Q2 2026 Riskified Ltd Earnings Call

August 12, 2026

Operator: Good day, and thank you for standing by. Welcome to the Riskified Q2 2026 earnings call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. I would now like to hand the conference over to your speaker today, Stephen Shulstein, Head of Investor Relations.

Operator: Good day, and thank you for standing by. Welcome to the Riskified Q2 2026 Earnings Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today, Stephen Shulstein, Head of Investor Relations.

Speaker #1: Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a Q&A session. To ask a question, please press *11 on your telephone and wait for your name to be announced.

Speaker #1: To withdraw your question, please press *11 again. I would now like to hand the conference over to your speaker today, Stephen Shulstein, Head of Investor Relations.

Speaker #2: Good morning, and thank you for joining us today. We are hosting today's call to discuss Riskified's financial results for Q2 2026. Participating on today's call are Eido Gal, Riskified's Co-Founder and Chief Executive Officer, and Aglika Dotcheva, Riskified's Chief Financial Officer.

Stephen Shulstein: Good morning, and thank you for joining us today. We are hosting today's call to discuss Riskified's financial results for the Q2 2026. Participating on today's call are Eido Gal, Riskified's Co-founder and Chief Executive Officer, and Aglika Dotcheva, Riskified's Chief Financial Officer. We released our results for the Q2 2026 earlier today. Our earnings materials, including a replay of today's webcast, will be available on our investor relations website at ir.riskified.com.

Stephen Shulstein: Good morning, and thank you for joining us today. We are hosting today's call to discuss Riskified's financial results for the Q2 2026. Participating on today's call are Eido Gal, Riskified's Co-founder and Chief Executive Officer, and Agi Dotcheva, Riskified's Chief Financial Officer. We released our results for the Q2 2026 earlier today. Our earnings materials, including a replay of today's webcast, will be available on our investor relations website at ir.riskified.com.

Speaker #2: We released our results for the Q2 of 2026 earlier today. Our earnings materials—including a replay of today's webcast—will be available on our Investor Relations website at ir.riskified.com.

Speaker #2: Certain statements made on the call today will be forward-looking statements related to, without limitation, our operating performance, business and financial goals, outlook as to revenues, gross profit, gross margin, pipeline generation, pipeline conversion, timing of new merchant go-lives, adjusted EBITDA profitability, adjusted EBITDA margins, non-GAAP operating expenses, free cash flow, and expectations as to category and regional growth trends.

Stephen Shulstein: Certain statements made on the call today will be forward-looking statements related to, without limitation, our operating performance, business and financial goals, outlook as to revenues, gross profit, gross margin, pipeline generation, pipeline conversion, timing of new merchant go lives, Adjusted EBITDA profitability, Adjusted EBITDA margins, non-GAAP operating expenses, free cash flow, and expectations as to category and regional growth trends, which reflect management's best judgment based on currently available information and are not guarantees of future performance. We intend all forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our expectations as of the date of this call, and except as required by law, we undertake no obligation to revise this information as a result of new developments that may occur after the time of this call.

Speaker #2: These reflect management's best judgment based on currently available information and are not guarantees of future performance. We intend all forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Speaker #2: These forward-looking statements reflect our expectations as of the date of this call and accept as required by law we undertake no obligation to revise this information as a after the time of this call.

Speaker #2: Please refer to our annual report on Form 20-F for the year ended December 31, 2025, and subsequent reports we filed or furnished with the SEC for more information on the specific factors that cause actual results to differ materially from our expectations.

Stephen Shulstein: Please refer to our annual report on Form 20-F for the year ended 31 December 2025, and subsequent reports we file or furnish with the SEC for more information on the specific factors that cause actual results to differ materially from our expectations. Additionally, we will discuss certain non-GAAP financial measures with key performance indicators on the call. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release issued earlier today and also furnished with the SEC on Form 6-K and in the appendix of our investor relations presentation, all of which are posted on our investor relations website. I will now turn the call over to Eido to begin.

Speaker #2: Additionally, we will discuss certain non-GAAP financial measures and key performance indicators on the call. Reconciliations to the most directly comparable GAAP financial measures are available in our earnings release issued earlier today and also furnished with the FCC on Form 6-K and in the appendix of our Investor Relations presentation—all of which are posted on our Investor Relations website.

Speaker #2: I will now turn the call over to Eido to begin.

Speaker #3: Thanks, Stephen. And hello, everyone. Before I begin, let me welcome and introduce Stephen Sholstein as our new Head of Investor Relations. Stephen is an experienced investor relations executive, and his primary focus will be on fostering strong relationships across the investment community as we continue to drive shareholder value.

Eido Gal: Thanks, Stephen, and hello, everyone. Before I begin, let me welcome and introduce Stephen Shulstein as our new Head of Investor Relations. Stephen is an experienced investor relations executive, and his primary focus will be on fostering strong relationships across the investment community as we continue to drive shareholder value. I am very pleased with our Q2 results, where we delivered the strongest revenue growth in over four years. Revenue grew 22% year-over-year to USD 98.7 million. Non-GAAP gross profit grew 13% to USD 45.4 million, and Adjusted EBITDA increased 84% to USD 3.9 million. Given this momentum, we are once again raising our full-year outlook for revenue and Adjusted EBITDA. I want to thank our team for driving these results for our clients and shareholders. We believe this accelerated growth is a result of an increasingly complex fraud environment, driving more demand to our expanded platform.

Speaker #3: I am very pleased with our Q2 results, where we delivered the strongest revenue growth in over four years. Revenue grew 22% year over year, to $98.7 million.

Speaker #3: Non-GAAP gross profit grew 13%, to $45.4 million, and adjusted EBITDA increased 84%, to $3.9 million. Given this momentum, we're once again raising our full-year outlook for revenue and adjusted EBITDA.

Speaker #3: I want to thank our team for driving these results for our clients and shareholders. We believe this accelerated growth is a result of an increasingly complex fraud environment driving more demand to our expanded platform.

Speaker #3: Allow me to elaborate. Fraud risk for our merchants continues to grow. It's getting more sophisticated and moving faster, and we believe agentic tools are part of what's accelerating that.

Eido Gal: Allow me to elaborate. Fraud risk for our merchants continues to grow. It is getting more sophisticated and moving faster, and we believe agentic tools are part of what is accelerating that. Bad actors are creating fake identities at sign-up, hijacking real accounts, and driving fraudulent activity across digital wallets, cards, ACH, peer-to-peer transactions, tokenized transactions, and 3D Secure flows. It is not limited to checkout, as the same activity shows up in refund and return abuse, chargeback disputes, and friendly fraud. Across that large and increasingly complex surface, we are seeing loss rates rise industry-wide. These complexities are leading merchants to increasingly look for more effective ways to manage fraud while maintaining a leading customer experience. At the same time, merchants are increasingly frustrated stitching together multiple point solutions.

Speaker #3: Bad actors are creating fake identities that sign up, hijacking real accounts, and driving fraudulent activity across digital wallets, cards, ACH, peer-to-peer transactions, tokenized transactions, and 3D Secure flows.

Speaker #3: And it's not limited to checkout, as the same activity shows up in refund and return abuse, chargeback disputes, and friendly fraud. Across that large and increasingly complex surface, we're seeing loss rates rise industry-wide.

Speaker #3: These complexities are leading merchants to increasingly look for more effective ways to manage fraud, while maintaining a leading customer experience. At the same time, merchants are increasingly frustrated stitching together multiple point solutions.

Speaker #3: Know your customer screening, identity resolution, account security, transactional fraud screening, shipping and returns abuse detection, and dispute representment are all part of the stack merchants need to manage.

Eido Gal: Know-Your-Customer screening, identity resolution, account security, transactional fraud screening, shipping and returns abuse detection, and dispute representment are all part of the stack merchants need to manage, and we hear a clear preference for a single platform, and a platform approach is not just simpler. We believe it performs better, because the signal from one part of the transaction life cycle strengthens the defense in every other part. That is the flyer that we have talked about before. Turning to our platform. Our risk intelligence platform applies insights from our global merchant network, identity graph and AI capabilities across the e-commerce journey, from account creation and login, through checkout, to post-purchase refunds, returns, and disputes. The platform brings together account, checkout, policy, and dispute intelligence, all powered by a shared network intelligence and identity layer. We believe that the recent improvements that have been driving the most demand are expanded checkout fraud coverage.

Speaker #3: And we hear a clear preference for a single platform, and a platform approach isn't just simpler; we believe it performs better. Because the signal from one part of the transaction lifecycle strengthens the defense in every other part.

Speaker #3: That's the flywheel we've talked about before. Turning to our platform—our risk intelligence platform applies insights from our global merchant network, identity graph, and AI capabilities across the e-commerce journey, from account creation and login through checkout to post-purchase refunds, returns, and disputes.

Eido Gal: Turning to our platform. Our risk intelligence platform applies insights from our global merchant network, identity graph and AI capabilities across the e-commerce journey, from account creation and login, through checkout, to post-purchase refunds, returns, and disputes. The platform brings together account, checkout, policy, and dispute intelligence, all powered by a shared network intelligence and identity layer. We believe that the recent improvements that have been driving the most demand are expanded checkout fraud coverage.

Speaker #3: The platform brings together account, checkout, policy, and dispute intelligence, all powered by a shared network intelligence and identity layer. We believe that the recent improvements that have been driving the most demand are: expanded checkout fraud coverage, a non-card payment methods continue to grow and proliferate, merchants are increasingly looking to us to create the underlying trust mechanism that is missing in them.

Eido Gal: As non-card payment methods continue to grow and proliferate, merchants are increasingly looking to us to create the underlying trust mechanism that is missing in them. It is a large undertaking, but once done successfully, we believe meaningfully addresses the fundamental trust issue that hurts adoption of these alternative payment methods. For example, with ACH, we have built a risk layer that enables instant payouts, closing some of the gaps with credit cards, allowing merchants to leverage a low-cost funding instrument with substantially reduced risk. As merchants continue to offer alternative ways to pay, our platform allows them to meet customers where they are. We believe we are well positioned to build and replicate this trust layer for non-card payments in a way that creates value for both our merchants and Riskified.

Speaker #3: It is a large undertaking, but once done successfully, we believe meaningfully addresses a fundamental trust issue that hurts adoption of these alternative payment methods.

Speaker #3: For built a risk layer that enables instant payouts, closing sales to gaps with credit cards, allowing merchants to leverage a low-cost funding instrument with substantially reduced risk.

Speaker #3: And as merchants continue to offer alternate ways to pay, our platform allows them to meet customers where they are. And we believe we are well positioned to build and replicate this trust layer for non-card payments in a way that creates value for both our merchants and risk allies.

Speaker #3: The dollar value of ACH transactions we processed in the quarter was approximately $19 times the value of transactions processed in the second quarter of the prior year.

Eido Gal: The dollar value of ACH transactions we processed in the quarter was approximately 19 times the value of transactions processed in the Q2 of the prior year. Furthermore, merchants are increasingly using Riskified's identity intelligence beyond checkout to improve the customer experience across the transaction lifecycle. We had shared last quarter that we are enabling real-time risk scoring inside customer service workflows, especially as customer service evolves toward the mix of human and conversational AI agents. Additionally, we have now helped one of our newer merchants create a dynamic customer risk profile, which allows safer customers to transact faster and at higher dollar amounts. We believe we are well positioned to deliver additional value to our merchants as our identity database has billions of nodes across the transaction lifecycle. Our AI assistant, ARIA, continued to gain traction this quarter.

Speaker #3: Furthermore, merchants are increasingly using risk-affiliated identity intelligence beyond checkout to improve the customer experience across the transaction lifecycle. We had shared last quarter that we are enabling real-time risk scoring inside customer service workflows—especially as customer service evolves toward the mix of human and conversational AI agents.

Speaker #3: Additionally, we have now helped one of our newer merchants create a dynamic customer risk profile which allows safer customers to transact faster and at higher dollar amounts.

Speaker #3: We believe we are well positioned to deliver additional value to our merchants as our identity database has billions of nodes across the transaction lifecycle.

Speaker #3: Our AI assistant, Arya, continues to gain traction this quarter. We have embedded Arya across our wider platform, giving fraud and risk teams a highly effective tool that helps them investigate activity, understand emerging trends, and take action more quickly.

Eido Gal: We have embedded ARIA across our wider platform, giving fraud and risk teams a highly effective tool that helps them investigate activity, understand emerging trends, and take action more quickly. This helps our merchants optimize workflow and gain additional insights into their customers. Feedback from our merchants has been overwhelmingly positive. These results are enabled by using our differentiated data assets, which we believe makes it more powerful than other solutions that don't have access to our underlying data. Our multi-product merchant base grew approximately 50% year-over-year. That consistency is the clearest evidence that this platform strategy is working. Merchants aren't buying one tool, they're expanding into more of the network, which allows for additional upsell opportunities and drives retention. On to new business momentum.

Speaker #3: This helps our merchants optimize workflow and gain additional insights into their customers. Feedback from our merchants has been overwhelmingly positive. These results are enabled by using our differentiated data assets, which we believe makes it more powerful than other solutions that don't have access to our underlying data.

Speaker #3: Our multi-product merchant base grew approximately 50% year over year. That consistency is the clearest evidence that this platform strategy is working. Merchants aren't buying one tool; they're expanding into more of the network, which allows for additional upsell opportunities and drives retention.

Speaker #3: On to new business momentum. The two trends I just discussed—more complex fraud and continued improvements in our platform—drove a significant acceleration of new business this quarter.

Eido Gal: The two trends I just discussed, more complex fraud and continued improvement in our platform, drove a significant acceleration of new business this quarter. This new business was diversified across geographies and across both new and existing merchant categories. New logo acquisition was a significant contributor this quarter. We added new logos across all four regions, with five of our top 10 headquartered outside the United States, spanning five categories. We're encouraged by the pace at which we continue to add merchants to the platform, which builds towards future expansion opportunities. Upsell activity within our existing merchant base was also healthy this quarter, reinforcing the durability of our platform as merchants continue to expand their use of our products. Our pipeline is robust, with the US still the largest contributor and strong momentum across APAC.

Speaker #3: This new business was diversified across geographies and across both new and existing merchant categories. New logo acquisition was a significant contributor this quarter. We added new logos across all four regions, with five of our top ten headquartered outside the United States, spanning five categories.

Speaker #3: We're encouraged by the pace at which we continue to add merchants to the platform, which builds toward future expansion opportunities. Upsell activity within our existing merchant base was also healthy this quarter.

Speaker #3: Reinforcing the durability of our platform as merchants continue to expand their use of our products. Our pipeline is robust, with the U.S. still the largest contributor and strong momentum across APAC.

Speaker #3: From an industry perspective, we saw healthy activity within travel, payments, and fashion. And of particularly strong pace of conversion as many of the opportunities we discussed last quarter converted into new business.

Eido Gal: From an industry perspective, we saw healthy activity within travel, payments, and fashion, and a particularly strong pace of conversion as many of the opportunities we discussed last quarter converted into new business. Our competitive win rates remained above 75% in Q2, further evidence of the differentiation of our platform relative to the alternatives that merchants evaluate. A notable highlight this quarter was live sports. A dense global events calendar, which included the World Cup and the NBA finals, drove elevated transaction volume across two connected parts of our business. In tickets, our established base benefited directly from this volume, reinforcing what we believe is the vertical's role as a durable growth driver. In our money transfer and payments category, which we have renamed Digital Finance to reflect a broader merchant category, saw strong momentum from this same dynamic, with particular strength in event contracts and gaming.

Speaker #3: Our competitive win rates remained above 75% in the second quarter. Further evidence of the differentiation of our platform relative to the alternatives that merchants evaluate.

Speaker #3: A notable highlight this quarter was live sports. A dense global events calendar, which included the World Cup and the NBA Finals, drove elevated transaction volume across two connected parts of our business.

Speaker #3: In tickets, our established base benefited directly from this volume, reinforcing what we believe is the vertical's role as a durable growth driver. In our money transfer and payments category, which we have renamed digital finance to reflect a broader merchant category, strong momentum from this same dynamic.

Speaker #3: With particular strength in event contracts and gaming. We are particularly pleased with our expansion into newer categories within digital finance, enabled by our platform innovation.

Eido Gal: We are particularly pleased with our expansion into newer categories within Digital Finance, enabled by our platform innovation. Putting it all together, this was a quarter that reflects both the strength of the market opportunity in front of us and our team's execution in capturing it. Fraud keeps growing more complex, and merchants are converging on the unified platform we've spent years building. That combination is showing up in our results, strong revenue growth, accelerating new business, in a multi-product base that keeps deepening. It's why we're raising our outlook for the second time this year. We enter the H2 with the platform, the pipeline, and the momentum to keep delivering for our merchants and our shareholders. I'll now turn it over to Agi for a deeper look at our financial results.

Speaker #3: Putting it all together, this was a quarter that reflects both the strength of the market opportunity in front of us and our team's execution in capturing it.

Speaker #3: Fraud keeps growing more complex, and merchants are converging on the unified platform we've spent years building. That combination is showing up in our results, strong revenue growth, accelerating new business, and a multi-product base that keeps deepening.

Speaker #3: That's why we're raising our outlook for the second time this year. We enter the second half with the platform, the pipeline, and the momentum to keep delivering for our merchants and our shareholders.

Speaker #3: I'll now turn it over to Auggie for a deeper look at our financial results.

Speaker #2: Thank you, Ida. Team and everyone for joining today's call. Unless otherwise noted, this discussion will reference non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financial measures in our earnings release.

Aglika Dotcheva: Thank you, Eido, team, and everyone for joining today's call. Unless otherwise noted, this discussion will reference non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financial measures in our earnings release. Our GMV for Q2 was USD 41.3 billion, reflecting a 13% increase year over year. We achieved Q2 revenue of USD 98.7 million, up 22% year over year, an acceleration from 7% growth in Q1, and the strongest year over year growth in more than four years. Our GMV and revenue growth during this quarter was primarily driven by continued new merchant and upsell activity as merchants continue to recognize the value of our platform provides. Growth in Q2 was broad-based across all of our categories, led by Digital Finance and tickets and travel.

Agi Dotcheva: Thank you, Eido, team, and everyone for joining today's call. Unless otherwise noted, this discussion will reference non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financial measures in our earnings release. Our GMV for Q2 was USD 41.3 billion, reflecting a 13% increase year over year. We achieved Q2 revenue of USD 98.7 million, up 22% year over year, an acceleration from 7% growth in Q1, and the strongest year over year growth in more than four years. Our GMV and revenue growth during this quarter was primarily driven by continued new merchant and upsell activity as merchants continue to recognize the value of our platform provides. Growth in Q2 was broad-based across all of our categories, led by Digital Finance and tickets and travel.

Speaker #2: Our GMV for the second quarter was 41.3 billion, reflecting a 13% increase year over year. We achieved second-quarter revenue of $98.7 million up 22% year over year, an acceleration from 7% growth in the first quarter and the strongest year-over-year growth in more than 4 years.

Speaker #2: Our GMV and revenue growth during this quarter was primarily driven by continued new merchant and upsell activity, as merchants continue to recognize the value of our platform provides.

Speaker #2: Growth in the second quarter was broad-based across all of our categories, led by digital finance and tickets and travel. Our digital finance category grew approximately 180% year over year, driven primarily by the ramp of multiple new merchants onboarded in the quarter to the event contracts and gaming sub-verticals, with upsell activity across our existing base contributing as well.

Aglika Dotcheva: Our Digital Finance category grew approximately 180% year over year, driven primarily by the ramp of multiple new merchants onboarded in the quarter to the event contracts and gains of vertical, with upsell activity across our existing base contributing as well. Tickets and travel grew approximately 23% year over year, an acceleration from 18% in Q1. Tickets was the primary driver with growth accelerating meaningfully as same store sales momentum strengthened across our largest ticketing merchants, and travel continued to deliver growth even with a tough year over year comparison. Our fashion and luxury vertical grew 4% year over year, driven by new and upsell activity, as well as same store performance.

Agi Dotcheva: Our Digital Finance category grew approximately 180% year over year, driven primarily by the ramp of multiple new merchants onboarded in the quarter to the event contracts and gains of vertical, with upsell activity across our existing base contributing as well. Tickets and travel grew approximately 23% year over year, an acceleration from 18% in Q1. Tickets was the primary driver with growth accelerating meaningfully as same store sales momentum strengthened across our largest ticketing merchants, and travel continued to deliver growth even with a tough year over year comparison. Our fashion and luxury vertical grew 4% year over year, driven by new and upsell activity, as well as same store performance.

Speaker #2: Tickets and travel grew approximately 23% year over year, an acceleration from 18% in the first quarter. Tickets was the primary driver, with growth accelerating meaningfully as same-store sales momentum strengthened across our largest ticketing merchants, and travel continued to deliver growth even with a tough year-over-year comparison.

Speaker #2: Our fashion and luxury vertical grew 4% year over year, driven by new and upsell activity as well as same-store performance. Looking ahead, we continue to expect our tickets and travel, digital finance, and fashion and luxury categories to collectively approximate 80% of total billings for the year, with digital finance expected to significantly exceed the company's average growth rate throughout the remainder of 2026.

Aglika Dotcheva: Looking ahead, we continue to expect our Tickets and Travel, Digital Finance, and Fashion and Luxury categories to collectively approximate 80% of total billings for the year, with Digital Finance to significantly exceed the company's average growth rate throughout the remainder of 2026. Turning to our regional performance, billings grew across all regions during the second quarter. The United States, our largest region, grew approximately 38% year over year, up from 10% in the first quarter, reflecting continued strength in tickets and the addition of new merchants in Digital Finance. APAC grew approximately 42% in Q2. We continue to see healthy underlying demand in the region and expect more balanced growth as the year progresses.

Agi Dotcheva: Looking ahead, we continue to expect our Tickets and Travel, Digital Finance, and Fashion and Luxury categories to collectively approximate 80% of total billings for the year, with Digital Finance to significantly exceed the company's average growth rate throughout the remainder of 2026. Turning to our regional performance, billings grew across all regions during the second quarter. The United States, our largest region, grew approximately 38% year over year, up from 10% in the first quarter, reflecting continued strength in tickets and the addition of new merchants in Digital Finance. APAC grew approximately 42% in Q2. We continue to see healthy underlying demand in the region and expect more balanced growth as the year progresses.

Speaker #2: Turning to our regional performance, billings grew across all regions during the second quarter, the United States our largest region, grew approximately 38% year over year, up from 10% in the first quarter, reflecting continued strength in tickets, and the addition of new merchants in digital finance.

Speaker #2: APAC grew approximately 42% in Q2. We continue to see healthy underlying demand in the region and expect more balanced growth as the year progresses.

Speaker #2: Other Americas grew approximately 21% year over year, up from 11% in the first quarter, primarily driven by new business activity and a near-delivered approximately 3% growth, against a strong prior year comparable period in the travel vertical.

Aglika Dotcheva: Other Americas grew approximately 21% year over year, up from 11% in the first quarter, primarily driven by new business activity, and EMEA delivered approximately 3% growth against a strong prior year comparable period in the travel vertical. We believe that our continued growth across geographies is a testament to the success of our global expansion strategy. Our gross profit for the second quarter was USD 45.4 million, reflecting a 13% increase year over year. The growth was primarily driven by the contribution of new business onboarded, led by our Digital Finance category, where we continue to expand into new verticals. This was further supported by strong same store activity in our tickets sub-vertical, which benefited from elevated live sports during the quarter. Our gross margin in the second quarter was 46%, attributable to ramping of new merchants, which typically begin at lower margins and improve over time.

Agi Dotcheva: Other Americas grew approximately 21% year over year, up from 11% in the first quarter, primarily driven by new business activity, and EMEA delivered approximately 3% growth against a strong prior year comparable period in the travel vertical. We believe that our continued growth across geographies is a testament to the success of our global expansion strategy. Our gross profit for the second quarter was USD 45.4 million, reflecting a 13% increase year over year. The growth was primarily driven by the contribution of new business onboarded, led by our Digital Finance category, where we continue to expand into new verticals. This was further supported by strong same store activity in our tickets sub-vertical, which benefited from elevated live sports during the quarter. Our gross margin in the second quarter was 46%, attributable to ramping of new merchants, which typically begin at lower margins and improve over time.

Speaker #2: We believe that our continued growth across geographies is a testament to the success of our global expansion strategy. Our gross profit for the second quarter was 45.4 million, reflecting a 13% increase year over year.

Speaker #2: The growth was primarily driven by the contribution of new business onboarded, led by our digital finance category, where we continue to expand into new verticals.

Speaker #2: This was further supported by strong same-store activity in our ticket subvertical, which benefited from elevated live sports during the quarter. Our gross margin in the second quarter was 46%, attributable to ramping of new merchants, which typically begins at lower margins and improves over time.

Speaker #2: Performance across our existing merchant base remained healthy, resulting from ongoing enhancements to our core machine learning models. As a result of our second quarter performance, we're now raising our expected full-year gross profit growth to a range of 11% to 14%, or 12.5% at the midpoint.

Aglika Dotcheva: Performance across our existing merchant base remained healthy, resulting from ongoing enhancements to our core machine learning models. As a result of our second quarter performance, we are now raising our expected full year gross profit growth to a range of 11% to 14%, or 12.5% at the midpoint. We expect gross profit growth in the third quarter to be similar to the growth in the second quarter. Moving to operating expenses. Non-GAAP operating expenses totaled USD 41.5 million for the quarter for 42% of revenue, compared to 47% in Q2 of 2025, reflecting sustained cost discipline as our business scales. On a constant currency basis, OpEx was USD 14.1 million lower or approximately 39% of revenue, primarily driven by the continued appreciation of the Israeli shekel. We continue to expect quarterly non-GAAP operating expenses to range between USD 42 million and USD 43 million.

Agi Dotcheva: Performance across our existing merchant base remained healthy, resulting from ongoing enhancements to our core machine learning models. As a result of our second quarter performance, we are now raising our expected full year gross profit growth to a range of 11% to 14%, or 12.5% at the midpoint. We expect gross profit growth in the third quarter to be similar to the growth in the second quarter. Moving to operating expenses. Non-GAAP operating expenses totaled USD 41.5 million for the quarter for 42% of revenue, compared to 47% in Q2 of 2025, reflecting sustained cost discipline as our business scales. On a constant currency basis, OpEx was USD 14.1 million lower or approximately 39% of revenue, primarily driven by the continued appreciation of the Israeli shekel. We continue to expect quarterly non-GAAP operating expenses to range between USD 42 million and USD 43 million.

Speaker #2: We expect gross profit growth in the third quarter to be similar to the growth in the second quarter. Moving to operating expenses, non-GAAP operating expenses totals 41.5 million for the quarter, or 42% of revenue, compared to 47% in Q2 of 2025, reflecting sustained cost discipline as our business scales.

Speaker #2: On a constant currency basis, OPEX would have been 4.1 million lower, or approximately 39% of revenue. Primarily driven by the continued appreciation of this ratio.

Speaker #2: We continue to expect quarterly non-GAAP operating expenses to range between $42 million and $43 million. We delivered adjusted EBITDA of $3.9 million, representing an 84% increase compared to $2.1 million in Q2 of 2025, and demonstrating the efficiency of our scaling cost structure.

Aglika Dotcheva: We delivered Adjusted EBITDA of USD 3.9 million, representing an 84% increase compared to USD 2.1 million in Q2 of 2025, and demonstrating the efficiency of our scaling cost structure. On a GAAP basis, second quarter net loss improved 22% year over year to a loss of USD 9.1 million, compared to a loss of USD 11.6 million in Q2 of 2025. GAAP net loss was impacted by decline in interest income and increase in other expense, the latter primarily tied to foreign currency fluctuations. Moving to the balance sheet. We ended the second quarter with approximately USD 223.6 million of cash, deposits, and investments, and continue to carry zero debt. In addition, we continue to maintain a healthy cash flow model. In the second quarter, we achieved free cash flow of USD 12.9 million. We expect to exceed USD 40 million of positive free cash flow in 2026.

Agi Dotcheva: We delivered Adjusted EBITDA of USD 3.9 million, representing an 84% increase compared to USD 2.1 million in Q2 of 2025, and demonstrating the efficiency of our scaling cost structure. On a GAAP basis, second quarter net loss improved 22% year over year to a loss of USD 9.1 million, compared to a loss of USD 11.6 million in Q2 of 2025. GAAP net loss was impacted by decline in interest income and increase in other expense, the latter primarily tied to foreign currency fluctuations. Moving to the balance sheet. We ended the second quarter with approximately USD 223.6 million of cash, deposits, and investments, and continue to carry zero debt. In addition, we continue to maintain a healthy cash flow model. In the second quarter, we achieved free cash flow of USD 12.9 million. We expect to exceed USD 40 million of positive free cash flow in 2026.

Speaker #2: On a GAAP basis, second quarter net loss improved 22% year over year, to a loss of 9.1 million, compared to a loss of 11.6 million in Q2 of 2025.

Speaker #2: GAAP net loss was impacted by a decline in interest income and an increase in other expense, the latter primarily tied to foreign currency fluctuations. Moving to the balance sheet, we ended the second quarter with approximately $223.6 million of cash, deposits, and investments, and continue to carry zero debt.

Speaker #2: In addition, we continue to maintain a healthy cash flow model. In the second quarter, we achieved free cash flows of $12.9 million. We expect to exceed $40 million of positive free cash flow in 2026.

Speaker #2: During Q2 of 2026, we repurchased approximately 13.7 million shares, at an average price per share of 4.67, for total consideration of 63.9 million, which contributed to a reduction of 8% in total shares outstanding.

Aglika Dotcheva: During Q2 of 2026, we repurchased approximately 13.7 million shares at an average price per share of $4.67 for total consideration of $63.9 million, which contributed to a reduction of 8% in total shares outstanding. From the inception of our buyback program through the end of Q2, we have repurchased approximately 72 million shares for a total of $351 million, which helped contribute to a 26% reduction in total shares outstanding over that period. We believe that our strong balance sheet and liquidity position are strategic assets that provide us with the flexibility to navigate a range of operating environments. We intend to remain disciplined and thoughtful in how we deploy capital to create long-term shareholder value. Now turning to our outlook. As a result of our continued execution, we are raising the full-year guidance range across both revenue and Adjusted EBITDA.

Agi Dotcheva: During Q2 of 2026, we repurchased approximately 13.7 million shares at an average price per share of $4.67 for total consideration of $63.9 million, which contributed to a reduction of 8% in total shares outstanding. From the inception of our buyback program through the end of Q2, we have repurchased approximately 72 million shares for a total of $351 million, which helped contribute to a 26% reduction in total shares outstanding over that period. We believe that our strong balance sheet and liquidity position are strategic assets that provide us with the flexibility to navigate a range of operating environments. We intend to remain disciplined and thoughtful in how we deploy capital to create long-term shareholder value. Now turning to our outlook. As a result of our continued execution, we are raising the full-year guidance range across both revenue and Adjusted EBITDA.

Speaker #2: From the inception of our buyback program through the end of Q2, we have repurchased approximately 72 million shares, for a total of 351 million, which has contributed to a 26% reduction in total shares outstanding over that period.

Speaker #2: We believe that our strong balance sheet and liquidity position are strategic assets that provide us with the flexibility to navigate a range of operating environments.

Speaker #2: We intend to remain disciplined and thoughtful in how we deploy capital to create long-term shareholder value. Now turning to our outlook, as a result of our continued execution, we're raising the full-year guidance range across both revenue and adjusted EBITDA.

Speaker #2: We now anticipate full-year revenue to be between $400 million and $410 million, or $405 million at the midpoint, reflecting the outperformance of our second quarter results and increased visibility supported by early execution and elevated transaction volume from live events.

Aglika Dotcheva: We now anticipate full-year revenue to be between $400 million and $410 million, or $405 million to the midpoint, reflecting the outperformance of our second quarter results and increased visibility supported by early execution and elevated transaction volume from live events. We expect third quarter revenue growth of approximately 27%. We currently expect Adjusted EBITDA to be between $33 million and $39 million, or $36 million to the midpoint, up from our prior range of $28 million to $34 million, representing a margin of approximately 9% at the midpoint, up from 8% implied in our prior guidance. The primary factors that may determine where we fall within each range are consistent with what we shared last quarter. The timing and ramping of new merchant go-lives and existing merchant upsells, our success in retaining our merchants, and the broader macro environment. We are pleased with the strength of our second quarter results.

Agi Dotcheva: We now anticipate full-year revenue to be between $400 million and $410 million, or $405 million to the midpoint, reflecting the outperformance of our second quarter results and increased visibility supported by early execution and elevated transaction volume from live events. We expect third quarter revenue growth of approximately 27%. We currently expect Adjusted EBITDA to be between $33 million and $39 million, or $36 million to the midpoint, up from our prior range of $28 million to $34 million, representing a margin of approximately 9% at the midpoint, up from 8% implied in our prior guidance.

Speaker #2: We expect third quarter revenue growth of approximately 27%. We currently expect adjusted EBITDA to be between 33 million and 39 million, or 36 million to the midpoint, up from our prior range of 28 million to 34 million, representing a margin of approximately 9% at the midpoint, up from 8% implied in our prior guidance.

Speaker #2: The primary factors that may determine where we fall within each range are consistent with what we shared last quarter. The timing and ramping of new merchant go-lives and existing broader macro environment.

Agi Dotcheva: The primary factors that may determine where we fall within each range are consistent with what we shared last quarter. The timing and ramping of new merchant go-lives and existing merchant upsells, our success in retaining our merchants, and the broader macro environment. We are pleased with the strength of our second quarter results.

Speaker #2: We're pleased with the strength of our second quarter results. Revenue growth accelerated to its fastest pace in more than four years, and profitability continued to expand alongside it.

Aglika Dotcheva: Revenue growth accelerated to its fastest pace in more than four years, and profitability continued to expand alongside it. We generated meaningful free cash flow while continuing to return capital to shareholders through our buyback program, and we raised our full year guidance for both revenue and Adjusted EBITDA for the second time this year. With a strong balance sheet, zero debt, and a favorable market environment, we are well-positioned to keep executing through the second half. Operator, we are ready to take the first question.

Agi Dotcheva: Revenue growth accelerated to its fastest pace in more than four years, and profitability continued to expand alongside it. We generated meaningful free cash flow while continuing to return capital to shareholders through our buyback program, and we raised our full year guidance for both revenue and Adjusted EBITDA for the second time this year. With a strong balance sheet, zero debt, and a favorable market environment, we are well-positioned to keep executing through the second half. Operator, we are ready to take the first question.

Speaker #2: We generated meaningful free cash flow while continuing to return capital to shareholders through our buyback program, and we raised our full-year guidance for both revenue and adjusted EBITDA for the second time this year.

Speaker #2: With a strong balance sheet, zero debt, and a favorable market environment, we're well-positioned to keep executing through the second half. Operator, we're ready to take the first question.

Speaker #1: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Thank you. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. One moment for questions. Our first question comes from Ryan Tomasello with KBW. You may proceed.

Speaker #1: One moment for questions. And our first question comes from Ryan Tomasello with KBW. You may proceed.

Speaker #3: Hi, everyone. Congrats on the solid quarter. I guess clearly it sounds like the increasingly complex fraud environment is driving really solid demand for the business.

Ryan Tomasello: Hi, everyone. Congrats on the solid quarter. I guess clearly it sounds like the increasingly complex fraud environment is driving really solid demand for the business. Maybe just to put a finer point on that, Eido, would you describe the momentum you are seeing on the new logo front as a steady continuation of the trends you have already been observing over the last several quarters? Or, did this last quarter and the H1 of the year represent a more notable inflection in the pipeline, maybe as AI proliferation starts to hit a more critical mass? On the flip side of that, if you could just talk about your confidence in Riskified's ability to continue to maintain solid CTB ratios, just as the fraud you are insuring becomes more complex here. Thanks.

Speaker #3: Maybe just to put a finer point on that, Ido, would you describe the momentum you're seeing on the new logo front as a steady continuation of the trends you've already been observing over the last several quarters, or did this last quarter and the first half of the year represent a more notable inflection in the pipeline, maybe as AI proliferation starts to hit a more critical mass?

Speaker #3: And then on the flip side of that, if you could just talk about your confidence in RISKIFIED's ability to continue to maintain solid CTB ratios, just as the fraud you're ensuring becomes more complex here.

Speaker #3: Thanks.

Speaker #4: Thanks, Ryan. Sure. Happy to take that. I think it's a convergence of a few factors. So we've really spent the past few quarters expanding the product platform in a way that solves some of the newer fraud MOs and kind of creates more value.

Eido Gal: Sure, Ryan. Happy to take that. I think it is a convergence of a few factors. So we have really spent the past few quarters expanding the product platform in a way that solves some of the newer fraud MOs and creates more value, I would say, globally and across a multitude of categories. If you think some of the things we have done around identity and leveraging that to create smarter and more customized flows, some of the work on account, definitely everything around policy, the multi-payment method duality at checkout fraud. So you have this expanding and unique platform on the one hand, and then on the other hand, you do have an increase in the fraud environment, possibly related to agentic tools, where the sophistication and the velocity is clearly increasing.

Speaker #4: I would say, globally and across a multitude of categories, if you think about some of the things we've done around identity and leveraging that to create smarter and more customized flows, some of the work on accounts, definitely everything around policy, the multi-payment method duality at checkout, and fraud. So you have this expanding and unique platform on the one hand, and then on the other hand, you do have an increase in the fraud environment—possibly related to agentic tools—where the sophistication and the velocity are clearly increasing.

Speaker #4: And while we have had positive momentum over the past few quarters, and we've called it out, I think this quarter definitely kind of everything clicked. You can see that in the numbers and the pipeline that we've been building—we were able to convert.

Eido Gal: While we have had positive momentum over the past few quarters, and we have called it out, I think this quarter definitely everything clicked. You can see that in the numbers, in the pipeline that we have been building, we were able to convert it relatively quickly, saw good expansion globally, saw good upsell opportunities, saw a lot of new logos leading to some of those future upsells. So I do think some kind of fundamental issues and just all aligning to good timing right now. To the second part of your question, yes, we continue to feel confident about our ability to solve the problems of fraud, and definitely more so than any single individual merchant can.

Speaker #4: We were able to convert it relatively quickly, saw good expansion globally, saw good upsell opportunities, saw a lot of new logos leading to some of those future upsells.

Speaker #4: So I do think some kind of fundamental issues and kind of just all aligning to good timing right now. To the second part of your question, yes, we continue to feel confident about our ability to solve the problems of fraud and definitely more so than any single individual merchant can.

Speaker #4: You think that's one of the unique value points. And we'll think we'll continue to see that newer categories and newer geographies can start at higher CTB, but we'll continue to improve over time similarly to prior cohorts.

Eido Gal: We think that is one of the unique value points, and we think we will continue to see that newer categories and newer geographies can start at higher CTB, but will continue to improve over time, similarly to prior cohorts.

Speaker #3: Great. And then maybe one for Auggie on the implied take rate—revenue take rate on GMV in the quarter. That, I think, drove some strong outperformance to street models since GMV growth was only slightly ahead of, I think, where folks were modeling.

Ryan Tomasello: Great. Then maybe one for Agi on the implied Revenue take rate on GMV in the quarter, that I think drove some strong outperformance to Street models since GMV growth was only slightly ahead of, I think, where folks were modeling. Maybe if you could just help us understand the drivers there and how we should think about the trajectory of GMV versus take rates in the back half of the year, if there's any mix or seasoning dynamics to call out on the take rate. Then also on gross margins, I think those were down decently year-over-year, I assume on mix dynamics. But if you can also just talk about how we should think through the trends around gross margin into the back half. Thanks.

Speaker #3: Maybe if you could just help us understand the drivers there, and how we should think about the trajectory of GMV versus take rates in the back half of the year—if there are any mix or seasoning dynamics to call out on the take rate.

Speaker #3: And then also on gross margins, I think those were down decently year over year. I assume on mix dynamics, but if you could also just talk about how we should think through the trends around gross margin into the back half.

Speaker #3: Thanks.

Speaker #5: Thank you for the questions, Ryan. So on the take rate, I always like to say that we look at this as an output of the business, so it's not something that at any point in time is can fluctuate.

Aglika Dotcheva: Thank you for the questions, Ryan. On the take rate, I always like to say that we look at this as an output of the business, so it's not something that at any point in time can fluctuate. But the way, specifically for this quarter, it's really a function of the higher risk profile of the new business that we added. I'd just say it's, in terms of the quarter, mostly is a timing effect. As we continue to add more merchants and diversify and add more business, the take rates will potentially continue to fluctuate, but maybe slightly lower than what we see this quarter. So while I do expect GMV and revenue growth to diverge for the rest of the year, maybe at a slightly lower spread than what we saw.

Agi Dotcheva: Thank you for the questions, Ryan. On the take rate, I always like to say that we look at this as an output of the business, so it's not something that at any point in time can fluctuate. But the way, specifically for this quarter, it's really a function of the higher risk profile of the new business that we added. I'd just say it's, in terms of the quarter, mostly is a timing effect. As we continue to add more merchants and diversify and add more business, the take rates will potentially continue to fluctuate, but maybe slightly lower than what we see this quarter. So while I do expect GMV and revenue growth to diverge for the rest of the year, maybe at a slightly lower spread than what we saw.

Speaker #5: But the way, specifically for this quarter, it’s really a function of the higher risk profile of the new business that we added. And I do see it, in terms of the quarter, mostly as a timing effect, as we continue to add more merchants and diversify and add more business.

Speaker #5: The take rates will potentially kind of like continue to fluctuate, but maybe slightly lower than what we see this quarter. So I do expect GMV and revenue growth to diverge for the rest of the year, maybe like at a slightly lower spread than what we saw.

Speaker #5: Again, this is an output of the model, and at any given quarter, the dynamics of the business, the different kind of broad existing merchants, the upsell and new logo opportunities can drive slightly different results.

Aglika Dotcheva: Again, this is an output of the model, and in any given quarter, the dynamics of the business, the different kind of existing merchants, the upsell and new logo opportunities can drive slightly different results. Then on your second question-

Agi Dotcheva: Again, this is an output of the model, and in any given quarter, the dynamics of the business, the different kind of existing merchants, the upsell and new logo opportunities can drive slightly different results. Then on your second question-

Speaker #5: And then on your second question,!

Speaker #3: That was on gross margins.

Ryan Tomasello: That was on gross margins.

Speaker #5: On the gross margin. Of course. So I'm very excited about the market share again this quarter, it's very exciting to be able to accelerate our revenue growth.

Aglika Dotcheva: On the gross margin. I am very excited about the market share gain this quarter. It is very exciting to be able to accelerate our revenue growth, and also towards nicely on the gross profit growth. This is the way we drive the business. These are the main KPIs. When I think about the gross margin on any given quarter, it can fluctuate depending on the mix shift, which we did see this quarter with some of the more activity in the ticketing space, which tends to have a slightly lower gross margin, and also significantly higher weight from new business. It is more of a mix shift in the quarter, and as you all shared on the CTB, we have seen some new business just come at a lower gross margin initially, but there is nothing structural to that. We do expect all cohorts to improve over time.

Agi Dotcheva: On the gross margin. I am very excited about the market share gain this quarter. It is very exciting to be able to accelerate our revenue growth, and also towards nicely on the gross profit growth. This is the way we drive the business. These are the main KPIs. When I think about the gross margin on any given quarter, it can fluctuate depending on the mix shift, which we did see this quarter with some of the more activity in the ticketing space, which tends to have a slightly lower gross margin, and also significantly higher weight from new business. It is more of a mix shift in the quarter, and as you all shared on the CTB, we have seen some new business just come at a lower gross margin initially, but there is nothing structural to that. We do expect all cohorts to improve over time.

Speaker #5: And also kind of to add nicely on the gross profit growth. And this is the way we drive the business. This is kind of like the main KPIs.

Speaker #5: And when I think about the gross margin in any given quarter, it can fluctuate depending on the mix shift, which we did see this quarter with some of the more activity in the ticketing space, which tends to have a slightly lower gross margin.

Speaker #5: And also, significantly higher weight from new business. But it's more of a mix shift in the quarter, and is it all kind of shared on the CDB?

Speaker #5: We've seen some new business just come at a lower gross margin initially, but there's nothing structural to that. We do expect all cohorts to kind of improve over time.

Speaker #3: Great. Thank you.

Ryan Tomasello: Great. Thank you.

Speaker #1: Thank you. Our next question comes from Terry Tillman with Truist. You may proceed.

Operator: Thank you. Our next question comes from Terry Tillman with Truist. You may proceed.

Speaker #3: Great. Good morning, team. This is Connor Pastorella on for Terry. Congrats on the strong results this quarter. Maybe just to start, you called out merchants increasingly using RISKIFIED's identity intelligence beyond the checkout and across the transaction lifecycle.

Connor Pastore: Great. Good morning, team. This is Connor Pastore on for Terry. Congrats on the strong results this quarter. Maybe just to start, you called out merchants increasingly using Riskified's identity intelligence beyond the checkout and across the transaction life cycle. Could you maybe just give us a sense of where you are seeing the strongest demand today and whether you are starting to see identity intelligence open up entirely new budgets or buyers within customers beyond just the traditional fraud organization?

Connor Passarella: Great. Good morning, team. This is Connor Pastore on for Terry. Congrats on the strong results this quarter. Maybe just to start, you called out merchants increasingly using Riskified's identity intelligence beyond the checkout and across the transaction life cycle. Could you maybe just give us a sense of where you are seeing the strongest demand today and whether you are starting to see identity intelligence open up entirely new budgets or buyers within customers beyond just the traditional fraud organization?

Speaker #3: Could you maybe just give us a sense of where you're seeing the strongest demand today, and whether you're starting to see identity intelligence open up entirely new budgets or buyers within customers, beyond just the traditional fraud organization?

Speaker #4: I think one of the more interesting things about leveraging identity is that you're able to leverage your risk knowledge to create a better experience for the good customers, right?

Eido Gal: I think one of the more interesting things about leveraging identity is you are able to leverage your risk knowledge to create a better experience for the good customers, right? So the smartest and most forward-thinking merchants are not just saying, "Hey, how can we block fraud?" They are saying, "Hey, how can we leverage this understanding about who the customer really is and provide them a better checkout or shopping experience?" That could be anything from how do we create an instant refund instead of waiting for this package to be delivered? How do we make sure that all our systems, support systems, CRM systems, understand who this identity is so that as we interact with them, we can provide them a white glove service if they deserve it.

Speaker #4: So kind of the smartest and most forward-thinking merchants are not just saying, "Hey, how can we block fraud?" They're kind of saying, "Hey, how can we leverage misunderstanding about who the customer really is and provide them a better checkout or shopping experience?" And that could be anything from how do we create an instant refund instead of waiting for this package to be delivered?

Speaker #4: How do we make sure that all our systems—kind of support systems, CRM systems—understand who this identity is, so that as we interact with them, we can provide them a white glove service if they deserve it?

Speaker #4: How can we go from a position where we don't really know who this new customer is that's signing up to actually understanding it's a really important relationship for us and maybe the limits or the transfers or others restrictions that are set on the account can be set differently based on the identity?

Eido Gal: How can we go from a position where we do not really know who this new customer is that is signing up to actually understanding it is a really important relationship for us, and maybe the limits or the transfers or other restrictions that are set on the account can be set differently based on the identity. So we definitely think that is expanding the conversation and really putting people in the position where they understand a great risk tool is not just about blocking fraud, but it is creating a better experience based on the understanding of where fraud happens.

Speaker #4: So we definitely think that's expanding the conversation and really putting people in the position where they understand a great risk tool is not just about blocking fraud, but it's creating a better experience based on the understanding of where fraud happens.

Connor Pastore: Great. Thanks for that. Then maybe just as a follow-up, as revenue growth has accelerated, you also raised the Adjusted EBITDA guidance. Just, did the performance this quarter change anything on how you think about the trade-off between reinvesting behind the stronger growth opportunity and allowing incremental revenue to flow through to margins? Thank you.

Connor Passarella: Great. Thanks for that. Then maybe just as a follow-up, as revenue growth has accelerated, you also raised the Adjusted EBITDA guidance. Just, did the performance this quarter change anything on how you think about the trade-off between reinvesting behind the stronger growth opportunity and allowing incremental revenue to flow through to margins? Thank you.

Speaker #1: Great, thanks for that. And then maybe just as a follow-up—as revenue growth has accelerated, you also raised the adjusted EBITDA guidance. Just...

Speaker #3: Does the performance this quarter change anything in how you think about the trade-off between reinvesting behind the stronger growth opportunity and allowing incremental revenue to flow through to margins?

Speaker #3: Thank you.

Speaker #4: Hello. Right now, I think internally we're still focused on efficiency and making sure that we're able to leverage AI capabilities to kind of drive more with less.

Eido Gal: Hey, look, right now, I think internally, we are still focused on efficiency and making sure that we are able to leverage AI capabilities to drive more with less. Obviously, we are going to counterbalance that with the large opportunity ahead of us. And we are happy we were able to execute on both fronts at the same time.

Speaker #4: Obviously, we're going to balance that with the large opportunity ahead of us. And we're happy we were able to execute on both fronts at the same time.

Speaker #1: Thank you. Our next question comes from Chris Kennedy with William Blair. You may proceed.

Operator: Thank you. Our next question comes from Chris Kennedy with William Blair. You may proceed.

Speaker #2: Thanks for taking the question. You talked about some of the macro tailwinds in the business and some of the strong upsell activity. Can you just give us your latest thoughts on the expectations for net dollar retention and your visibility into that metric?

Cristopher Kennedy: Thanks for taking the question. You talked about some of the macro tailwinds in the business and some of the strong upsell activity. Can you just give us your latest thoughts on the expectations for Net Dollar Retention and your visibility into that metric going forward?

Cris Kennedy: Thanks for taking the question. You talked about some of the macro tailwinds in the business and some of the strong upsell activity. Can you just give us your latest thoughts on the expectations for Net Dollar Retention and your visibility into that metric going forward?

Speaker #2: Going forward.

Speaker #5: Thank you for the question. So our expectations for net dollar retention remain around 105, no change from what we had before. Specifically for this quarter, we saw very strong tailwinds coming from the ticketing space.

Aglika Dotcheva: Thank you for the question. Our expectations for Net Dollar Retention remains around 105%, no change from what we had before. Specifically for this quarter, we saw very strong tailwinds coming from the ticketing space, and it drove a nice kind of growth in this area. At the same time, we saw kind of travel, while continue to grow a little bit softer than what we saw earlier in the year. All in all, I would say that the majority of the growth at this point is kind of being driven by new business, and that's driving the higher growth rates that we guided to.

Agi Dotcheva: Thank you for the question. Our expectations for Net Dollar Retention remains around 105%, no change from what we had before. Specifically for this quarter, we saw very strong tailwinds coming from the ticketing space, and it drove a nice kind of growth in this area. At the same time, we saw kind of travel, while continue to grow a little bit softer than what we saw earlier in the year. All in all, I would say that the majority of the growth at this point is kind of being driven by new business, and that's driving the higher growth rates that we guided to.

Speaker #5: And it drove a nice kind of growth in this area. At the same time, we saw kind of travel while continue to grow a little bit softer than what we saw earlier in the year.

Speaker #5: All in all, I would say that the majority of the growth at this point is being driven by new business, and that's driving the higher growth rate that we guided to.

Speaker #2: Okay, thank you for that. And then, can you just give us an update on the expectations for revenue contribution from newer products as you extend beyond chargeback guarantee?

Cristopher Kennedy: Okay. Thank you for that. Can you just give us an update on the expectations from the revenue contribution from newer products as you extend beyond Chargeback Guarantee? Thanks for taking the questions.

Cris Kennedy: Okay. Thank you for that. Can you just give us an update on the expectations from the revenue contribution from newer products as you extend beyond Chargeback Guarantee? Thanks for taking the questions.

Speaker #2: Thanks for taking the questions.

Speaker #5: As we currently kind of project, we're still in the ballpark that we shared earlier in the year. There's no change in that as well.

Aglika Dotcheva: As we currently kind of project, we're still in the ballpark that we shared earlier in the year. There's no change in that as well, and we're just very happy with the continued addition of new merchants that are continuing to kind of grow and using more than one product.

Agi Dotcheva: As we currently kind of project, we're still in the ballpark that we shared earlier in the year. There's no change in that as well, and we're just very happy with the continued addition of new merchants that are continuing to kind of grow and using more than one product.

Speaker #5: And we're just very happy with the continued addition of new merchants and that it continued to kind of grow and using more than one product.

Speaker #2: Understood. Thank you.

Cristopher Kennedy: Understood. Thank you.

Cris Kennedy: Understood. Thank you.

Speaker #1: Thank you. And as a reminder, to ask a question, please press *11 on your telephone. Our next question comes from Timothy Chiodo with UBS.

Operator: Thank you. As a reminder, to ask a question, please press *11 on your telephone. Our next question comes from Timothy Chiodo with UBS. You may proceed.

Speaker #1: You may proceed.

Timothy Chiodo: Great, thanks a lot. I want to talk a little bit more on the Marqeta partnership that you recently announced. This is a good example of Riskified's technology working on the issuer side. I was hoping you could talk a little bit about, number one, the mechanics associated with this and how the technology helps the issuing banks. Then number two, the mechanics or how the revenue model might work, or if we should think about this as more of a distribution channel, if there's a rev share, any of those kind of mechanics would be appreciated. Thank you.

Speaker #3: Great. Thanks a lot. I want to talk a little bit more on the Marketta partnership that you recently announced. This is a good example of RISKIFIED's technology working on the issuer side.

Speaker #3: I was hoping you could talk a little bit about, number one, the mechanics associated with this and how the technology helps the issuing banks.

Speaker #3: And then number two, the mechanics or how the revenue model might work or if we should think about this as more of a distribution channel, if there's a rev share, any of those kind of mechanics would be appreciated.

Speaker #3: Thank you.

Speaker #4: Hey, Tim. I'll take that. Thanks for the question. When we talk to merchants, they increasingly focus on what we call the post-authorization approval rate, right?

Eido Gal: Hey, Tim. I will take that. Thanks for the question. When we talk to merchants, they increasingly focus on what we call the post-authorization approval rate. You can either look at approval rates before you send the payment through the authorization stream or afterwards. And obviously you have the merchant, the transaction, the initial risk decision by a vendor like us, and then it needs to go through the entire payment chain and funnel. And throughout that entire payment chain and funnel, there are various points where the transaction can be blocked, and it can be blocked because someone entered the wrong CVV code. It can be blocked because there is not enough funds in the account, or it can be blocked because someone further upstream from Riskified and the merchant decides that this transaction might be fraudulent or higher risk.

Speaker #4: You can either look at approval rates before you send the payment through the authorization stream or afterwards. And obviously, you have the merchant, the transaction, the initial risk decision by a vendor like us.

Speaker #4: And then it needs to go through the entire payment chain and funnel. And throughout that entire payment chain and funnel, there are various points where the transaction can be blocked and it can be blocked because someone entered the wrong CPV code.

Speaker #4: It can be blocked because there's not enough funds in the account. Or it can be blocked because someone further upstream from RISKIFIED in the merchant decides that this transaction might be fraudulent or higher risk.

Speaker #4: Because we really see our solution, our focus is on maximizing end-to-end conversion for our clients, we really try to think, hey, so what other avenues do we have?

Eido Gal: Because we really see our solution, our focus is on maximizing end-to-end conversion for our clients, we really try to think, "Hey, so what other avenues do we have?" And it is not just about being the most accurate at identifying fraud for the merchant. It is also helping other partners in the payment ecosystem make smarter decisions. So the relationship with Marqeta provides us an ability to share data and risk information in a way that allows them to increase auth rates on behalf of our merchants. So basically, if the card was issued by Marqeta, then the processor there, we would expect by several percentage points higher auth rates. The value that creates for Riskified is in the competitive situations where we come to new merchants, it helps create a more differentiated offering.

Speaker #4: And it's not just about being the most accurate and identifying fraud for the merchant, it's also helping other partners in the payment ecosystem makes smarter decisions.

Speaker #4: So the relationship with Marketta provides us an ability to share data and risk information in a way that allows them to increase auth rates on behalf of our merchants.

Speaker #4: So basically, if the card was issued by Marqeta or the processor there, we would expect several percentage points higher auth rates. The value that creates for Riskified is, and kind of the competitive situations are where we come to new merchants, it helps create a more differentiated offering, right?

Speaker #4: It's not just about the multi-product when we talk about the unique use cases like policy or like the identity we talked about. It also allows us to show them that on the actual auth rate that obviously they care about very much, we can create a differentiated approval expectation through these types of partnerships.

Eido Gal: It is not just about the multi-product when we talk about the unique use cases like policy or like the identity we talked about. It also allows us to show them that on the actual auth rate that obviously they care about very much, we can create a differentiated approval expectation through these types of partnerships. So we monetize it directly through the merchant by increasing win rates and having better retention there.

Speaker #4: So we monetize it directly through the merchant by increasing win rates and having better retention there.

Speaker #3: that's very clear. Thank you for that explanation. I really appreciate that. Thank you.

Timothy Chiodo: That is very clear. Thank you for that explanation. I really appreciate that. Thank you.

Speaker #1: Thank you. I would now like to turn the call back over to Eido Gal for any closing remarks.

Operator: Thank you. I would now like to turn the call back over to Eido Gal for any closing remarks.

Speaker #4: Thank you, everyone. We're really excited about the momentum in the business. And we look forward to updating you on the quarters ahead.

Eido Gal: Thank you everyone. We are really excited about the momentum in the business, and we look forward to updating you on the quarters ahead.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.