Riskified Ltd (RSKD) Stock Forecast & Price Target

Riskified Ltd reported a notable year-over-year growth in gross merchandise volume (GMV), which increased by 8.9% to $37.8 billion, reflecting sequential growth acceleration for the first time in four quarters, driven by strong performance in the Travel and Money Transfer and Payments categories. In addition, the company raised its revenue guidance for 2025, with the bottom end of the outlook increased by $2 million to $336 million and the midpoint raised by $1 million, showcasing management's confidence in future performance. Furthermore, the Money Transfer and Payments category exhibited remarkable growth, rising 90% year-over-year, alongside significant international traction, particularly with APAC and EMEA regions increasing by 40% and 23% year-over-year, respectively.

Riskified Ltd faces significant challenges stemming from a substantial reliance on a concentrated customer base, where any churn could severely impede future revenue growth. The company reported a GAAP EPS loss of -$0.07, reflecting ongoing financial pressures amidst a broader macroeconomic slowdown and heightened competition within the fraud prevention market. Furthermore, a slowdown in growth within the fashion and luxury sector, coupled with potential mismanagement of chargebacks, raises concerns about financial stability and the company's ability to effectively adapt to changing market dynamics.