Riskified (NYSE:RSKD) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Riskified (NYSE:RSKD) issued its earnings results on Wednesday. The company reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.03 by $0.04, reports. Riskified had a negative return on equity of 3.93% and a negative net margin of 4.23%. The company had revenue of $115.18 million for the quarter, compared to analyst estimates of $103.41 million.

Here are the key takeaways from Riskified’s conference call:

• Revenue rose 41% year over year to a record $115.2 million, substantially ahead of the roughly 27% growth previously guided, while Adjusted EBITDA increased 47% to $8.1 million. Riskified raised its full-year revenue and Adjusted EBITDA outlook for the third time in 2026.
• Growth was broad-based, with Digital Finance billings up more than 300% year over year, the U.S. up about 69%, and new merchant activity a primary growth driver. The company also reported continued cross-selling, with its multi-product merchant base growing about 55%.
• Gross profit grew 20%, slower than revenue, and gross margin was 43%; management attributed the difference to the larger share of newly onboarded merchants, whose margins typically improve as they ramp. It expects this cohort dynamic to continue into 2027.
• Riskified generated record third-quarter free cash flow of $15.2 million and now expects about $45 million for full-year 2026. It ended the quarter with approximately $235 million in cash, deposits, and investments, no debt, and $78 million remaining under its share repurchase authorization.
• The company highlighted agentic commerce and its Zendesk integration as opportunities for its identity and risk products, including evaluating refund and return requests. Management said actual agent-driven checkout activity remains relatively limited, with current use cases more prevalent in customer-support and policy flows.

Riskified Stock Down 9.0%

Riskified stock traded down $0.93 during midday trading on Thursday, hitting $9.44. 2,457,971 shares of the stock were exchanged, compared to its average volume of 1,264,074. Riskified has a 52-week low of $3.70 and a 52-week high of $11.13. The stock has a market capitalization of $1.40 billion, a price-to-earnings ratio of -85.79 and a beta of 1.34. The business’s 50-day moving average price is $7.84 and its 200-day moving average price is $5.57.

Insiders Place Their Bets

In other news, CTO Avi Shauli sold 30,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $6.44, for a total value of $193,200.00. Following the transaction, the chief technology officer owned 485,625 shares in the company, valued at $3,127,425. The trade was a 5.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Assaf Feldman sold 43,904 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $6.51, for a total value of $285,815.04. Following the completion of the transaction, the insider directly owned 1,167,371 shares of the company’s stock, valued at approximately $7,599,585.21. This represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 2,260,119 shares of company stock worth $14,196,843 in the last ninety days. 17.40% of the stock is owned by corporate insiders.

Top Riskified Stories

These are some of the RSKD stories that stood out recently:

• Positive Sentiment: Q3 revenue rose 41% to $115.2 million, above analyst estimates of $103.4 million, while adjusted earnings of $0.07 per share beat the $0.03 consensus. Riskified Q3 earnings results
• Positive Sentiment: Several analysts lifted their price targets after the results: DA Davidson raised its target to $12 and maintained a Buy rating, Truist raised its target to $14 and kept Buy, and UBS increased its target to $10.50 while remaining Neutral. Truist price target update
• Neutral Sentiment: Growth comes with a profitability trade-off: new merchants have higher chargeback ratios, weighing on gross margin. Riskified also remains unprofitable on a net-margin basis, so sustained margin improvement will be important. Q3 earnings call margin discussion

Analyst Upgrades and Downgrades

A number of brokerages have commented on RSKD. Zacks Research upgraded shares of Riskified from a “strong sell” rating to a “hold” rating in a research note on Tuesday. Weiss Ratings restated a “sell (d-)” rating on shares of Riskified in a report on Friday, August 14th. DA Davidson raised their price objective on shares of Riskified from $9.00 to $12.00 and gave the company a “buy” rating in a research note on Thursday. The Goldman Sachs Group raised their price objective on shares of Riskified from $5.50 to $7.50 and gave the company a “sell” rating in a research note on Tuesday, October 13th. Finally, Keefe, Bruyette & Woods reiterated a “market perform” rating on shares of Riskified in a report on Thursday. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $8.54.

About Riskified

Riskified Ltd. is a technology company that helps online merchants identify and manage fraud and other risks in e-commerce transactions. Its platform uses machine learning and data analysis to assess purchases and support decisions such as approving or declining orders. The company’s services include fraud screening backed by a chargeback guarantee, as well as tools designed to help merchants address payment disputes, account abuse and other forms of policy misuse. Riskified’s systems are intended to help businesses reduce losses while allowing legitimate customers to complete purchases.