Key Takeaways:
Riskified Ltd. (NYSE: RSKD) reported first-quarter adjusted earnings of five cents per share, beating the Zacks Consensus Estimate by 25 percent and exceeding the three cents reported in the same period last year.
"What we are building across products, channels, payment methods, and geographies is showing up where it matters: in pipeline growth, high win rates, and an addressable market that we believe continues to expand," Eido Gal, CEO and Co-Founder of Riskified, said in a statement. "We enter the rest of 2026 with confidence in our ability to sustain and build on our growth trajectory."
The provider of fraud-prevention services posted revenue of $88.3 million for the quarter ended March 31, a seven percent increase from the $82.4 million reported a year prior. The company’s GAAP gross profit margin expanded to 52 percent from 49 percent year-over-year, while adjusted EBITDA grew 370 percent to $6.2 million.
The results prompted Riskified to raise its full-year outlook. The company now expects revenue between $376 million and $384 million, up from its previous forecast. It also increased its adjusted EBITDA guidance to a range of $28 million to $34 million for the full fiscal year. Shares of Riskified have lost about 7.9 percent since the beginning of the year, underperforming the S&P 500's 8.1 percent gain.
"Adjusted EBITDA expanded to $6.2 million, a 370 percent increase from the prior year, and free cash flow more than doubled, all while we continued to invest in the platform," said Aglika Dotcheva, Chief Financial Officer of Riskified.
The company highlighted continued platform adoption beyond its core Chargeback Guarantee product, with the number of merchants using more than one product growing approximately 50 percent year-over-year. During the quarter, Riskified repurchased 6.2 million shares for a total of $27.5 million. On a GAAP basis, the company reported a net loss of $4.4 million, or three cents per share, narrowing from a loss of $13.9 million, or nine cents per share, a year earlier.
The improved guidance suggests management is confident in its ability to win new merchants and expand its addressable market. Investors will watch for continued margin expansion and the impact of new partnerships on revenue growth in the second half of the year.
This article is for informational purposes only and does not constitute investment advice.
