Riskified Ltd. (NYSE:RSKD) is one of the best new penny stocks to buy. On March 5, Riskified delivered its 2025 financial report, surpassing earnings expectations with a reported EPS of $0.12 against the anticipated $0.10. The company achieved a milestone by posting its first-ever quarter of GAAP profitability in Q4, supported by quarterly revenues of ~$100 million. Key performance metrics showed marked improvement, with annual dollar retention reaching 100% and net dollar retention climbing to 105%. This momentum was fueled by a record volume of new business wins since the company’s IPO, including partnerships with major global brands like Nintendo, Temu, and Ace Hardware.

A central theme of the report was the escalating complexity of the fraud landscape, particularly the rise of AI-driven ‘agentic commerce.’ The CEO detailed how Riskified is using its decade-old AI ecosystem to protect merchants from sophisticated synthetic identity fraud and automated refund abuse. The company’s data moat, built on over $750 billion in processed GMV and 1 billion unique interactions, allows it to provide real-time risk signals that general-purpose LLMs cannot replicate.

Photo from The Trade Desk website

Beyond core fraud protection, the company’s ‘Policy Protect’ and ‘Account Secure’ products generated ~$10 million in 2025 revenue, reflecting a successful transition into a multi-product platform. For 2026, Riskified Ltd. (NYSE:RSKD) issued a revenue guidance of $372 million to $384 million, representing 8% to 11% growth, and expects to generate ~$40 million in free cash flow.

Riskified Ltd. (NYSE:RSKD), together with its subsidiaries, develops and offers an e-commerce risk intelligence platform that allows online merchants to create trusted relationships with consumers in the US, Europe, the Middle East, Africa, the Asia-Pacific, and the Americas.

While we acknowledge the potential of RSKD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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