Riskified weighs potential sale as growth slows and losses mount
E-commerce fraud prevention firm explores acquisition offers after stock decline and financial struggles.
Riskified, a provider of software that helps prevent e-commerce fraud, is exploring options including a potential sale after receiving takeover interest, according to Reuters.
Riskified is working with investment bank Qatalyst Partners to review approaches from interested parties. Potential acquirers include digital payments processing firms, online shopping platforms, cybersecurity software makers, and private equity firms. The deliberations are at an early stage, the sources said, cautioning that a deal is not guaranteed.
Riskified declined comment. Qatalyst did not immediately respond to a comment request.
Riskified, which listed its shares through an initial public offering nearly four years ago, has a market value of about $800 million and has become a takeover target after its stock lost more than 80% of its value from a September 2021 peak.
Riskified published on Wednesday lukewarm results for the fourth quarter of 2024.
Revenue for the fourth quarter met expectations, totaling $93 million—an 11% increase compared to the same period in 2023. However, the company missed on profitability, with its net loss widening to $4 million from $3.2 million a year earlier.
Riskified highlighted that 2024 was its first year of positive adjusted EBITDA, reporting $17 million in this metric compared to an $8.5 million loss in 2023. The company also generated a significant cash flow surplus, reaching $40 million in 2024, up from just $7 million the previous year. Its cash reserves now stand at $376 million.
However, under generally accepted accounting principles (GAAP), Riskified remains deeply unprofitable. The company recorded an operating loss of $47.8 million in 2024 and, despite a $20 million boost from financing income on its cash holdings, posted a net loss of $35 million.
Riskified continues to focus on operational efficiency and recently conducted layoffs, cutting dozens of employees, including in Israel, from its global workforce of 700. According to sources close to the company, it plans to replace some of these positions with hires in lower-cost labor markets such as India.
On the revenue side, Riskified’s results offered little encouragement to investors. The company reported 10% annual sales growth, reaching $327.5 million. Moreover, its 2025 forecast suggests only modest growth ahead, with projected revenue between $333 million and $346 million—representing a maximum increase of just 5%. Adjusted operating profit is expected to be between $18 million and $26 million.
Reuters contributed to this report.
First published: 19:35, 05.03.25
