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NEW YORK - Riskified Ltd. (NYSE: RSKD), a fraud and risk intelligence firm for e-commerce, has released its financial results for the first quarter ended March 31, 2025. The company, which recently hosted a global event series for merchants, reported a 7% year-over-year increase in gross merchandise volume (GMV) and an 8% rise in revenues, signaling consistent growth despite a dip in net profits. According to InvestingPro data, the company maintains a "GOOD" overall financial health score of 2.93, with particularly strong performance in growth and cash flow metrics. The stock is currently trading below its Fair Value, suggesting potential upside opportunity.
Eido Gal, Co-Founder and CEO of Riskified, expressed optimism about the company’s start to the year and its execution on the 2025 product roadmap. The company’s recent addition of new merchants has expanded its reach across various verticals and geographies, with notable growth outside the United States. A key highlight was Riskified’s foray into the Money Transfer & Payments category, where it experienced over 90% year-over-year revenue growth.
Revenue growth from products outside of Riskified’s core Chargeback Guarantee product was up by approximately 190% from the previous year, demonstrating the success of the company’s multi-product platform strategy. Additionally, Riskified repurchased 4.1 million shares for $20.7 million, including fees, as part of its share repurchase program. InvestingPro analysis reveals that management has been aggressively buying back shares, with the company maintaining a strong balance sheet featuring a current ratio of 6.15 and minimal debt-to-equity of 0.07.
Riskified was also recognized as the Most Innovative Fraud Prevention Solution at the Merchant Payments Ecosystem Awards 2025, underscoring its commitment to providing cutting-edge AI-driven fraud prevention platforms.
Despite a solid revenue increase, Riskified reported a net loss of $13.9 million, compared to an $11.6 million loss the previous year. The GAAP gross profit margin decreased from 55% to 49%, while the adjusted EBITDA margin also saw a decline from 4% to 2%.
Looking ahead, Riskified maintains its 2025 guidance, projecting revenues between $333 million and $346 million and an adjusted EBITDA between $18 million and $26 million. The company’s strong balance sheet with approximately $357.1 million in cash, deposits, and investments, and no debt, positions it well for long-term growth. InvestingPro subscribers can access detailed analysis of Riskified’s growth trajectory, including 8 additional ProTips and comprehensive financial metrics in the Pro Research Report, which transforms complex Wall Street data into actionable intelligence for smarter investing decisions.
Chief Financial Officer Aglika Dotcheva highlighted the positive quarter of adjusted EBITDA, attributing it to a disciplined approach to expense management and a focus on operational efficiency. These factors, Dotcheva believes, will contribute to further adjusted EBITDA expansion and long-term shareholder value.
This article is based on a press release statement from Riskified Ltd.
In other recent news, Riskified Ltd. reported better-than-expected earnings for the fourth quarter of 2024, with earnings per share reaching $0.06 against a forecast of -$0.0047. The company also exceeded revenue expectations, posting $93.53 million compared to the predicted $90.2 million. Despite these strong financial results, Riskified disclosed a net loss of $4.1 million for the same quarter, attributing the increased loss to the departure of some large customers. In a separate development, Riskified is reportedly exploring a potential sale, working with Qatalyst Partners to evaluate proposals from interested parties, including digital payment processors and cybersecurity firms.
Additionally, DA Davidson has maintained a Buy rating on Riskified, setting a price target of $7.00, citing the company’s strong fourth-quarter performance and growth in various industry verticals. Riskified has also introduced a new solution called Adaptive Checkout, aimed at reducing false declines and improving conversion rates for online merchants by utilizing artificial intelligence. The company’s strategic initiatives and product diversification efforts have been further highlighted by its partnerships with notable clients such as Prada and Booking.com. As Riskified continues to navigate these developments, market participants are closely monitoring the company’s strategic direction and potential sale discussions.
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