Red Violet (RDVT) AI Stock Analysis

• Market Cap: $701.28M
• Dividend Yield: N/A
• Average Volume (3M): 127.69K
• Price to Earnings (P/E): 83.0
• Beta (1Y): 0.95
• Revenue Growth: 26.30%
• EPS Growth: -40.35%
• Country: US
• Employees: 215
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 13,955,918
• 10 Day Avg. Volume: 120,232
• 30 Day Avg. Volume: 127,686
• PEG Ratio: -0.74
• Price to Book (P/B): 5.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $52.00
• Price Target Upside: 3.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $59.00 ▲(17.41%Upside)

Red Violet's strong earnings performance and financial health are the most significant factors contributing to the score. Technical analysis shows strong momentum, though potential overvaluation and liquidity risks warrant caution. The earnings call provides a positive outlook, reinforcing growth potential despite some challenges.

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 primarily through its subscription-based and transactional data services offered to businesses and organizations. The company provides access to its proprietary platform, which enables clients to perform detailed data analysis and obtain insights for risk management, fraud prevention, and identity verification. Key revenue streams include recurring subscription fees for platform access and usage-based fees for specific data services. Partnerships with industries such as financial services, insurance, and government agencies also contribute significantly to its earnings, as these sectors require robust data-driven solutions to mitigate risk and enhance operational efficiency.

Red Violet Financial Statement Overview

Summary

Red Violet exhibits a strong financial performance with significant revenue growth, improved profitability margins despite increased operational costs, and robust cash flow generation. The company maintains a low leverage position, enhancing financial stability.

Income Statement

Red Violet demonstrates strong revenue growth and profitability improvements. The gross profit margin increased significantly, reaching 81.39% in 2024, up from 78.28% in 2023, indicating efficient cost management. The net profit margin improved from 22.47% in 2023 to 9.31% in 2024, despite a slight decrease due to increased operational costs. EBIT and EBITDA margins also saw positive trends, reflecting enhanced operating performance.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.02 in 2024, indicating minimal leverage. ROE decreased to 8.08% from 15.71% in 2023, largely due to a decrease in net income. The equity ratio remains strong at 87.94%, suggesting financial stability and low reliance on debt financing.

Cash Flow

Red Violet shows strong cash flow generation, with a substantial increase in free cash flow from $5.93 million in 2023 to $23.79 million in 2024, indicating effective cash management and investment strategies. The operating cash flow to net income ratio remains healthy, demonstrating efficient conversion of earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.19M	60.20M	53.32M	44.02M	34.59M
Gross Profit	61.19M	47.13M	41.11M	32.83M	23.31M
EBITDA	17.48M	10.86M	596.00K	4.08M	-2.62M
Net Income	7.00M	13.53M	616.00K	655.00K	-6.79M
Balance Sheet
Total Assets	98.53M	92.99M	77.41M	74.38M	51.99M
Cash, Cash Equivalents and Short-Term Investments	36.50M	32.03M	31.81M	34.26M	12.96M
Total Debt	2.00M	2.57M	1.29M	1.91M	4.61M
Total Liabilities	11.90M	6.88M	6.32M	4.95M	8.65M
Stockholders Equity	86.63M	86.11M	71.09M	69.43M	43.34M
Cash Flow
Free Cash Flow	23.79M	5.92M	3.63M	3.70M	857.00K
Operating Cash Flow	23.96M	15.07M	12.46M	8.95M	6.52M
Investing Cash Flow	-9.57M	-9.15M	-8.83M	-5.24M	-5.66M
Financing Cash Flow	-9.92M	-5.70M	-6.08M	17.60M	324.00K

Red Violet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.25
• 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 50.25 is above the 20-day moving average (MA) of 47.73, above the 50-day MA of 46.03, and above the 200-day MA of 37.70, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 59.39 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 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	80 Outperform	$701.28M	83.03	9.86%	―	26.30%	-40.35%
MITK	78 Outperform	$471.59M	36.60	6.11%	―	7.76%	―
PUBM	75 Outperform	$622.20M	151.18	1.94%	―	3.62%	-53.21%
PRCH	67 Neutral	$1.27B	―	75.95%	―	-6.81%	85.11%
RSKD	65 Neutral	$852.18M	―	-9.00%	―	9.30%	24.96%
Sector *	63 Neutral	£565.99M	24.41	-6.00%	2.50%	3.52%	-29.29%
LAW	53 Neutral	$276.06M	―	-33.75%	―	3.84%	-76.01%

Red Violet Corporate Events

Red Violet Holds Annual Stockholders Meeting

On June 10, 2025, Red Violet, Inc. held its Annual Meeting of Stockholders, where several key matters were voted upon. The election of directors resulted in the appointment of five individuals to serve until the next annual meeting in 2026. Additionally, the stockholders ratified the appointment of Grant Thornton, LLP as the independent public accounting firm for the year 2025. The amended and restated 2018 Stock Incentive Plan was approved, extending the plan’s term and increasing available shares for issuance. Lastly, the stockholders approved the compensation of the company’s named executive officers for 2024 on an advisory basis.

The most recent analyst rating on (RDVT) stock is a Buy with a $31.50 price target. To see the full list of analyst forecasts on Red Violet stock, see the RDVT Stock Forecast page.