Riskified (RSKD) AI Stock Analysis

• Market Cap: $744.98M
• Dividend Yield: N/A
• Average Volume (3M): 452.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 7.96%
• EPS Growth: 5.67%
• Country: US
• Employees: 652
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 110,424,050
• 10 Day Avg. Volume: 434,881
• 30 Day Avg. Volume: 452,647
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.87
• Enterprise Value/Ebitda: -11.04
• 1Y Price Target: $5.85
• Price Target Upside: 23.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $5.00 ▲(5.26% Upside)

Riskified's overall stock score is driven by strong revenue growth and strategic international expansion, as highlighted in the earnings call. However, profitability challenges and valuation concerns weigh down the score. The technical analysis provides a neutral outlook, with no significant bullish or bearish signals.

Positive Factors

International Expansion

Riskified's strong international growth in APAC and EMEA regions indicates successful market penetration and potential for sustained revenue increases.

Positive Adjusted EBITDA

Consistent positive adjusted EBITDA reflects strong financial management and operational efficiency, supporting long-term business sustainability.

Strong Balance Sheet

A robust balance sheet with significant cash reserves and no debt enhances Riskified's financial flexibility and resilience against economic fluctuations.

Negative Factors

Profitability Challenges

Persistent profitability issues, with declining margins, indicate operational inefficiencies that could hinder long-term financial performance.

U.S. Revenue Decline

A significant decline in U.S. revenue suggests challenges in maintaining market share in a key region, potentially impacting overall growth.

Same-Store Sales Pressure

Ongoing pressure in same-store sales, especially in key verticals, could limit growth and affect Riskified's ability to capitalize on existing customer bases.

Riskified Business Overview & Revenue Model

Company Description

Riskified Ltd. operates an e-commerce risk management platform that allows online merchants to create trusted relationships with their consumers in the United States, Europe, the Middle East, Africa, and internationally. It offers Chargeback Guarantee that approves or denies online orders; Policy Protect and Account Secure, which identifies and blocks consumers that may be taking advantage of the merchant's terms and conditions or that may be trying to gain unauthorized access to another consumer's account; Deco and PSD2, a optimize products that help merchants to avoid bank authorization failures and abandoned shopping carts resulting from the secure customer authentication process. The company was incorporated in 2012 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Riskified generates revenue primarily through a performance-based pricing model. The company charges merchants a fee based on the volume of transactions processed through its platform, typically taking a percentage of the sales secured by its fraud prevention services. This model aligns Riskified's success with that of its clients, as the company only earns fees when transactions are approved and completed, minimizing risk for merchants. Additionally, Riskified may engage in partnerships with payment processors and e-commerce platforms, further enhancing its service offerings and expanding its customer base, which contributes to its overall earnings.

Riskified Financial Statement Overview

Summary

Riskified demonstrates strong revenue growth and a solid balance sheet with low leverage. However, the company faces challenges in achieving profitability, as reflected in negative margins and returns. Improving operational efficiency and cash flow management will be crucial for enhancing financial performance and shareholder value.

Income Statement

Riskified's income statement shows a mixed performance. The company has achieved significant revenue growth, with a TTM growth rate of 69.9%, indicating strong market demand. However, profitability remains a challenge, as evidenced by negative net profit and EBIT margins. The gross profit margin is stable at around 50%, but the company needs to improve operational efficiency to achieve profitability.

Balance Sheet

The balance sheet reflects a relatively low debt-to-equity ratio of 0.078, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is healthy, but the company needs to address its profitability issues to enhance shareholder value.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, with a TTM growth rate of 4.2%. The operating cash flow to net income ratio is above 0.5, indicating decent cash generation relative to net income. However, the company must continue to improve its cash flow management to support long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	335.82M	327.52M	297.61M	261.25M	229.14M	169.74M
Gross Profit	168.02M	170.94M	152.52M	135.10M	122.97M	92.82M
EBITDA	-43.62M	-42.97M	-71.75M	-108.63M	-55.40M	-5.45M
Net Income	-39.30M	-34.92M	-59.03M	-103.99M	-178.88M	-11.35M
Balance Sheet
Total Assets	445.49M	495.86M	601.93M	608.97M	600.63M	180.56M
Cash, Cash Equivalents and Short-Term Investments	339.13M	376.06M	474.81M	475.67M	503.27M	117.62M
Total Debt	26.55M	27.53M	31.31M	37.42M	0.00	0.00
Total Liabilities	107.06M	113.56M	110.21M	112.55M	71.77M	223.87M
Stockholders Equity	338.43M	382.30M	491.72M	496.42M	528.86M	-43.31M
Cash Flow
Free Cash Flow	33.44M	39.06M	5.92M	-34.26M	-33.78M	-6.08M
Operating Cash Flow	34.14M	39.70M	7.28M	-26.25M	-20.28M	-3.12M
Investing Cash Flow	-42.32M	27.75M	251.56M	-210.01M	-84.44M	-16.96M
Financing Cash Flow	-116.15M	-136.82M	-9.31M	3.85M	423.19M	54.02M

Riskified Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSKD, the sentiment is Negative. The current price of 4.75 is above the 20-day moving average (MA) of 4.72, above the 50-day MA of 4.67, and below the 200-day MA of 4.90, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RSKD.

Riskified Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTEX	―	$824.29M	83.88	5.33%	―	4.51%	208.14%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	―	$645.05M	―	-32.50%	―	14.79%	27.52%
OPFI	―	$872.19M	―	-209.49%	―	6.79%	-593.75%
DSP	―	$568.45M	268.75	5.20%	―	30.92%	―
RSKD	―	$744.98M	―	-10.16%	―	7.96%	5.67%
BMBL	―	$576.22M	―	-75.71%	―	-5.06%	-2318.18%

Riskified Corporate Events

Riskified Announces Q2 2025 Results and New Share Buyback Program

On August 18, 2025, Riskified Ltd. announced its financial results for the second quarter of 2025, highlighting new business wins and robust upsell activity. The company reported a 3% increase in revenue compared to the previous year and announced a new $75 million share repurchase authorization, reflecting confidence in its long-term potential. Riskified also expanded its market reach with new merchant additions and partnerships, notably strengthening its position in the ticketing and live events sector and launching innovative ecommerce solutions.

Riskified Approves New Compensation Policy at Annual Meeting

On August 6, 2025, Riskified Ltd. held its Annual General Meeting of Shareholders in Tel Aviv, where shareholders approved several proposals, including an Amended & Restated Compensation Policy for Executive Officers and Directors. This policy aims to align executive compensation with the company’s goals and performance, ensuring competitive salaries and incentives to attract and retain top talent. The approval of this policy is expected to enhance Riskified’s operational efficiency and shareholder value by motivating executives to achieve long-term corporate success.