Raises Revenue and Adjusted EBITDA guidance
NEW YORK--(BUSINESS WIRE)--August 12, 2026--
Riskified Ltd. (NYSE: RSKD) (the "Company", "Riskified", "we" or "our"), a leader in ecommerce fraud and risk intelligence, today announced financial results for the three and six months ended June 30, 2026. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.
"We delivered our strongest revenue growth in over four years, driven by increasingly complex fraud and merchant demand for the unified platform we've spent years building. That's showing up in accelerating new business and a deepening multi-product base, and it's why we're raising our outlook for the second time this year," said Eido Gal, CEO & Co-Founder of Riskified.
Q2 2026 and Recent Business Highlights
-- Strongest Revenue Growth in Over Four Years: Revenue grew 22%
year-over-year to $98.7 million, an acceleration from 7% growth in the
first quarter, driven by continued new merchant and upsell activity.
-- Accelerating New Business Momentum: New logo acquisition was a
significant contributor to results this quarter. We added new logos
across all four regions, with five of our top ten headquartered outside
the United States, spanning five categories.
-- Sustained Competitive Win Rates: Our competitive win rates remained
above 75% in the second quarter, reflecting the differentiation of our
platform compared to alternatives that merchants consider.
-- Continued ACH and Non-Card Expansion: Our investment in ACH-specific
models and features extended our broader payments capabilities, with ACH
becoming a meaningful and growing part of new business this quarter. The
dollar value of ACH transactions that Riskified processed in the quarter
was approximately 19 times higher than the value processed in the second
quarter of the prior year.
-- Platform Expansion: Merchants are increasingly using Riskified's
identity intelligence beyond checkout to improve the customer experience
across the transaction lifecycle. Our AI assistant, ARIA, continued to
gain traction this quarter. We have embedded ARIA across our wider
platform, giving fraud and risk teams a highly effective tool that helps
them investigate activity, understand emerging trends, and take action
more quickly.
-- Live Sports Driving Category Momentum: A dense global events calendar,
including the World Cup and NBA Finals, drove elevated volumes across
Tickets and Digital Finance.
-- Continued Share Repurchases: In the second quarter, we repurchased
approximately 13.7 million shares for total consideration of $63.9
million, contributing to a 26% cumulative reduction in total shares
outstanding since the program's inception.
Q2 2026 Financial Summary & Highlights
The following table summarizes our consolidated financial results for the three and six months ended June 30, 2026 and 2025, in thousands except where indicated:
Three Months Ended June
30, Six Months Ended June 30,
------------------------- --------------------------
2026 2025 2026 2025
------ ------- ------- -------
(unaudited) (unaudited)
Gross
merchandise
volume
("GMV") in
millions(1) $41,300 $ 36,434 $ 78,547 $ 70,605
Increase
in GMV
year
over
year 13% 11%
Revenue $98,691 $ 81,060 $186,959 $163,447
Increase
in
revenue
year
over
year 22% 14%
GAAP gross
profit $44,968 $ 39,750 $ 90,855 $ 80,204
Increase
in GAAP
gross
profit
year
over
year 13% 13%
GAAP gross
profit
margin 46% 49% 49% 49%
Net profit
(loss) $(9,105) $(11,633) $(13,532) $(25,519)
Net profit
(loss)
margin (9)% (14)% (7)% (16)%
Adjusted
EBITDA(1) $ 3,919 $ 2,134 $ 10,106 $ 3,453
Adjusted
EBITDA
margin(1) 4% 3% 5% 2%
Additional Financial Highlights
-- GAAP gross profit margin of 46% for the three months ended June 30,
2026 compared to 49% in the prior year. Non-GAAP gross profit margin(1)
of 46% for the three months ended June 30, 2026 compared to 50% in the
prior year. GAAP gross profit margin of 49% for the six months ended June
30, 2026 compared to 49% in the prior year. Non-GAAP gross profit
margin(1) of 49% for the six months ended June 30, 2026 compared to 50%
in the prior year.
-- GAAP net loss per share of $(0.07) for the three months ended June 30,
2026 compared to net loss per share of $(0.07) in the prior year.
Non-GAAP diluted net profit per share(1) of $0.02 for the three months
ended June 30, 2026 compared to $0.02 in the prior year. GAAP net loss
per share of $(0.09) for the six months ended June 30, 2026 compared to
net loss per share of $(0.16) in the prior year. Non-GAAP diluted net
profit per share(1) of $0.07 for the six months ended June 30, 2026
compared to $0.05 in the prior year.
-- Operating cash flow of $13.3 million for the three months ended June
30, 2026 compared to $5.6 million in the prior year. Free cash flow(1) of
$12.9 million for the three months ended June 30, 2026 compared to $5.3
million in the prior year. Operating cash flow of $22.9 million for the
six months ended June 30, 2026 compared to $9.4 million in the prior
year. Free cash flow(1) of $22.0 million for the six months ended June
30, 2026 compared to $9.0 million in the prior year.
-- Ended June 30, 2026 with approximately $223.6 million of cash, deposits,
and investments on the balance sheet and zero debt.
"We delivered robust revenue growth in the second quarter, with continued expansion in Adjusted EBITDA," said Aglika Dotcheva, Chief Financial Officer of Riskified. "Revenue grew 22% year-over-year to $98.7 million, accelerating from 7% growth in the first quarter, and Adjusted EBITDA increased 84% to $3.9 million. We also generated $12.9 million in free cash flow while returning capital to shareholders through our buyback program. Our strong balance sheet and improving profitability give us the confidence and flexibility to keep investing in the platform while raising our full-year outlook."
Financial Outlook
For the year ending December 31, 2026:
We now anticipate revenue to be between $400 million and $410 million, or $405 million to the midpoint, up from our prior range of between $376 million and $384 million. This reflects the flow-through of our second quarter revenue outperformance, as well as an incremental raise to our outlook based on the momentum we are seeing in the business.
We now anticipate Adjusted EBITDA to be between $33 million and $39 million, or $36 million to the midpoint, up from our prior range of $28 million to $34 million.
The primary factors that may determine where we fall within each range are consistent with what we shared last quarter - the timing and ramping of new merchant go-lives and existing merchant upsells, our success in retaining our merchants, and the broader macro environment.
(1) GMV is a key performance indicator. Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit margin, non-GAAP diluted net profit per share, and free cash flow are non-GAAP measures of financial performance. See "Key Performance Indicators and Non-GAAP Measures" for additional information and "Reconciliation of GAAP to Non-GAAP Measures" for a reconciliation to the most directly comparable GAAP measure.
(2) We refer to certain forward-looking non-GAAP financial measures in this press release and on our quarterly results conference call. We are not able to provide a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating expense, or free cash flow for the fiscal year ending December 31, 2026 to net profit (loss), gross profit, total operating expenses, and operating cash flow, respectively, because certain items that are excluded from these non-GAAP metrics but included in the most directly comparable GAAP financial measures, cannot be predicted on a forward-looking basis without unreasonable effort or are not within our control. For example, we are unable to forecast the magnitude of foreign currency transaction gains or losses which are subject to many economic and other factors beyond our control. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and significant impact on our future GAAP financial results.
Conference Call and Webcast Details
The Company will host a conference call to discuss its financial results today, August 12, 2026 at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Riskified's Investor Relations website at ir.riskified.com. A replay of the webcast will also be available for a limited time at ir.riskified.com. The press release with the financial results, as well as the investor presentation materials will also be accessible on the Company's Investor Relations website prior to the conference call.
Key Performance Indicators and Non-GAAP Measures
This press release and the accompanying tables contain references to Gross Merchandise Volume ("GMV"), which is a key performance indicator, and to certain non-GAAP measures which include non-GAAP measures of financial performance such as Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP cost of revenue, non-GAAP operating expenses by line item, non-GAAP constant currency operating expenses, non-GAAP net profit (loss), and non-GAAP net profit (loss) per share, and a non-GAAP measure of liquidity, Free Cash Flow. Management and our Board of Directors use key performance indicators and non-GAAP measures as supplemental measures of performance and liquidity because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items that we believe do not directly reflect our core operations. We also use Adjusted EBITDA for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives, and to evaluate our capacity to expand our business. Free Cash Flow provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet.
These non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or other items. Non-GAAP measures of financial performance have limitations as analytical tools in that these measures do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments; these measures do not reflect changes in, or cash requirements for, our working capital needs; these measures do not reflect our tax expense or the cash requirements to pay our taxes, and assets being depreciated and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements. Non-GAAP constant currency operating expenses is limited because it reflects a hypothetical recalculation of operating expenses using prior-period exchange rates and therefore does not reflect the actual operating expenses incurred by the business or the economic impact of foreign currency exchange rate fluctuations on our results, which are inherent to our global operations. Free Cash Flow is limited because it does not represent the residual cash flow available for discretionary expenditures. Free Cash Flow is not necessarily a measure of our ability to fund our cash needs.
In light of these limitations, management uses these non-GAAP measures to supplement, not replace, our GAAP results. The non-GAAP measures used herein are not necessarily comparable to similarly titled captions of other companies due to different calculation methods. Non-GAAP financial measures should not be considered in isolation, as an alternative to, or superior to information prepared and presented in accordance with GAAP. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. By providing these non-GAAP measures together with a reconciliation to the most comparable GAAP measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.
We define GMV as the gross total dollar value of orders reviewed through our AI fraud and risk intelligence platform during the period indicated, including the value of orders that we did not approve. GMV is an indicator of the success of our merchants and the scale of our platform. GMV does not represent transactions successfully completed on our merchants' websites or revenue earned by us, however, our revenue is directionally correlated with the level of GMV reviewed through our platform and is an indicator of future revenue opportunities. We generate revenue based on the portion of GMV we approve multiplied by the associated risk-adjusted fee.
We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the below tables, adjusted for, as applicable, depreciation and amortization (including amortization of capitalized internal-use software as presented in our statement of cash flows), share-based compensation expense, payroll taxes related to share-based compensation, legal-related and other expenses, restructuring costs, provision for (benefit from) income taxes, other income (expense) including foreign currency transaction gains and losses and gains and losses on non-designated hedges, and interest income (expense). Adjusted EBITDA margin represents Adjusted EBITDA expressed as a percentage of revenue. Non-GAAP Gross Profit Margin represents Non-GAAP Gross Profit expressed as a percentage of revenue. We define non-GAAP net profit (loss) per share as non-GAAP net profit (loss) divided by non-GAAP weighted-average shares. We define non-GAAP weighted-average shares, as GAAP weighted average shares, adjusted to reflect any dilutive ordinary share equivalents resulting from non-GAAP net profit (loss), if applicable.
We define non-GAAP constant currency operating expenses as total non-GAAP operating expenses excluding the impact of our hedging program and foreign exchange rate movements. We use it to determine the impact that exchange rate changes have on our results. Non-GAAP constant currency operating expenses is calculated by translating current period non-GAAP operating expenses excluding hedging gains/losses using the prior period exchange rate.
We define Free Cash Flow as net cash provided by (used in) operating activities, less cash purchases of property and equipment and capitalized software development costs.
Management believes that by excluding certain items from the associated GAAP measure, these non-GAAP measures are useful in assessing our performance and provide meaningful supplemental information due to the following factors:
Depreciation and amortization: We exclude depreciation and amortization (including amortization of capitalized internal-use software) because we believe that these costs are not core to the performance of our business and the utilization of the underlying assets being depreciated and amortized can change without a corresponding impact on the operating performance of our business. Management believes that excluding depreciation and amortization facilitates comparability with other companies in our industry.
Share-based compensation expense: We exclude share-based compensation expense primarily because it is a non-cash expense that does not directly correlate to the current performance of our business. This is partly because the expense is calculated based on the grant date fair value of an award which may vary significantly from the current fair market value of the award based on factors outside of our control. Share-based compensation expense is principally aimed at aligning our employees' interests with those of our shareholders and at long-term retention, rather than to address operational performance for any particular period.
Payroll taxes related to share-based compensation: We exclude employer payroll tax expense related to share-based compensation in order to see the full effect that excluding that share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business.
Legal-related and other expenses: We exclude certain costs incurred in connection with corporate initiatives that are non-recurring and not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.
Restructuring costs: We exclude costs associated with reductions in force because these costs are related to one-time severance and benefit payments and are not reflective of costs associated with our ongoing business and operating results and are viewed as unusual and infrequent.
See the tables below for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
Forward Looking Statements
This press release and announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the Exchange Act. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our revenue and Adjusted EBITDA guidance for fiscal year 2026, expected relationships between billings growth and future revenue recognition, our anticipated gross profit, non-GAAP gross profit margin and free cash flow, expectations as to continued margin and Adjusted EBITDA expansion, the operating leverage and scalability inherent in our business model, future growth potential in new verticals, new geographies, new payment methods and transaction types, agentic commerce and AI-driven shopping environments, and from new products, anticipated benefits and impacts of our share repurchase program and management of our dilution, internal modeling assumptions, expectations as to the macroeconomic environment, expectations as to our new merchant pipeline, pipeline conversion rates, the timing and pace of new merchant go-lives, competitive win rates, and geographic reach, market share and upsell opportunities, the impact of partnership and reseller arrangements, the impact of competition, pricing pressure and churn, the
advancement and performance of our AI-powered multi-product platform, including the expansion of identity intelligence as a standalone capability, and its impact on our results and productivity , the benefits of our partnerships and collaborations with third-parties, our forecasted operating expenses and our business plans and strategy are forward looking statements, which reflect our current views with respect to future events and are not a guarantee of future performance. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "forecasts," "aims," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.
Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: our ability to manage our growth effectively; continued use of credit cards and other payment methods that expose merchants to the risk of payment fraud, and other changes in laws and regulations, including card scheme rules, related to the use of these payment methods, and the emergence of new alternative payments products; our ability to attract new merchants and retain existing merchants and increase sales of our products to existing merchants; our history of net losses and ability to achieve profitability; the impact of macroeconomic and geopolitical conditions on us and on the performance of our merchants; the accuracy of our estimates of market opportunity and forecasts of market growth; competition; our ability to continue to improve our artificial intelligence, machine learning models and automated decision making technologies (collectively, "AI Technologies"); fluctuations in our CTB Ratio and gross profit margin, including as a result of large-scale merchant fraud attacks or other security incidents; our ability to protect the information of our merchants and consumers; our ability to predict future revenue due to lengthy sales cycles; seasonal fluctuations in revenue; our merchant concentration and loss of a significant merchant; the financial condition of our merchants, particularly in challenging macroeconomic environments, and the impact of pricing pressure; our ability to increase the adoption of our products, develop and introduce new products and effectively manage the impact of new product introductions on our existing product portfolio; our ability to mitigate the risks involved with selling our products to large enterprises; changes to our pricing and pricing structures; our ability to retain the services of our executive officers, and other key personnel, including our co-founders; our ability to attract and retain highly qualified personnel, including software engineers and data scientists, particularly in Israel; our ability to manage periodic realignments of our organization, including expansion or reductions in force; our exposure to existing and potential future litigation claims; our exposure to fluctuations in currency exchange rates, including recent strength in the value of the Israeli shekel against the US dollar; our ability to obtain additional capital; our reliance on third-party providers of cloud-based infrastructure; our ability to protect our intellectual property rights; technology and infrastructure interruptions or performance problems; the efficiency and accuracy of our AI Technologies and access to third-party and merchant data; consumer adoption of agentic commerce; our ability to comply with evolving data protection, privacy and security laws; any actual or perceived failure to comply with evolving regulatory frameworks around the development and use of artificial intelligence; our ability to successfully implement and use AI Technologies; our use of open-source software; our ability to enhance and maintain our brand; our ability to execute potential acquisitions, strategic investments, partnerships, or alliances; potential claims related to the violation of the intellectual property rights of third parties; our failure to comply with anti-corruption, trade compliance, and economic sanctions laws and regulations; disruption, instability and volatility in global markets and industries; our ability to enforce non-compete agreements entered into with our employees; our ability to maintain effective systems of disclosure controls and financial reporting; our ability to accurately estimate or make judgments relating to our critical accounting policies; our business in China; changes in tax laws or regulations; scrutiny of, and expectations for, environmental, social and governance initiatives; potential future requirements to collect sales or other taxes; potential future changes in the taxation of international business and corporate tax reform; changes in and application of insurance laws or regulations; conditions in Israel that may affect our operations; the impact of the dual class structure of our ordinary shares; risks associated with our share repurchase program, including the risk that the program could increase volatility and fail to enhance shareholder value; our status as a foreign private issuer; and other risk factors set forth in Item 3.D - "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2025, as filed with the SEC on March 6, 2026, as may be updated in other documents filed with or furnished to the SEC. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
About Riskified
Riskified (NYSE: RSKD) empowers businesses to unleash ecommerce growth by outsmarting risk. Many of the world's biggest brands and publicly traded companies selling online rely on Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists, and researchers, Riskified's AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Learn more at riskified.com.
RISKIFIED LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
As of June 30, 2026 As of December 31, 2025
--------------------- ---------------------------
(unaudited)
Assets
Current assets:
Cash and cash
equivalents $ 105,239 $ 162,152
Short-term
deposits 5,000 5,000
Accounts
receivable, net 43,164 48,453
Prepaid expenses
and other current
assets 12,932 9,825
Short-term
investments 113,330 130,428
---------------- --- ------------------
Total current
assets 279,665 355,858
Property and
equipment, net 10,147 10,970
Operating lease
right-of-use assets 19,060 21,203
Deferred contract
acquisition costs 15,244 15,587
Other assets,
noncurrent 7,393 6,953
---------------- --- ------------------
Total assets $ 331,509 $ 410,571
================ === ==================
Liabilities and
Shareholders' Equity
Current liabilities:
Accounts payable $ 2,519 $ 1,911
Accrued
compensation and
benefits 22,330 27,532
Guarantee
obligations 14,720 12,278
Provision for
chargebacks, net 13,773 10,458
Operating lease
liabilities,
current 6,348 6,075
Accrued expenses
and other current
liabilities 17,628 12,466
---------------- --- ------------------
Total current
liabilities 77,318 70,720
Operating lease
liabilities,
noncurrent 17,180 18,947
Other liabilities,
noncurrent 27,811 26,145
---------------- --- ------------------
Total
liabilities 122,309 115,812
Shareholders' equity:
Class A ordinary
shares, no par
value; 900,000,000
shares authorized
as of June 30,
2026 and December
31, 2025;
91,847,753 and
104,034,048 shares
issued and
outstanding as of
June 30, 2026 and
December 31, 2025,
respectively -- --
Class B ordinary
shares, no par
value; 232,500,000
shares authorized
as of June 30,
2026 and December
31, 2025;
40,189,981 and
44,118,455 shares
issued and
outstanding as of
June 30, 2026 and
December 31, 2025,
respectively -- --
Treasury shares at
cost, 71,924,618
and 52,025,888
ordinary shares
as of June 30,
2026 and December
31, 2025,
respectively (352,289) (260,451)
Additional paid-in
capital 1,048,281 1,029,328
Accumulated other
comprehensive
profit (loss) 796 (62)
Accumulated
deficit (487,588) (474,056)
---------------- --- ------------------
Total
shareholders'
equity 209,200 294,759
---------------- --- ------------------
Total liabilities and
shareholders'
equity $ 331,509 $ 410,571
================ === ==================
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ------------------------------
2026 2025 2026 2025
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Revenue $ 98,691 $ 81,060 $ 186,959 $ 163,447
Cost of revenue 53,723 41,310 96,104 83,243
----------- ----------- ----------- -----------
Gross profit 44,968 39,750 90,855 80,204
----------- ----------- ----------- -----------
Operating expenses:
Research and
development 17,485 17,167 35,002 35,244
Sales and
marketing 21,258 21,452 42,151 44,234
General and
administrative 13,633 14,137 27,007 30,790
----------- ----------- ----------- -----------
Total
operating
expenses 52,376 52,756 104,160 110,268
----------- ----------- ----------- -----------
Operating profit
(loss) (7,408) (13,006) (13,305) (30,064)
Interest income
(expense), net 1,960 3,569 4,409 7,294
Other income
(expense), net (1,648) (471) (2,117) 373
----------- ----------- ----------- -----------
Profit (loss)
before income
taxes (7,096) (9,908) (11,013) (22,397)
Provision for
(benefit from)
income taxes 2,009 1,725 2,519 3,122
----------- ----------- ----------- -----------
Net profit (loss) $ (9,105) $ (11,633) $ (13,532) $ (25,519)
----------- ----------- ----------- -----------
Other comprehensive
profit (loss), net
of tax:
Other
comprehensive
profit
(loss) 644 1,247 858 90
----------- ----------- ----------- -----------
Comprehensive profit
(loss) $ (8,461) $ (10,386) $ (12,674) $ (25,429)
=========== =========== =========== ===========
Net profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic $ (0.07) $ (0.07) $ (0.09) $ (0.16)
=========== =========== =========== ===========
Net profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
diluted $ (0.07) $ (0.07) $ (0.09) $ (0.16)
=========== =========== =========== ===========
Weighted-average
shares used in
computing net
profit (loss) per
share attributable
to Class A and B
ordinary
shareholders,
basic 139,310,606 159,112,218 143,328,331 160,349,927
=========== =========== =========== ===========
Weighted-average
shares used in
computing net
profit (loss) per
share attributable
to Class A and B
ordinary
shareholders,
diluted 139,310,606 159,112,218 143,328,331 160,349,927
=========== =========== =========== ===========
RISKIFIED LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Six Months Ended June
June 30, 30,
-------------------- ------------------------
2026 2025 2026 2025
------- ------- -------- --------
(unaudited) (unaudited)
Cash flows from
operating activities:
Net profit (loss) $ (9,105) $(11,633) $ (13,532) $ (25,519)
Adjustments to
reconcile net profit
(loss) to net cash
provided by (used in)
operating activities:
Unrealized loss
(gain) on foreign
currency 1,694 1,741 2,258 716
Provision for credit
losses 134 29 (166) 295
Depreciation and
amortization 597 614 1,187 1,268
Amortization of
capitalized
internal-use
software costs 260 261 519 563
Amortization of
deferred contract
costs 2,841 3,291 5,707 6,098
Share-based
compensation
expense 10,373 12,859 21,354 27,175
Non-cash
right-of-use asset
changes 1,078 1,019 2,143 2,025
Changes in accrued
interest 857 (597) 1,531 (657)
Other 65 31 155 113
Changes in operating
assets and
liabilities:
Accounts receivable (9,210) (1,244) 5,254 14,525
Deferred contract
acquisition costs (2,636) (2,217) (4,046) (4,112)
Prepaid expenses and
other assets (1,581) (1,809) (3,987) (3,474)
Accounts payable 1,262 (562) 557 (861)
Accrued compensation
and benefits 4,311 2,761 (6,004) (5,085)
Guarantee
obligations 4,502 (16) 2,442 (4,583)
Provision for
chargebacks, net 5,002 (1,635) 3,315 (1,591)
Operating lease
liabilities (1,292) (1,121) (2,575) (2,238)
Accrued expenses and
other liabilities 4,185 3,820 6,767 4,778
------- ------- -------- --------
Net cash provided
by (used in)
operating
activities 13,337 5,592 22,879 9,436
------- ------- -------- --------
Cash flows from
investing activities:
Purchases of
investments (6,381) (13,858) (107,347) (92,015)
Maturities of
investments 23,726 9,477 122,752 21,972
Purchases of
property and
equipment (203) (252) (375) (460)
Proceeds from sale
of fixed assets 8 12 22 28
Capitalized software
development costs (200) -- (550) --
------- ------- -------- --------
Net cash provided
by (used in)
investing
activities 16,950 (4,621) 14,502 (70,475)
------- ------- -------- --------
Cash flows from
financing activities:
Proceeds from
exercise of share
options 1,102 2,220 1,912 2,852
Taxes paid related
to net share
settlement of
equity awards (1,847) (2,270) (4,313) (4,526)
Purchases of
treasury shares (64,201) (23,265) (91,838) (43,951)
------- ------- -------- --------
Net cash provided
by (used in)
financing
activities (64,946) (23,315) (94,239) (45,625)
------- ------- -------- --------
Effects of exchange
rates on cash and cash
equivalents 32 518 (55) 633
Net increase (decrease)
in cash and cash
equivalents (34,627) (21,826) (56,913) (106,031)
Cash and cash
equivalents--beginning
of period 139,866 286,858 162,152 371,063
------- ------- -------- --------
Cash and cash
equivalents--end of
period $105,239 $265,032 $ 105,239 $ 265,032
======= ======= ======== ========
Reconciliation of GAAP to Non-GAAP Measures
The following tables reconcile non-GAAP measures to the most directly comparable GAAP measure and are presented in thousands except for share and per share amounts.
Three Months Ended June
30, Six Months Ended June 30,
------------------------- --------------------------
2026 2025 2026 2025
------ ------- ------- -------
(unaudited) (unaudited)
Net profit (loss) $(9,105) $(11,633) $(13,532) $(25,519)
Provision for
(benefit from)
income taxes 2,009 1,725 2,519 3,122
Interest
(income)
expense, net (1,960) (3,569) (4,409) (7,294)
Other (income)
expense, net 1,648 471 2,117 (373)
Depreciation
and
amortization 857 875 1,706 1,831
Share-based
compensation
expense 10,373 12,859 21,354 27,175
Payroll taxes
related to
share-based
compensation 97 138 351 399
Legal-related
and other
expenses -- -- -- 236
Restructuring
costs -- 1,268 -- 3,876
------ ------- ------- -------
Adjusted EBITDA $ 3,919 $ 2,134 $ 10,106 $ 3,453
====== ======= ======= =======
Net profit (loss)
margin (9)% (14)% (7)% (16)%
Adjusted EBITDA
Margin 4% 3% 5% 2%
Three Months Ended June Six Months Ended June
30, 30,
------------------------- ------------------------
2026 2025 2026 2025
------ ------ --- ------ ------
(unaudited) (unaudited)
GAAP gross profit $44,968 $39,750 $90,855 $80,204
Plus:
depreciation
and
amortization 280 283 558 608
Plus:
share-based
compensation
expense 156 179 313 371
Plus: payroll
taxes related
to
share-based
compensation 4 6 9 10
Plus:
restructuring
costs -- 129 -- 263
------ ------ --- ------ ------
Non-GAAP gross
profit $45,408 $40,347 $91,735 $81,456
====== ====== === ====== ======
Gross profit
margin 46% 49% 49% 49%
Non-GAAP gross
profit margin 46% 50% 49% 50%
Three Months Ended June
30, Six Months Ended June 30,
------------------------ --------------------------
2026 2025 2026 2025
------- ------- -------- --------
(unaudited) (unaudited)
GAAP cost of
revenue $ 53,723 $ 41,310 $ 96,104 $ 83,243
Less:
depreciation
and
amortization 280 283 558 608
Less:
share-based
compensation
expense 156 179 313 371
Less: payroll
taxes related
to
share-based
compensation 4 6 9 10
Less:
restructuring
costs -- 129 -- 263
------- ------- -------- --------
Non-GAAP cost of
revenue $ 53,283 $ 40,713 $ 95,224 $ 81,991
======= ======= ======== ========
Operating
Expenses:
------------------
GAAP research
and
development $ 17,485 $ 17,167 $ 35,002 $ 35,244
Less:
depreciation
and
amortization 249 267 499 548
Less:
share-based
compensation
expense 2,570 3,176 5,328 6,591
Less: payroll
taxes related
to
share-based
compensation -- 2 3 3
Less:
restructuring
costs -- 232 -- 864
------- ------- -------- --------
Non-GAAP research
and development $ 14,666 $ 13,490 $ 29,172 $ 27,238
======= ======= ======== ========
GAAP sales and
marketing $ 21,258 $ 21,452 $ 42,151 $ 44,234
Less:
depreciation
and
amortization 191 192 378 372
Less:
share-based
compensation
expense 3,423 4,017 7,027 8,314
Less: payroll
taxes related
to
share-based
compensation 60 84 205 223
Less:
restructuring
costs -- 645 -- 2,055
------- ------- -------- --------
Non-GAAP sales
and marketing $ 17,584 $ 16,514 $ 34,541 $ 33,270
======= ======= ======== ========
GAAP general and
administrative $ 13,633 $ 14,137 $ 27,007 $ 30,790
Less:
depreciation
and
amortization 137 133 271 303
Less:
share-based
compensation
expense 4,224 5,487 8,686 11,899
Less: payroll
taxes related
to
share-based
compensation 33 46 134 163
Less:
legal-related
and other
expenses -- -- -- 236
Less:
restructuring
costs -- 262 -- 694
------- ------- -------- --------
Non-GAAP general
and
administrative $ 9,239 $ 8,209 $ 17,916 $ 17,495
======= ======= ======== ========
Non-GAAP
operating
expenses $ 41,489 $ 38,213 $ 81,629 $ 78,003
======= ======= ======== ========
Three Months Ended June 30,
---------------------------
2026 2025 $ Change % Change
------ ------- -------- ----------
(unaudited)
Non-GAAP
operating
expenses(1) $ 41,489 $ 38,213 $ 3,276 9%
Realized
hedging
gains /
(losses) 834 846
------ -------
Non-GAAP
operating
expenses,
excluding
hedging
gains/losses 42,323 39,059 3,264 8%
Adjustment
for FX rate
fluctuations
(2) (4,147)
------ -----------
Non-GAAP
operating
expenses,
constant
currency $ 38,176 $ 39,059 $ (883) (2)%
====== =======
Six Months Ended June 30,
---------------------------
2026 2025 $ Change % Change
------ ------- -------- ----------
(unaudited)
Non-GAAP
operating
expenses(1) $ 81,629 $ 78,003 $ 3,626 5%
Realized
hedging
gains /
(losses) 771 1,154
------ -------
Non-GAAP
operating
expenses,
excluding
hedging
gains/losses 82,400 79,157 3,243 4%
Adjustment
for FX rate
fluctuations
(2) (7,074)
------ -----------
Non-GAAP
operating
expenses,
constant
currency $ 75,326 $ 79,157 $(3,831) (5)%
====== =======
(1) See tables above for a reconciliation of Non-GAAP operating
expenses to GAAP operating expenses by line item.
(2) Adjustment for FX rate fluctuations represents the impact of
exchange rate changes on non-GAAP operating expenses and is
calculated by translating current period foreign currency
transactions using the prior period's monthly average exchange
rates. Monthly average rates represent the simple average of daily
exchange rates within each calendar month.
Three Months
Ended June 30, Six Months Ended June 30,
----------------- -------------------------
2026 2025 2026 2025
------ ----- ------ -----
(unaudited) (unaudited)
Net cash
provided by
(used in)
operating
activities $13,337 $5,592 $ 22,879 $9,436
Purchases of
property
and
equipment (203) (252) (375) (460)
Capitalized
software
development
costs (200) -- (550) --
------ ----- ------ -----
Free Cash Flow $12,934 $5,340 $ 21,954 $8,976
====== ===== ====== =====
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ------------------------------
2026 2025 2026 2025
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Net profit (loss) $ (9,105) $ (11,633) $ (13,532) $ (25,519)
Depreciation
and
amortization 857 875 1,706 1,831
Share-based
compensation
expense 10,373 12,859 21,354 27,175
Payroll taxes
related to
share-based
compensation 97 138 351 399
Legal-related
and other
expenses -- -- -- 236
Restructuring
costs -- 1,268 -- 3,876
----------- ----------- ----------- -----------
Non-GAAP net
profit (loss) $ 2,222 $ 3,507 $ 9,879 $ 7,998
=========== =========== =========== ===========
Weighted-average
shares used in
computing net
profit (loss)
and non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic 139,310,606 159,112,218 143,328,331 160,349,927
Add: Dilutive
Class A and B
ordinary share
equivalents 3,988,974 5,286,735 3,606,400 5,754,177
----------- ----------- ----------- -----------
Weighted-average
shares used in
computing
non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
diluted 143,299,580 164,398,953 146,934,731 166,104,104
=========== =========== =========== ===========
Net profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic $ (0.07) $ (0.07) $ (0.09) $ (0.16)
=========== =========== =========== ===========
Net profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
diluted $ (0.07) $ (0.07) $ (0.09) $ (0.16)
=========== =========== =========== ===========
Non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
basic $ 0.02 $ 0.02 $ 0.07 $ 0.05
=========== =========== =========== ===========
Non-GAAP net
profit (loss)
per share
attributable to
Class A and B
ordinary
shareholders,
diluted $ 0.02 $ 0.02 $ 0.07 $ 0.05
=========== =========== =========== ===========
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