Riskified Ltd. Q4 FY2025 earnings call

Eido noted 2025 ended strong, fourth quarter revenue record and GAAP profitability. Annual retention rates improved. Go-to-market team had successful year with strong fourth quarter new business wins. Processed ~$750 billion in GMV and over 1 billion unique customer interactions. Focus on deepening geographic presence and growing in newer verticals. Internal adoption of AI for automation. Aglika mentioned fourth quarter revenue $99.3 million, full year $344.6 million (+65% y-o-y); billings $103.3 million (+9% y-o-y); GMV $46.7 billion in Q4. Operating expenses down 2% in 2025,占 revenue 45%. GAAP net profit $5.8 million in 2025. Balance sheet healthy. 2026 non-GAAP gross profit growth targeted 7%-12%, adjusted EBITDA ~$30 million midpoint.

Fourth quarter non-GAAP gross profit was $57.3 million, up 16% year-over-year; adjusted EBITDA was $17.7 million with a margin of 18%. Fourth quarter revenues of nearly $100 million were a record, contributing to first ever quarter of GAAP profitability. 2025 annual dollar retention (ADR) reached ~100% (up from 96%), net dollar retention (NDR) improved to 105% (from 96% in 2024). Non-U.S. regions collectively grew 22% year-over-year. Money transfer and payments category grew 90% in 2025.

2026 revenue expected $372M-$384M (+8%-11%), midpoint $378M. Adjusted EBITDA expected $26M-$34M, inclusive of ~400 basis points FX headwind. Free cash flow expected to increase at least 20% to ~$40 million.

Online transaction fraud losses up 27% y-o-y, expected to double in next five years. AI general purpose LLMs lack precise probability intervals for fraud engines. FX fluctuation impacts adjusted EBITDA margin by ~400 basis points. Risks related to penetration in new geographies and verticals.

Q: Terry Tillman on agentic commerce quantification, monetization, and merchant adoption.

A: Eido discussed two types of agentic use cases, low agent traffic now, higher risk in general purpose LLMs.

Q: Ryan John Tomasello on agentic commerce impact on fraud and alternative payments.

A: Eido noted increased complexity, net benefit to Riskified.

Q: Will Nance on agentic commerce protocol integration and FX weightings.

A: Eido on protocol fragmentation, Aglika on FX headwind.

Q: Chris Kennedy on new product revenues and 2024 cohort improvement.

A: Eido on revenue growth potential, Aglika on 2024 cohort improvements.

Q: Timothy Chiodo on Riskified services vs card network services and alternative payment mix.

A: Eido on distinct services, different card mix expectations.

Q: Reginald Lawrence Smith on agentic commerce pricing and risk.

A: Eido on flexible pricing and merchant adoption.

Q: Clark Joseph Wright on gross profit growth strategy and non-chargeback guarantee product penetration.

A: Eido on go-to-market shift and revenue proxy for product adoption.