RSKD Q4 2025 Earnings Call Summary

Summary of Riskified Ltd. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

Q4 Revenue: Achieved a record of $99.3 million, up 65% year-over-year.
Full-Year Revenue: Totaled $344.6 million, reflecting strong growth.
Gross Profit: Q4 gross profit was $57.3 million (up 16% YoY), with a full-year gross profit of $180.3 million (up 4% YoY).
Adjusted EBITDA: Q4 adjusted EBITDA reached $70.7 million (18% margin), with a full-year adjusted EBITDA of $26.7 million (up over 55% YoY).
GAAP Profitability: Reported a net profit of $5.8 million for 2025, compared to a loss of $4.1 million in 2024.
Free Cash Flow: Generated $10.7 million in Q4 and $33.1 million for the full year, with expectations of approximately $40 million in 2026.

2. Strategic Updates and Business Highlights

Customer Retention: Improved annual dollar retention (ADR) to ~100% and net dollar retention (NDR) to 105%.
New Business Wins: Q4 saw the highest quarterly amount of new business since IPO, contributing to 55% of total new business for the year.
Geographic Expansion: Non-U.S. regions grew 22% YoY, with significant growth in APAC (53%) and LATAM (13%).
Product Offerings: New products like Policy Protect and AccountSecure generated nearly $10 million in revenue in 2025, with expectations to grow to $15-$20 million in 2026.
AI Integration: Continued investment in AI to enhance operational efficiency and product offerings, with a focus on managing the complexities of fraud in evolving commerce landscapes.

3. Forward Guidance and Outlook

2026 Revenue Guidance: Expected revenue between $372 million and $384 million (growth of 8% to 11%).
Adjusted EBITDA Guidance: Anticipated between $26 million and $34 million, with a margin of 8%, factoring in a 400 basis point FX headwind.
Gross Profit Growth: Targeting non-GAAP gross profit growth of 7% to 12% in 2026.

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.
Declining U.S. Revenue: Revenue from the U.S. declined 6% YoY, primarily due to contraction in the home category.
Complex Fraud Landscape: Increasing complexity and prevalence of fraud, especially in new agentic commerce channels, poses ongoing risks.
Performance Variability: Weaker performance in the 2022 merchant cohort and challenges in ramping new merchants in emerging markets.

5. Notable Q&A Insights

Agentic Commerce: Discussions highlighted the early stages of agentic commerce, with a focus on how it may increase fraud complexity and the need for Riskified’s services as a protective layer.
Growth in Money Transfer and Payments: While exceptional growth was noted, expectations for 2026 suggest normalization in this category.
Integration with Protocols: Riskified is working to integrate with various agentic protocols, although the market remains fragmented.
Adoption of New Products: A significant increase in merchants using multiple products indicates a growing reliance on Riskified’s platform, enhancing customer stickiness.

Overall, Riskified Ltd. demonstrated strong financial performance in Q4 2025, achieving GAAP profitability for the first time while navigating challenges related to currency fluctuations and the evolving fraud landscape. The company remains optimistic about its growth trajectory and strategic initiatives for 2026.

RSKD — Riskified Ltd.