Riskified Ltd. (NYSE: RSKD) had itself a Wednesday. The fraud prevention company reported third-quarter results that beat expectations across the board and raised its full-year outlook, and the stock responded by surging 28.07% to $10.86 at the time of publication. That's a new 52-week high, according to market data.
The numbers: adjusted earnings of 7 cents per share, versus the 3-cent analyst estimate. Revenue jumped 41% year over year to $115.18 million, topping expectations of $103.41 million. That's the fastest revenue growth Riskified has posted since going public, helped along by new merchants and more spending from existing customers.
CEO and co-founder Eido Gal said growing demand for fraud prevention tools helped the company raise its outlook for the third time this year. He also pointed to new opportunities from AI-powered commerce, which is where things get interesting.
Digital Finance Does the Heavy Lifting
Gross merchandise volume rose 18% to $44.56 billion. Digital Finance billings soared more than 300%, while the Electronics, General and Home segments grew a combined 12%.
Geography told a mixed story. U.S. billings jumped 69%, accelerating from 38% growth in the second quarter. APAC and Other Americas billings increased 14% and 17%, respectively, while EMEA declined 3%. International expansion continued, with eight of its 10 largest new customers based outside the U.S.
Profitability and a Pile of Cash
Adjusted gross profit rose 20% to $49.7 million, although gross margin fell to 43% from 51%. Adjusted EBITDA climbed 47% to $8.1 million, while the margin held steady at 7%.
The company narrowed its net loss to $1.3 million from $7.8 million and generated $15.2 million in free cash flow. Riskified ended the quarter with $235 million in cash, deposits and investments and no debt. Not a bad place to be.
The AI Fraud Problem Nobody Wants to Talk About
Riskified launched Agent Identity Risk Intelligence to address fraud involving AI agents. It also partnered with Zendesk to detect fraudulent refunds, returns and exchanges.
On Wednesday's earnings call, Gal warned that fraudsters are adopting AI-powered shopping tools faster than consumers in some cases. He said Riskified is seeing more fraudulent attempts involving AI agents, particularly in refunds, returns and other customer service requests.
Think about it: an AI agent that shops for you is also an AI agent that can be gamed. And if the bad guys get there first, the good guys have some catching up to do.
Guidance Gets Another Bump
Riskified lifted its 2026 revenue forecast to $427 million-$433 million from $400 million-$410 million, exceeding Wall Street's estimate of $406.7 million.
The company also raised its adjusted EBITDA forecast to $39 million-$43 million from $33 million-$39 million, citing strong quarterly results and continued momentum.
Trading volume reached 3.46 million shares on Wednesday, about 61% above its 100-day average of 2.14 million shares, signaling heightened investor interest following the strong results.
