Riskified Ltd.

Good day and thank you for standing by. Welcome to the Riskified 3rd Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chet Mandel, Head of Investor Relations. Please go ahead.

Good morning, and thank you for joining us today. My name is Chet Mandel, Riskified's Head of Investor Relations. We are hosting today's call to discuss Riskified's financial results for the third quarter of 2025. Participating on today's call are Ido Gal, Riskified's co-founder and chief executive officer, and Agi Doceva, Riskified's chief financial officer. We released our results for the third quarter of 2025 earlier today. Our earnings materials, including a replay of today's webcast, will be available on our investor relations website at ir.riskified.com. 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 margin, adjusted EBITDA profitability, adjusted EBITDA margins, and expectations as to positive cash flows, 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. These forward-looking statements involve risks, uncertainties, and other factors, some of which are beyond our control, that could cause actual results to differ materially from our expectations. You should not put undue reliance on any forward-looking statement. Please refer to our annual report on Form 20F for the year ended December 31st, 2024. In subsequent reports, we file or furnish with the SEC for more information on the specific factors that could cause actual results to differ materially from our expectations. 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 SEC on form 6K, 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 Idao.

Thanks, Chet, and hello, everyone. We've built solid momentum this year, driven by disciplined execution and focus across the business. That progress is especially clear in our third quarter results, where we delivered a meaningful turnaround in non-GAAP gross profit, improving from a 4% decline in the first half of the year to 5% growth in Q3. While the first half of the year reflected some temporary softness, the actions we took during the period have laid the foundation for a higher gross profit trajectory and expanding profitability in the back half of 25 and beyond. Looking ahead, we expect an even stronger step up in the fourth quarter, supported by improved technical model performance and the seasonally stronger, traditionally lower risk holiday period. We've continued to invest heavily in our machine learning capabilities, enhancing key features and expanding our autonomously trained model program to reinforce our market leading technology. So far in 25, we have shifted approximately 70% of our models from manual to autonomous training, and 100% of the autonomously trained models now outperform their previous manual production models. We believe that this automation will allow us to continue scaling the business with high leverage. Our autonomous program allows for real-time retraining when early fraud signals appear, freeing up our data scientists to focus on developing new features that further boost performance. On the revenue side, our push into more non-discretionary categories continues to deliver. I want to highlight the strong momentum in our money transfer and payments category, which grew 100% in the third quarter. We believe we are on track to nearly double the absolute revenue dollars in this category for full year 25 as compared to last year. This growth is being driven primarily by new business activity. Both our top new logo one and the largest upsell during the third quarter were in this And we believe that merchants in this vertical, where transaction speed and superior fraud capabilities are paramount, are increasingly recognizing the performance in ROI that Riskified offers. We also returned to meaningful adjusted EBITDA margin expansion in the third quarter, improving by roughly 560 basis points year over year. And as Agi will cover, we expect a further step up in our Q4 margin, approximating a 15% adjusted EBITDA margin reflecting the operating leverage of our model, the scalability of our platform, and the efficiency gains achieved over the past few years. Beyond financial performance, we executed well against our 25-product roadmap. It's now been several quarters since we launched an adaptive checkout, the advanced configuration of our chargeback guarantee engine. Adaptive checkout uses AI to raise conversion rates by adding friction only when it's truly needed and removing it where exemptions apply. The results have been impressive. One U.S. ticketing merchant increased total conversion by 5% by using selective one-time password friction to recover declined orders. And EMEA, an electronics merchant, lifted conversion by 26% by removing unnecessary 3D secure friction through riskified exemption and preauthorization analysis. And as adoption grows, Adaptive Checkout continues to raise the bar for intelligent risk management and positions us to capture more share in the global e-com market. We're also very focused on the rise of agenda commerce. Our research shows that many shoppers already use AI somewhere in their shopping journey, but very few complete purchases through large language models today. And as AI agents begin making purchases on behalf of consumers, critical data that fraud teams depend on can disappear, reintroducing many of the risks merchants have worked hard to eliminate. The result can be higher chargebacks, disputes, and policy abuse. We're positioning Riskify to help merchants navigate this shift safely through a combination of strategic partnerships, innovative technology, and enhanced infrastructure. Our collaborations bring together fraud prevention expertise with secure agentic protocols to deliver accurate decisions and better business outcomes in this new e-commerce environment. As we head towards the end of the year, our third quarter has provided momentum as we approach the peak year-end holiday season. Our internal data continues to show resilient consumer spending, with October tracking in line with our expectations. We are seeing solid performance in our three largest categories, tickets and travel, fashion and luxury, and money transfer and payments, which collectively represent more than two-thirds of our GMV. Assuming steady activity through the year end, We're cautiously optimistic for another healthy holiday season. Combined with a solid first nine months of performance, we have the confidence to raise the bottom end of our revenue guidance for the second consecutive quarter. In conclusion, our global platform continues to lead in the e-commerce fraud and abuse prevention market. Our team remains focused on executing on the large new business opportunities ahead, and we are on track to close out the year strong and to enter 26 with solid momentum a healthy new business pipeline, and confidence in our growth trajectory. I will now turn it over to Agi.