Riskified (RSKD) AI Stock Analysis

• Market Cap: $796.73M
• Dividend Yield: N/A
• Average Volume (3M): 414.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 6.54%
• EPS Growth: -19.17%
• Country: US
• Employees: 652
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 110,424,050
• 10 Day Avg. Volume: 470,950
• 30 Day Avg. Volume: 414,041
• PEG Ratio: 0.59
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 20.70
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: -11.47
• 1Y Price Target: $5.95
• Price Target Upside: 25.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $4.50 ▼(-4.86% Downside)

Riskified's overall score is driven by strong revenue growth and positive earnings call highlights, such as margin improvements and international expansion. However, ongoing profitability challenges, weak technical indicators, and a negative valuation score weigh heavily on the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

International Expansion

Strong international growth diversifies revenue streams and reduces dependency on any single market, enhancing resilience.

Cash Position

A robust cash position with no debt provides financial flexibility for strategic investments and weathering economic downturns.

Negative Factors

Profitability Challenges

Sustained profitability issues can hinder reinvestment and growth, impacting long-term competitive positioning.

Decline in US Revenue

A significant decline in a key market like the US can affect overall revenue stability and growth prospects.

Free Cash Flow Decline

Declining free cash flow limits the company's ability to fund new projects and return capital to shareholders, affecting long-term growth.

Riskified Business Overview & Revenue Model

Company Description

Riskified (RSKD) is a technology company specializing in fraud prevention and risk management solutions for e-commerce businesses. Founded in 2013, the company operates primarily in the fintech and e-commerce sectors, offering a suite of services designed to enhance online transaction security. Riskified's core products include its fraud detection platform, which uses machine learning algorithms to analyze customer behavior and transaction data, helping businesses to reduce chargebacks and improve conversion rates.

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 shows strong revenue growth but struggles with profitability, as indicated by negative net profit and EBIT margins. The balance sheet is stable with low leverage, but negative returns on equity suggest inefficiencies. Cash flow generation is moderate, with declining free cash flow growth.

Income Statement

Riskified's income statement shows a mixed performance. The company has achieved a significant revenue growth rate of 89.7% in the TTM (Trailing-Twelve-Months), indicating strong top-line expansion. However, profitability remains a concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is stable at around 50%, but the negative net profit margin of -11.7% highlights the need for improved cost management and efficiency.

Balance Sheet

The balance sheet presents a relatively stable financial position with a low debt-to-equity ratio of 0.078, indicating prudent leverage management. However, the return on equity is negative at -10.7%, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is not explicitly calculated, but the company's equity position appears solid relative to its total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative growth rate of -156.1% in the TTM. The operating cash flow to net income ratio is 0.55, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is close to 1, suggesting that the company is converting its earnings into cash effectively, despite the overall negative free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.84M	327.52M	297.61M	261.25M	229.14M	169.74M
Gross Profit	170.13M	170.94M	152.52M	135.10M	122.97M	92.82M
EBITDA	-37.88M	-42.97M	-71.75M	-105.74M	-53.95M	-5.45M
Net Income	-37.41M	-34.92M	-59.03M	-104.70M	-179.43M	-11.35M
Balance Sheet
Total Assets	421.70M	495.86M	601.93M	606.98M	600.63M	180.56M
Cash, Cash Equivalents and Short-Term Investments	325.15M	376.06M	474.81M	475.67M	503.27M	117.62M
Total Debt	25.68M	27.53M	31.31M	37.42M	0.00	0.00
Total Liabilities	105.40M	113.56M	110.21M	112.55M	71.77M	55.22M
Stockholders Equity	316.30M	382.30M	491.72M	494.44M	528.86M	125.34M
Cash Flow
Free Cash Flow	32.92M	39.06M	5.92M	-34.26M	-33.78M	-6.08M
Operating Cash Flow	33.63M	39.70M	7.28M	-26.25M	-20.28M	-3.12M
Investing Cash Flow	-64.85M	27.75M	251.56M	-210.01M	-84.44M	-16.96M
Financing Cash Flow	-96.53M	-136.82M	-9.31M	3.85M	423.19M	54.02M

Riskified Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 4.73 is below the 20-day moving average (MA) of 4.78, above the 50-day MA of 4.72, and below the 200-day MA of 4.87, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.59 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	66 Neutral	$692.71M	102.50	6.53%	―	3.62%	-20.45%
DSP	64 Neutral	$612.47M	371.59	4.45%	―	22.97%	49.49%
OPFI	62 Neutral	$797.13M	―	9.19%	―	9.63%	-112.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$565.45M	―	-26.69%	―	13.09%	32.34%
RSKD	51 Neutral	$796.73M	―	-10.54%	―	6.54%	-19.17%
BMBL	47 Neutral	$383.31M	―	-25.34%	―	-7.43%	61.36%

Riskified Corporate Events

Riskified Reports Strong Q3 2025 Results with Accelerated Growth

On November 12, 2025, Riskified Ltd. announced its financial results for the third quarter of 2025, highlighting accelerated gross profit growth and an expansion in adjusted EBITDA. The company reported significant achievements in the Money Transfer and Payments category, with 100% year-over-year revenue growth, and continued to diversify its vertical and geographic reach by onboarding new merchants. Riskified also completed its first-ever Global Ascend tour, enhancing its brand presence and relationships across major ecommerce hubs. The company achieved AWS Retail and CPG Competencies, further solidifying its position in the digital commerce space. Despite a net loss, Riskified ended the quarter with strong cash reserves and no debt, and it improved its financial guidance for the full year 2025.