RYVYL Inc. reported a challenging financial performance for the three and nine months ended September 30, 2024, with significant declines in revenue and increased losses compared to the previous fiscal period. The company generated revenue of $12.6 million for the third quarter, a decrease of 27.9% from $17.5 million in the same quarter of 2023. For the nine-month period, revenue totaled $41.3 million, down 5.4% from $43.6 million in the prior year. The decline in revenue was primarily attributed to a 77.3% drop in North America revenue, which fell to $2.8 million, while the International segment saw a substantial increase of 95.8%, reaching $9.8 million.

Gross profit for the third quarter was $4.9 million, down 27.3% from $6.7 million in the prior year, while gross profit for the nine months decreased to $16.6 million from $17.9 million. Operating expenses for the third quarter decreased to $7.3 million from $9.0 million, but the company still reported a loss from operations of $2.5 million, slightly higher than the $2.4 million loss in the same quarter of 2023. The net loss for the third quarter was $5.2 million, an increase of 59.7% compared to the $3.1 million loss in the prior year.

The company's accumulated deficit increased to $(172.6 million) as of September 30, 2024, from $(152.6 million) at the end of 2023. Total liabilities rose to $121.0 million, up from $105.2 million, while total stockholders' equity decreased significantly to $6.3 million from $23.5 million.

Strategically, RYVYL transitioned its QuickCard product from terminal-based to app-based processing in February 2024, which has negatively impacted revenues in the North America segment. The company introduced a new licensing product aimed at high-risk business verticals, with expected revenue realization in early 2025. However, liquidity concerns have emerged, as cash and cash equivalents of $4.3 million are deemed insufficient to fund operations in North America for the next 12 months. Management plans to address these issues through enhanced business development, cost control measures, and the sale of noncore assets.

RYVYL also completed several acquisitions, including Logicquest Technology, Inc. and an Automated Clearing House portfolio, to bolster its payment processing capabilities. The company recorded a goodwill impairment charge of $6.7 million related to its North America operations in June 2024. Legal proceedings are ongoing, including litigation against former executives and a class action lawsuit related to alleged misleading financial statements.