Red Violet Inc (RDVT)
NASDAQ:RDVT
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Red Violet
(NASDAQ:RDVT)
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Rating:73Outperform
Price Target:
$40.00
▲(7.44% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by strong financial performance (high margins, low leverage, and improving cash generation) and a constructive earnings update showing continued growth and profitability gains. These positives are tempered by a weaker technical trend (below key longer-term moving averages with negative MACD) and a high valuation (P/E ~60.8) that leaves less room for execution missteps.
Positive Factors
Conservative balance sheet
Very low leverage and steady equity growth (2020 $43.3M to 2025 $100.9M) provide durable financial flexibility. A strong capital base supports continued product investment, buybacks and M&A optionality while reducing refinancing risk across economic cycles.
Negative Factors
Real estate vertical softness
Exposure to housing-market dynamics creates cyclical demand risk: elevated home prices and rates can suppress transaction volumes. Structural real-estate weakness can meaningfully affect recurring search/verification revenue in that vertical over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steady equity growth (2020 $43.3M to 2025 $100.9M) provide durable financial flexibility. A strong capital base supports continued product investment, buybacks and M&A optionality while reducing refinancing risk across economic cycles.
Read all positive factors
Red Violet (RDVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$525.31M
Dividend YieldN/A
Average Volume (3M)123.59K
Price to Earnings (P/E)60.8
Beta (1Y)1.11
Revenue Growth22.27%
EPS Growth117.93%
CountryUS
Employees215
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.21
Shares Outstanding14,109,914
10 Day Avg. Volume122,829
30 Day Avg. Volume123,592
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)7.92
Price to Sales (P/S)8.86
P/FCF Ratio27.77
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue5.37
Enterprise Value/Gross Profit6.41
Enterprise Value/Ebitda22.11
Forecast
1Y Price Target
$63.50Price Target Upside70.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.28
Revenue Forecast (FY)$101.55M
Red Violet Business Overview & Revenue Model
Company Description
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address var...
How the Company Makes Money
Red Violet makes money by selling access to its identity intelligence and analytics capabilities as recurring, usage-based, or subscription-like services to business and government clients. Revenue is primarily generated from fees tied to (a) cust...
Red Violet Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operating and financial achievements: record quarterly and annual revenue, expanded margins, large adjusted EBITDA improvement, increased adjusted net income and growth in cash and customer cohorts. Management emphasized durable competitive advantages via a proprietary, cloud-native identity platform and strategic AI investments. The main negatives were modest softness in the IDI real estate vertical (excluding FOREWARN), a small sequential dip in quarterly free cash flow, higher personnel-driven operating expenses (largely seasonal year-end compensation), slightly lower gross retention (-1 ppt), and limited immediate revenue contribution from some recent large enterprise wins. On balance, the company delivered broad-based momentum, improving unit economics and expanding high-value customer relationships while continuing to invest for growth.Positive Updates
Record Q4 Revenue and Strong YoY Growth
Revenue for the quarter was a record $23.4 million, up 20% year-over-year, and full-year revenue was $90.3 million, up 20% versus 2024.
Negative Updates
Real Estate Vertical Softness (Excluding FOREWARN)
IDI's real estate vertical (excluding FOREWARN) declined modestly year-over-year as elevated home prices and higher interest rates constrained affordability and reduced housing activity.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 Revenue and Strong YoY Growth
Revenue for the quarter was a record $23.4 million, up 20% year-over-year, and full-year revenue was $90.3 million, up 20% versus 2024.
Read all positive updates
Company Guidance
Management did not provide formal 2026 guidance but said they expect continued “healthy top‑line expansion” and to further reaccelerate revenue growth while investing in product, AI and automation; they framed that outlook with 2025 metrics: full‑year revenue up 20% to $90.3M, adjusted gross profit $75.4M (adjusted gross margin expanded to 84% for the year; Q4 margin 83%), adjusted EBITDA $31.0M (FY margin 34%; Q4 adjusted EBITDA $5.9M and 25% margin), Q4 adjusted net income $3.1M (up 53%) and adjusted EPS $0.21, Q4 free cash flow $3.7M and FY free cash flow $18.2M, cash $43.6M, current assets $56.5M/current liabilities $7.9M, IDI billable customers 10,022 (+169 sequential), FOREWARN users 390,018 (+17,809) with 620+ REALTOR associations contracted, 127 customers >$100k (vs 96 in 2024), plus share repurchases of 611,733 shares to date (57,812 bought recently at $44.01 avg) with $16.4M remaining — but no numeric revenue or margin targets were given for 2026.Red Violet Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 90.25M | 75.19M | 60.20M | 53.32M | 44.02M |
| Gross Profit | 75.58M | 61.19M | 47.13M | 41.11M | 32.83M |
| EBITDA | 23.81M | 17.48M | 10.86M | 7.04M | 4.08M |
| Net Income | 13.15M | 7.00M | 13.53M | 616.00K | 655.00K |
Balance Sheet | |||||
| Total Assets | 112.01M | 98.53M | 92.99M | 77.41M | 74.38M |
| Cash, Cash Equivalents and Short-Term Investments | 43.56M | 36.50M | 32.03M | 31.81M | 34.26M |
| Total Debt | 2.79M | 2.00M | 2.57M | 1.29M | 1.91M |
| Total Liabilities | 11.09M | 11.90M | 6.88M | 6.32M | 4.95M |
| Stockholders Equity | 100.93M | 86.63M | 86.11M | 71.09M | 69.43M |
Cash Flow | |||||
| Free Cash Flow | 28.79M | 23.79M | 5.92M | 3.63M | 3.70M |
| Operating Cash Flow | 29.35M | 23.96M | 15.07M | 12.46M | 8.95M |
| Investing Cash Flow | -11.16M | -9.57M | -9.15M | -8.83M | -5.24M |
| Financing Cash Flow | -11.14M | -9.92M | -5.70M | -6.08M | 17.60M |
Red Violet Technical Analysis
Negative
37.23
Price Trends
41.17
Negative
47.59
Negative
48.37
Negative
Market Momentum
-1.87
Negative
42.99
Neutral
52.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDVT, the sentiment is Negative. The current price of 37.23 is below the 20-day moving average (MA) of 38.00, below the 50-day MA of 41.17, and below the 200-day MA of 48.37, indicating a bearish trend. The MACD of -1.87 indicates Negative momentum. The RSI at 42.99 is Neutral, neither overbought nor oversold. The STOCH value of 52.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDVT.
Red Violet Risk Analysis
Red Violet disclosed 32 risk factors in its most recent earnings report. Red Violet reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Red Violet Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $525.31M | 60.77 | 13.47% | ― | 22.27% | 117.93% | |
69 Neutral | $685.05M | 17.45 | 8.24% | ― | 3.62% | -20.45% | |
64 Neutral | $606.16M | -28.39 | -8.42% | ― | 6.54% | -19.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $780.67M | -148.81 | 1.04% | ― | -4.42% | 603.17% | |
57 Neutral | $451.76M | -0.53 | -106.91% | ― | -7.43% | 61.36% | |
46 Neutral | $117.04M | -4.05 | 31.73% | ― | -0.14% | 21.60% |
* Technology Sector Average
RDVT
Red Violet
37.23
2.33
6.68%
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Red Violet Corporate Events
Business Operations and StrategyExecutive/Board Changes
Red Violet Extends Executive Employment Agreements Through 2030
Positive
Jan 13, 2026
On January 9, 2026, Red Violet extended the employment agreements of its key executives, including the chief executive officer, president, chief financial officer and chief information officer, pushing the contract expiration date from March 26, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.