RYVYL Executes Strategic Actions Enhancing Its Business Plan and Files S-1 Registration Statement

Rhea-AI Summary

RYVYL Inc. (NASDAQ: RVYL) has filed an S-1 registration statement and announced strategic restructuring initiatives. The company is implementing several key changes including: pursuing North America revenue growth in a legacy vertical market that generated $12M in Q4 2023, expanding blockchain and crypto capabilities, and executing workforce reductions. RYVYL has completed the sale of its European subsidiary and entered an LOI to acquire a complementary digital assets entity. The company has reduced its North America workforce by 40% (18 employees), expecting quarterly savings of $780,000, with additional $265,000 quarterly savings from reducing engineering contractors. The planned offering requires raising minimum $100M and shareholder approval for the acquisition, potential increase in authorized common stock, and a possible reverse stock split. RYVYL has withdrawn its 2025 guidance.

Positive

• Expected cost savings of $780,000 per quarter from workforce reduction
• Additional savings of $265,000 per quarter from reducing engineering contractors
• Strategic focus on North America market with proven $12M quarterly revenue potential
• Expansion into blockchain and crypto capabilities through planned acquisition

Negative

• 40% reduction in North America workforce indicates significant operational challenges
• Withdrawal of 2025 guidance suggests business uncertainty
• Potential share dilution from new stock offering
• Requires substantial $100M funding and shareholder approval for strategic plans
• Potential reverse stock split may be implemented

Insights

Financial Restructuring Specialist

RYVYL initiates major restructuring with 40% workforce reduction, EU subsidiary sale, and planned offering amid strategic refocus toward blockchain.

RYVYL has filed an S-1 registration statement for a proposed offering while simultaneously undertaking significant restructuring efforts. The company is reducing its North American workforce by 40% (18 employees), which together with other cost-cutting measures is expected to save approximately $780,000 per quarter. Additional contractor reductions should save another $265,000 quarterly, with full impact beginning Q3 2025.

The strategic realignment includes three key components:

• Refocusing on North American revenue growth, particularly targeting a legacy vertical market that generated $12 million in Q4 2023
• Expanding blockchain applications and cryptocurrency capabilities
• Rightsizing operations, including the completed sale of RYVYL EU subsidiary

The company has entered into an LOI to acquire a complementary entity with technology and digital assets, though this acquisition is contingent upon raising a minimum of $100 million and obtaining shareholder approval for the acquisition itself, potentially increasing authorized common stock, and a possible reverse stock split.

RYVYL has withdrawn its previous 2025 guidance, suggesting significant uncertainty about near-term financial performance amid these changes. The multiple simultaneous actions—workforce reduction, subsidiary divestiture, planned acquisition, and potential capital raise—indicate a comprehensive restructuring effort to address financial challenges while pivoting toward blockchain opportunities. The dependence on raising substantial capital for the strategic acquisition introduces significant execution risk to the company's transformation plans.

- Unveils Plans to Initiate Digital Asset Acquisition Strategy –

- Enters LOI to Acquire Complementary Entity –

- Realigns Corporate and North America Operations -

SAN DIEGO, CA, June 16, 2025 (GLOBE NEWSWIRE) -- RYVYL Inc. (NASDAQ: RVYL) ("RYVYL” or the "Company"), a leading innovator of payment transaction solutions leveraging electronic payment technology, has submitted a registration statement on Form S-1 with the Securities and Exchange Commission. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Additionally, management is executing strategic actions and enhancing its business plan:

• RYVYL is
  • Focusing on growing its North America revenues, including pursuing a legacy vertical market, which at its peak, in the fourth quarter of 2023, delivered revenue of $12 million;
  • Expanding its blockchain applications and crypto capabilities; and
  • Rightsizing the company as detailed below.
• The company has entered into a letter of intent (LOI) to acquire an entity with technology and digital assets that are complementary.
• RYVYL has closed the sale of RYVYL EU, its wholly owned European subsidiary, and the transaction is complete. The company has withdrawn its previous guidance for 2025.

Cost Savings Initiatives and Organizational Realignment

In addition, on May 31, 2025, RYVYL realigned its corporate and North America operations and implemented a reduction in force of 18 employees, representing approximately 40% of its North America workforce. Savings from this action along with other reductions are expected to result in savings of approximately $780,000 per quarter. Plans to reduce outside engineering contractors during the second quarter of 2025 are expected to result in savings of approximately $265,000 per quarter. The Company expects the full impact of these savings to begin in the third quarter of 2025.

Additional Terms

The offering is expected to commence after the SEC completes its review process, subject to market and other conditions. A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

There are no assurances that the Company will close the acquisition or that the Enhanced Business Plan would result in a significant benefit to the Company. In addition, the Acquisition and Enhanced Business Plan would be dependent upon the Company raising a minimum of $100 million, which would require shareholder approval of (i) the Acquisition, (ii) a potential increase in the authorized amount of common stock of the Company, and (iii) a potential reverse split of the common stock of the Company.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, and there shall not be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About RYVYL

RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

Cautionary Note Regarding Forward-Looking Statements

This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements that are characterized by future or conditional words such as "may," "will," "expect," "intend," "anticipate," “believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements. Risk factors affecting the Company are discussed in detail in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

IR Contact:
David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com

FAQ

What strategic changes is RYVYL (RVYL) implementing in 2025?

RYVYL is focusing on North America revenue growth, expanding blockchain capabilities, reducing workforce by 40%, cutting costs by $1.045M quarterly, selling its European subsidiary, and planning to acquire a digital assets entity.

How much money does RYVYL (RVYL) need to raise for its acquisition plans?

RYVYL needs to raise a minimum of $100 million, which requires shareholder approval along with potential increase in authorized common stock and a reverse stock split.

What cost savings will RYVYL (RVYL) achieve from its 2025 restructuring?

RYVYL expects quarterly savings of $780,000 from workforce reduction and additional $265,000 from reducing engineering contractors, totaling approximately $1.045 million per quarter.

Why did RYVYL (RVYL) withdraw its 2025 guidance?

RYVYL withdrew its 2025 guidance due to significant strategic changes, including workforce reduction, European subsidiary sale, and pending acquisition plans.

What shareholder approvals does RYVYL (RVYL) need for its strategic plans?

Shareholders must approve the acquisition, a potential increase in authorized common stock, and a possible reverse stock split.