Riskified (NYSE:RSKD) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Riskified reported quarterly EPS of $0.07, beating the $0.03 consensus, while revenue of $115.18 million also topped expectations of $103.41 million.
• Revenue rose 41% year over year to a record $115.2 million, and Adjusted EBITDA increased 47% to $8.1 million; the company raised its full-year revenue and Adjusted EBITDA outlook for the third time in 2026.
• Gross margin was 43%, with gross profit growth lagging revenue as newer merchants ramp up. Riskified also reported record quarterly free cash flow of $15.2 million and expects about $45 million for full-year 2026.

Riskified (NYSE:RSKD - Get Free Report) released its earnings results on Wednesday. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of $0.03 by $0.04, reports. The business had revenue of $115.18 million during the quarter, compared to analysts' expectations of $103.41 million. Riskified had a negative net margin of 4.23% and a negative return on equity of 3.93%.

Here are the key takeaways from Riskified's conference call:

• Revenue rose 41% year over year to a record $115.2 million, substantially ahead of the roughly 27% growth previously guided, while Adjusted EBITDA increased 47% to $8.1 million. Riskified raised its full-year revenue and Adjusted EBITDA outlook for the third time in 2026.
• Growth was broad-based, with Digital Finance billings up more than 300% year over year, the U.S. up about 69%, and new merchant activity a primary growth driver. The company also reported continued cross-selling, with its multi-product merchant base growing about 55%.
• Gross profit grew 20%, slower than revenue, and gross margin was 43%; management attributed the difference to the larger share of newly onboarded merchants, whose margins typically improve as they ramp. It expects this cohort dynamic to continue into 2027.
• Riskified generated record third-quarter free cash flow of $15.2 million and now expects about $45 million for full-year 2026. It ended the quarter with approximately $235 million in cash, deposits, and investments, no debt, and $78 million remaining under its share repurchase authorization.
• The company highlighted agentic commerce and its Zendesk integration as opportunities for its identity and risk products, including evaluating refund and return requests. Management said actual agent-driven checkout activity remains relatively limited, with current use cases more prevalent in customer-support and policy flows.

Riskified Trading Down 7.9%

Shares of NYSE:RSKD traded down $0.82 during midday trading on Thursday, hitting $9.55. The stock had a trading volume of 1,365,789 shares, compared to its average volume of 1,258,861. The company has a market capitalization of $1.41 billion, a PE ratio of -86.82 and a beta of 1.34. The stock has a 50 day moving average price of $7.84 and a two-hundred day moving average price of $5.57. Riskified has a 1 year low of $3.70 and a 1 year high of $11.13.

Key Riskified News

These are some of the RSKD news items that stood out recently:

• Positive Sentiment: Q3 revenue rose 41% to $115.2 million, exceeding analyst expectations of $103.4 million. Adjusted earnings of $0.07 per share also beat estimates, while the company said losses were nearly eliminated. Riskified Reports Strong Third Quarter of 2026
• Neutral Sentiment: Zacks Research upgraded the stock from Strong Sell to Hold, a less-negative view but not a bullish recommendation. Zacks Research Ratings
• Negative Sentiment: Investors face a growth-versus-margin trade-off: gross margin declined as newer merchants carried higher chargeback ratios. After the previous session’s roughly 22% surge, this concern and possible profit-taking may be contributing to the recent pullback. Riskified Q3 Earnings Call Highlights Growth and Margin Trade-Off

Insider Transactions at Riskified

In other news, insider Assaf Feldman sold 206,096 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $6.54, for a total transaction of $1,347,867.84. Following the sale, the insider owned 1,211,275 shares of the company's stock, valued at $7,921,738.50. The trade was a 14.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Erez Shachar sold 289,400 shares of Riskified stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $6.12, for a total transaction of $1,771,128.00. Following the transaction, the director owned 1,466,883 shares of the company's stock, valued at approximately $8,977,323.96. The trade was a 16.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,260,119 shares of company stock worth $14,196,843 over the last ninety days. 17.40% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of equities research analysts have recently commented on RSKD shares. Truist Financial increased their target price on shares of Riskified from $7.50 to $9.00 and gave the company a "buy" rating in a research report on Monday, September 28th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating on shares of Riskified in a report on Thursday. The Goldman Sachs Group upped their target price on shares of Riskified from $5.50 to $7.50 and gave the company a "sell" rating in a report on Tuesday, October 13th. Zacks Research upgraded Riskified from a "strong sell" rating to a "hold" rating in a research note on Tuesday. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Riskified in a research note on Friday, August 14th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $8.54.

About Riskified

Riskified Ltd. is a technology company that helps online merchants identify and manage fraud and other risks in e-commerce transactions. Its platform uses machine learning and data analysis to assess purchases and support decisions such as approving or declining orders. The company's services include fraud screening backed by a chargeback guarantee, as well as tools designed to help merchants address payment disputes, account abuse and other forms of policy misuse. Riskified's systems are intended to help businesses reduce losses while allowing legitimate customers to complete purchases.

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