Riskified (RSKD) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 and nine-month revenues, with Q3 revenue of $81.9M–$82M, up 4% year-over-year, driven by new business wins, upsell activity, and strong Money Transfer and Payments performance, which grew 100% year-over-year.

• Adjusted EBITDA reached $5.6M in Q3 (7% margin), marking the eighth consecutive positive quarter and a 518% year-over-year improvement.

• Disciplined expense management reduced non-GAAP operating expenses as a percentage of revenue from 49% to 44% year-over-year.

• Adaptive Checkout adoption and machine learning investments drove merchant conversion improvements and operational efficiency.

• Expanded merchant base across five verticals and three geographies, with significant new wins and increased brand engagement through global events.

Financial highlights

• Q3 GMV was $37.8B (up 9% YoY); nine-month GMV was $108.4B (up 7% YoY).

• Q3 revenue was $81.9M–$82M (up 4% YoY); nine-month revenue was $245.3M (up 5% YoY).

• Q3 non-GAAP gross profit was $41.1M–$41.5M (up 5% YoY), with a margin of 51%.

• Q3 Adjusted EBITDA was $5.6M (7% margin), a record for the quarter.

• Free cash flow in Q3 was $13.4M; $22.4M for the first nine months; ended Q3 with $325M–$325.2M in cash, deposits, and investments, and zero debt.

Outlook and guidance

• FY 2025 revenue guidance raised to $338M–$346M; Adjusted EBITDA expected between $21M and $27M.

• Q4 Adjusted EBITDA margin expected to approximate 15%, with further acceleration in gross profit growth anticipated due to holiday season volumes.

• Expects over $30M in positive free cash flow for FY 2025.