Red Violet (RDVT) AI Stock Analysis

• Market Cap: $753.16M
• Dividend Yield: N/A
• Average Volume (3M): 63.71K
• Price to Earnings (P/E): 69.4
• Beta (1Y): 1.00
• Revenue Growth: 22.27%
• EPS Growth: 117.93%
• Country: US
• Employees: 215
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.39
• Shares Outstanding: 14,088,231
• 10 Day Avg. Volume: 52,856
• 30 Day Avg. Volume: 63,713
• PEG Ratio: -1.51
• Price to Book (P/B): 5.79
• Price to Sales (P/S): 6.68
• P/FCF Ratio: 21.10
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 8.35
• Enterprise Value/Gross Profit: 10.38
• Enterprise Value/Ebitda: 35.35
• 1Y Price Target: $68.50
• Price Target Upside: 28.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.06
• Revenue Forecast (FY): $88.27M

• Rating: 71 Outperform
• Price Target: $59.00 ▲(10.36% Upside)

Red Violet's strong financial performance and positive earnings call are the primary drivers of its overall score. However, the high P/E ratio suggests potential overvaluation, and technical indicators show a lack of strong momentum, which tempers the overall score.

Positive Factors

Revenue Growth

The consistent revenue growth of 21% year-over-year underscores Red Violet's expanding market reach and product adoption, which is crucial for sustaining long-term business success.

Customer Base Expansion

The significant increase in customer base enhances revenue stability and market presence, positioning Red Violet for continued growth and resilience in its core markets.

Strong Cash Flow

Robust cash flow growth supports operational flexibility and strategic investments, ensuring the company can capitalize on growth opportunities and withstand economic fluctuations.

Negative Factors

Real Estate Vertical Decline

The decline in the real estate vertical may signal challenges in adapting to market changes, potentially impacting revenue from this segment if not addressed.

Seasonal Revenue Impact

Seasonal impacts on revenue could lead to short-term volatility, affecting cash flow and financial planning, though not necessarily altering long-term growth trends.

High P/E Ratio

A high P/E ratio suggests market expectations may be overly optimistic, which could lead to volatility if growth does not meet expectations, impacting investor confidence.

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 various organizational challenges, which include due diligence, risk mitigation, identity authentication, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, and telecommunication companies; law enforcement and government agencies; and collections, corporate security, and investigative firms, as well as solutions used for purposes, such as risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. Red Violet, Inc. was incorporated in 2017 and is headquartered in Boca Raton, Florida.

How the Company Makes Money

Red Violet generates revenue through a subscription-based model, charging clients for access to its data analytics platform and services. Key revenue streams include fees for identity verification services, background checks, and ongoing data analytics support. The company also benefits from strategic partnerships with financial institutions and other industry players, which can enhance its service offerings and expand its client base. Additionally, Red Violet may derive income from one-time service fees for custom data solutions or consulting services tailored to specific client needs.

Red Violet Financial Statement Overview

Summary

Red Violet exhibits a strong financial position with consistent revenue growth, robust profitability, and efficient cash flow management. The company maintains low leverage, enhancing financial stability. Overall, the financial statements reflect a well-managed company with a positive growth trajectory and solid financial health.

Income Statement

Red Violet demonstrates strong revenue growth with a TTM growth rate of 4.89%, building on consistent annual growth. The gross profit margin remains robust at approximately 79.86%, indicating efficient cost management. Net profit margin has improved to 10.57% in the TTM, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showing operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. Return on equity is healthy at 9.51%, showcasing effective use of equity to generate profits. The equity ratio stands at 90.77%, highlighting a strong equity base relative to total assets. Overall, the balance sheet reflects financial stability with low leverage and efficient equity utilization.

Cash Flow

Red Violet's cash flow statement shows a strong free cash flow growth rate of 24.01% in the TTM, indicating robust cash generation. The operating cash flow to net income ratio of 4.75 suggests efficient conversion of income into cash. The free cash flow to net income ratio is 0.81, reflecting good cash flow relative to profits. Overall, the cash flow statement highlights strong cash generation and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.42M	75.19M	60.20M	53.32M	44.02M	34.59M
Gross Profit	69.52M	61.19M	47.13M	41.11M	32.83M	23.31M
EBITDA	20.40M	17.48M	10.86M	7.04M	4.08M	-2.62M
Net Income	11.20M	7.00M	13.53M	616.00K	655.00K	-6.81M
Balance Sheet
Total Assets	112.07M	98.53M	92.99M	77.41M	74.38M	51.99M
Cash, Cash Equivalents and Short-Term Investments	45.35M	36.50M	32.03M	31.81M	34.26M	12.96M
Total Debt	2.86M	2.00M	2.57M	1.29M	1.91M	4.61M
Total Liabilities	10.34M	11.90M	6.88M	6.32M	4.95M	8.65M
Stockholders Equity	101.73M	86.63M	86.11M	71.09M	69.43M	43.34M
Cash Flow
Free Cash Flow	23.92M	23.79M	5.92M	3.63M	3.70M	6.37M
Operating Cash Flow	29.35M	23.96M	15.07M	12.46M	8.95M	6.52M
Investing Cash Flow	-10.41M	-9.57M	-9.15M	-8.83M	-5.24M	-5.66M
Financing Cash Flow	-9.33M	-9.92M	-5.70M	-6.08M	17.60M	324.00K

Red Violet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 53.46 is below the 20-day moving average (MA) of 55.18, below the 50-day MA of 53.67, and above the 200-day MA of 46.49, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 49.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDVT.

Red Violet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	71 Outperform	$753.16M	69.41	11.58%	―	22.27%	117.93%
VTEX	66 Neutral	$707.25M	104.65	6.53%	―	3.62%	-20.45%
IBTA	66 Neutral	$495.85M	9.62	22.82%	―	-4.42%	603.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RSKD	51 Neutral	$796.73M	―	-10.54%	―	6.54%	-19.17%
BMBL	51 Neutral	$408.12M	―	-25.34%	―	-7.43%	61.36%
DOMO	48 Neutral	$364.28M	―	―	―	-0.14%	21.60%

Red Violet Corporate Events

Red Violet Reports Record-Breaking Q3 2025 Results

On November 5, 2025, Red Violet, Inc. announced its financial results for the third quarter of 2025, marking a record-breaking performance across all key financial metrics. The company reported a 21% increase in revenue to $23.1 million, with significant growth in adjusted gross profit, EBITDA, and net income. Red Violet’s strategic investments in platform capabilities and AI integration have strengthened its competitive position, enabling it to expand its customer base and maintain robust cash flow. The company also increased its Share Repurchase Program by $15 million, reflecting confidence in its financial health and growth prospects.

Red Violet Expands Stock Repurchase Program by $15 Million

On November 3, 2025, Red Violet‘s Board of Directors approved an additional $15 million for its Stock Repurchase Program, increasing the total authorization to $30 million, with $18.9 million remaining. The company reported record financial results for the third quarter of 2025, with a 21% increase in revenue to $23.1 million and a 145% rise in net income to $4.2 million. The strong performance reflects the company’s successful execution and growing adoption of its solutions across various industries, enabling continued investment in innovation and market expansion.