Red Violet (RDVT) AI Stock Analysis

• Market Cap: $789.65M
• Dividend Yield: N/A
• Average Volume (3M): 88.04K
• Price to Earnings (P/E): 73.4
• Beta (1Y): 1.02
• 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: 138,462
• 30 Day Avg. Volume: 88,039
• 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: 0.91
• Enterprise Value/Revenue: 8.35
• Enterprise Value/Gross Profit: 10.38
• Enterprise Value/Ebitda: 35.35
• 1Y Price Target: $68.50
• Price Target Upside: 21.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.06
• Revenue Forecast (FY): $88.27M

• Rating: 76 Outperform
• Price Target: $63.00 ▲(11.50% Upside)

Red Violet's strong financial performance and positive earnings call are the most significant factors contributing to its overall score. The company's robust revenue growth, profitability, and strategic positioning in expanding markets are key strengths. However, the high P/E ratio suggests a potential overvaluation, which tempers the overall score. Technical indicators provide a neutral outlook, neither significantly boosting nor detracting from the score.

Positive Factors

Revenue Growth

Consistent revenue growth of 21% YoY indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling strategic investments and operational resilience over time.

Competitive Position

Investments in AI and platform capabilities bolster competitive advantages, supporting sustained market leadership and customer growth.

Negative Factors

Real Estate Vertical Decline

A decline in the real estate vertical could signal challenges in adapting to market conditions, potentially impacting revenue diversity.

Seasonal Revenue Impact

Seasonal revenue fluctuations may affect short-term cash flow stability, requiring careful management to maintain consistent performance.

High Valuation Concerns

High valuation may limit stock attractiveness and increase vulnerability to market corrections, impacting investor sentiment.

Red Violet Business Overview & Revenue Model

Company Description

Red Violet (RDVT) is a data analytics and technology company that specializes in providing advanced identity verification, fraud prevention, and data solutions for businesses. Operating primarily in the financial services, insurance, and government sectors, Red Violet offers a suite of products, including real-time identity verification, background checks, and risk assessment tools. Their innovative platform leverages big data and artificial intelligence to help clients enhance their security measures and streamline their operations.

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: Positive
• Last Price: 56.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDVT, the sentiment is Positive. The current price of 56.5 is above the 20-day moving average (MA) of 54.71, above the 50-day MA of 54.40, and above the 200-day MA of 47.40, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 53.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDVT.

Red Violet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	76 Outperform	$789.65M	73.36	11.58%	―	22.27%	117.93%
VTEX	66 Neutral	$666.32M	100.08	6.53%	―	3.62%	-20.45%
IBTA	66 Neutral	$588.81M	8.90	22.82%	―	-4.42%	603.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RSKD	51 Neutral	$772.03M	-21.22	-10.54%	―	6.54%	-19.17%
BMBL	51 Neutral	$399.10M	-1.88	-25.34%	―	-7.43%	61.36%
DOMO	48 Neutral	$384.13M	-5.10	―	―	-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.