Red Violet Inc (RDVT)
NASDAQ:RDVT
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Red Violet
(NASDAQ:RDVT)
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Rating:73Outperform
Price Target:
$42.00
▲(6.54% 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
Cash generation
Sustained and improving operating and free cash flow provides durable internal funding for R&D, strategic hires, buybacks, or M&A. Near parity of FCF to net income in 2024–25 indicates earnings quality and reduces dependence on external financing, supporting multi-month financial flexibility.
Negative Factors
Slight retention weakness
A one-point decline in gross retention, while modest, hints at weakening renewal dynamics that could erode recurring revenue visibility and lifetime value if the trend continues. Over months this may necessitate higher sales/marketing spend to sustain net revenue retention and growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained and improving operating and free cash flow provides durable internal funding for R&D, strategic hires, buybacks, or M&A. Near parity of FCF to net income in 2024–25 indicates earnings quality and reduces dependence on external financing, supporting multi-month financial flexibility.
Read all positive factors
Red Violet (RDVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$543.65M
Dividend YieldN/A
Average Volume (3M)120.15K
Price to Earnings (P/E)71.0
Beta (1Y)1.10
Revenue Growth20.03%
EPS Growth85.38%
CountryUS
Employees215
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.21
Shares Outstanding14,109,914
10 Day Avg. Volume95,280
30 Day Avg. Volume120,146
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 Cap0.91
Enterprise Value/Revenue5.51
Enterprise Value/Gross Profit6.58
Enterprise Value/Ebitda22.69
Forecast
1Y Price Target
$63.50Price Target Upside61.09% 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 06, 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
Neutral
39.42
Price Trends
39.96
Negative
46.16
Negative
47.93
Negative
Market Momentum
-0.63
Negative
54.19
Neutral
84.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDVT, the sentiment is Neutral. The current price of 39.42 is above the 20-day moving average (MA) of 36.96, below the 50-day MA of 39.96, and below the 200-day MA of 47.93, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $543.65M | 70.99 | 13.47% | ― | 20.03% | 85.38% | |
69 Neutral | $697.16M | 17.45 | 8.24% | ― | 6.09% | -92.59% | |
64 Neutral | $660.99M | -28.39 | -8.42% | ― | 5.23% | 15.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $554.31M | -0.53 | -106.91% | ― | -9.89% | -26.49% | |
59 Neutral | $833.88M | 180.36 | 1.04% | ― | -6.77% | -94.55% | |
46 Neutral | $175.62M | -7.75 | 31.73% | ― | 0.57% | 31.68% |
* Technology Sector Average
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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.