Riskified Ltd. Class A ((RSKD)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Riskified Ltd. Class A’s recent earnings call painted a picture of robust growth and recovery, particularly in areas like gross profit, money transfer, and international markets. Despite facing challenges in the US market and specific sectors such as home and live events, the company’s advancements and positive projections were the dominant themes, signaling a promising outlook.
Turnaround in Gross Profit
Riskified demonstrated a significant turnaround in its gross profit, moving from a 4% decline in non-GAAP gross profit in the first half of the year to a 5% growth in the third quarter of 2025. This improvement underscores the company’s ability to adapt and enhance its financial performance amidst challenging conditions.
Strong Performance in Money Transfer and Payments
The money transfer and payments category emerged as a standout performer, with a remarkable 100% year-over-year growth in the third quarter. This surge was largely driven by new business activities, highlighting Riskified’s strategic focus on expanding its footprint in this lucrative sector.
Record Third Quarter Revenue
Riskified achieved a record revenue of $81.9 million in the third quarter, marking a 4% increase year over year. This milestone reflects the company’s steady growth trajectory and its ability to capitalize on emerging market opportunities.
Adjusted EBITDA Margin Expansion
The company reported a substantial 560 basis points improvement in its adjusted EBITDA margin year over year in the third quarter, showcasing its operational efficiency and commitment to enhancing profitability.
Adaptive Checkout Success
Riskified’s adaptive checkout solution proved successful, increasing conversion rates by 5% for a US ticketing merchant and by a notable 26% for an EMEA electronics merchant. This innovation underscores the company’s focus on leveraging technology to drive business outcomes.
Strong International Growth
International markets were a bright spot for Riskified, with APAC growing approximately 55%, other Americas by 18%, and EMEA by 19% year over year in the third quarter. This growth highlights the company’s successful expansion strategy beyond the US market.
Decline in US Revenue
Despite overall growth, Riskified faced a 12% decline in US revenue year over year, primarily due to a contraction in the home category. This decline points to ongoing challenges in specific domestic sectors.
Challenges in Tickets and Live Events
The tickets and live events vertical experienced softness, attributed to tougher comparable periods in the second half versus 2024. This sector remains a challenge as the company navigates fluctuating market dynamics.
Home Category Contraction
The home category saw a significant contraction of approximately 70% year over year, highlighting a key area of concern for Riskified in its domestic market.
Forward-Looking Guidance
Riskified’s forward-looking guidance was optimistic, with a reported third-quarter GMV of $37.8 billion, a 97% year-over-year increase. The company expects further adjusted EBITDA margin expansion to around 15% in Q4 and has raised its 2025 revenue guidance to between $338 million and $346 million. Riskified is poised to leverage advancements in machine learning and expand its autonomously trained model program, aiming for continued growth and profitability into 2026.
In conclusion, Riskified’s earnings call highlighted a company on the rebound, with strong growth in key areas and a strategic focus on technology and international expansion. While challenges persist in the US market and specific sectors, the overall sentiment remains positive, with promising projections for the future.