RYVYL Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand RYVYL Inc.’s performance. Instead of digging through complex filings, I’ve broken down the key facts so you can decide if this company fits your investment goals.

1. What does this company do?

Think of RYVYL as a middleman for digital payments. They process payments for "high-risk" merchants—like online gaming and subscription services—that traditional banks often avoid.

The company is currently undergoing a massive identity shift. Through a planned merger with RTB Digital, they are moving into digital media. RTB runs an advertising platform that connects creators with brands. By using blockchain, they aim to integrate Bitcoin and stablecoins into their payment system to speed up the advertising payout cycle, which typically takes months, by enabling near-instant payments.

2. Financial Performance & Health

The company is in a precarious financial position. For the year ending December 31, 2025:

• Big Losses: They lost $17.5 million, largely due to high operating costs and restructuring expenses.
• Deep Hole: Their total losses over time have reached $196.9 million.
• Survival Warning: The company officially warned that they might not be able to stay in business. They sold their European division in 2025 for $12 million. This division previously provided most of their transaction volume and profit. Without it, the company lacks the cash to cover its costs for the next year and requires immediate funding.

3. Major Wins and Challenges

• The Reverse Split: On January 2, 2026, they performed a 1-for-35 reverse stock split. This move was designed to keep the share price above the $1.00 minimum required by the NASDAQ.
• The RTB Digital Merger: This is a "make or break" moment. RYVYL is betting its future on this merger to escape its failing payment business. If the deal closes, existing shareholders will see their ownership drop to about 15% of the new company, while RTB shareholders will own 85%.
• Business Pivot: They are moving away from traditional payment processing, which has thin profit margins, toward a media-and-crypto model.

4. Key Risks

• Survival Risk: The company does not have enough cash to operate for long. If the merger fails or they cannot raise more money, they face a high risk of bankruptcy.
• Dilution: Even if the merger succeeds, the massive number of new shares issued to RTB owners means your piece of the pie will shrink significantly.
• High-Risk Focus: By serving high-risk merchants, RYVYL must hold back large sums of cash to cover potential fraud, which further strains their bank account.
• Competition: They compete against giants like PayPal and Stripe, which have more capital and established licenses.

5. Future Outlook

The company’s future depends entirely on the RTB merger. Management admits that even if the merger happens, they may still struggle to generate enough cash to survive. Investors should view the company as a "shell" for a new business model.

Bottom Line: This is a high-risk situation. The company is struggling to survive and is attempting a major transformation. If you are considering an investment, weigh the potential of the new media-and-crypto model against the very real risks of bankruptcy, extreme share dilution, and the loss of their primary revenue-generating division.