RSKD — Riskified Ltd.

Riskified Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $88.3 million, up 7% year-over-year.
• Non-GAAP Gross Profit: $46.3 million, a 13% increase year-over-year.
• Adjusted EBITDA: $6.2 million, representing a 370% increase from $1.7 million in Q1 2025.
• Net Loss: $4.4 million, improved from a loss of $13.9 million in Q1 2025.
• Gross Merchandise Volume (GMV): $37.2 billion, reflecting a 9% increase year-over-year.
• Free Cash Flow: $9 million, with expectations of approximately $40 million for the full year.
• Cash Position: $276 million with no debt.

2. Strategic Updates and Business Highlights

• Significant growth in the sales pipeline, particularly in the U.S. and international markets like Japan and Latin America.
• Strong performance in the travel sector, supported by a partnership with Outpayce from Amadeus.
• Competitive win rates above 75%, with notable new clients in various verticals.
• Expansion into ACH fraud intelligence and nonpayment fraud products, with a 50% increase in merchants using multiple products.
• Introduction of Riskified ARIA, an AI-driven risk intelligence tool, and a new identity data product aimed at enhancing customer service workflows.
• Partnerships with Shopify and Radial to broaden market access and improve service delivery.

3. Forward Guidance and Outlook

• Revenue Guidance: Increased to a range of $376 million to $384 million for the full year.
• Adjusted EBITDA Guidance: Raised to a range of $28 million to $34 million.
• Anticipated growth in gross profit for 2026 is expected to be between 8% to 12%.
• Continued focus on expanding into new verticals and payment methods, with expectations of sustained growth in the Tickets & Travel and Money Transfer categories.

4. Bad News, Challenges, or Points of Concern

• Softness in the fashion and luxury vertical, particularly in the APAC region, which may impact overall performance.
• The gap between billings growth (11%) and revenue growth (7%) is the widest seen in several years, indicating potential timing issues in revenue recognition.
• The competitive landscape is becoming more complex as merchants seek comprehensive solutions across multiple payment methods, which may increase pressure on pricing and margins.

5. Notable Q&A Insights

• Management highlighted the expanding addressable market due to the adoption of ACH and alternative payment methods, which could enhance long-term growth.
• The partnership with Shopify is expected to deepen, potentially driving customer acquisition and multiproduct adoption.
• There is a focus on expanding beyond traditional fraud departments into customer experience and support, indicating a broader application of Riskified's solutions.
• The monetization strategy for new products like ARIA and the identity database is still being developed, with expectations for significant contributions to revenue in the future.

Overall, Riskified reported a strong start to 2026 with positive financial metrics and strategic initiatives, although challenges in specific verticals and the competitive landscape remain areas to monitor.