Riskified Ltd. (RSKD Quick QuoteRSKD - Free Report) raised its 2026 outlook after third-quarter revenues accelerated, with management pointing to new digital finance merchants and broader product adoption as key drivers.

The earnings call also highlighted a widening gap between revenue and gross profit growth, alongside new efforts to address fraud involving artificial intelligence agents.

RSKD Raises Its Outlook for 2026

Chief financial officer Aglika Dotcheva raised full-year revenue guidance to $427 million-$433 million from $400 million-$410 million. The $430 million midpoint incorporates third-quarter outperformance and expectations for continued momentum.

Adjusted EBITDA guidance increased to $39 million-$43 million from $33 million-$39 million, implying a margin of approximately 10% at the midpoint. Management expects fourth-quarter revenue growth of approximately 29% at its midpoint.

Responding to William Blair, Dotcheva deferred a 2027 outlook until fourth-quarter results, citing the holiday season and the pace at which newer merchants ramp up.

Riskified Sees Digital Finance Driving Expansion

Dotcheva said new merchants were the primary growth driver, particularly in digital finance, where billings increased more than 300% year over year. Upselling existing merchants also contributed.

Chief executive officer Eido Gal said the category spans exchanges, remittances, sports betting and event contracts. Multiple significant merchant wins have ramped up over recent quarters, without materially changing concentration among the company's largest clients.

In response to Goldman Sachs, Gal said merchant ramp-up trajectories should resemble historical patterns, although timing varies by customer. He identified additional opportunity from product cross-selling and handling more transaction volume.

RSKD Faces Pressure on Gross Margins

The company came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.04. Revenues of $115.18 million beat the Zacks Consensus Estimate of $103.9 million.

Riskified Ltd. Price, Consensus and EPS Surprise

Riskified Ltd. price-consensus-eps-surprise-chart | Riskified Ltd. Quote

Non-GAAP gross profit rose 20% to $49.7 million. Non-GAAP gross margin was 43% compared with 51% a year earlier.

Questioned by a KBW analyst about the divergence, Gal said newly onboarded merchants typically begin with higher chargeback ratios. Improving performance within existing cohorts has historically offset the impact of incoming customers.

Gal did not anticipate inherently different margin structures across business categories. Dotcheva increased expected full-year gross profit growth to 14%-16% from 11%-14%, keeping the focus on gross profit dollars.

Riskified Targets AI-Driven Commerce Risks

Gal emphasized that AI agents create fraud exposure beyond checkout, including returns, refunds and promotional abuse. He described agent authorization as distinct from establishing whether the underlying consumer can be trusted.

Riskified introduced Agent Identity Risk Intelligence to connect agents with consumer identities and provide real-time risk signals. Its Zendesk partnership extends identity intelligence into customer service workflows.

During questioning from UBS, Gal said agent activity is more prevalent in shopping assistance and policy-related interactions than completed checkout transactions. He also reported more serious fraudulent attempts in the channel, while noting that merchants remain at different stages of adoption.

RSKD Balances Expense Discipline and Capital Uses

Dotcheva reported non-GAAP operating expenses of $41.6 million, or 36% of revenue, versus 44% a year earlier. She said Israeli shekel appreciation added approximately $2.2 million to reported expenses relative to constant currency.

Adjusted EBITDA reached $8.1 million, and quarterly free cash flow was a record $15.2 million. Management expects approximately $45 million in positive free cash flow for 2026.

Gal said the roughly $235 million cash, deposits and investments balance, with no debt, supports internal investment, repurchases and potential acquisitions. Responding to Goldman Sachs, he stressed evaluating build, buy and partner options, particularly beyond checkout.

Riskified Maintains a Platform-Led Focus

Gal framed increasingly complex fraud as a reason merchants are seeking connected protection across accounts, checkout, policies and disputes. Multi-product merchant count increased approximately 55% year over year, and nearly half of the top 50 customers use at least two products.

The company's priorities remain extending its identity intelligence capabilities, expanding within existing clients and pursuing new business internationally. Eight of the quarter's 10 largest new logos were headquartered outside the United States.

RSKD's Zacks Rank and Style Scores

RSKD currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term ranking under the earnings estimate revision-based system. Its Value Score is C, Growth Score is A and Momentum Score is F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its VGM Score of B reflects a favorable combined reading across value, growth and momentum despite weak individual momentum. Zacks Style Scores are complementary to the Rank, rather than substitutes for it. The Zacks Rank can change as analysts revise earnings estimates following the reported results.