Core Viewpoint - RYVYL Inc. is negotiating to potentially restructure the terms of its pre-funded asset sale of its EU subsidiary, with a standstill period agreed until May 6, 2025, and a possible extension until May 27, 2025, contingent on a payment of $750,000 [1][2]. Group 1: Company Overview - RYVYL Inc. is a leading innovator in payment transaction solutions, focusing on electronic payment technology for international markets [3]. - The company was founded in 2017 as GreenBox POS and has developed a suite of financial products that emphasize security, data privacy, and rapid transaction settlement [3]. - RYVYL's platform can handle large volumes of immutable transactional records at high speeds, catering to various partners, merchants, and consumers globally [3]. Group 2: Financial Agreements - On January 24, 2025, RYVYL entered into a $15 million agreement structured as a pre-funded asset sale, with a 90-day closing period that could be terminated by a payment of $16.5 million before April 23, 2025 [2]. - The shares of the RYVYL EU subsidiary will remain in escrow during the ongoing standstill period [2].

Core Insights - RYVYL Inc. is rapidly onboarding new accounts through its digital banking partnerships, achieving over 10,000 accounts with an average of 1,000 new accounts per day [1][6] - The company anticipates onboarding 900,000 new customer accounts within the next 12 months through its second digital banking partner [2][3] - RYVYL's financial guidance for 2025 is based on retaining its RYVYL EU subsidiary and successfully terminating a pre-funded asset sale agreement [3] Company Developments - The first contract with a financial services provider is projected to exceed 50,000 active accounts in 2025 [2] - RYVYL has processed more than €10 million in transaction volume [6] - The company emphasizes its PaaS platform's value in accelerating growth and providing seamless onboarding and compliance expertise [3] Market Position - RYVYL Inc. is positioned as a leading innovator in payment transaction solutions, leveraging electronic payment technology for diverse international markets [4] - The company has developed an end-to-end suite of financial products that enhance security, data privacy, and speed to settlement [4]

Core Insights - RYVYL Inc. has reiterated its 2025 revenue guidance of $80 million to $90 million with a mid-40s percentage gross margin [1][3] - The company reported a significant increase in international revenue for 2024, reaching $37.8 million, which is a 124% increase compared to 2023 [2][21] - The company is actively onboarding new clients across multiple jurisdictions, enhancing its market presence and positioning for growth in 2025 [2][12] Business Overview and Competitive Position - RYVYL's competitive strengths include a unique value proposition and strategic focus that differentiate it in the fintech space [4][5] - The company is well-positioned to capitalize on the global shift towards credit cards, mobile wallets, and real-time payment platforms [4][5] - RYVYL serves nearly 1,500 business customers across 50 industries, targeting high-margin segments often overlooked by traditional processors [8][9] Technological Innovation - RYVYL is at the forefront of technological innovation, integrating various payment systems into a cohesive digital platform [7][10] - The company is enhancing its dual-sided payment platform to accommodate emerging use cases in acquiring, disbursements, and embedded finance [6][10] - RYVYL's advanced payment technology supports quick and compliant onboarding, crucial for digital banks [17] Financial Performance - For Q4 2024, RYVYL reported revenue of $14.1 million, down from $22.2 million in Q4 2023, with a gross margin of 38.2%, up from 35.0% [21][19] - The total revenue for 2024 was $56.0 million, a decrease from $65.9 million in 2023, with a notable reduction in cost of revenue [21][20] - The company reported a net loss of $26.8 million for 2024, compared to a net loss of $53.1 million in 2023 [25][31] Recent Developments - RYVYL completed key steps in its capital structure strategy, reducing potential dilution and improving financial flexibility [14] - The company has launched new services, including Visa Direct in 16 countries and co-branded debit cards in the EU [15] - RYVYL has secured two new Payments-as-a-Service contracts expected to bring in nearly one million new customer accounts [17][21]

Revenue Performance - Total revenue for the year ended December 31, 2024, decreased by $9.9 million, or 15%, compared to 2023, with North America segment revenue down by $30.8 million, or 62.9%, while International segment revenue increased by $20.9 million, or 123.5%[187]. - The company experienced a decline in revenues due to the transition of the QuickCard product, impacting liquidity in the North America segment[207]. Cost and Expenses - Total cost of revenue for 2024 decreased by $6.6 million, or 16.4%, with North America segment costs down by $19.0 million, or 63.8%, while International segment costs increased by $12.4 million, or 119.0%[189]. - Operating expenses for 2024 increased by $5.3 million, or 13.9%, driven by a $1.8 million increase in payroll and payroll taxes, and a $6.7 million impairment of goodwill[190][193]. - Impairment of intangible assets increased by $3.0 million, or 100%, as the Company wrote off 100% of those assets in North America during 2024[193]. Net Loss and Cash Flow - Net loss for the year ended December 31, 2024, was $26.8 million, a decrease of $26.3 million, or 49.5%, compared to a net loss of $53.1 million in 2023[187]. - Net cash provided by operating activities for 2024 was $21.2 million, down from $33.2 million in 2023[196]. - For the year ended December 31, 2024, net cash provided by operating activities was $21.2 million, a decrease from $33.2 million in 2023, primarily due to a net loss of $26.8 million[197][198]. Liquidity and Capital Management - The Company's consolidated working capital at December 31, 2024, was negative $8.2 million, including cash of $2.6 million and restricted cash of $89.4 million[191]. - Management plans to address liquidity shortfalls through accelerated business development, cost control measures, and raising capital through various means, including private and public equity offerings[194][195]. - Management plans to address liquidity shortfall in North America by repatriating approximately $17.6 million from European subsidiaries and exploring capital raising through equity offerings and debt financings[207][212]. - Management's liquidity plan includes cost control measures and the sale of noncore assets to manage spending effectively[212]. Investment Activities - Cash used in investing activities for 2024 was $1.8 million, compared to a net cash inflow of $2.3 million in 2023 from the sale of a building[199]. Product Transition and Development - The company transitioned its QuickCard product to app-based processing in February 2024, but later determined it may not be viable for certain high-risk business verticals[205][206]. - A new licensing product for the payments processing platform was introduced in Q3 2024, with expected revenue realization not until late 2025[206]. Other Comprehensive Loss - The company recorded an other comprehensive loss of $1.7 million in 2024 due to foreign currency translation adjustments, compared to a loss of $0.04 million in 2023[210]. Financing Activities - Net cash used in financing activities was immaterial in 2024, compared to $3.0 million in 2023 due to convertible note repayments[200]. Cash Due from Gateways - Cash due from gateways increased by $12.7 million in 2024, reflecting the company's reliance on payment processing services[197][202].

Core Insights - RYVYL Inc. has secured two significant Payments-as-a-Service (PaaS) contracts, expected to onboard nearly one million new accounts over the next 12 months, enhancing its presence in Europe and supporting long-term growth [1][2][6] - The first contract has already onboarded over 1,000 accounts, with an additional 50,000+ accounts anticipated in 2025, while the second contract aims to onboard over 900,000 accounts starting Q2 2025 [1][6] - These contracts reinforce the company's revenue guidance for 2025, projected to be between $80 million and $90 million, and are expected to contribute to operational efficiencies and increased gross margins [3][4] Company Overview - RYVYL Inc. is a leading provider of innovative payment solutions, focusing on enhancing business-to-business, consumer-to-business, and peer-to-peer transactions globally [5] - The company leverages electronic payment technology to create a comprehensive suite of financial products, emphasizing security, data privacy, and rapid transaction settlement [5] - RYVYL was founded in 2017 and has developed applications that support high-volume transactional records for various partners and consumers [5]

Core Viewpoint - The market anticipates Ryvyl (RVYL) to report a year-over-year increase in earnings despite lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Ryvyl is expected to report a quarterly loss of $0.26 per share, reflecting a year-over-year change of +77.8% [3]. - Revenues are projected to be $15.41 million, which is a decrease of 30.7% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for Ryvyl is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -26.92%, suggesting a bearish sentiment among analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Ryvyl currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Ryvyl was expected to post a loss of $0.27 per share but actually reported a loss of $0.53, resulting in a surprise of -96.30% [12]. - Over the past four quarters, Ryvyl has only beaten consensus EPS estimates once [13]. Conclusion - Ryvyl does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].

Financial Results and Guidance - RYVYL Inc. reported preliminary financial results for the year ended December 31, 2024, with specific revenue and operating guidance for 2025 to be released on March 13, 2025[4]. - The financial information provided is based on preliminary, unaudited financial statements and may be subject to change[5]. - The company does not expect material changes to the preliminary financial information, but actual results may differ significantly[5]. - The company emphasizes that forward-looking statements are predictions and actual results may vary[10]. Fundraising Plans - The company plans to explore fundraising options, including term debt and/or equity financing, to cover a termination payment of $16.5 million related to the sale of its RYVYL EU subsidiary[7]. - Potential fundraising sources include an equity raise of up to $20 million under the company's S-1 registration statement filed on February 14, 2025[7]. Company Classification and Risks - RYVYL Inc. is classified as an emerging growth company under the Securities Act of 1933[3]. - The company is subject to various risks and uncertainties that could impact its future performance, including regulatory changes and market conditions[11]. Regulatory and Reporting Considerations - The press release containing financial results is not deemed "filed" under the Exchange Act, limiting its liability under that section[6]. - The company will provide updates on its financial performance and strategic initiatives in future filings with the SEC[12].

Core Viewpoint - RYVYL Inc. anticipates significant revenue growth and improved gross margins in 2025, driven by robust business development and a shift towards higher-margin banking-related revenue [2][3]. Financial Performance - The company expects 2024 total revenue to be approximately $56.0 million, within the guidance range of $56 million to $60 million [1]. - For 2025, RYVYL projects revenue between $80 million and $90 million, indicating over 50% growth at the midpoint compared to 2024 [2]. - The gross margin is expected to expand to the mid-40s percentage, contributing to positive annual adjusted EBITDA and operating cash flow in the latter half of 2025 [2]. Business Development - RYVYL's CEO highlighted that strong business development and sales initiatives in 2024 have positioned the company for robust growth in 2025 [2]. - The company is focusing on increasing its high-margin, banking-related revenue, particularly through its RYVYL EU subsidiary [2]. Balance Sheet Strengthening - The company has successfully retired the outstanding balance of Series B Convertible Preferred Stock and reduced the Senior Secured Note balance to $4.0 million, enhancing shareholder equity by over $50 million without dilution [4][5]. - RYVYL has filed an S-1 registration statement to raise up to $24 million to support its growth initiatives [5]. Transaction Processing Volumes - RYVYL's transaction processing volumes have shown a trend of increasing international revenue, which is expected to continue in 2025 [6]. - The company provided data indicating that the blended percentage of transaction processing volumes has been trending lower due to the growth in its international business, which has a higher mix of banking revenues [6][8].

Core Viewpoint - RYVYL Inc. has completed a significant financial restructuring by paying an initial tranche of $13.0 million to a securityholder, which is expected to reduce dilution risk and lower the overall cost of capital for the company [1][4]. Group 1: Financial Transactions - The company redeemed all shares of its Series B Convertible Preferred Stock, with a liquidation value of $53.1 million [4]. - The company partially repaid the 8% Senior Convertible Note, reducing the outstanding principal from $18.3 million to $4.0 million, which is due on or before April 30, 2025 [4]. - The company has temporarily suspended certain obligations related to the Note, including interest payments and the securityholder's right to convert the Note, which will be restored if the second tranche of $4.0 million is not paid by the due date [4]. Group 2: Company Overview - RYVYL Inc. is a leading innovator in payment transaction solutions, focusing on electronic payment technology for diverse international markets [2]. - The company was founded in 2017 as GreenBox POS and has developed a suite of financial products that emphasize security, data privacy, and rapid transaction settlement [2]. - RYVYL's platform is capable of logging large volumes of immutable transactional records at high speeds, catering to first-tier partners, merchants, and consumers globally [2].

Core Viewpoint - RYVYL Inc. has entered into a Preferred Stock Repurchase and Note Repayment Agreement to fully repay an 8% Senior Convertible Note and redeem all shares of its Series B Convertible Preferred Stock, indicating a strategic move to strengthen its financial position and reduce outstanding liabilities [1]. Group 1: Financial Agreement Details - The Company is required to make a first tranche payment of $13.0 million by January 27, 2025, with an option to extend to February 3, 2025, for an additional $50,000 [1]. - Following the first tranche payment, the remaining balance of the Note will be $4.0 million, with a maturity date advanced to April 30, 2025 [5]. - If the Company fails to pay the remaining balance by the due date, the Note will revert to its original terms, and interest will accrue again [5]. Group 2: Company Overview - RYVYL Inc. is a leading innovator in payment transaction solutions, focusing on electronic payment technology for various international markets [3]. - The Company has developed an end-to-end suite of financial products that emphasize security, data privacy, and rapid transaction settlement [3]. - Since its founding in 2017, RYVYL has aimed to transform business-to-business, consumer-to-business, and peer-to-peer payment transactions globally [3].