Riskified Ltd. Class A ((RSKD)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Riskified Ltd. Class A revealed a generally positive sentiment, underscored by consistent revenue growth, international expansion, and strong financial management. Despite challenges such as a decline in the Home category, U.S. revenue, and gross profit margin, the overall outlook remains optimistic due to strategic initiatives and expansions that are expected to outweigh current difficulties.
Consistent Revenue Growth
Riskified reported record second-quarter revenue of $81.1 million, marking a 3% year-over-year increase, and a first-half revenue of $163.4 million, up 5% year-over-year. This growth was primarily driven by new merchant acquisitions and upsell activities, highlighting the company’s ability to expand its client base and increase sales.
Expansion in Key Verticals
The company saw significant growth in the Tickets and Travel and Fashion and Luxury categories, with year-over-year increases of 15% and 10%, respectively. This was supported by strong new business wins and upsell activity, indicating successful penetration into these lucrative markets.
International Growth
Riskified’s international expansion efforts are bearing fruit, with the APAC region growing approximately 40% year-over-year, Other Americas (Canada and Latin America) by 16%, and EMEA by 23%. These figures reflect the company’s ongoing success in capturing market share across diverse geographies.
Positive Adjusted EBITDA
For the seventh consecutive quarter, Riskified achieved positive adjusted EBITDA, reporting $2.1 million in the second quarter and $3.5 million for the first half of 2025. This consistent profitability underscores the company’s effective financial management.
Strong Balance Sheet
Riskified ended the second quarter with a robust balance sheet, holding $339 million in cash, deposits, and investments, and maintaining zero debt. This financial strength provides a solid foundation for future growth initiatives.
Share Repurchase Program
The Board has authorized an additional $75 million share repurchase program, increasing the total outstanding authorization to approximately $85 million. This move demonstrates confidence in the company’s long-term growth prospects and commitment to enhancing shareholder value.
Growth in Money Transfer and Payments
The Money Transfer and Payments category experienced remarkable growth, achieving approximately 90% year-over-year increase in the second quarter. This highlights the company’s successful expansion into this rapidly growing sector.
Decline in Home Category
Conversely, the Home category saw a significant contraction of 74% year-over-year, contributing to the overall decline in U.S. revenue. This highlights a challenge that the company will need to address moving forward.
U.S. Revenue Decline
U.S. revenue declined by 11% year-over-year, primarily due to the contraction in the Home category. This decline underscores the need for strategic adjustments in the U.S. market.
Same-Store Sales Pressure
The company continues to face same-store sales pressure, particularly in high-end fashion and sneakers verticals, with expectations of moderated growth in the second half of the year. This indicates a potential area of concern that may require strategic focus.
Gross Profit Margin Decline
Riskified’s non-GAAP gross profit margin for Q2 2025 was approximately 50%, down from 53% in the prior year. This decline is attributed to the ramping of merchants in emerging categories and geographies, suggesting a transitional phase in the company’s growth strategy.
Forward-Looking Guidance
Riskified’s forward-looking guidance reflects strong financial performance and strategic initiatives. The company anticipates second-half revenue between $336 million and $346 million, with an annual non-GAAP gross profit margin target of approximately 52%. The positive outlook is bolstered by advancements in AI capabilities and a $75 million share repurchase program, underscoring confidence in long-term growth and shareholder value.
In summary, Riskified’s earnings call conveyed an optimistic outlook, driven by consistent revenue growth, international expansion, and strategic initiatives. While challenges such as declines in the Home category and U.S. revenue were noted, the company’s strong financial management and forward-looking strategies suggest a promising future.