Riskified Ltd. Q2 FY2025 earnings call

• Sustained revenue growth from new business wins and upsell. - Achieved positive adjusted EBITDA for the seventh consecutive quarter. - International growth with 7 of top 10 new logos outside US across 4 categories. - Deepened presence in nondiscretionary categories like Money Transfer and Payments with strong growth. - Progress in Agentic Commerce with partnerships and new solutions, including with HUMAN Security. - Increased adoption of Policy Protect driven by new logo wins and cross-sell. - Launched new refund abuse model improving technical performance by at least 15%.

Revenue for the second quarter of 2025 was $81.1 million, up 3% year-over-year. GMV in Q2 was $36.4 billion, with first half GMV at $70.6 billion. Key categories: Tickets and Travel grew 15% y-o-y, Fashion and Luxury 10% y-o-y; Home declined 74% y-o-y; Money Transfer and Payments grew ~90% y-o-y. Regions: US declined 11% y-o-y; APAC grew ~40%, Other Americas ~16%, EMEA ~23%. Non-GAAP gross profit margin was 50% in Q2 2025, expected to be ~52% annually.

• Revised revenue range to $336 million to $346 million. - Adjusted EBITDA guidance remains $18 million to $26 million. - Expect ~$30 million positive free cash flow in 2025, mostly in Q4. - Board authorized an additional $75 million share repurchase program.

• Fraud becoming more complex, dynamic, and sophisticated. - Agentic Commerce creating new threat vectors. - Potential impact of market conditions on comparable periods in certain verticals.

Q: Terry Tillman asked about second half pipeline conversion rates and Agentic Commerce impact.

A: Eido Gal said win rates similar to historical, and Agentic Commerce is a fast-evolving space creating net new conversations and budget opportunities.

Q: Will Nance inquired about vertical trends and OpEx.

A: Aglika Dotcheva discussed Tickets and Travel softness, Fashion stability, and OpEx managed with offshoring activities and ~$38.5M Q3-Q4 run rate.

Q: Timothy Chiodo asked about Adaptive Checkout merchant adoption.

A: Eido Gal said Adaptive Checkout has strong adoption among merchants, contributing to win rates.

Q: Ryan Tomasello asked about competitive landscape and win rates.

A: Eido Gal noted high win rates in 70% range, global expansion, and platform offerings creating barriers to entry.

Q: Cris Kennedy asked about new product revenue.

A: Eido Gal said newer products like Policy Protect had over 100% growth y-o-y and are on track for high single to low double-digit contribution.

Q: Reggie Smith asked about Agentic Commerce and HUMAN partnership.

A: Eido Gal discussed Agentic Commerce threat vectors and HUMAN partnership as unique and differentiated.

Q: Clarke Wright asked about payments space and AI fraud.

A: Eido Gal talked about progress in Payments and Remittance space and Riskified's role in helping merchants handle growing AI fraud by providing comprehensive platform solutions.