Improves Guidance for FY 2025
NEW YORK--(BUSINESS WIRE)--November 12, 2025--
Riskified Ltd. (NYSE: RSKD) (the "Company"), a leader in ecommerce fraud and risk intelligence, today announced financial results for the three and nine months ended September 30, 2025. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.
"We are pleased with our strong third quarter performance. Our revenue and gross profit growth accelerated, and we saw momentum across most of our verticals. With our leading Artificial Intelligence platform and a world-class team focused on executing on our product roadmap through the end of the year, I continue to believe that we are well positioned to capture the large market opportunity ahead," said Eido Gal, Co-Founder and Chief Executive Officer of Riskified.
Q3 2025 Business Highlights
-- Accelerated Gross Profit Growth: We achieved a meaningful acceleration
in gross profit growth in the third quarter of 2025 compared to the first
half of the year. We currently expect this positive trajectory to
continue, with our year-over-year gross profit growth anticipated to
accelerate further in the fourth quarter of 2025, supported by continued
technical model performance and traditionally safer holiday season
volumes.
-- Strengthened Leadership Position in Money Transfer and Payments
Category: Our top new logo win, and largest upsell during the third
quarter were both in our Money Transfer and Payments category. We
continue to believe that the Money Transfer & Payments category
represents an exciting area of expansion, as evidenced by our 100%
year-over-year revenue growth rates. We believe that we are on track to
double the absolute dollar revenues in this category for Full Year 2025
as compared with last year.
-- Further Vertical and Geographic Diversification with the Addition of
New Merchants: We continued to have success landing new merchants on the
Riskified platform, which in turn deepened our vertical and geographic
reach. Our top ten new logos added during the third quarter represented
wins in five verticals and across three geographies. Seven of our top ten
new Chargeback Guarantee logos won were headquartered in the United
States.
-- Share Repurchase Program Update: In the third quarter, we repurchased
approximately 5.2 million ordinary shares for approximately $25.3 million,
including broker and transaction fees.
-- Successfully Executed First-Ever Global Ascend in 2025: With Ascend
Japan in October, Riskified completed the international tour of Ascend
2025, which for the first time brought our tent pole merchant summit to
six major ecommerce hubs across the world. Each regional event delivered
exceptional value, elevating our brand, expanding our relationships, and
driving outcomes that reinforce the impact of our global footprint. This
year, overall Ascend attendance increased by 73% and the total merchant
ecommerce volume represented at these events was over $1 trillion, a more
than 250% increase compared to last year.
-- Achieved Amazon Web Services (AWS) Retail and Consumer Packaged Goods
(CPG) Competencies: After rigorous technical evaluation, Riskified
achieved both the AWS Retail and CPG Competency designations for proven
success in helping global merchants stop fraud, prevent abuse, and grow
revenue with confidence, while delivering validated solutions that help
consumer goods and retail brands overcome operational challenges in
digital commerce.
Q3 2025 Financial Summary & Highlights
The following table summarizes our consolidated financial results for the three and nine months ended September 30, 2025 and 2024, in thousands except where indicated:
Three Months Ended Nine Months Ended September
September 30, 30,
------------------------- ---------------------------
2025 2024 2025 2024
------ ------ --- ------- ------- ---
(unaudited) (unaudited)
Gross
merchandise
volume
("GMV") in
millions(1) $37,805 $34,706 $108,410 $101,712
Increase
in GMV
year
over
year 9% 7%
Revenue $81,862 $78,849 $245,309 $233,987
Increase
in
revenues
year
over
year 4% 5%
GAAP Gross
profit $41,063 $38,956 $121,267 $122,078
GAAP Gross
profit
margin 50% 49% 49% 52%
Net profit
(loss) $(7,806) $(9,699) $(33,325) $(30,838)
Net profit
(loss)
margin (10)% (12)% (14)% (13)%
Adjusted
EBITDA(1) $ 5,553 $ 899 $ 9,006 $ 5,990
Adjusted
EBITDA
margin(1) 7% 1% 4% 3%
Additional Financial Highlights
-- GAAP gross profit margin of 50% for the three months ended September
30, 2025 compared to 49% in the prior year. Non-GAAP gross profit
margin(1) of 51% for the three months ended September 30, 2025 compared
to 50% in the prior year. GAAP gross profit margin of 49% for the nine
months ended September 30, 2025 compared to 52% in the prior year.
Non-GAAP gross profit margin(1) of 50% for the nine months ended
September 30, 2025 compared to 53% in the prior year.
-- GAAP net loss per share of $(0.05) for the three months ended September
30, 2025 compared to $(0.06) in the prior year. Non-GAAP diluted net
profit per share(1) of $0.04 for the three months ended September 30,
2025 compared to $0.03 in the prior year. GAAP net loss per share of
$(0.21) for the nine months ended September 30, 2025 compared to $(0.18)
in the prior year. Non-GAAP diluted net profit per share(1) of $0.09 for
the nine months ended September 30, 2025 compared to $0.11 in the prior
year.
-- Operating cash inflow of $13.5 million for the three months ended
September 30, 2025 compared to $14.0 million in the prior year. Free cash
inflow(1) of $13.4 million for the three months ended September 30, 2025
compared to $13.9 million in the prior year. Operating cash inflow of
$22.9 million for the nine months ended September 30, 2025 compared to
$29.0 million in the prior year. Free cash inflow(1) of $22.4 million for
the nine months ended September 30, 2025 compared to $28.5 million in the
prior year.
-- Ended September 30, 2025 with approximately $325.2 million of cash,
deposits, and investments on the balance sheet and zero debt.
"We continue to execute our profitability goals while investing in areas that drive long-term value. We expect a meaningful uplift in our adjusted EBITDA margin in the fourth quarter, in part reflecting the discipline in managing the business over the past few years, and the anticipated step-up in revenues in the holiday season period. Our focus remains on finishing the year strong and entering 2026 with momentum," said Aglika Dotcheva, Chief Financial Officer of Riskified.
Financial Outlook
For the year ending December 31, 2025, we now expect:
-- Revenue between $338 million and $346 million -- Adjusted EBITDA(2) between $21 million and $27 million
(1) GMV is a key performance indicator. Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit margin, non-GAAP diluted net profit per share, and free cash flow are non-GAAP measures of financial performance. See "Key Performance Indicators and Non-GAAP Measures" for additional information and "Reconciliation of GAAP to Non-GAAP Measures" for a reconciliation to the most directly comparable GAAP measure.
(2) We refer to certain forward-looking non-GAAP financial measures in this press release and on our quarterly results conference call. We are not able to provide a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating expense, or free cash flow for the fiscal year ending December 31, 2025 to net profit (loss), gross profit, total operating expenses, and operating cash flow, respectively, because certain items that are excluded from these non-GAAP metrics but included in the most directly comparable GAAP financial measures, cannot be predicted on a forward-looking basis without unreasonable effort or are not within our control. For example, we are unable to forecast the magnitude of foreign currency transaction gains or losses which are subject to many economic and other factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and significant impact on our future GAAP financial results.
Conference Call and Webcast Details
The Company will host a conference call to discuss its financial results today, November 12, 2025 at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Riskified's Investor Relations website at ir.riskified.com. A replay of the webcast will also be available for a limited time at ir.riskified.com. The press release with the financial results, as well as the investor presentation materials will be accessible on the Company's Investor Relations website prior to the conference call.
Key Performance Indicators and Non-GAAP Measures
This press release and the accompanying tables contain references to Gross Merchandise Volume ("GMV"), which is a key performance indicator, and to certain non-GAAP measures which include non-GAAP measures of financial performance such as Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP operating expenses by line item, non-GAAP net profit (loss), and non-GAAP net profit (loss) per share, and a non-GAAP measure of liquidity, Free Cash Flow. Management and our Board of Directors use key performance indicators and non-GAAP measures as supplemental measures of performance and liquidity because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items that we believe do not directly reflect our core operations. We also use Adjusted EBITDA for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives, and to evaluate our capacity to expand our business. Free Cash Flow provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet.
These non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or other items. Non-GAAP measures of financial performance have limitations as analytical tools in that these measures do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments; these measures do not reflect changes in, or cash requirements for, our working capital needs; these measures do not reflect our tax expense or the cash requirements to pay our taxes, and assets being depreciated and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements. Free Cash Flow is limited because it does not represent the residual cash flow available for discretionary expenditures. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
In light of these limitations, management uses these non-GAAP measures to supplement, not replace, our GAAP results. The non-GAAP measures used herein are not necessarily comparable to similarly titled captions of other companies due to different calculation methods. Non-GAAP financial measures should not be considered in isolation, as an alternative to, or superior to information prepared and presented in accordance with GAAP. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. By providing these non-GAAP measures together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
We define GMV as the gross total dollar value of orders reviewed through our AI-powered ecommerce risk intelligence platform during the period indicated, including the value of orders that we did not approve. GMV is an indicator of the success of our merchants and the scale of our platform. GMV does not represent transactions successfully completed on our merchants' websites or revenue earned by us, however, our revenue is directionally correlated with the level of GMV reviewed through our platform and is an indicator of future revenue opportunities. We generate revenue based on the portion of GMV we approve multiplied by the associated risk-adjusted fee.
We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the below tables, adjusted for, as applicable, depreciation and amortization (including amortization of capitalized internal-use software as presented in our statement of cash flows), share-based compensation expense, payroll taxes related to share-based compensation, legal-related and other expenses, restructuring costs, provision for (benefit from) income taxes, other income (expense) including foreign currency transaction gains and losses and gains and losses on non-designated hedges, and interest income (expense). Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of revenue. Non-GAAP Gross Profit Margin represents Non-GAAP Gross Profit expressed as a percentage of revenue. We define non-GAAP net profit (loss) per share as non-GAAP net profit (loss) divided by non-GAAP weighted-average shares. We define non-GAAP weighted-average shares, as GAAP weighted average shares, adjusted to reflect any dilutive ordinary share equivalents resulting from non-GAAP net profit (loss), if applicable.
We define Free Cash Flow as net cash provided by (used in) operating activities, less cash purchases of property and equipment.
Management believes that by excluding certain items from the associated GAAP measure, these non-GAAP measures are useful in assessing our performance and provide meaningful supplemental information due to the following factors:
Depreciation and amortization: We exclude depreciation and amortization (including amortization of capitalized internal-use software) because we believe that these costs are not core to the performance of our business and the utilization of the underlying assets being depreciated and amortized can change without a corresponding impact on the operating performance of our business. Management believes that excluding depreciation and amortization facilitates comparability with other companies in our industry.
Share-based compensation expense: We exclude share-based compensation expense primarily because it is a non-cash expense that does not directly correlate to the current performance of our business. This is partly because the expense is calculated based on the grant date fair value of an award which may vary significantly from the current fair market value of the award based on factors outside of our control. Share-based compensation expense is principally aimed at aligning our employees' interests with those of our shareholders and at long-term retention, rather than to address operational performance for any particular period.
Payroll taxes related to share-based compensation: We exclude employer payroll tax expense related to share-based compensation in order to see the full effect that excluding that share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business.
Legal-related and other expenses: We exclude certain costs incurred in connection with corporate initiatives that are non-recurring and not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.
Restructuring costs: We exclude costs associated with reductions in force because these costs are related to one-time severance and benefit payments and are not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.
See the tables below for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
Forward Looking Statements
This press release and announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our revenue and Adjusted EBITDA guidance for fiscal year 2025, our anticipated gross profit, non-GAAP gross profit margin, expectations as to continued margin and Adjusted EBITDA expansion, future growth potential in new verticals, new geographies and from new-products, anticipated benefits and impacts of our share repurchase program and management of our dilution, internal modeling assumptions, expectations as to the macroeconomic environment, expectations as to our new merchant pipeline and geographic reach, market share and upsell opportunities, the impact of competition, pricing pressure and churn, the advancement and performance of our AI-powered multi-product platform, the benefits of our partnerships and collaborations with third-parties, our forecasted operating expenses and our business plans and strategy are forward looking statements, which reflect our current views with respect to future events and are not a guarantee of future performance. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "forecasts," "aims," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.
Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: our ability to manage our growth effectively; continued use of credit cards and other payment methods that expose merchants to the risk of payment fraud, and other changes in laws and regulations, including card scheme rules, related to the use of these payment methods, and the emergence of new alternative payments products; our ability to attract new merchants and retain existing merchants and increase sales of our products to existing merchants; our history of net losses and ability to achieve profitability; the impact of macroeconomic and geopolitical conditions on us and on the performance of our merchants; the accuracy of our estimates of market opportunity and forecasts of market growth; competition; our ability to continue to improve our machine learning models; fluctuations in our CTB Ratio and gross profit margin, including as a result of large-scale merchant fraud attacks or other security incidents; our ability to protect the information of our merchants and consumers; our ability to predict future revenue due to lengthy sales cycles; seasonal fluctuations in revenue; our merchant concentration and loss of a significant merchant; the financial condition of our merchants, particularly in challenging macroeconomic environments, and the impact of pricing pressure; our ability to increase the adoption of our products, develop and introduce new products and effectively manage the impact of new product introductions on our existing product portfolio; our ability to mitigate the risks involved with selling our products to large enterprises; changes to our pricing and pricing structures; our ability to retain the services of our executive officers, and other key personnel, including our co-founders; our ability to attract and retain highly qualified personnel, including software engineers and data scientists, particularly in Israel; our ability to manage periodic realignments of our organization, including expansion or reductions in force; our exposure to existing and potential future litigation claims; our exposure to fluctuations in currency exchange rates, including recent declines in the value of the Israeli shekel against the US dollar as a result of the ongoing conflict in Israel; our ability to obtain additional capital; our reliance on third-party providers of cloud-based infrastructure; our ability to protect our intellectual property rights; technology and infrastructure interruptions or performance problems; the efficiency and accuracy of our machine learning models and access to third-party and merchant data; our ability to comply with evolving data protection, privacy and security laws; the development of regulatory frameworks for machine learning technology and artificial intelligence; our use of open-source software; our ability to enhance and maintain our brand; our ability to execute potential acquisitions, strategic investments, partnerships, or alliances; potential claims related to the violation of the intellectual property rights of third parties; our failure to comply with anti-corruption, trade compliance, and economic sanctions laws and regulations; disruption, instability and volatility in global markets and industries; our ability to enforce non-compete agreements entered into with our employees; our ability to maintain effective systems of disclosure controls and financial reporting; our ability to accurately estimate or judgements relating to our critical accounting policies; our business in China; changes in tax laws or regulations; increasing scrutiny of, and expectations for, environmental, social and governance initiatives; potential future requirements to collect sales or other taxes; potential future changes in the taxation of international business and corporate tax reform; changes in and application of insurance laws or regulations; conditions in Israel that may affect our operations; the impact of the dual class structure of our ordinary shares; risks associated with our share repurchase program, including the risk that the program could increase volatility and fail to enhance shareholder value; our status as a foreign private issuer; and other risk factors set forth in Item 3.D - "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, as filed with the SEC on March 6, 2025, and other documents filed with or furnished to the SEC. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
About Riskified
Riskified (NYSE:RSKD) empowers businesses to unleash ecommerce growth by outsmarting risk. Many of the world's biggest brands and publicly traded companies selling online rely on Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists, and researchers, Riskified's AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Learn more at Riskified.com.
RISKIFIED LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
As of As of
September 30, 2025 December 31, 2024
--------------------- ----------------------
(unaudited)
Assets
Current assets:
Cash and cash
equivalents $ 228,845 $ 371,063
Short-term deposits 5,000 5,000
Accounts receivable, net 30,849 47,803
Prepaid expenses and
other current assets 10,422 9,830
Short-term investments 91,305 --
---------------- ---------------
Total current assets 366,421 433,696
Property and equipment, net 11,339 12,704
Operating lease
right-of-use assets 22,251 25,310
Deferred contract
acquisition costs 14,318 16,558
Other assets, noncurrent 7,368 7,593
---------------- ---------------
Total assets $ 421,697 $ 495,861
================ ===============
Liabilities and
Shareholders' Equity
Current liabilities:
Accounts payable $ 2,115 $ 2,309
Accrued compensation and
benefits 20,817 26,365
Guarantee obligations 8,583 13,061
Provision for
chargebacks, net 7,415 9,434
Operating lease
liabilities, current 5,940 5,590
Accrued expenses and
other current
liabilities 15,768 13,780
---------------- ---------------
Total current
liabilities 60,638 70,539
Operating lease
liabilities, noncurrent 19,735 21,940
Other liabilities,
noncurrent 25,028 21,078
---------------- ---------------
Total liabilities 105,401 113,557
Shareholders' equity:
Class A ordinary shares,
no par value;
900,000,000 shares
authorized as of
September 30, 2025 and
December 31, 2024;
108,377,243 and
112,306,279 shares
issued and outstanding
as of September 30, 2025
and December 31, 2024,
respectively -- --
Class B ordinary shares,
no par value;
232,500,000 shares
authorized as of
September 30, 2025 and
December 31, 2024;
45,413,468 and
48,902,840 shares issued
and outstanding as of
September 30, 2025 and
December 31, 2024,
respectively -- --
Treasury shares at cost,
44,242,801 and
30,049,351 ordinary
shares as of September
30, 2025 and December
31, 2024, respectively (223,427) (154,223)
Additional paid-in
capital 1,018,750 982,131
Accumulated other
comprehensive profit
(loss) 789 887
Accumulated deficit (479,816) (446,491)
---------------- ---------------
Total shareholders'
equity 316,296 382,304
---------------- ---------------
Total liabilities and
shareholders' equity $ 421,697 $ 495,861
================ ===============
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended September Nine Months Ended September
30, 30,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Revenue $ 81,862 $ 78,849 $ 245,309 $ 233,987
Cost of revenue 40,799 39,893 124,042 111,909
----------- ----------- ----------- -----------
Gross profit 41,063 38,956 121,267 122,078
----------- ----------- ----------- -----------
Operating expenses:
Research and
development 17,006 16,671 52,250 51,522
Sales and
marketing 18,565 20,999 62,799 66,681
General and
administrative 14,443 15,616 45,233 48,313
----------- ----------- ----------- -----------
Total
operating
expenses 50,014 53,286 160,282 166,516
----------- ----------- ----------- -----------
Operating profit
(loss) (8,951) (14,330) (39,015) (44,438)
Interest income
(expense), net 3,274 5,050 10,568 16,189
Other income
(expense), net (328) 220 45 397
----------- ----------- ----------- -----------
Profit (loss)
before income
taxes (6,005) (9,060) (28,402) (27,852)
Provision for
(benefit from)
income taxes 1,801 639 4,923 2,986
----------- ----------- ----------- -----------
Net profit (loss) $ (7,806) $ (9,699) $ (33,325) $ (30,838)
----------- ----------- ----------- -----------
Other comprehensive
profit (loss), net
of tax:
Other
comprehensive
profit
(loss) (188) 424 (98) 52
----------- ----------- ----------- -----------
Comprehensive profit
(loss) $ (7,994) $ (9,275) $ (33,423) $ (30,786)
=========== =========== =========== ===========
Net profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders, basic
and diluted $ (0.05) $ (0.06) $ (0.21) $ (0.18)
=========== =========== =========== ===========
Weighted-average
shares used in
computing net
profit (loss) per
share attributable
to Class A and B
ordinary
shareholders, basic
and diluted 156,793,171 168,649,496 159,151,311 173,113,574
=========== =========== =========== ===========
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ------------------------
2025 2024 2025 2024
------- ------- -------- --------
(unaudited) (unaudited)
Cash flows from
operating activities:
Net profit (loss) $ (7,806) $ (9,699) $ (33,325) $ (30,838)
Adjustments to
reconcile net profit
(loss) to net cash
provided by (used in)
operating activities:
Unrealized loss
(gain) on foreign
currency 668 (211) 1,384 (654)
Provision for
(benefit from)
account receivable
allowances 325 397 620 762
Depreciation and
amortization 601 806 1,869 2,560
Amortization of
capitalized
internal-use
software costs 261 383 824 1,149
Amortization of
deferred contract
costs 2,808 2,739 8,906 8,087
Impairment of
deferred contract
costs -- 1,205 -- 1,205
Share-based
compensation
expense 12,945 13,905 40,120 44,462
Non-cash
right-of-use asset
changes 1,034 1,107 3,059 3,441
Changes in accrued
interest 1,540 (471) 883 473
Ordinary share
warrants issued to
a customer -- 384 -- 1,151
Other 88 182 201 319
Changes in operating
assets and
liabilities:
Accounts receivable 2,042 5,469 16,567 11,777
Deferred contract
acquisition costs (713) (2,360) (4,825) (5,492)
Prepaid expenses and
other assets 1,133 30 (2,341) (1,291)
Accounts payable 673 293 (188) (425)
Accrued compensation
and benefits (1,140) 586 (6,225) (3,559)
Guarantee
obligations 105 1,899 (4,478) (980)
Provision for
chargebacks, net (428) (2,256) (2,019) (3,283)
Operating lease
liabilities (1,203) (361) (3,441) (2,565)
Accrued expenses and
other liabilities 572 (15) 5,350 2,706
------- ------- -------- --------
Net cash provided
by (used in)
operating
activities 13,505 14,012 22,941 29,005
------- ------- -------- --------
Cash flows from
investing activities:
Purchases of
investments (97,956) -- (189,971) --
Maturities of
investments 75,510 -- 97,482 --
Purchases of
property and
equipment (120) (105) (580) (507)
Proceeds from sale
of fixed assets 10 83 38 83
------- ------- -------- --------
Net cash provided
by (used in)
investing
activities (22,556) (22) (93,031) (424)
------- ------- -------- --------
Cash flows from
financing activities:
Proceeds from
exercise of share
options 643 316 3,495 3,444
Taxes paid related
to net share
settlement of
equity awards (2,470) -- (6,996) --
Purchases of
treasury shares (25,253) (47,015) (69,204) (116,444)
------- ------- -------- --------
Net cash provided
by (used in)
financing
activities (27,080) (46,699) (72,705) (113,000)
------- ------- -------- --------
Effects of exchange
rates on cash and cash
equivalents (56) 413 577 (21)
Net increase (decrease)
in cash and cash
equivalents (36,187) (32,296) (142,218) (84,440)
Cash and cash
equivalents--beginning
of period 265,032 388,694 371,063 440,838
------- ------- -------- --------
Cash and cash
equivalents--end of
period $228,845 $356,398 $ 228,845 $ 356,398
======= ======= ======== ========
Reconciliation of GAAP to Non-GAAP Measures
The following tables reconcile non-GAAP measures to the most directly comparable GAAP measure and are presented in thousands except for share and per share amounts.
Three Months Ended Nine Months Ended September
September 30, 30,
------------------------- ---------------------------
2025 2024 2025 2024
------ ------ --- ------- ------- ---
(unaudited) (unaudited)
Net profit (loss) $(7,806) $(9,699) $(33,325) $(30,838)
Provision for
(benefit from)
income taxes 1,801 639 4,923 2,986
Interest
(income)
expense, net (3,274) (5,050) (10,568) (16,189)
Other (income)
expense, net 328 (220) (45) (397)
Depreciation
and
amortization 862 1,189 2,693 3,709
Share-based
compensation
expense 12,945 13,905 40,120 44,462
Payroll taxes
related to
share-based
compensation 112 135 511 486
Legal-related
and other
expenses -- -- 236 1
Restructuring
costs 585 -- 4,461 1,770
------ ------ --- ------- ------- ---
Adjusted EBITDA $ 5,553 $ 899 $ 9,006 $ 5,990
====== ====== === ======= ======= ===
Net profit (loss)
margin (10)% (12)% (14)% (13)%
Adjusted EBITDA
Margin 7% 1% 4% 3%
Three Months Ended Nine Months Ended September
September 30, 30,
------------------------- ---------------------------
2025 2024 2025 2024
------ ------ --- ------- ------- ---
(unaudited) (unaudited)
GAAP gross profit $41,063 $38,956 $121,267 $122,078
Plus:
depreciation
and
amortization 280 418 888 1,268
Plus:
share-based
compensation
expense 183 183 554 594
Plus: payroll
taxes related
to
share-based
compensation 3 4 13 15
Plus:
restructuring
costs 2 -- 265 156
------ ------ --- ------- ------- ---
Non-GAAP gross
profit $41,531 $39,561 $122,987 $124,111
====== ====== === ======= ======= ===
Gross profit
margin 50% 49% 49% 52%
Non-GAAP gross
profit margin 51% 50% 50% 53%
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2025 2024 2025 2024
---------- ------------- ----------- -------------
(unaudited) (unaudited)
GAAP cost of
revenue $ 40,799 $ 39,893 $ 124,042 $ 111,909
Less:
depreciation
and
amortization 280 418 888 1,268
Less:
share-based
compensation
expense 183 183 554 594
Less: payroll
taxes related
to
share-based
compensation 3 4 13 15
Less:
restructuring
costs 2 -- 265 156
------ --------- ------- ---------
Non-GAAP cost of
revenue $ 40,331 $ 39,288 $ 122,322 $ 109,876
====== ========= ======= =========
GAAP research and
development $ 17,006 $ 16,671 $ 52,250 $ 51,522
Less:
depreciation
and
amortization 269 354 817 1,127
Less:
share-based
compensation
expense 3,300 3,167 9,891 9,992
Less: payroll
taxes related
to
share-based
compensation 2 1 5 4
Less:
restructuring
costs 222 -- 1,086 555
------ --------- ------- ---------
Non-GAAP research
and development $ 13,213 $ 13,149 $ 40,451 $ 39,844
====== ========= ======= =========
GAAP sales and
marketing $ 18,565 $ 20,999 $ 62,799 $ 66,681
Less:
depreciation
and
amortization 182 239 554 738
Less:
share-based
compensation
expense 3,965 4,430 12,279 14,370
Less: payroll
taxes related
to
share-based
compensation 67 78 290 277
Less:
restructuring
costs 334 -- 2,389 563
------ --------- ------- ---------
Non-GAAP sales
and marketing $ 14,017 $ 16,252 $ 47,287 $ 50,733
====== ========= ======= =========
GAAP general and
administrative $ 14,443 $ 15,616 $ 45,233 $ 48,313
Less:
depreciation
and
amortization 131 178 434 576
Less:
share-based
compensation
expense 5,497 6,125 17,396 19,506
Less: payroll
taxes related
to
share-based
compensation 40 52 203 190
Less:
legal-related
and other
expenses -- -- 236 1
Less:
restructuring
costs 27 -- 721 496
------ --------- ------- ---------
Non-GAAP general
and
administrative $ 8,748 $ 9,261 $ 26,243 $ 27,544
====== ========= ======= =========
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- --------------------------
2025 2024 2025 2024
------ ------ ------ ------
(unaudited) (unaudited)
Net cash
provided by
(used in)
operating
activities $13,505 $14,012 $22,941 $ 29,005
Purchases
of
property
and
equipment (120) (105) (580) (507)
------ ------ ------ ------
Free Cash
Flow $13,385 $13,907 $22,361 $ 28,498
====== ====== ====== ======
Three Months Ended September Nine Months Ended September
30, 30,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Net profit (loss) $ (7,806) $ (9,699) $ (33,325) $ (30,838)
Depreciation
and
amortization 862 1,189 2,693 3,709
Share-based
compensation
expense 12,945 13,905 40,120 44,462
Payroll taxes
related to
share-based
compensation 112 135 511 486
Legal-related
and other
expenses -- -- 236 1
Restructuring
costs 585 -- 4,461 1,770
----------- ----------- ----------- -----------
Non-GAAP net
profit (loss) $ 6,698 $ 5,530 $ 14,696 $ 19,590
=========== =========== =========== ===========
Weighted-average
shares used in
computing net
profit (loss)
and non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic 156,793,171 168,649,496 159,151,311 173,113,574
Add: Dilutive
Class A and B
ordinary share
equivalents 5,428,473 8,893,209 5,645,609 7,740,348
----------- ----------- ----------- -----------
Weighted-average
shares used in
computing
non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
diluted 162,221,644 177,542,705 164,796,920 180,853,922
=========== =========== =========== ===========
Net profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic and
diluted $ (0.05) $ (0.06) $ (0.21) $ (0.18)
=========== =========== =========== ===========
Non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic and
diluted $ 0.04 $ 0.03 $ 0.09 $ 0.11
=========== =========== =========== ===========
View source version on businesswire.com: https://www.businesswire.com/news/home/20251112306875/en/
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ir@riskified.com
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(END) Dow Jones Newswires
November 12, 2025 06:55 ET (11:55 GMT)
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