Shares of Riskified Ltd. (RSKD) plummeted 12.55% in pre-market trading on Monday, following the release of its second-quarter earnings report. Despite meeting analyst expectations on some metrics, the e-commerce fraud and risk intelligence company faced investor scrutiny over declining profitability and growth concerns.

Riskified reported Q2 non-GAAP earnings of $0.02 per diluted share, matching FactSet consensus estimates but down from $0.04 in the same quarter last year. Revenue for the quarter came in at $81.1 million, slightly beating the expected $80.4 million and representing a modest 3% year-over-year increase. However, the company's GAAP gross profit margin declined to 49% from 52% in the prior year, and net loss widened to $11.6 million from $9.5 million.

While Riskified raised the lower end of its full-year 2025 revenue guidance to a range of $336 million to $346 million, investors appear to be questioning the company's ability to drive sustainable growth and improve bottom-line results. The sharp stock decline suggests that market participants are focusing on underlying profitability concerns rather than the headline numbers, reflecting growing skepticism about Riskified's performance in an increasingly competitive e-commerce landscape.