What Riskified (RSKD) Said on Its Q3 Earnings Call

Key Points

• Riskified’s Q3 revenue rose 41% to $115.2 million, its first quarter above $100 million, driven by new merchants and upselling. Adjusted EBITDA increased 47% to $8.1 million, and the company’s GAAP net loss narrowed to $1.3 million.
• The company raised its full-year revenue forecast to $427 million–$433 million and adjusted EBITDA outlook to $39 million–$43 million. It also expects about $45 million in positive free cash flow for 2026.
• Digital Finance billings grew more than 300% year over year, leading category growth; U.S. billings increased about 69%. Riskified also introduced tools to assess risks involving AI shopping and customer-service agents.

Riskified NYSE: RSKD reported third-quarter revenue of $115.2 million, up 41% from a year earlier, as new merchants and upselling activity drove growth across its business. The fraud-prevention company also raised its full-year revenue and adjusted EBITDA forecasts for the third time this year.

The quarter marked Riskified’s first with more than $100 million in revenue and exceeded the approximately 27% year-over-year growth the company had previously guided for, Co-Founder and CEO Eido Gal said on the earnings call. Gross merchandise volume rose 18% to $44.6 billion.

Adjusted EBITDA increased 47% to $8.1 million, representing a 7% margin. On a GAAP basis, the company’s net loss narrowed to $1.3 million from $7.8 million a year earlier. Non-GAAP gross profit rose 20% to $49.7 million.

Digital Finance Leads Growth

Chief Financial Officer Agi Dotcheva said third-quarter billings growth was broad-based across categories, led by Digital Finance, which grew more than 300% year over year. Strong activity at new merchants was the primary driver, with upselling to existing customers also contributing, she said.

Digital Finance includes exchanges, remittance companies, sports betting and event contracts, Gal said. The company has had multiple significant wins in the category over recent quarters that have ramped up, he said. Gal added that concentration among Riskified’s top three or five clients has remained similar over the past few years, although the clients making up those groups may have changed.

Electronics, general and home categories collectively grew 12%, while tickets and travel grew approximately 5%, Dotcheva said. Low-double-digit growth in tickets and live events was partially offset by a slight decline in travel. Fashion and luxury grew 4%.

By region, billings in the United States rose approximately 69%, compared with 38% growth in the second quarter. Asia-Pacific grew approximately 14% and the rest of the Americas grew approximately 17%. Europe, the Middle East and Africa declined 3%, which Dotcheva attributed to a difficult comparison, primarily in digital assets within Digital Finance.

Riskified’s multi-product merchant base grew approximately 55% year over year, Gal said, and nearly half of its top 50 clients used two or more products. Eight of its top 10 new customers were headquartered outside the United States, compared with five in each of the first two quarters of 2026.

Outlook Raised as Margins Reflect New Merchants

Riskified now expects full-year revenue of $427 million to $433 million, up from its previous forecast of $400 million to $410 million. The new midpoint implies fourth-quarter revenue growth of approximately 29% year over year, Dotcheva said.

The company raised its adjusted EBITDA forecast to $39 million to $43 million from $33 million to $39 million. It also increased its expected full-year non-GAAP gross profit growth to 14% to 16%, from a prior range of 11% to 14%, and expects approximately $45 million in positive free cash flow for 2026.

Third-quarter non-GAAP gross margin was 43%, reflecting the growing share of newly onboarded merchants, Dotcheva said. Gal said new clients typically start with higher chargeback ratios, while performance and margins improve as Riskified works with them. He said the company does not anticipate an inherently different margin structure across categories, though individual merchants can vary.

Dotcheva said Riskified would provide its 2027 outlook with fourth-quarter results, after assessing the holiday season and the ramp-up of newer business. She noted that changes in the mix of industries can affect seasonal patterns, including in Digital Finance, tickets and travel.

AI Commerce and Capital Allocation

Gal said merchants face increasingly complex fraud risks as consumers begin using AI agents to assist with shopping and customer-service requests. Riskified announced Agent Identity Risk Intelligence during the quarter, capabilities designed to identify an AI assistant, connect it to a consumer identity and provide a real-time risk signal.

During the question-and-answer session, Gal said the company was seeing agents assist with tasks such as price comparisons and discussions about returns, refunds and discounts, while actual checkout attempts and success rates were lower. He said the most prevalent current use cases were in policy and customer-support flows rather than checkout.

Riskified also announced a Zendesk integration during the quarter that brings its identity risk intelligence into customer service, allowing human and AI agents to assess customers behind refund, return or exchange requests.

The company ended the quarter with approximately $235 million in cash, deposits and investments and no debt. It repurchased approximately 500,000 shares during the quarter and had $78 million remaining under its buyback authorization. Gal said Riskified is evaluating potential acquisitions to expand its product portfolio, while weighing whether to build, buy or partner for new capabilities.

About Riskified (NYSE:RSKD)

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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