Riskified (NYSE:RSKD) Releases Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Riskified beat Q1 expectations, reporting earnings of $0.05 per share versus the $0.04 consensus and revenue of $88.27 million versus $87.72 million expected. The company also said revenue rose 7% year over year.
• Profitability improved as non-GAAP gross profit increased 13% to $46.3 million and adjusted EBITDA climbed to $6.2 million from $1.7 million a year ago. Even so, Riskified still posted a negative net margin and return on equity.
• Management raised full-year guidance, lifting the low end of its revenue and adjusted EBITDA outlook to $376 million-$384 million and $28 million-$34 million, respectively. The company also highlighted growth from new partnerships, broader merchant adoption, and expanding use cases in alternative payments and AI products.

Riskified (NYSE:RSKD - Get Free Report) announced its earnings results on Wednesday. The company reported $0.05 earnings per share for the quarter, topping analysts' consensus estimates of $0.04 by $0.01, FiscalAI reports. Riskified had a negative return on equity of 5.63% and a negative net margin of 8.00%.The firm had revenue of $88.27 million for the quarter, compared to the consensus estimate of $87.72 million.

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

• Riskified beat with strong Q1 growth, as revenue rose 7% year over year to $88.3 million, non-GAAP gross profit increased 13% to $46.3 million, and adjusted EBITDA jumped to $6.2 million from $1.7 million a year ago.
• Management raised the low end of full-year guidance for both revenue and adjusted EBITDA, now expecting revenue of $376 million-$384 million and adjusted EBITDA of $28 million-$34 million, while also forecasting about $40 million in positive free cash flow for 2026.
• The company highlighted rapid pipeline and merchant expansion, with win rates above 75%, strong activity in the U.S. and internationally, and momentum in travel, Japan, and LATAM. New partnerships and channels, including Outpayce, Shopify, and Radial, were positioned as growth drivers.
• ACH and other alternative payment methods are emerging as a meaningful opportunity, with three of the top 10 Q1 deals in ACH and management saying demand is broadening Riskified’s addressable market beyond traditional card payments.
• Riskified said multi-product adoption is accelerating, with merchants using more than one product up about 50% year over year and now representing over 30% of revenue. The company also introduced new identity and AI products, including Riskified ARIA and an identity data offering, which it sees as expanding use cases beyond core fraud prevention.

Riskified Trading Down 4.7%

Shares of NYSE:RSKD traded down $0.23 during mid-day trading on Thursday, reaching $4.57. The company had a trading volume of 1,119,448 shares, compared to its average volume of 695,426. The firm has a market cap of $676.30 million, a price-to-earnings ratio of -26.85 and a beta of 1.39. The company's 50-day moving average price is $4.33 and its 200-day moving average price is $4.58. Riskified has a one year low of $3.70 and a one year high of $5.68.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on RSKD shares. Truist Financial cut their target price on Riskified from $8.00 to $7.00 and set a "buy" rating on the stock in a research note on Thursday, March 5th. Wall Street Zen upgraded Riskified from a "hold" rating to a "buy" rating in a research note on Sunday, March 15th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $5.96.

Key Headlines Impacting Riskified

Here are the key news stories impacting Riskified this week:

• Positive Sentiment: Riskified beat Q1 2026 expectations, posting EPS of $0.05 versus $0.04 consensus and revenue of $88.27 million versus $87.72 million expected. Riskified (RSKD) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: The company said gross profit growth accelerated and management highlighted stronger EBITDA momentum, which suggests improving operating leverage and a better path to profitability. Riskified Ltd (RSKD) Q1 2026 Earnings Call Highlights: Strong EBITDA Growth and Raised Revenue ...
• Positive Sentiment: Riskified raised its full-year revenue outlook to $376 million-$384 million, signaling management confidence in continued demand and execution. Riskified Reports Strong Start to 2026 with Accelerated Gross Profit Growth
• Neutral Sentiment: Analysts currently rate the stock a “Hold,” which does not provide a strong bullish catalyst. Riskified Ltd. NYSE: RSKD Receives Average Rating of "Hold" from Analysts
• Negative Sentiment: Despite the earnings beat, Riskified still reported a negative net margin and negative return on equity, reminding investors that profitability remains a work in progress. Riskified stock and earnings summary

Insider Activity at Riskified

In related news, CTO Assaf Feldman sold 32,590 shares of Riskified stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $4.68, for a total value of $152,521.20. Following the sale, the chief technology officer owned 2,163,125 shares of the company's stock, valued at approximately $10,123,425. The trade was a 1.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 17.40% of the company's stock.

Institutional Investors Weigh In On Riskified

Hedge funds and other institutional investors have recently bought and sold shares of the business. Raymond James Financial Inc. bought a new stake in Riskified during the 2nd quarter valued at $36,000. Man Group plc bought a new stake in Riskified during the 4th quarter valued at $50,000. Orion Porfolio Solutions LLC bought a new stake in Riskified during the 2nd quarter valued at $54,000. Virtu Financial LLC bought a new stake in Riskified during the 3rd quarter valued at $51,000. Finally, Invesco Ltd. bought a new stake in Riskified during the 1st quarter valued at $51,000. Institutional investors own 58.98% of the company's stock.

Riskified Company Profile

Riskified is a technology company specializing in e-commerce fraud prevention and revenue optimization for online merchants. Its platform combines machine learning, behavioral analytics and proprietary risk models to assess the legitimacy of transactions in real time. By offering a chargeback guarantee, Riskified assumes the financial liability for approved orders that later turn out to be fraudulent, allowing retailers to focus on growth rather than dispute management.

The company's core product suite addresses various aspects of the online shopping lifecycle, including order approval, account takeover protection and policy compliance.

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