RYVYL, INC.
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Market Data: Yahoo Finance, Bloomberg, SEC
Report Link: Updated Research Report (Dated December 10, 2024)
Symbol: RVYL
Analyst: Howard Halpern
Taglich Rating: Speculative Buy
Price Target: $5.00
Time Horizon: 12 Months
Rating Established: September 20, 2024
Price When Established: $1.26
Most Recent Report: December 10, 2024
Price When Issued: $1.46
What’s New
RYVYL Announces Preliminary 2024 Full Year Revenue
On February 25, 2025, RYVYL Inc., announced preliminary revenue for the twelve-month period ended December 31, 2024 of approximately $56 million.
The company issued initial revenue and gross margin guidance for FY25. RYVYL Inc., expects 2025 revenue to be in the range of $80 million to $90 million with gross margins averaging in the mid-40% area. If FY25 revenue and gross margin expectations are achieved (based on retaining its European assets), the company anticipates generating positive annual adjusted EBITDA and positive operating cash flow in the second half of the year.
Taglich Brothers estimates FY24 revenue of $58 million and FY25 revenue of $97.5 million. For FY25, our gross margin forecast is 39.9%.
RYVYL Completes Initial Phase of Balance Sheet Restructuring
On January 27, 2025, RYVYL Inc., announced it completed the initial payment of $13 million to the holder of the company’s debt and convertible preferred stock. This payment triggered the following:
Redemption of all shares of the RYVYL’s Series B Convertible Preferred Stock and partial repayment of the 8% Senior Convertible Note that reduced the outstanding principal from $18.3 million to $4 million. This $4 million remaining balance is due on or before April 30, 2025, and also temporarily suspended the company’s requirement to pay interest on the remaining principal balance of the Note and the holders right to convert the Note, as well as certain restrictive covenants contained in the Note, all of which would be restored if the company does not pay the second tranche of $4 million by April 30, 2025.
This initial transaction was made in order to eliminate a large portion of the conversion overhang and substantial dilution risk to RYVYL’s common stock from both Preferred Stock and Convertible Note.
According to an SEC filing, on January 24, 2025, the company entered into and then executed a stock purchase agreement with a purchaser that provides for the sale to the purchaser of all of the issued and outstanding shares of capital stock of RYVYL’s indirect subsidiary domiciled in Bulgaria, Ryvyl (EU) EAD, by Transact Europe Holdings EOOD, the company’s wholly owned subsidiary for an aggregate purchase price of $15 million. In addition, the company, Transact Europe, and the purchaser also entered into a termination agreement. The agreement provides RYVYL with the right to terminate the stock purchase agreement, by paying the purchaser $16.5 million by April 23, 2025 with a potential for a 30 day extension to May 23, 2025 upon payment of $500,000 to the purchaser.
Company Description
RYVYL Inc., (RVYL) headquartered in San Diego, California, is a global financial payment processing technology organization that has developed applications in order to provide an end-to-end suite of turnkey financial products with enhanced security, data privacy, identity theft protection, and rapid speed to settlement. The technology platform can process high volumes of unchanged transactional records at the speed of the internet for first-tier partners, merchants, and consumers. The company provides private and white label licensing opportunities for its payment processing technology offerings.