Riskified Ltd. (RSKD): Business Model Canvas [Dec-2025 Updated]

You're digging into Riskified Ltd.'s (RSKD) playbook as we head into late 2025, trying to figure out if this AI-first fraud prevention story is translating into sustainable profit. Honestly, the picture is one of disciplined execution: they're projecting full-year revenue between $338 million and $346 million and positive Adjusted EBITDA of $21 million to $27 million, all while sitting on $325 million in cash as of Q3 2025. But that growth, especially in new areas like Policy Protect which jumped nearly 190% year-over-year in Q1 2025, comes with a cost, reflected in that roughly 51% Non-GAAP Gross Margin. Let's break down exactly how Riskified Ltd. is balancing guaranteed chargeback protection for merchants against its own cost structure across all nine building blocks below.

Riskified Ltd. (RSKD) - Canvas Business Model: Key Partnerships

You're looking at how Riskified Ltd. (RSKD) builds its value through external relationships, which is critical for scaling its AI platform across the complex e-commerce landscape.

For e-commerce platforms like Shopify and Salesforce Commerce Cloud, integration is key to reaching merchants. While I don't have the exact count of Riskified Ltd. (RSKD) active merchant integrations on these specific platforms as of late 2025, we know the scale of the target market: Shopify supports over 2.49 million merchants across 175 countries, powering approximately 4.6 million active websites globally. Shopify itself holds a 10.32% global market share in the e-commerce platform space.

Payment processors and gateways form another crucial layer. Riskified Ltd. (RSKD) has an enhanced global partnership with Mastercard, which marries insights from Mastercard's cybersecurity products with Riskified Ltd. (RSKD)'s transaction and identity network. This collaboration provides access to Mastercard's tools for real-time alerts on chargeback events and automated dispute resolution. Separately, Mastercard is working with Fiserv to integrate its new FIUSD token across its network, potentially affecting settlement options for merchants using Riskified Ltd. (RSKD) services.

The strategic AI collaboration with HUMAN Security directly addresses the emerging threat of Agentic Commerce fraud. This partnership combines HUMAN Security's visibility and governance capabilities with Riskified Ltd. (RSKD)'s risk intelligence to secure AI shopping agents. Early data from Riskified Ltd. (RSKD)'s merchant network shows that traffic referred by Large Language Model (LLM) shopping agents can be significantly riskier; for instance, one large ticketing merchant saw LLM-referred traffic that was 2.3x more risky compared to Google search traffic. To provide context on the scale of digital interaction verification, HUMAN Security verifies 20 trillion digital interactions each week.

Cloud infrastructure providers like AWS are essential for platform scalability. Riskified Ltd. (RSKD) achieved AWS Accelerate Partner status in May 2025, which expands the reach of its tools to merchants globally via the AWS Marketplace. This allows eligible AWS customers to use the AWS Enterprise Discount Program (EDP) for purchasing Riskified Ltd. (RSKD)'s products. At the time of this partnership announcement, Riskified Ltd. (RSKD) had a market capitalization of $836 million. By the end of Q2 2025, Riskified Ltd. (RSKD) reported $339 million in cash, deposits, and investments, with zero debt.

Regarding consulting and integration partners like Deloitte, specific revenue contribution or project volume figures are not publicly detailed in the latest reports. However, Riskified Ltd. (RSKD) is focused on multi-product go-lives, such as a recent win with a key fashion retailer in Japan where they landed the account with multiple products upon contract signing.

Here are some key figures underpinning the scale of Riskified Ltd. (RSKD)'s operations and partnerships as of late 2025:

The company's strategy involves deepening relationships where the network effect is strongest. You see this in their focus on upselling existing merchants, like successfully taking all remaining volume from a competitor at a large ticketing merchant.

• Riskified Ltd. (RSKD) Q3 2025 Non-GAAP Gross Profit Margin was approximately 51%.
• Money transfer and payments category grew approximately 100% year-over-year in Q3 2025.
• APEC region grew approximately 55% year-over-year in Q3 2025.
• Riskified Ltd. (RSKD) repurchased 5.2 million shares in Q3 2025 for approximately $25.3 million.
• Updated FY 2025 Revenue Guidance midpoint is $341 million.

The ability to offer solutions through the AWS Marketplace simplifies integration for merchants already on that infrastructure. This is a defintely smart move for adoption velocity.

Finance: draft 13-week cash view by Friday.

Riskified Ltd. (RSKD) - Canvas Business Model: Key Activities

You're looking at the core engine driving Riskified Ltd. (RSKD) right now, late in 2025. It's all about turning data into guaranteed protection and growth for big e-commerce players. The key activities center on the AI platform, managing the financial promise they make to merchants, and constantly expanding their reach and product suite.

Developing and refining AI/ML fraud models for real-time decisioning

The foundation of Riskified Ltd. (RSKD)'s value is its Artificial Intelligence platform, which analyzes every interaction to make instant decisions. This continuous refinement is showing up in the financials; for instance, the Non-GAAP gross profit margin for the three months ended September 30, 2025, hit 51%, up 1% from the prior year period, which the company explicitly linked to meaningful improvements in their core machine learning models. This activity supports the platform's core function: analyzing the individual behind each interaction to provide real-time decisions and robust identity-based insights. So, better models mean better margins, that's the quick math.

The scale of this activity is immense, processing massive transaction volumes:

• Total Gross Merchandise Volume (GMV) for the first nine months of 2025 reached $108.4 billion.
• For the third quarter of 2025 alone, GMV was $37.8 billion.
• The company's merchant base includes approximately 50 global ticketing, online travel, and e-commerce merchants with annual GMV above $1 billion.

Managing the financial risk associated with the Chargeback Guarantee

When Riskified Ltd. (RSKD) offers its Chargeback Guarantee, it's taking on direct financial liability, which is a huge commitment. This guarantee transfers the unpredictable costs of chargebacks-like lost revenue, merchandise cost, and administrative fees-from the merchant to Riskified Ltd. (RSKD). This accountability is what allows merchants to approve more orders confidently. To give you a concrete example of their operational success in managing this risk, one case study showed they helped a merchant, Hotelogical, maintain a 46%+ chargeback dispute win rate while handling 5X the previous dispute volume. This shows the operational expertise required to manage the financial risk transfer effectively.

Continuous R&D investment in new products like Policy Protect

The investment in R&D isn't just about core fraud models; it's about expanding the AI decisioning platform into new areas like policy abuse. This investment is translating into significant revenue streams from newer offerings. For the first quarter of 2025, new product revenue surged approximately 190% year-over-year, driven by traction in areas like omni-channel returns, chargeback management, and money transfer fraud prevention. This focus on product expansion is key to capturing more of the total addressable market. What this estimate hides is the exact breakdown of R&D spend versus total operating expenses, but the revenue growth is a clear indicator of success.

Global sales and onboarding of large, complex e-commerce merchants

Sales and onboarding are about expanding the data network, which is critical for improving the AI models. Riskified Ltd. (RSKD) reported success in landing new merchants, deepening its vertical and geographic reach. For the second quarter of 2025, the top ten new logos added were wins across four verticals and all four geographies. The financial results for Q3 2025 show record revenue of $81.9 million, a 4% year-over-year increase, driven by this continuous new merchant and upsell activity. The company improved its full-year 2025 revenue guidance to be between $338 million and $346 million.

Here's a snapshot of the scale and growth in merchant activity as of late 2025:

Expanding data network to cover new geographies and payment types

The expansion into new payment types and regions directly feeds the AI engine with diverse data, making the whole system smarter. The Money Transfer and Payments category is a prime example of this focus, achieving 100% year-over-year revenue growth in Q3 2025. Riskified Ltd. (RSKD) believes it is on track to double the absolute dollar revenues in this specific category for the Full Year 2025 compared to the prior year. Furthermore, geographic expansion is evident, with the APEC region growing approximately 55% year-over-year in Q3 2025. Defintely, this diversification helps mitigate risk concentrated in any single market or payment rail. For instance, in Q2 2025, seven of the top ten new Chargeback Guarantee logos won were outside of the United States.

Riskified Ltd. (RSKD) - Canvas Business Model: Key Resources

The Key Resources for Riskified Ltd. are centered on proprietary technology, massive data assets, and specialized human capital.

The AI-powered fraud and risk intelligence platform is a core asset, analyzing the individual behind each interaction to provide real-time decisions and robust identity-based insights.

Riskified Ltd. maintains a proprietary global data network of transaction history, which feeds the machine learning models. This network is supported by the largest team of ecommerce risk analysts, data scientists, and researchers.

The company's financial strength supports continued investment in these resources. As of September 30, 2025, Riskified Ltd. ended the quarter with approximately $325.2 million of cash, deposits, and investments on the balance sheet and carried zero debt.

The company also relies on intellectual property protecting its core machine learning models.

Here's a quick look at the recent financial performance supporting the maintenance and growth of these resources:

Riskified Ltd. also actively manages its capital structure, having repurchased 5.2 million ordinary shares in the third quarter for approximately $25.3 million. Management continues to expect shares outstanding to decline by at least 5% year-over-year.

The full-year 2025 financial outlook includes expectations for:

• Revenue between $338 million and $346 million.
• Over $30 million of positive free cash flow for the full year of 2025.

Riskified Ltd. (RSKD) - Canvas Business Model: Value Propositions

You're looking at the core reasons why merchants choose Riskified Ltd. in this complex fraud landscape of late 2025. It's about turning risk management from a cost center into a revenue enabler, so let's look at the hard numbers backing up their claims.

Guaranteed chargeback protection for approved transactions

This is the bedrock of the offering. Riskified Ltd. takes on the liability for fraud on transactions they approve under their Chargeback Guarantee product. This shifts the financial risk away from the merchant entirely for those specific fraud types. The Auth Rate Enhance solution is specifically designed to transfer chargeback risk back to Riskified Ltd. for the orders it helps approve.

Increased revenue via higher order approval rates for merchants

The platform's primary revenue driver for merchants is capturing sales that would otherwise be lost to false declines. Riskified Ltd.'s analysis suggests that up to 70% of payments declined by card issuers are actually legitimate customers. Consider this example: one apparel brand partnered with Riskified Ltd. and saw its approval rates jump from 82% to 95%. Furthermore, their integration with Capital One specifically reduced false declines by 25%, putting that revenue directly into the merchant's pocket.

Here's a snapshot of the scale of transactions being protected and approved as of Q3 2025:

The full-year 2025 revenue guidance reflects this growth trajectory, projected to be between $338 million and $346 million.

Reduced operational costs by automating manual review queues

Automation means fewer expensive analyst hours spent on manual reviews. Riskified Ltd. demonstrates operating leverage through expense discipline. In Q3 2025, non-GAAP operating expenses as a percentage of revenue fell to 44%, down from 49% in the prior year period. This efficiency translated directly to the bottom line, with Adjusted EBITDA reaching $5.6 million in Q3 2025, representing a 7% margin.

The company's expense management is a key value driver:

• Non-GAAP operating expenses as a percentage of revenue declined from 50% to 47% in the first half of 2025.
• Full-year 2025 Adjusted EBITDA is guided to be between $21 million and $27 million.
• Quarterly Free Cash Flow in Q3 2025 was $13.4 million.

They are showing a clear path to profitability.

Prevention of new threats like Agentic E-Commerce fraud

The platform is positioned to combat emerging, sophisticated threats. Riskified Ltd.'s data from Q3 2025 showed that the number of merchants receiving orders from GenAI channels tripled since the start of the year. Traffic originating from these GenAI-powered shopping tools was statistically 1.1-1.7 times riskier than standard search traffic during that quarter. This proactive defense against Agentic Commerce fraud is critical, as a global survey indicated that 73% of shoppers were already using AI in their journey as of October 2025.

Multi-product platform for policy abuse and omni-channel returns

The value extends beyond just payment fraud. Riskified Ltd. is successfully cross-selling its multi-product suite, which addresses areas like policy abuse and returns. This diversification is showing up in specific vertical growth. For instance, the Money Transfer and Payments category saw revenue growth of approximately 100% year-over-year in Q3 2025. The company is on track to double the absolute dollar revenues in this category for Full Year 2025 compared to the prior year. Multi-product offerings represented about 10% of total new bookings won in 2024, with the pipeline for these products continuing to grow.

Finance: draft 13-week cash view by Friday.

Riskified Ltd. (RSKD) - Canvas Business Model: Customer Relationships

You're looking at how Riskified Ltd. keeps its biggest customers happy and growing with them. It's a relationship-driven model, especially at the top tier, which shows in their retention figures.

Riskified Ltd. maintains a very close relationship with its largest clients, which include approximately 50 global ticketing, online travel, and e-commerce merchants that each generate over $1 billion in annual Gross Merchandise Volume (GMV). This level of partnership definitely requires dedicated account management to ensure performance and alignment.

The stickiness of these top-tier relationships is quite clear when you look at the renewal data from early 2025. For the top 20 contracts that came up for renewal in the first quarter of 2025, Riskified Ltd. achieved a 100% renewal rate. Furthermore, to lock in that future revenue, nearly half of those top 20 contracts were extended as multi-year agreements, with an average term ending in 2027.

The strategy isn't just about keeping the lights on; it's about expanding the footprint within the existing base. Riskified Ltd. heavily focuses on the upsell and cross-sell of new products to its existing merchants. This strategy is showing real results; for example, new product revenue grew by an impressive 190% year-over-year as of the first quarter of 2025. This growth is supported by high-touch integration and technical support to drive platform adoption across the merchant's entire operation.

Here's a quick look at some of the key relationship and growth metrics as reported through the first half of 2025:

You see this focus on expansion in action, too. In the second quarter of 2025, Riskified Ltd. successfully upsold a large merchant in the Ticketing and Live Events sub-vertical by taking over all of that merchant's remaining volume from a competitor. Also, their top new logo win in Q2 2025 was landed with multiple products right at contract signing, which shows the success of pushing for deeper platform adoption from the start.

The CEO confirmed that as they exit 2025, the plan remains to continue driving growth by balancing both acquiring new business and expanding with existing merchants through upsells and cross-sells. If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

Riskified Ltd. (RSKD) - Canvas Business Model: Channels

You're looking at how Riskified Ltd. gets its product in front of merchants, which is key to hitting those revenue targets we see, like the $338.84M in trailing twelve-month revenue as of September 30, 2025.

Direct sales force targeting large, publicly traded e-commerce companies

The direct sales effort lands major accounts across various sectors. The platform processes over $140 billion in annual Gross Merchandise Volume (GMV). The client base includes established names.

• Client examples: Amazon Ring, Agoda, and Zepz Group.
• Merchants operate in verticals like Payments, Money Transfer & Crypto, Tickets & Travel, Electronics, Home, Fashion & Luxury Goods, General Retail and Food.
• The Money Transfer and Payments category saw approximately 100% year-over-year growth in Q3 2025.

E-commerce platform partners for integration and referrals

Strategic alliances with major technology providers act as significant distribution multipliers. Riskified Ltd. joined the Amazon Web Services (AWS) Accelerate Partner Program, allowing access via the AWS Marketplace. The company also announced a partnership with Ixopay to combine payment orchestration with fraud detection.

API and SDK for seamless, real-time integration into merchant checkout flows

The core delivery mechanism is technical integration, supporting real-time decisioning. Revenue from products outside the core Chargeback Guarantee offering grew by approximately 190% year-over-year as of Q1 2025. This shows adoption of the broader platform capabilities.

• Riskified Ltd. launched Adaptive Checkout, adding a new conversion optimization engine to existing models.
• Data from Q3 2025 showed the number of merchants receiving orders from GenAI channels tripled compared to the start of the year.
• Traffic from GenAI-powered shopping tools in Q3 2025 was measured as 1.1-1.7 times riskier than typical search traffic.

Global presence supporting expansion into APAC and Other Americas

The sales efforts are clearly focused on international expansion, evidenced by new merchant wins and regional growth rates. Eight of the top ten new Chargeback Guarantee logos in Q1 2025 were outside the United States. The company held its annual summit, Ascend 2025, with stops in London and Shanghai.

Regional performance metrics from Q3 2025 show momentum in targeted areas:

The top new logo win in Q2 2025 was a fashion retailer headquartered in Japan. The full-year 2025 revenue guidance midpoint was set at $341 million.

Riskified Ltd. (RSKD) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Riskified Ltd. (RSKD) as of late 2025, and it's definitely a focus on scale and high-value risk areas. The platform is built for large e-commerce merchants with high transaction volumes, the kind that move over $1 trillion in total ecommerce volume across the merchants represented at their Ascend events. A key segment is those companies actively seeking to combat policy abuse, not just traditional fraud, because that abuse represents a massive $100 billion problem for merchants globally. For these merchants, the Policy Protect product offers tangible results, showing an average savings of 20% in refund and return costs and a 54% reduction in non-fraud chargebacks.

The company is seeing strong momentum across its largest categories, which is driving the overall revenue growth. Here's a quick look at the performance of those key verticals in the third quarter of 2025:

Riskified Ltd. (RSKD) is also heavily focused on global retailers, making significant progress in international market share capture. For instance, in the third quarter of 2025, the APAC region grew approximately 55% year-over-year, and the Other Americas segment (Canada and Latin America) grew approximately 18% year-over-year. The company completed its first-ever Global Ascend tour, hitting six major ecommerce hubs, which underscores this international push. The top ten new logos won in Q3 landed across five verticals and three geographies, showing a defintely broad appeal.

You should track these specific customer groups as they represent the near-term growth drivers:

• Large e-commerce merchants with high transaction volumes.
• High-growth verticals like Tickets & Travel and Fashion & Luxury.
• The Money Transfer & Payments category, which saw 100% YoY revenue growth in Q3 2025.
• Global retailers, with specific momentum in APAC (55% YoY growth in Q3 2025).
• Companies prioritizing the prevention of policy abuse, such as reseller and refund abuse.

Finance: draft 13-week cash view by Friday.

Riskified Ltd. (RSKD) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Riskified Ltd.'s operations as of late 2025. Honestly, the cost structure is heavily weighted toward maintaining and advancing its core technology, which is its AI platform.

Cost of Revenue is high, which is typical for a service that directly assumes or mitigates financial risk for merchants. This cost component reflects chargeback losses and the ongoing data processing expenses required to run the decisioning engine. For the third quarter of 2025, the Non-GAAP Gross Margin was approximately 51%. This means that for every dollar of revenue Riskified Ltd. brought in, about 49 cents went directly to covering the costs associated with delivering that service, including those risk-related payouts.

Here's a quick look at the key financial context for Q3 2025:

The company maintains a significant investment in R&D for AI and product innovation. This is where the future competitive advantage is being built. As of the third quarter of 2025, Riskified Ltd. has shifted approximately 70% of its models from manual to autonomous training. To be fair, this investment is yielding results, as 100% of those autonomously trained models now outperform their previous manual production models.

Total Non-GAAP Operating Expenses were approximately $36 million in Q3 2025. This figure represents ongoing leverage, as the non-GAAP operating expenses as a percentage of revenue declined year-over-year from 49% to 44% in the third quarter. Management anticipates quarterly non-GAAP operating expenses of approximately $39 million in the fourth quarter.

The $36 million in operating expenses covers the necessary human capital and the drive for growth. These costs are primarily allocated across the following functional areas, though specific dollar breakdowns aren't public:

• Personnel costs for data scientists and risk analysts, essential for model refinement and risk assessment.
• Sales and Marketing expenses to drive new merchant acquisition, supporting the reported success in landing new merchants and upsells.
• General and Administrative overhead supporting the global operation.

If onboarding takes 14+ days, churn risk rises. Finance: draft 13-week cash view by Friday.

Riskified Ltd. (RSKD) - Canvas Business Model: Revenue Streams

You're looking at how Riskified Ltd. converts its risk intelligence and fraud prevention platform into dollars, which is key for understanding its financial engine.

The core revenue generation relies on transaction fees for fraud prevention and risk intelligence services, specifically charging a fee for each order Riskified Ltd. approves under its Chargeback Guarantee model. This model aligns incentives by having the merchant pay only for approved orders that generate revenue. Riskified Ltd. assumes liability for chargebacks on these approved orders.

The structure of the Chargeback Guarantee fee is based on a fee per approved order, which incentivizes Riskified Ltd. to maximize approvals while keeping costs in line with the merchant's revenue. While a historical price point was 0.7% per transaction in 2014, the current fee structure is based on contract terms and usage.

Revenue streams are diversifying beyond the core service, with significant growth coming from newer offerings.

• Revenue from new products like Policy Protect surged approximately 190% year-over-year in the first quarter of 2025.
• Transaction fees from the core fraud prevention and risk intelligence services are the foundation, processing Gross Merchandise Volume (GMV) of $34.2 billion in Q1 2025.

Here's a look at the key financial outlook and recent performance points driving the revenue expectations for the full year 2025. The company is focused on turning operational efficiency into tangible profit.

The company has demonstrated consistent profitability on this measure, achieving positive Adjusted EBITDA for six consecutive quarters as of Q1 2025. This positive momentum supports the full-year guidance. The business model is designed to capture value across different permutations of the Chargeback Guarantee product, as well as newer offerings like Policy Protect, Secure, and CBMS.