reported processing transactions for approximately 1,500 business customers across various industries, with a total employee count of around 95. The company has emphasized cost control measures and the repatriation of profits from its European subsidiaries to address liquidity challenges in its North America segment. Management has outlined a plan to improve liquidity, which includes diversifying business verticals, selling non-core assets, and raising capital through equity offerings and debt financing.

Looking ahead, RYVYL faces substantial challenges, particularly regarding its ability to continue as a going concern due to liquidity concerns stemming from the revenue decline in its North America segment. The company has expressed uncertainty about its future capital needs and the success of its strategic initiatives, indicating that the recovery of lost revenues may not materialize until late 2025.