Riskified's Third Quarter Results Reflect Accelerated Gross Profit Growth and Adjusted EBITDA Expansion
Improves Guidance for FY 2025
“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
-
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 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 September 30, |
|
Nine Months Ended September 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 to49% in the prior year. Non-GAAP gross profit margin(1) of51% for the three months ended September 30, 2025 compared to50% in the prior year. GAAP gross profit margin of49% for the nine months ended September 30, 2025 compared to52% in the prior year. Non-GAAP gross profit margin(1) of50% for the nine months ended September 30, 2025 compared to53% in the prior year.
-
GAAP net loss per share of
$(0.05) $(0.06) $0.04 $0.03 $(0.21) $(0.18) $0.09 $0.11
-
Operating cash inflow of
$13.5 million $14.0 million $13.4 million $13.9 million $22.9 million $29.0 million $22.4 million $28.5 million
-
Ended September 30, 2025 with approximately
$325.2 million
“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 $346 million
-
Adjusted EBITDA(2) between
$21 million $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
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
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 September 30, 2025 |
|
As of 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 30, |
|
Nine Months Ended September 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 September 30, |
|
Nine Months Ended 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 September 30, |
|
Nine Months Ended September 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 September 30, |
|
Nine Months Ended September 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 September 30, |
|
Nine Months Ended 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 September 30, |
|
Nine Months Ended 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 30, |
|
Nine Months Ended September 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/
Investor Relations: Chett Mandel, Head of Investor Relations | ir@riskified.com
Corporate Communications: Cristina Dinozo, Senior Director of Communications | press@riskified.com
Source: Riskified Ltd.
