Riskified NYSE: RSKD reported second-quarter revenue growth of 22% year over year to $98.7 million, its fastest growth rate in more than four years, as new merchant activity, upsells and demand for fraud-management tools accelerated. The company also raised its full-year revenue and adjusted EBITDA outlook for the second time this year.
Co-founder and Chief Executive Officer Eido Gal said merchants are confronting a more complex fraud environment, including fake identities, account takeovers and fraud across digital wallets, ACH, peer-to-peer payments, tokenized transactions and 3D Secure flows. He said the company sees increased merchant interest in a unified platform rather than separate point solutions for identity, account security, transaction screening, returns and disputes.
“Fraud keeps growing more complex, and merchants are converging on the unified platform we've spent years building,” Gal said. “That combination is showing up in our results, strong revenue growth, accelerating new business, and a multi-product base that keeps deepening.”
Growth Led by Digital Finance, Tickets and Travel
Gross merchandise value rose 13% year over year to $41.3 billion. Chief Financial Officer Aglika Dotcheva said revenue growth was broad-based across categories, led by Digital Finance and Tickets and Travel.
- Digital Finance revenue grew about 180% year over year, driven primarily by multiple newly onboarded merchants in event contracts and gaming, along with upsells among existing clients.
- Tickets and Travel grew about 23%, accelerating from 18% growth in the first quarter. Ticketing was the primary driver as same-store sales strengthened at large ticketing merchants.
- Fashion and Luxury grew 4%, supported by new business, upsells and same-store performance.
Gal said a dense live-sports calendar that included the World Cup and NBA Finals lifted transaction volumes in ticketing and in the company’s renamed Digital Finance category. He said the category, previously called money transfer and payments, now encompasses a broader group of merchants.
The company also highlighted growth in alternative payment methods. The dollar value of ACH transactions processed during the quarter was approximately 19 times the value processed in the prior-year quarter, according to Gal. Riskified has built an ACH risk layer intended to support instant payouts and reduce risks associated with lower-cost funding methods.
Platform Adoption and New-Business Momentum
Riskified said its multi-product merchant base increased about 50% year over year. Gal said merchants are expanding beyond individual tools and using the company’s identity intelligence across the transaction lifecycle, including customer-service workflows, account restrictions, refunds and customer relationship management systems.
The company’s AI assistant, ARIA, continued to gain traction, Gal said. The assistant is embedded across the platform and is designed to help fraud and risk teams investigate activity, identify emerging trends and take action more quickly.
New-logo wins were diversified across regions and merchant categories, with five of the company’s top 10 new customers headquartered outside the United States. Riskified added new merchants in all four regions and said its competitive win rate remained above 75% in the second quarter.
During the question-and-answer session, Gal said the quarter reflected a convergence of expanded product capabilities and rising fraud sophistication, potentially including effects from agentic tools. He added that newer categories and geographies may initially carry higher chargeback-to-transaction ratios, or CTBs, but that the company expects those cohorts to improve over time.
Riskified also discussed its partnership with Marqeta. Gal said the relationship allows the companies to share data and risk information when a card is issued by Marqeta, with the goal of improving authorization rates for merchants. He said Riskified expects the partnership to support merchant conversion, competitive win rates and retention rather than serve as a direct revenue-sharing arrangement.
Profitability, Cash Flow and Buybacks
Non-GAAP gross profit increased 13% year over year to $45.4 million, while gross margin was 46%. Dotcheva attributed the margin level to the ramping of new merchants, which typically begin at lower margins, and to business mix that included a larger contribution from ticketing activity.
Non-GAAP operating expenses were $41.5 million, or 42% of revenue, compared with 47% of revenue in the prior-year period. Adjusted EBITDA rose 84% to $3.9 million from $2.1 million a year earlier.
On a GAAP basis, net loss narrowed 22% to $9.1 million, compared with a $11.6 million loss in the second quarter of 2025. The company said the loss was affected by lower interest income and higher other expense, primarily related to foreign-currency fluctuations.
Riskified ended the quarter with approximately $223.6 million in cash, deposits and investments and no debt. Free cash flow totaled $12.9 million in the quarter, and management said it expects to generate more than $40 million of positive free cash flow during 2026.
The company repurchased about 13.7 million shares during the quarter at an average price of $4.67 per share, for total consideration of $63.9 million. Riskified said the purchases reduced total shares outstanding by 8%. Since the buyback program began, the company has repurchased about 72 million shares for $351 million, contributing to a 26% reduction in shares outstanding over that period.
Raised 2026 Outlook
Riskified raised its full-year revenue forecast to a range of $400 million to $410 million, with a midpoint of $405 million, and said it expects third-quarter revenue growth of approximately 27%.
The company also raised its adjusted EBITDA outlook to $33 million to $39 million, compared with its previous range of $28 million to $34 million. The new midpoint implies an adjusted EBITDA margin of about 9%, up from approximately 8% under the prior forecast.
Dotcheva said the timing and ramping of new merchant go-lives and upsells, merchant retention and the broader macroeconomic environment remain key factors affecting where results fall within the guidance ranges. Riskified expects full-year gross profit growth of 11% to 14%, with third-quarter gross profit growth similar to the second quarter.
About Riskified (NYSE:RSKD)
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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