Ryvyl 2025 Q1 Earnings Misses Targets as Net Loss Widens 2.5%

Ryvyl reported its fiscal 2025 Q1 earnings on May 20th, 2025. The company fell short of expectations, with a significant revenue decline and an increase in net losses compared to the previous year. Despite these setbacks, Ryvyl's guidance remains ambitious, forecasting substantial growth for 2025. This optimistic outlook hinges on the retention of its RYVYL EU subsidiary and securing necessary funding for asset sale termination, positioning Ryvyl for potential recovery and expansion in the fintech landscape.

Revenue
The total revenue of Ryvyl decreased by 9.8% to $15.13 million in 2025 Q1, down from $16.77 million in 2024 Q1.

Earnings/Net Income
Ryvyl narrowed losses to $0.33 per share in 2025 Q1 from a loss of $0.45 per share in 2024 Q1, representing a 26.7% improvement. Meanwhile, the company's net loss widened to $-2.76 million in 2025 Q1, a 2.5% increase from the $-2.69 million loss recorded in 2024 Q1. Despite better per-share performance, the overall net loss remains concerning.

Price Action
The stock price of Ryvyl has tumbled 11.32% during the latest trading day, has plummeted 32.99% during the most recent full trading week, and has plummeted 39.39% month-to-date.

Post-Earnings Price Action Review
Ryvyl's strategy of purchasing RVYL stock after a revenue miss and holding for 30 days proved unproductive. The backtest revealed a significant loss of -72.18%, with an excess return of -121.12% and a Sharpe ratio of -0.28. These results underscore the high risk and considerable losses associated with this approach. The maximum drawdown reached -89.49%, illustrating the substantial volatility and financial uncertainty faced by investors adopting this strategy. Overall, the post-earnings performance highlights the need for careful consideration and strategic adjustment in response to Ryvyl's earnings report, as the current market conditions pose significant challenges.

CEO Commentary
“Robust business development and sales initiatives in 2024 have positioned us to resume strong growth in 2025,” said Fredi Nisan, CEO of RYVYL. He emphasized the success of efforts to grow high-margin, banking-related revenue at RYVYL EU, indicating that the company is shifting its product mix to drive significantly higher overall gross margin in 2025. Nisan expressed optimism about the stabilization of U.S. operations and the strong growth trajectory of international revenue, which reached $37.8 million in 2024—a remarkable 124% increase compared to 2023. He highlighted the strategic positioning of the company to capitalize on substantial opportunities in the evolving fintech landscape.

Guidance
RYVYL expects 2025 revenue in the range of $80 million to $90 million, reflecting over 50% growth at the mid-point compared to 2024 preliminary revenue results of $56 million. The company anticipates gross margins to expand to the mid-40s percentage and aims for positive annual adjusted EBITDA and operating cash flow in the second half of the year. The guidance is contingent upon the successful retention of its RYVYL EU subsidiary and the ability to secure necessary funding to terminate a pre-funded asset sale agreement.

Additional News
Ryvyl Inc. has recently ceased negotiations to restructure the pre-funded asset sale of its EU subsidiary, marking a significant shift in its strategic asset management approach. The company anticipates the buyer will close the asset sale, bringing immediate liquidity and resolving uncertainty. This decision aligns with Ryvyl’s focus on evolving as a leading provider of payment transaction solutions, despite losing a revenue-generating entity. Additionally, Ryvyl has secured major Payments-as-a-Service contracts through its subsidiary, projecting to onboard nearly one million new accounts over the next 12 months. These developments are crucial as Ryvyl navigates its strategic direction amidst challenges in the fintech sector.