Riskified Ltd.

What they do

Riskified reviews online transactions for merchants and approves or declines them, charging based on amounts invoiced for transactions approved during the period. It reports billings as gross amounts invoiced to merchants plus changes in estimates for cancellations and service level agreements on orders approved in prior periods, excluding chargeback credits. The company defines an approval rate as GMV approved divided by GMV reviewed, and covers transaction reversals known as chargebacks where a cardholder's bank rules in the cardholder's favor and funds are withdrawn from the merchant.

Revenue drivers

• Transaction-based merchant billings — Revenue is driven by gross amounts invoiced to merchants for transactions approved during the period, plus changes in estimates for cancellations and service level agreements on orders approved in prior periods.
• Approval-rate-linked economics — The company tracks approval rate as GMV approved divided by GMV reviewed, indicating that the volume and value of transactions it approves directly supports billed amounts.
• Chargeback exposure management — Chargebacks, which are forced transaction reversals, create losses for merchants when funds are withdrawn; the filing notes billings exclude credits issued for chargebacks, tying part of the value proposition to reducing this cost.

Recent performance

Revenue rose from $229.1M in 2021 to $261.2M in 2022, $297.6M in 2023, $327.5M in 2024 and $344.6M in 2025, with growth slowing in the latest year. Net loss narrowed each year from $179.4M in 2021 to $104.7M in 2022, $59.0M in 2023, $34.9M in 2024 and $27.6M in 2025. Operating cash flow turned positive at $7.3M in 2023, rose to $39.7M in 2024 and was $33.9M in 2025. At December 31, 2025, total assets were $410.6M, total liabilities $115.8M, shareholder equity $294.8M and cash and equivalents $162.2M.

Strategy

The filing describes Riskified as a fraud and risk intelligence provider for ecommerce merchants, with billings defined as amounts invoiced for approved transactions plus estimate changes for prior-period orders. The company discloses approval rate as a core metric, suggesting that increasing the share of reviewed GMV that is approved is central to its merchant value proposition. Chargebacks are explicitly excluded from billings through credits issued for chargebacks, indicating that reducing forced transaction reversals is part of the operating model.

Risks

• Persistent net losses — Riskified has reported annual net losses every year from 2021 through 2025, including a $27.6M loss in 2025.
• Dependence on transaction volumes — Revenue depends on gross amounts invoiced for approved merchant transactions plus estimate changes, so a decline in merchant GMV or approval rates would directly reduce billings.
• Chargeback and estimate variability — Billings include changes in estimates for cancellations and service level agreements on prior-period orders and exclude credits issued for chargebacks, making reported amounts sensitive to subsequent adjustments.
• Slowing revenue growth — Annual revenue growth decelerated from $229.1M in 2021 to $344.6M in 2025, with the increase from 2024 to 2025 the smallest in the period presented.

Outlook

The provided excerpts do not include management's forward-looking outlook or guidance. The most recent reported results show 2025 revenue of $344.6M, a net loss of $27.6M and operating cash flow of $33.9M. No outlook statements from management are contained in the supplied filing text.