Riskified Q2 2025 slides: seventh consecutive quarter of positive EBITDA

Introduction & Market Context

Riskified Ltd (NYSE:RSKD), a leading AI-powered fraud management and risk intelligence platform, presented its Q2 2025 investor presentation on August 18, 2025, highlighting continued profitability and strategic growth initiatives. The company’s stock has shown volatility, with a 2.94% increase to $5.26 at the previous close, but premarket trading indicates a 7.03% decline to $4.89.

The presentation comes after Riskified beat expectations in Q1 2025, with earnings per share of $0.03 compared to a forecasted loss of $0.08, and revenue of $82.39 million exceeding the expected $79.23 million. The company continues to position itself as a critical player in the eCommerce risk management space, addressing a massive market opportunity.

As shown in the following image highlighting Riskified’s market position:

Quarterly Performance Highlights

Riskified reported Q2 2025 revenue of $81.1 million, representing a 3% year-over-year increase, while first-half 2025 revenue reached $163 million, up 5% compared to the same period last year. The company achieved gross profit of $39.8 million in Q2 2025, with a non-GAAP gross profit margin of 50%.

The following chart illustrates Riskified’s quarterly financial performance:

Notably, Riskified reported its seventh consecutive quarter of positive Adjusted EBITDA, reaching $2.1 million in Q2 2025, representing a 3% Adjusted EBITDA margin. This continues the company’s trend of improving profitability, as shown in the following visualization:

The company has maintained strong expense discipline, with non-GAAP operating expenses as a percentage of revenue declining year-over-year from 50% to 47%. Riskified’s balance sheet remains robust with $339 million in cash, deposits, and investments as of June 30, 2025, with zero debt.

Riskified’s free cash flow has significantly improved since its IPO, with the company expecting approximately $30 million in free cash flow for 2025. The quarterly free cash flow trend is illustrated below:

Competitive Industry Position

Riskified continues to strengthen its competitive position in the eCommerce fraud prevention market. The company addresses significant pain points in the eCommerce ecosystem, including friction and lost sales, fraud and chargebacks, abuse and policy enforcement, and account security.

As illustrated in the following visualization of eCommerce challenges:

The company’s AI-powered platform separates legitimate from fraudulent identities, leading to increased revenue, decreased costs, and improved customer experiences:

Riskified’s competitive advantage is demonstrated through head-to-head pilot results against next-generation competitors, consistently showing lower chargeback rates and higher approval rates:

The company benefits from strong network effects, with over 4 billion historical full-lifecycle eCommerce transactions, more than 950 million unique consumers in its network, and presence in over 185 countries. This creates a virtuous cycle where more merchants lead to more GMV, more global consumers, more ROI, and ultimately more merchants:

Strategic Initiatives

Riskified highlighted several strategic initiatives in its Q2 2025 presentation. The company has achieved further vertical and geographic diversification with the addition of new merchants, strengthened its leadership position in tickets and live events, and implemented a multi-product go-live with a new Japanese merchant.

The company’s products work synergistically to improve performance and ROI, creating a closed-loop system:

Riskified has also launched innovative agentic eCommerce solutions and partnered with HUMAN Security to power a safe AI shopping agent future, positioning itself at the forefront of emerging eCommerce technologies.

The company continues its share repurchase program, having repurchased an aggregate of 4.9 million shares for a total of $23.3 million. This represents an increase from the 4.1 million shares for $20.7 million reported in Q1 2025. Additionally, Riskified has authorized up to $75 million of additional share repurchases, demonstrating confidence in its long-term prospects.

Forward-Looking Statements

For the full year 2025, Riskified provided guidance with revenue expected to range between $336 million and $346 million, with a midpoint of $341 million. Adjusted EBITDA is projected to be between $18 million and $26 million, with a midpoint of $22 million. The company also expects annual non-GAAP weighted average shares outstanding to be between 164-166 million.

The detailed guidance is presented in the following image:

Riskified’s accuracy and chargeback-to-billings (CTB) improvements over time are driven by more data through vertical and geographic penetration, more accurate models with continuous retraining, automated real-time fraud responses, and improved representment tactics:

Looking ahead, Riskified is pursuing multiple growth opportunities, including growing with existing merchants, winning new merchants, land and expand strategies, geographic expansion, new categories, and platform sales. The company’s modular machine learning infrastructure enables rapid product development and adaptation to evolving fraud patterns.

Despite the positive outlook, investors should note the premarket trading decline of 7.03%, which may indicate some market concerns about the company’s valuation or growth trajectory. With a market capitalization of approximately $798.72 million as of Q1 2025 reporting, Riskified continues to navigate the competitive landscape of eCommerce fraud prevention while maintaining its focus on profitability and strategic growth.

Full presentation:

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