RSKD Riskified Ltd

Maintains 2025 Guidance

Riskified Ltd. (NYSE: RSKD) (the “Company”), a leader in ecommerce fraud and risk intelligence, today announced financial results for the three months ended March 31, 2025. The Company will host an investor call to discuss these results today at 8:30 a.m. Eastern Time.

“I am encouraged by our start to the year, our execution on the 2025 product roadmap, and the increased pipeline generation year-to-date. We believe that our vertical and geographic diversification, strong balance sheet, and track record of executing across different environments positions us well to drive long-term growth,” said Eido Gal, Co-Founder and Chief Executive Officer of Riskified.

Q1 2025 Business Highlights

• Further Vertical and Geographic Diversification with the Addition of New Merchants: We continued to have success landing new merchants on the Riskified platform, which in turn deepened our vertical and geographic reach. Our top ten new logos added during the first quarter represented wins in four verticals and all four geographies. Eight of our top ten new Chargeback Guarantee logos represented wins outside of the United States.
• Landed New Account in Money Transfer & Payments Category: During the first quarter we onboarded a global digital wallet that facilitates online payments, virtual and physical debit cards, money transfers, and other types of payment and remittance activity. We continue to believe that the Money Transfer & Payments category represents an exciting area of potential expansion, as evidenced by over 90% year-over-year revenue growth rates during the first quarter.
• Multi-Product Platform Expansion: Revenue growth from products outside of our core Chargeback Guarantee product increased by approximately 190% year-over-year, as our multi-product platform continued to resonate with merchants.
• Share Repurchase Program Update: In the first quarter of 2025, we repurchased an aggregate of 4.1 million shares for a total price of $20.7 million including broker and transaction fees. We remain committed to repurchasing our shares at attractive valuation levels.
• Launched Ascend 2025: We recently kicked off our global merchant event series, Ascend 2025, with stops in London and Shanghai. Many of the world’s largest merchants, industry experts, and thought leaders gathered to explore the latest trends, innovations, and strategies in ecommerce fraud prevention and risk management. Ascend 2025 will continue its tour in various locations throughout the world including Melbourne, Brooklyn, Tokyo, and São Paulo in the coming months.
• Named Most Innovative Fraud Prevention Solution: Riskified was recently named the Most Innovative Fraud Prevention Solution at the Merchant Payments Ecosystem Awards 2025. This recognition underscores our commitment to empowering merchants with our cutting-edge AI-driven fraud prevention platform.

Q1 2025 Financial Summary & Highlights

The following table summarizes our consolidated financial results for the three months ended March 31, 2025 and 2024, in thousands except where indicated:

 

Three Months Ended March 31,

 

2025

 

2024

 

(unaudited)

Gross merchandise volume ("GMV") in millions(1)

$

34,171

 

 

$

32,018

 

Increase in GMV year over year

 

7

%

 

 

Revenue

$

82,387

 

 

$

76,408

 

Increase in revenues year over year

 

8

%

 

 

 

 

 

 

GAAP Gross profit

$

40,454

 

 

$

42,120

 

GAAP Gross profit margin

 

49

%

 

 

55

%

 

 

 

 

Net profit (loss)

$

(13,886

)

 

$

(11,630

)

Net profit (loss) margin

 

(17

)%

 

 

(15

)%

 

 

 

 

Adjusted EBITDA(1)

$

1,319

 

 

$

2,751

 

Adjusted EBITDA margin(1)

 

2

%

 

 

4

%

Additional Financial Highlights

• GAAP gross profit margin of 49% for the three months ended March 31, 2025 compared to 55% in the prior year. Non-GAAP gross profit margin(1) of 50% for the three months ended March 31, 2025 compared to 56% in the prior year.
• GAAP net loss per share of $(0.09) for the three months ended March 31, 2025 compared to $(0.07) in the prior year. Non-GAAP diluted net profit per share(1) of $0.03 for the three months ended March 31, 2025 compared to $0.04 in the prior year.
• Operating cash inflow of $3.8 million for the three months ended March 31, 2025 compared to $10.7 million in the prior year. Free cash inflow(1) of $3.6 million for the three months ended March 31, 2025 compared to $10.5 million in the prior year.
• Ended March 31, 2025 with approximately $357.1 million of cash, deposits, and investments on the balance sheet and zero debt.

“We delivered another positive quarter of Adjusted EBITDA, reflecting our disciplined approach to expense management and continued focus on operational efficiency. This consistent execution has strengthened our financial foundation and we believe positions us well to generate further Adjusted EBITDA expansion and create long-term value for our shareholders,” said Aglika Dotcheva, Chief Financial Officer of Riskified.

Financial Outlook

For the year ending December 31, 2025, we continue to expect:

• Revenue between $333 million and $346 million
• Adjusted EBITDA(2) between $18 million and $26 million

(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, or non-GAAP operating expense for the fiscal year ending December 31, 2025 to net profit (loss), gross profit, and total operating expenses, 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, May 14, 2025 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 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 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. 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-powered ecommerce 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 Free Cash Flow as net cash provided by (used in) operating activities, less cash purchases of property and equipment.

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 (the "Securities Act") 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 2025, our anticipated non-GAAP gross profit margin, expectations as to continued margin and Adjusted EBITDA expansion, future growth potential in new verticals, new geographies and from new-products, anticipated benefits of our share repurchase program and management of our dilution, internal modeling assumptions, expectations as to the macroeconomic environment, including the impact of tariffs on consumer spending levels, expectations as to our new merchant pipeline, market share and upsell opportunities, the impact of competition, pricing pressure and churn, the performance of our AI-powered multi-product platform, 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 machine learning models; 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 declines in the value of the Israeli shekel against the US dollar as a result of the ongoing conflict in Israel; 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 machine learning models and access to third-party and merchant data; our ability to comply with evolving data protection, privacy and security laws; the development of regulatory frameworks for machine learning technology and artificial intelligence; 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 judgements relating to our critical accounting policies; our business in China; changes in tax laws or regulations; increasing 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, 2024, as filed with the SEC on March 6, 2025, and 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 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. Riskified was named to CNBC's World’s Top Fintech Companies in 2024. Learn more at riskified.com.

RISKIFIED LTD.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

As of

March 31, 2025

 

As of

December 31, 2024

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

286,858

 

 

$

371,063

 

Short-term deposits

 

5,000

 

 

 

5,000

 

Accounts receivable, net

 

32,124

 

 

 

47,803

 

Prepaid expenses and other current assets

 

10,312

 

 

 

9,830

 

Short-term investments

 

65,216

 

 

 

—

 

Total current assets

 

399,510

 

 

 

433,696

 

Property and equipment, net

 

12,210

 

 

 

12,704

 

Operating lease right-of-use assets

 

24,304

 

 

 

25,310

 

Deferred contract acquisition costs

 

16,228

 

 

 

16,558

 

Other assets, noncurrent

 

7,511

 

 

 

7,593

 

Total assets

$

459,763

 

 

$

495,861

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,968

 

 

$

2,309

 

Accrued compensation and benefits

 

18,329

 

 

 

26,365

 

Guarantee obligations

 

8,494

 

 

 

13,061

 

Provision for chargebacks, net

 

9,478

 

 

 

9,434

 

Operating lease liabilities, current

 

5,542

 

 

 

5,590

 

Accrued expenses and other current liabilities

 

13,611

 

 

 

13,780

 

Total current liabilities

 

57,422

 

 

 

70,539

 

Operating lease liabilities, noncurrent

 

20,561

 

 

 

21,940

 

Other liabilities, noncurrent

 

22,454

 

 

 

21,078

 

Total liabilities

 

100,437

 

 

 

113,557

 

Shareholders’ equity:

 

 

 

Class A ordinary shares, no par value; 900,000,000 shares authorized as of March 31, 2025 and December 31, 2024; 111,563,431 and 112,306,279 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

 

—

 

 

 

—

 

Class B ordinary shares, no par value; 232,500,000 shares authorized as of March 31, 2025 and December 31, 2024; 47,402,840 and 48,902,840 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

 

—

 

 

 

—

 

Treasury shares at cost, 34,193,495 and 30,049,351 ordinary shares as of March 31, 2025 and December 31, 2024, respectively

 

(174,909

)

 

 

(154,223

)

Additional paid-in capital

 

994,882

 

 

 

982,131

 

Accumulated other comprehensive profit (loss)

 

(270

)

 

 

887

 

Accumulated deficit

 

(460,377

)

 

 

(446,491

)

Total shareholders’ equity

 

359,326

 

 

 

382,304

 

Total liabilities and shareholders’ equity

$

459,763

 

 

$

495,861

 

RISKIFIED LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

 

Three Months Ended March 31,

 

2025

 

2024

 

(unaudited)

Revenue

$

82,387

 

 

$

76,408

 

Cost of revenue

 

41,933

 

 

 

34,288

 

Gross profit

 

40,454

 

 

 

42,120

 

Operating expenses:

 

 

 

Research and development

 

18,077

 

 

 

17,772

 

Sales and marketing

 

22,782

 

 

 

23,214

 

General and administrative

 

16,653

 

 

 

17,047

 

Total operating expenses

 

57,512

 

 

 

58,033

 

Operating profit (loss)

 

(17,058

)

 

 

(15,913

)

Interest income (expense), net

 

3,725

 

 

 

5,741

 

Other income (expense), net

 

844

 

 

 

(160

)

Profit (loss) before income taxes

 

(12,489

)

 

 

(10,332

)

Provision for (benefit from) income taxes

 

1,397

 

 

 

1,298

 

Net profit (loss)

$

(13,886

)

 

$

(11,630

)

Other comprehensive profit (loss), net of tax:

 

 

 

Other comprehensive profit (loss)

 

(1,157

)

 

 

(203

)

Comprehensive profit (loss)

$

(15,043

)

 

$

(11,833

)

 

 

 

 

Net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

$

(0.09

)

 

$

(0.07

)

Weighted-average shares used in computing net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

 

161,601,389

 

 

 

177,060,316

 

RISKIFIED LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three Months Ended March 31,

 

2025

 

2024

 

(unaudited)

Cash flows from operating activities:

 

 

 

Net profit (loss)

$

(13,886

)

 

$

(11,630

)

Adjustments to reconcile net profit (loss) to net cash provided by (used in) operating activities:

 

 

 

Unrealized loss (gain) on foreign currency

 

(1,025

)

 

 

(12

)

Provision for (benefit from) account receivable allowances

 

266

 

 

 

211

 

Depreciation and amortization

 

654

 

 

 

882

 

Amortization of capitalized internal-use software costs

 

302

 

 

 

383

 

Amortization of deferred contract costs

 

2,807

 

 

 

2,707

 

Share-based compensation expense

 

14,316

 

 

 

15,522

 

Non-cash right-of-use asset changes

 

1,006

 

 

 

1,130

 

Changes in accrued interest

 

(60

)

 

 

(373

)

Ordinary share warrants issued to a customer

 

—

 

 

 

383

 

Other

 

82

 

 

 

86

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

15,769

 

 

 

12,869

 

Deferred contract acquisition costs

 

(1,895

)

 

 

(1,585

)

Prepaid expenses and other assets

 

(1,665

)

 

 

(894

)

Accounts payable

 

(299

)

 

 

(332

)

Accrued compensation and benefits

 

(7,846

)

 

 

(1,561

)

Guarantee obligations

 

(4,567

)

 

 

(3,556

)

Provision for chargebacks, net

 

44

 

 

 

(2,357

)

Operating lease liabilities

 

(1,117

)

 

 

(1,175

)

Accrued expenses and other liabilities

 

958

 

 

 

(37

)

Net cash provided by (used in) operating activities

 

3,844

 

 

 

10,661

 

Cash flows from investing activities:

 

 

 

Purchases of investments

 

(78,157

)

 

 

—

 

Maturities of investments

 

12,495

 

 

 

—

 

Purchases of property and equipment

 

(208

)

 

 

(178

)

Proceeds from sale of fixed assets

 

16

 

 

 

—

 

Net cash provided by (used in) investing activities

 

(65,854

)

 

 

(178

)

Cash flows from financing activities:

 

 

 

Proceeds from exercise of share options

 

632

 

 

 

1,030

 

Taxes paid related to net share settlement of equity awards

 

(2,256

)

 

 

—

 

Purchases of treasury shares

 

(20,686

)

 

 

(30,429

)

Net cash provided by (used in) financing activities

 

(22,310

)

 

 

(29,399

)

Effects of exchange rates on cash and cash equivalents

 

115

 

 

 

(388

)

Net increase (decrease) in cash and cash equivalents

 

(84,205

)

 

 

(19,304

)

Cash and cash equivalents—beginning of period

 

371,063

 

 

 

440,838

 

Cash and cash equivalents—end of period

$

286,858

 

 

$

421,534

 

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 March 31,

 

2025

 

2024

 

(unaudited)

Net profit (loss)

$

(13,886

)

 

$

(11,630

)

Provision for (benefit from) income taxes

 

1,397

 

 

 

1,298

 

Interest (income) expense, net

 

(3,725

)

 

 

(5,741

)

Other (income) expense, net

 

(844

)

 

 

160

 

Depreciation and amortization

 

956

 

 

 

1,265

 

Share-based compensation expense

 

14,316

 

 

 

15,522

 

Payroll taxes related to share-based compensation

 

261

 

 

 

201

 

Legal-related and other expenses

 

236

 

 

 

—

 

Restructuring costs

 

2,608

 

 

 

1,676

 

Adjusted EBITDA

$

1,319

 

 

$

2,751

 

Net profit (loss) margin

 

(17

)%

 

 

(15

)%

Adjusted EBITDA Margin

 

2

%

 

 

4

%

 

Three Months Ended March 31,

 

2025

 

2024

 

(unaudited)

GAAP gross profit

$

40,454

 

 

$

42,120

 

Plus: depreciation and amortization

 

325

 

 

 

427

 

Plus: share-based compensation expense

 

192

 

 

 

211

 

Plus: payroll taxes related to share-based compensation

 

4

 

 

 

5

 

Plus: restructuring costs

 

134

 

 

 

139

 

Non-GAAP gross profit

$

41,109

 

 

$

42,902

 

Gross profit margin

 

49

%

 

 

55

%

Non-GAAP gross profit margin

 

50

%

 

 

56

%

 

Three Months Ended March 31,

 

2025

 

2024

 

(unaudited)

GAAP cost of revenue

$

41,933

 

$

34,288

Less: depreciation and amortization

 

325

 

 

427

Less: share-based compensation expense

 

192

 

 

211

Less: payroll taxes related to share-based compensation

 

4

 

 

5

Less: restructuring costs

 

134

 

 

139

Non-GAAP cost of revenue

$

41,278

 

$

33,506

 

 

 

 

GAAP research and development

$

18,077

 

$

17,772

Less: depreciation and amortization

 

281

 

 

387

Less: share-based compensation expense

 

3,415

 

 

3,422

Less: payroll taxes related to share-based compensation

 

1

 

 

1

Less: restructuring costs

 

632

 

 

555

Non-GAAP research and development

$

13,748

 

$

13,407

 

 

 

 

GAAP sales and marketing

$

22,782

 

$

23,214

Less: depreciation and amortization

 

180

 

 

251

Less: share-based compensation expense

 

4,297

 

 

4,939

Less: payroll taxes related to share-based compensation

 

139

 

 

106

Less: restructuring costs

 

1,410

 

 

529

Non-GAAP sales and marketing

$

16,756

 

$

17,389

 

 

 

 

GAAP general and administrative

$

16,653

 

$

17,047

Less: depreciation and amortization

 

170

 

 

200

Less: share-based compensation expense

 

6,412

 

 

6,950

Less: payroll taxes related to share-based compensation

 

117

 

 

89

Less: legal-related and other expenses

 

236

 

 

—

Less: restructuring costs

 

432

 

 

453

Non-GAAP general and administrative

$

9,286

 

$

9,355

 

Three Months Ended March 31,

 

2025

 

2024

 

(unaudited)

Net cash provided by (used in) operating activities

$

3,844

 

 

$

10,661

 

Purchases of property and equipment

 

(208

)

 

 

(178

)

Free Cash Flow

$

3,636

 

 

$

10,483

 

 

Three Months Ended March 31,

 

2025

 

2024

(unaudited)

Net profit (loss)

$

(13,886

)

 

$

(11,630

)

Depreciation and amortization

 

956

 

 

 

1,265

 

Share-based compensation expense

 

14,316

 

 

 

15,522

 

Payroll taxes related to share-based compensation

 

261

 

 

 

201

 

Legal-related and other expenses

 

236

 

 

 

—

 

Restructuring costs

 

2,608

 

 

 

1,676

 

Non-GAAP net profit (loss)

$

4,491

 

 

$

7,034

 

 

 

 

 

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

 

161,601,389

 

 

 

177,060,316

 

Add: Dilutive Class A and B ordinary share equivalents

 

6,221,619

 

 

 

5,449,794

 

Weighted-average shares used in computing non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, diluted

 

167,823,008

 

 

 

182,510,110

 

 

 

 

 

Net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

$

(0.09

)

 

$

(0.07

)

Non-GAAP net profit (loss) per share attributable to Class A and B ordinary shareholders, basic and diluted

$

0.03

 

 

$

0.04

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250514449036/en/

Investor Relations: Chett Mandel, Head of Investor Relations | ir@riskified.com

Corporate Communications: Cristina Dinozo, Senior Director of Communications | press@riskified.com