RSKD — Riskified Ltd.

RSKD Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Q4 Revenue: $99.3 million, a record, representing a 65% year-over-year increase.
• Full Year Revenue: $344.6 million, up 65% year-over-year.
• Q4 Non-GAAP Gross Profit: $57.3 million, a 16% increase year-over-year.
• Full Year Gross Profit: $180.3 million, a 4% increase year-over-year.
• Adjusted EBITDA: $70.7 million for Q4, with an 18% margin; full year adjusted EBITDA was $26.7 million, up over 55% year-over-year.
• GAAP Profit: $5.8 million for the full year, compared to a loss of $4.1 million in 2024.
• Free Cash Flow: $10.7 million in Q4, totaling $33.1 million for the year; expected to grow to approximately $40 million in 2026.
• Share Repurchase: $105.9 million spent to repurchase approximately 22 million shares in 2025; an additional $75 million share repurchase program authorized.

2. Strategic Updates and Business Highlights:

• Record New Business: Achieved the highest quarterly new business wins since the IPO, contributing to 55% of the total new business for the year.
• Retention Metrics: Annual dollar retention (ADR) improved to approximately 100% from 96%, and net dollar retention (NDR) increased to 105% from 96%.
• Geographic Growth: Non-U.S. regions grew collectively by 22% year-over-year, with significant growth in APAC (53%) and LATAM (13%).
• Product Expansion: New products like Policy Protect, AccountSecure, and Dispute Resolve generated nearly $10 million in revenue in 2025, with expectations to reach $15 million to $20 million in 2026.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: Expected to be between $372 million and $384 million, representing growth of 8% to 11%.
• Adjusted EBITDA Guidance: Projected between $26 million and $34 million, with an 8% margin.
• Gross Profit Growth: Targeting non-GAAP gross profit growth of 7% to 12% in 2026, with a focus on driving gross profit rather than solely revenue growth.

4. Bad News, Challenges, or Points of Concern:

• FX Headwinds: Approximately 400 basis points impact on adjusted EBITDA due to the strengthening of the Israeli shekel against the dollar.
• Decline in U.S. Revenue: U.S. revenue declined 6% year-over-year, primarily due to a contraction in the home category.
• Competition and Fraud Risks: Increased complexity in fraud schemes and the evolving landscape of agentic commerce may pose risks, with early indications of higher fraud rates in new transaction flows.

5. Notable Q&A Insights:

• Agentic Commerce: Discussion on the potential for agentic commerce to either increase or decrease fraud levels. Merchants are currently preparing for these changes, but actual transaction flows remain low.
• Growth in Money Transfer and Payments: While growth in this category has been exceptional, normalization is expected in 2026.
• Integration with Agentic Protocols: Riskified is working on integrating with various agentic protocols, but the market remains fragmented.
• Adoption of New Products: Approximately 50% increase in adoption of non-chargeback guarantee products, reflecting growing demand for expanded services.

Overall, Riskified Ltd. demonstrated strong growth and profitability in Q4 2025, with a positive outlook for 2026, despite facing challenges related to currency fluctuations and evolving fraud risks.