Shares of Riskified Ltd. (RSKD) plummeted 12.55% in pre-market trading on Monday, following the release of the company's second-quarter earnings report. Despite meeting analyst expectations for adjusted earnings, investors appeared to focus on underlying profitability concerns and slowing growth rates.

The e-commerce fraud and risk intelligence leader reported Q2 non-GAAP earnings of $0.02 per diluted share, in line with 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 seem to be questioning the company's ability to drive sustainable growth and improve bottom-line results in an increasingly competitive e-commerce landscape. The sharp stock decline suggests that the market is looking beyond the headline numbers and focusing on the company's long-term profitability prospects and growth trajectory.