Riskified CEO Sounds Alarm: Fraudsters Are Moving Into AI Shopping Faster Than Consumers

Riskified Ltd. (NYSE:RSKD) stock surged Wednesday after the fraud prevention company reported better-than-expected third-quarter results and raised its full-year outlook.

Riskified reported adjusted earnings of 7 cents per share, beating the 3-cent analyst estimate.

Revenue jumped 41% year over year to $115.18 million, topping expectations of $103.41 million.

CEO and co-founder Eido Gal said growing demand for fraud prevention tools helped the company raise its outlook for the third time this year. He also highlighted new opportunities from AI-powered commerce.

Digital Finance Drives Growth

Riskified posted its fastest revenue growth since going public, supported by new merchants and increased spending from existing customers.

Gross merchandise volume rose 18% to $44.56 billion.

Digital Finance billings soared more than 300%, while the Electronics, General and Home segments grew a combined 12%.

U.S. billings jumped 69%, accelerating from 38% growth in the second quarter. APAC and Other Americas billings increased 14% and 17%, respectively, while EMEA declined 3%.

Profitability and Cash Position

Adjusted gross profit rose 20% to $49.7 million, although gross margin fell to 43% from 51%.

Adjusted EBITDA climbed 47% to $8.1 million, while the margin held steady at 7%.

The company narrowed its net loss to $1.3 million from $7.8 million and generated $15.2 million in free cash flow.

Riskified ended the quarter with $235 million in cash, deposits and investments and no debt.

AI Fraud Prevention Expansion

Riskified launched Agent Identity Risk Intelligence to address fraud involving AI agents. It also partnered with Zendesk to detect fraudulent refunds, returns and exchanges.

On Wednesday’s earnings call, Gal warned that fraudsters are adopting AI-powered shopping tools faster than consumers in some cases. He said Riskified is seeing more fraudulent attempts involving AI agents, particularly in refunds, returns and other customer service requests.

International expansion continued, with eight of its 10 largest new customers based outside the U.S.

Riskified Raises 2026 Forecast

Riskified lifted its 2026 revenue forecast to $427 million-$433 million from $400 million-$410 million, exceeding Wall Street’s estimate of $406.7 million.

The company also raised its adjusted EBITDA forecast to $39 million-$43 million from $33 million-$39 million, citing strong quarterly results and continued momentum.

RSKD Price Action: Riskified shares were up 28.07% at $10.86 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Riskified’s trading volume reached 3.46 million shares on Wednesday, about 61% above its 100-day average of 2.14 million shares, signaling heightened investor interest following its strong quarterly results.

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