Riskified Ltd. (RSKD): History, Ownership, Mission, How It Works & Makes Money

With e-commerce fraud costing the global economy billions, how is Riskified Ltd. (RSKD) not just surviving but thriving by guaranteeing merchant transactions? By leveraging its AI-powered platform, the company is on track to deliver full-year 2025 revenue between $336 million and $346 million, having already achieved its seventh consecutive quarter of positive Adjusted EBITDA in Q2 2025, a defintely rare feat in the growth-tech world. You need to understand how this chargeback guarantee model works, because it fundamentally shifts the risk from the merchant to the technology provider, plus it's driving over $30 million in expected positive free cash flow for the year.

Riskified Ltd. (RSKD) History

When you look at Riskified Ltd. (RSKD) today, a publicly traded company with a multi-product platform, it's easy to forget its origin was a simple, yet profound, idea: stop penalizing good customers just to catch a few bad actors. The company's history is a masterclass in product-market fit, moving from a single, high-stakes service-the chargeback guarantee-to a comprehensive risk intelligence platform, all while maintaining a relentless focus on profitability, which is defintely a core theme in their 2025 fiscal year performance.

Given Company's Founding Timeline

Year established

Riskified was established in 2012.

Original location

The company was founded in Tel Aviv, Israel, which remains a key research and development hub today.

Founding team members

The company was co-founded by Eido Gal, who serves as CEO, and Assaf Feldman, the Chief Technology Officer (CTO).

Initial capital/funding

Initial capital came from a seed funding round in 2013, securing $625,000.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The real shift for Riskified wasn't just in the money they raised, but in how they deployed their core innovation: the chargeback guarantee. That's the promise to cover the cost of a fraudulent transaction if their AI-driven system approves it. It fundamentally changed the risk equation for merchants.

The most recent transformative period centers on moving beyond that single product. By mid-2025, the focus is clearly on a multi-product platform strategy, which is driving significant growth outside their original offering. For the full fiscal year 2025, the company is guiding for revenue between $336 million and $346 million, a clear signal of scale.

Plus, they've hit a critical financial milestone: maintaining a positive Adjusted EBITDA for seven consecutive quarters as of Q2 2025. This shows the operating model is sound, not just a growth story. You can see how this strategy is playing out in the capital markets by Exploring Riskified Ltd. (RSKD) Investor Profile: Who's Buying and Why?

Here's the quick math on their financial discipline:

• Full-year 2025 Adjusted EBITDA guidance is between $18 million and $26 million.
• In Q1 2025 alone, they repurchased 4.1 million shares for $20.7 million, showing management's confidence in the valuation.
• The shift means they are now selling a suite of risk intelligence tools, not just a single insurance product, which expands their total addressable market significantly.

So, the action for you is to watch the margin trends closely. While Q1 2025 saw a GAAP gross profit margin decline from 55% to 49% year-over-year, the sustained positive profitability is the key takeaway. That's a sign of a maturing business.

Riskified Ltd. (RSKD) Ownership Structure

Riskified Ltd.'s ownership is largely controlled by institutional investors, giving them a significant voice in corporate governance, while the founders and company insiders retain a meaningful stake. This structure, common for a publicly traded technology company, balances professional fund management with the strategic vision of the original leadership team.

Given Company's Current Status

Riskified Ltd. is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol RSKD. This status means its shares are freely traded on the open market, distributing ownership among a diverse group of stakeholders, which include large funds, venture capital firms, company insiders, and individual investors.

As of November 2025, the company's market capitalization stands at approximately $739.73 million. The company has been actively managing its share count; for example, on November 24, 2025, Riskified completed a privately negotiated repurchase of 3,000,000 Class A ordinary shares from funds affiliated with Pitango Venture Capital for approximately $13.9 million. This action reduces the float and defintely signals management's confidence in the stock's value.

Given Company's Ownership Breakdown

The company's ownership is heavily weighted toward institutional funds, which is typical for a mid-cap tech stock. The table below breaks down the ownership percentages as of late 2025, clarifying who holds the most sway in voting matters.

Institutional ownership at over 65% means that major strategic decisions often require the buy-in of a handful of large funds. For a deeper dive into the specific investment theses of these major players, you should be Exploring Riskified Ltd. (RSKD) Investor Profile: Who's Buying and Why? Exploring Riskified Ltd. (RSKD) Investor Profile: Who's Buying and Why?

Given Company's Leadership

The leadership team is a blend of co-founders and seasoned operational executives, steering the company's strategy from its New York headquarters. This team is responsible for navigating the competitive e-commerce fraud prevention market, which is expected to see full-year 2025 revenue between $338 million and $346 million.

The core decision-makers, as of November 2025, include:

• Eido Gal: Co-Founder, Chief Executive Officer (CEO), and Chairman. He has been with the company since 2012, providing consistent, long-term vision.
• Assaf Feldman: Co-Founder and Chief Technology Officer (CTO). He oversees technical strategy and the development of the AI-powered fraud and risk intelligence platform.
• Aglika Dotcheva: Chief Financial Officer (CFO). She has been instrumental in the company achieving positive Adjusted EBITDA, which reached $5.6 million in Q3 2025.
• Ravi Kumaraswami: President of Worldwide Field Operations.
• Chett Mandel: Head of Investor Relations.

The management team has an average tenure of three years, while the Board of Directors averages 9.3 years, suggesting a stable and experienced governance structure for the company.

Riskified Ltd. (RSKD) Mission and Values

Riskified Ltd. stands for a fundamental shift in e-commerce, aiming to turn risk from a barrier into a growth engine for businesses. The company's core purpose is to make online commerce safe, accessible, and frictionless, driven by values like innovation and a deep customer focus.

Riskified Ltd.'s Core Purpose

Official mission statement

The mission is simple: empower your business to unleash e-commerce growth by outsmarting risk. It's about more than just stopping fraud; it's about enabling merchants to approve more good orders they might defintely have declined otherwise.

This commitment is grounded in a few key principles:

• Making e-commerce accessible: Enabling merchants of all sizes to participate in the global online ecosystem.
• Making e-commerce frictionless: Creating a seamless, positive, and secure shopping experience for every consumer.
• Core Values: Prioritizing innovation, maintaining a relentless customer focus, and upholding a commitment to excellence.

To delve deeper into this corporate DNA, you can explore the full context here: Mission Statement, Vision, & Core Values of Riskified Ltd. (RSKD).

Vision statement

While a single, formal vision statement isn't always public, Riskified Ltd.'s actions clearly point toward leading the next generation of e-commerce risk management. The goal is to become the ultimate standard for fraud prevention.

Here's the quick math on their commitment: The company is focused on profitable growth, which is a key part of its long-term vision. For the 2025 fiscal year, Riskified Ltd. is guiding for revenue between $333 million and $346 million, alongside an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) forecast of $18 million to $26 million. That financial discipline shows they are serious about a sustainable, long-term platform.

This vision involves three concrete actions:

• Becoming the industry standard for fraud prevention.
• Expanding solutions beyond fraud to a wider range of risk challenges.
• Building a trusted network connecting merchants and consumers for secure commerce.

They want to take risk off the table, so you can focus on scaling your business.

Riskified Ltd. slogan/tagline

The company's primary tagline is direct and precise.

• The eCommerce Risk Management Platform

This tagline highlights the integrated, comprehensive nature of their offering-it's not a point solution, but a full platform for managing all sorts of risk in the online world.

Riskified Ltd. (RSKD) How It Works

Riskified Ltd. operates as an AI-powered e-commerce risk intelligence platform that moves beyond traditional fraud rules to approve more legitimate customer orders. The core of its business is a pay-for-performance model where the company provides a 100% chargeback guarantee, essentially taking on the financial liability for any fraud-related chargebacks on transactions it approves.

Riskified Ltd.'s Product/Service Portfolio

Riskified has expanded its platform to cover the full spectrum of e-commerce risk, from payment fraud to policy abuse, ensuring merchants can confidently grow their sales. This multi-product approach creates a closed-loop system that drives value across the entire customer journey.

Riskified Ltd.'s Operational Framework

The company's operation is a continuous, self-optimizing loop built on big data and machine learning (ML). The system is defintely designed to turn risk management into a revenue driver by maximizing approvals, not just minimizing declines.

• Data Ingestion: The platform gathers and analyzes data from every transaction, device, and behavioral pattern across its global merchant network.
• ML Decisioning: Proprietary machine learning algorithms, trained on over 4 billion historical full-lifecycle e-commerce transactions, generate an instant risk score for each order.
• Real-Time Guarantee: A decision to approve or decline is delivered in milliseconds. If approved, the Chargeback Guarantee kicks in, shifting the fraud liability from the merchant to Riskified.
• Value Creation: The model incentivizes Riskified to be highly accurate, as every mistake costs them money. This alignment of interest-the merchant wants more sales, Riskified wants fewer chargebacks-drives continuous model improvement and higher approval rates, which can be 5% to 10% higher than traditional systems.

For the full year 2025, this framework is expected to deliver revenue between $336 million and $346 million, with a midpoint of $341 million, showing the model is scaling profitably. Here's the quick math: the company reported positive Adjusted EBITDA of $2.1 million in Q2 2025, and full-year guidance projects Adjusted EBITDA to range from $18 million to $26 million.

You can see more about the capital structure, including the $339 million in cash, deposits, and investments the company held as of June 30, 2025, by reading Exploring Riskified Ltd. (RSKD) Investor Profile: Who's Buying and Why?

Riskified Ltd.'s Strategic Advantages

Riskified's success in the competitive fraud prevention space comes down to three non-replicable assets that create a significant competitive moat (a long-term advantage). These assets are all interconnected, creating a powerful network effect.

• The Data Network: The platform's vast, cross-merchant data set is its single greatest asset. Every transaction from every merchant, across all verticals like Fashion & Luxury Goods and Tickets & Travel, feeds the ML models, making them smarter and more accurate at identifying emerging fraud trends globally.
• Chargeback Guarantee Model: This is a unique strategic move. By taking on the financial risk, Riskified transforms fraud prevention from a cost center for merchants into a guaranteed revenue lift. This pay-for-performance structure is a powerful sales tool, especially for large enterprise merchants, which drove Gross Merchandise Volume (GMV) of over $36.43 billion in Q2 2025.
• Multi-Product Synergy: The newer products like Policy Protect and Account Secure leverage the same core identity-resolution engine that powers the Chargeback Guarantee. This means the company can address a wider range of financial abuse-not just payment fraud-with a single, unified view of the customer, increasing the value proposition and making it harder for merchants to switch to a competitor.

Riskified Ltd. (RSKD) How It Makes Money

Riskified Ltd. generates revenue primarily by acting as an insurer for e-commerce merchants, offering a Chargeback Guarantee on approved transactions. Their business model is fundamentally 'outcome-based' or 'success-based,' meaning they only get paid a fee for transactions they approve, and they assume 100% of the financial liability for any resulting fraud-related chargebacks.

This model aligns their financial incentives directly with their clients' success: they profit when their AI-powered platform approves more legitimate orders and keeps fraud losses low. The company is guiding for full-year 2025 revenue between $338 million and $346 million.

Riskified Ltd.'s Revenue Breakdown

While the company does not disclose a precise percentage split of total revenue by product, the core business remains the Chargeback Guarantee. However, their multi-product platform is the fastest-growing segment, expanding their total addressable market beyond just payment fraud.

Business Economics

The core economic engine of Riskified is the 'success-based pricing' model, which is a powerful differentiator in the fraud prevention space. You only pay for the value delivered-approved sales that don't result in a chargeback.

• Pricing Mechanism: Merchants pay a fee, typically a percentage of the Gross Merchandise Volume (GMV) of the transaction, only when Riskified approves the order.
• Risk Absorption: The company assumes the fraud risk. If a transaction they approve later results in a chargeback (a fraudulent purchase), Riskified reimburses the merchant for the full amount, including the chargeback fee.
• Gross Margin Driver: The non-GAAP gross profit margin, which was approximately 51% in Q3 2025, is a direct reflection of their AI's accuracy. This margin is calculated after deducting the cost of revenue, which includes the actual chargeback losses they cover. Higher model accuracy means fewer chargebacks, which directly expands the gross margin.
• Network Effect: Every new merchant and transaction processed improves the proprietary machine learning models. This network effect makes the platform more accurate and efficient over time, lowering the cost of revenue and increasing the long-term defensibility of the business.

The strategic shift to a multi-product platform, which includes offerings like Policy Protect (for return abuse) and Dispute Resolve (for non-fraud chargebacks), is designed to capture more of the merchant's risk spend. These newer products often carry a higher margin because they do not involve the same level of chargeback liability as the core Chargeback Guarantee product.

Riskified Ltd.'s Financial Performance

The company's financial health as of Q3 2025 shows a clear focus on disciplined execution and a path toward sustained profitability, moving away from the high-burn growth model of earlier years.

• Quarterly Revenue: Q3 2025 revenue was $81.9 million, a 4% increase year-over-year.
• Adjusted EBITDA: Riskified achieved a positive Adjusted EBITDA of $5.6 million in Q3 2025, representing an approximate 7% margin. The full-year 2025 guidance projects Adjusted EBITDA between $21 million and $27 million.
• Cash Flow: The company generated quarterly free cash flow of $13.4 million in Q3 2025 and expects to achieve over $30 million of positive free cash flow for the full year 2025. That's a defintely solid sign of operational maturity.
• Balance Sheet Strength: As of Q3 2025, the company maintained a strong balance sheet with $325 million in cash, deposits, and investments, and carries zero debt.
• GMV Growth: Gross Merchandise Volume (GMV) processed in Q3 2025 reached $37.8 billion, a significant increase of 9% year-over-year, which reflects the underlying growth in merchant transaction volume.

The strong growth in the Money Transfer & Payments category, which saw a 100% year-over-year revenue increase in Q3 2025, is a key indicator of successful vertical diversification, offsetting headwinds in other sectors like the Home category, which contracted by approximately 70%. You can read more about their strategic direction here: Mission Statement, Vision, & Core Values of Riskified Ltd. (RSKD).

Riskified Ltd. (RSKD) Market Position & Future Outlook

Riskified is solidifying its position as a leader in the high-value, enterprise segment of e-commerce fraud prevention, moving toward sustained profitability in 2025. The company's full-year 2025 revenue is projected to be between $338 million and $346 million, backed by a significant push into new, high-growth verticals like Money Transfer & Payments, which saw a 100% year-over-year revenue surge in Q3 2025. This focus on guaranteed revenue protection, rather than just risk scoring, is their core differentiator.

Competitive Landscape

The e-commerce fraud detection and prevention market is projected to reach $6.97 billion in 2025, but it's highly fragmented. Riskified competes primarily on its unique chargeback guarantee model, which shifts 100% of the fraud liability away from the merchant. Here's the quick math on how key players stack up by market presence and core offering, recognizing that precise, public market share data in this niche is defintely hard to pin down for all players.

Opportunities & Challenges

You need to map near-term forces to clear actions, so I've distilled the key opportunities and risks based on the latest Q3 2025 data. The market is growing at a projected 20.41% CAGR through 2025, but the nature of fraud is changing fast, demanding constant AI investment.

Industry Position

Riskified is a pivotal player in the 'guaranteed' segment of the fraud prevention market, which is a crucial distinction. They are not chasing every small merchant; they focus on large, complex e-commerce operations, which is why their Gross Merchandise Volume (GMV) for Q3 2025 was a massive $37.8 billion, up 9% year-over-year.

• Dominant in Enterprise: The platform is a go-to for major brands in high-value verticals like Tickets & Travel, which grew 6% in Q3 2025, and luxury goods.
• Positive Adjusted EBITDA: The company achieved a positive Adjusted EBITDA of $5.6 million in Q3 2025, representing a 7% margin, demonstrating operational leverage and a path to profitability.
• Capital Discipline: A recent share repurchase agreement of 3 million shares for approximately $13.9 million signals management's confidence and focus on optimizing capital structure.

The core challenge remains translating this enterprise focus and GMV scale into higher revenue growth rates to compete with broader-market platforms like Sift. For a deeper dive into the institutional money behind the stock, you can read Exploring Riskified Ltd. (RSKD) Investor Profile: Who's Buying and Why?