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On Wednesday, H.C. Wainwright maintained a Neutral rating on Ryvyl Inc (NASDAQ:RVYL) following the company’s recent revenue outlook announcement. The stock, which has experienced a significant 78.5% decline over the past year according to InvestingPro data, continues to face market challenges. Analysts at the firm have taken note of Ryvyl’s disclosure of its expected revenue for the fourth quarter of 2024 and its initial guidance for 2025.
Ryvyl Inc. announced early Tuesday that it anticipates its fourth-quarter 2024 revenue to be $14.1 million, aligning with the lower end of its projected $56-60 million range for the year. The company’s historical revenue growth shows a 16.1% increase in the last twelve months, as reported by InvestingPro. Looking ahead, the company provided its first revenue guidance for 2025, estimating between $80-90 million. Prior to this update, H.C. Wainwright’s estimates for Ryvyl were set at $54.5 million for 2024 and $70 million for 2025.
The company is expected to release a comprehensive report on March 27, according to InvestingPro data, which will offer further insights into the factors driving its revenue growth, especially in Europe. With an overall Financial Health score rated as ’FAIR’ by InvestingPro analysts, investors await more clarity on the company’s performance. In the meantime, the firm has acknowledged the detailed quarterly revenue progression through 2024 provided by Ryvyl, which also includes the percentage of revenue per dollar processed, now ranging between 1.1% and 1.2%.
The disclosed data has highlighted some business inconsistencies, particularly in North America where Ryvyl’s revenue is projected to fall 63% from $48.9 million in 2023 to $18.2 million for the fiscal year 2024. Conversely, European growth seems promising, attributed to Ryvyl’s ability to conduct swift risk assessments when evaluating an Independent (LON:IOG) Sales Organization (ISO) client’s profile. The company employs proprietary algorithms to assess default risk, enabling it to engage in and process transaction pools typically avoided by other processors, thus yielding higher returns.
The analysts at H.C. Wainwright have been studying Ryvyl’s business prior to initiating coverage in February 2023. Despite the new information and the company’s upcoming full report, the firm’s stance remains cautious, opting to retain a Neutral rating on Ryvyl stock.
In other recent news, RYVYL Inc. has made significant strides in its financial and corporate strategies. The company has entered into a new Memorandum of Understanding (MOU) aimed at advancing its debt repayment plan. This agreement involves a structured plan to address an 8% Senior Convertible Note and redeem Series B Convertible Preferred Stock, with an initial payment of $13.0 million to reduce the note’s principal to $4.0 million. Additionally, the maturity date for the remaining balance has been set for April 30, 2025, with options for extension.
In a separate development, RYVYL Inc. has secured shareholder approval for all proposals at its recent annual meeting. Key approvals included the election of directors, amendments to its equity incentive plan, and the ratification of Simon & Edward, LLP as the independent public accounting firm for the fiscal year ending December 31, 2024. Notably, shareholders approved the issuance of common stock exceeding 20% of the company’s outstanding shares, which could indicate potential strategic activities. The equity incentive plan amendments increased the shares reserved for issuance from 1,098,262 to 5,098,262. These developments reflect RYVYL’s ongoing efforts to manage its financial obligations and optimize its corporate governance.
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