Riskified stock holds steady as Goldman Sachs reiterates Sell rating

Published 18/08/2025, 13:50
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Investing.com - Riskified Ltd. (NYSE:RSKD) maintained its $5.00 price target in a recent Goldman Sachs research note, with the firm reiterating its Sell rating following the company’s second-quarter results. According to InvestingPro analysis, the company’s current market capitalization stands at $828 million, with data suggesting the stock may be slightly undervalued based on its Fair Value assessment.

The e-commerce fraud prevention company reported second-quarter revenue of approximately $81 million, slightly exceeding analyst consensus of $80 million. This performance aligns with the company’s broader growth trajectory, as InvestingPro data shows a robust revenue growth of 9.3% over the last twelve months. Gross merchandise volume grew 4% year-over-year to $36.4 billion, also marginally ahead of expectations, while maintaining a take rate of around 22 basis points.

Despite the revenue beat, Riskified’s gross margin came in at 50%, below the consensus estimate of 51%, resulting in adjusted gross profit of approximately $40 million compared to the $41 million analysts had projected. Operating expenses were 6% below expectations at $38 million, helping the company achieve adjusted EBITDA of $2.1 million, representing a 3% margin versus the consensus estimate of $1.0 million.

For the full year 2025, Riskified raised the lower end of its revenue guidance to a range of $336-$346 million, representing 3%-6% growth, compared to its previous guidance of $333-$346 million. The company maintained its adjusted EBITDA guidance of $18-$26 million, implying margins between 5% and 8%. InvestingPro analysis indicates positive momentum, with analysts expecting the company to achieve profitability this year. Get access to more than 10 additional ProTips and comprehensive financial metrics with InvestingPro.

Goldman Sachs noted several new client wins during the quarter, including additions in the ticketing and live events space, a new Japanese fashion retailer, and several clients outside the United States, supporting Riskified’s international expansion efforts. The company’s expansion is backed by a strong financial position, with InvestingPro data showing a healthy current ratio of 6.96 and more cash than debt on its balance sheet.

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