Riskified Q4 Earnings Call Highlights
He also highlighted what he described as the strongest quarterly new business performance since the company’s IPO. In the fourth quarter, Riskified won the “highest quarterly amount of new business” since the IPO, representing about 55% of total new business won for the year, and driven by competitive win rates “of over 75%.”
→ Super Micro: Why the Shadow of NVIDIA Is a Profitable Place to Be
Riskified cited a range of new customer wins and onboardings during the year, including Aerolíneas Star Perú, Abound, Adastria, Ace Hardware, Banxa, CASM, David’s Bridal, NetEase, Nintendo, Temu, Tripadvisor, and NexTool. The company also pointed to upsells in 2025 among merchants that previously joined the platform, including Iberia Airlines, Meta, Fast Retailing, Viva Aerobus, Vivid Seats, and Zappos.
Vertical and geographic trends: payments strength and international growth
Dotcheva said fourth-quarter revenue growth was partially driven by strong performance in the travel subvertical, offset in part by softness in tickets and live events due to tougher comparisons versus 2024’s record activity. Overall, the combined tickets and travel vertical was “slightly positive” in the period.
The money transfer and payments category grew 75% year-over-year in the fourth quarter, driven by new business wins and upsell activity, according to Dotcheva. She also noted the company’s fashion, cosmetics, and luxury vertical grew 8% year-over-year, helped by new business and upsells and 11% growth during the Black Friday through Cyber Monday period, partially offset by continued same-store sales pressure in high-end and sneaker subverticals. Dotcheva added the company returned to year-over-year growth in the home category after lapping a dynamic that had affected earlier periods in 2025.
Geographically, Dotcheva said full-year U.S. revenue declined 6% year-over-year, primarily due to contraction in the home category. She emphasized accelerated growth outside the U.S., with APAC up about 53%, other Americas (Canada and Latin America) up about 13%, and EMEA up about 18%. Revenue derived from merchants headquartered outside the U.S. was 46% in 2025, up from 39% in 2024.
Product expansion, AI themes, and agentic commerce
Management described a fraud environment growing more complex, with Gal citing industry studies indicating a 27% year-over-year increase in fraud losses related to online transactions and noting that “over 2/3 of U.S. companies experienced an increase in AI-related fraud attempts in 2025.” He said Riskified has seen an increase in new business lead generation of approximately 50% year-over-year, which he attributed to the evolving fraud landscape, product enhancements, and a broader top-of-funnel effort.
Gal said Riskified generated nearly $10 million in aggregate annual revenues in 2025 from Policy Protect, Account Secure, and Dispute Resolve, and plans to continue expanding revenues outside core fraud services in 2026. In Q&A, he said the company expects revenue from these newer offerings and “non-guaranteed payment flows” to be in the range of $15 million to $20 million in 2026.
On agentic commerce, Gal described two flows the company is monitoring: (1) merchant-native AI agents that operate within a merchant’s ecosystem, and (2) general-purpose LLMs, which currently are “predominantly referrals,” with agentic purchasing traffic still “extremely low and limited.” He said Riskified is seeing higher-risk traffic in general-purpose LLM channels at present and suggested take rates there could be higher initially due to elevated risk and limited data.
Gal also said Riskified is working to support a range of emerging protocols and integrations across the ecosystem, describing the landscape as fragmented and early, and naming examples including “AWS Marketplace,” Google’s “A2A protocol,” and “general RESTful APIs.”
Margins, cash flow, share repurchases, and 2026 outlook
Dotcheva reported full-year gross profit of $180.3 million, up 4% year-over-year, with the company targeting 7% to 12% non-GAAP gross profit growth in 2026. She also said total operating expenses were $39.6 million in the fourth quarter and $153.6 million for the year, down 2% from 2024, with operating expenses declining to 45% of revenue from 48% in 2024. Riskified ended 2025 with 670 employees, down 3% year-over-year.
Riskified ended the year with approximately $298 million of cash, deposits, and investments and zero debt. Free cash flow was $10.7 million in the fourth quarter and $33.1 million for the full year, and Dotcheva said the company expects free cash flow to increase at least 20% to approximately $40 million in 2026.
Riskified repurchased about 22 million shares in 2025 for $105.9 million, reducing shares outstanding by 8%. Since the buyback program began in the fourth quarter of 2023, the company has repurchased about 52 million shares for $259.5 million, reducing shares outstanding by 17%. Management also announced the board authorized an additional $75 million share repurchase program (subject to Israeli regulatory requirements), bringing total outstanding authorization to about $84 million when combined with remaining amounts under the prior authorization.
For 2026, Dotcheva guided to revenue of $372 million to $384 million (up 8% to 11% year-over-year) and adjusted EBITDA of $26 million to $34 million, with an 8% margin at the midpoint. She said the outlook includes an approximately 400 basis point FX headwind to adjusted EBITDA margin, largely tied to Israeli shekel appreciation given that about half of expenses are in Israel. On a constant currency basis, she said the company expects relatively flat expenses year-over-year.
About Riskified (NYSE:RSKD)
Riskified is a technology company specializing in e-commerce fraud prevention and revenue optimization for online merchants. Its platform combines machine learning, behavioral analytics and proprietary risk models to assess the legitimacy of transactions in real time. By offering a chargeback guarantee, Riskified assumes the financial liability for approved orders that later turn out to be fraudulent, allowing retailers to focus on growth rather than dispute management.
The company's core product suite addresses various aspects of the online shopping lifecycle, including order approval, account takeover protection and policy compliance.
The article "Riskified Q4 Earnings Call Highlights" was originally published by MarketBeat.
Content Original Link:
" target="_blank">
