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- **Revenue Beat**: Q3 revenue $81.9M (+4% YoY), driven by 100% growth in Money Transfer & Payments and 13% in Fashion & Luxury.
- **Margin Expansion**: Non-GAAP gross margin 51% (vs. 50% Q2), with 70% autonomously trained models outperforming manual ones.
- **AI Impact**: Adaptive Checkout boosted conversions 5-26%, and Q4 EBITDA margin expected to reach 15%.
- **Holiday Optimism**: 3 largest categories (>66% GMV) tracking steady, with cautious Q4 outlook.
- **Share Buybacks**: $25.3M in Q3, targeting 5%+ YoY share reduction.

**CEO Summary Section**
- **Revenue Growth**: Q3 revenue reached $81.9 million, up 4% YoY, driven by new merchant wins and upsell activity across categories like Money Transfer & Payments (100% YoY growth) and Fashion & Luxury (13% YoY growth). 
- **Gross Profit Margin Expansion**: Non-GAAP gross profit margin improved to 51% (vs. 50% in Q2), supported by 70% of models now autonomously trained, outperforming manual models.
- **AI Investment Payoff**: Autonomous model retraining reduced chargebacks by 5% YoY across 4 of the last 5 cohorts. Adaptive Checkout boosted conversions by 5-26% for merchants in the U.S. and EMEA.
- **Holiday Outlook**: Cautiously optimistic for Q4, with GMV tracking in line with expectations and 3 largest categories (Tickets & Travel, Fashion & Luxury, Money Transfer) representing >66% of GMV.
- **Guidance Update**: Raised full-year revenue guidance to $338-346 million (midpoint $342M) and adjusted EBITDA to $21-27 million (midpoint $24M), reflecting margin expansion to ~15% in Q4.

**CFO Financial Commentary**
- **GMV Growth**: Q3 GMV of $37.8B (+9% YoY), with APAC (+55% YoY) and EMEA (+19% YoY) leading regional expansion.
- **Operating Efficiency**: Non-GAAP operating expenses declined 7% YoY to $36M, with OpEx as % of revenue at 44% (vs. 49% YoY). Free cash flow of $13.4M in Q3, guiding to >$30M for FY25.
- **Balance Sheet Strength**: $325M in cash, no debt, and 5.2M shares repurchased in Q3 ($25.3M), targeting 5%+ YoY share reduction.
- **Margin Targets**: Aiming for 52% non-GAAP gross margin annually, with Q4 adjusted EBITDA margin of ~15%.

**Q&A Highlights**
- **Growth Drivers**: Money Transfer & Payments category to nearly double FY25 revenue, while Agentic commerce (AI-driven purchases) presents new fraud risks and opportunities for partnerships.
- **Margin Trends**: Autonomous models offset headwinds from newer categories, with Q4 gross margin expected to improve sequentially. Long-term gross margin target of 52% remains.
- **Capital Allocation**: Buybacks and strategic investments balanced to maintain flexibility, with no immediate plans for acquisitions.
- **Agentic Commerce**: 2026 focus on partnerships with AI platforms to manage fraud in agent-driven transactions, with early merchant discussions underway.
- **EBITDA Outlook**: Q4 EBITDA margin of ~15% reflects operating leverage, with FY26 targets to be updated in Q1 '26 based on macro conditions.

Riskified Ltd. (RSKD) Q3 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

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Cost of Revenue

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Operating Expenses

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Net Income

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RSKD

RSKD fundamentals

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