RYVYL files S-1 registration statement, plans cost cuts and acquisition

SAN DIEGO - RYVYL Inc. (NASDAQ:RVYL), a payment technology company with a market capitalization of $5.65 million, has filed a registration statement on Form S-1 with the Securities and Exchange Commission, the company announced Monday. According to InvestingPro analysis, RYVYL faces significant financial challenges, with a weak overall Financial Health score and rapidly depleting cash reserves.

The number of shares and price range for the proposed offering have not been determined. The offering is expected to begin after the SEC completes its review process.

RYVYL also disclosed it has entered into a letter of intent to acquire an entity with complementary technology and digital assets. The acquisition would depend on RYVYL raising a minimum of $100 million and obtaining shareholder approval.

The company has completed the sale of its European subsidiary, RYVYL EU, and withdrawn its previous guidance for 2025.

As part of a cost-saving initiative, RYVYL implemented a workforce reduction on May 31, cutting 18 employees, approximately 40% of its North America workforce. This reduction, along with other cost-cutting measures, is expected to save about $780,000 per quarter. These measures come as the company faces challenging financial metrics, with InvestingPro data showing a negative EBITDA of $6.34 million and revenue decline of 23.82% over the last twelve months. For deeper insights into RYVYL’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The company also plans to reduce outside engineering contractors during the second quarter, projecting additional savings of approximately $265,000 per quarter. RYVYL expects the full impact of these savings to begin in the third quarter.

RYVYL stated it is focusing on growing North American revenues, including pursuing a legacy vertical market that delivered $12 million in revenue at its peak in the fourth quarter of 2023. The company also plans to expand its blockchain applications and cryptocurrency capabilities.

The registration statement filed with the SEC has not yet become effective, and the securities may not be sold prior to that time, according to the press release statement. With the stock showing significant volatility and currently trading at $0.68, InvestingPro analysis indicates the stock may be undervalued based on its Fair Value calculations, though investors should note the company’s challenging financial position and negative free cash flow yield.

In other recent news, RYVYL Inc. has made significant strides in its financial and operational strategies. The company has successfully converted its remaining 8% Senior Convertible Note into common stock, issuing 7.1 million shares, as part of its effort to strengthen its balance sheet. This move follows the redemption of its Series B Convertible Preferred Stock earlier this year, aimed at minimizing shareholder dilution and restructuring its financial framework. Additionally, RYVYL has been actively negotiating the terms of a $15 million sale of its European subsidiary, RYVYL EU, with ongoing discussions and a standstill agreement in place to potentially restructure the asset sale.

The company has also been accelerating its account onboarding process through partnerships with digital banks, leading to significant growth. RYVYL EU has onboarded over 10,000 accounts under a new contract, with plans to surpass 50,000 active accounts this year. Another contract with a digital banking platform aims to onboard 900,000 new customer accounts over the next 12 months. Furthermore, RYVYL has appointed Brett Moyer to its board of directors, bringing his experience in building and scaling technology platforms to support the company’s growth initiatives. These developments highlight RYVYL’s strategic focus on expanding its blockchain applications and crypto capabilities, as well as enhancing its financial stability.

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