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Red Violet
(NASDAQ:RDVT)
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Rating:79Outperform
Price Target:
$75.00
▲(23.23% Upside)
Action:Reiterated
Date:08/10/26
RDVT scores well primarily due to strong financial quality (high margins, low leverage, and robust free cash flow) and a very upbeat earnings update with constructive margin guidance and clear reinvestment plans. The score is moderated by premium valuation (high P/E, no dividend yield provided) and only moderate technical momentum near-term despite a longer-term uptrend.
Positive Factors
High margins & profitability
Sustained industry-leading gross margins and expanding EBITDA margins reflect differentiated unit economics from proprietary identity graph and entity-resolution tech. High margins provide durable operating leverage, funding product/AI reinvestment while preserving profitability over the medium term.
Negative Factors
Modest revenue growth and volatility
Despite current strong margins, trailing revenue growth is modest and prior years show variable profitability and cash conversion. If organic top-line acceleration stalls, the company may need sustained margin expansion or acquisitions to maintain earnings growth and cash generation over months.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sustained industry-leading gross margins and expanding EBITDA margins reflect differentiated unit economics from proprietary identity graph and entity-resolution tech. High margins provide durable operating leverage, funding product/AI reinvestment while preserving profitability over the medium term.
Read all positive factors
Red Violet (RDVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$923.92M
Dividend YieldN/A
Average Volume (3M)171.15K
Price to Earnings (P/E)56.5
Beta (1Y)1.19
Revenue Growth20.17%
EPS Growth85.93%
CountryUS
Employees250
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.00
Shares Outstanding14,108,921
10 Day Avg. Volume157,602
30 Day Avg. Volume171,153
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$71.50Price Target Upside17.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.49
Revenue Forecast (FY)$104.92M
Red Violet Business Overview & Revenue Model
Company Description
Red Violet, Inc. is a technology firm specializing in software and analytical services, leveraging its proprietary technology and advanced analytical prowess to deliver crucial identity intelligence solutions primarily within the United States. Am...
How the Company Makes Money
Red Violet makes money by selling access to its identity intelligence and analytics solutions, typically delivered as software/data services through cloud platforms. Revenue is primarily generated from (1) subscription and usage-based fees for acc...
Red Violet Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive performance: record revenue, margins, profitability, cash flow and liquidity, together with a record number of new customers and meaningful FOREWARN expansion. Management signaled disciplined use of ~$109M in proceeds to accelerate AI-enabled product road map, organic data expansion, and targeted M&A, while continuing to invest in product and go-to-market. Headwinds are limited and largely manageable (modest decline in real estate IDI, slightly lower gross retention, higher operating expenses, and slower federal conversions), and management emphasized that these do not materially alter the company’s growth trajectory or competitive positioning.Positive Updates
Record Revenue and Sustained Growth
Total revenue of $26.7 million in Q2 FY26, up 23% year-over-year; company has delivered 31 consecutive quarters of double-digit revenue growth (22 quarters ≥20%).
Negative Updates
Modest Decline in Real Estate IDI Revenue
IDI real estate vertical (excluding FOREWARN) declined modestly in the quarter due to limited inventory, elevated interest rates, and high home prices; management remains tempered on near-term recovery timing.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Sustained Growth
Total revenue of $26.7 million in Q2 FY26, up 23% year-over-year; company has delivered 31 consecutive quarters of double-digit revenue growth (22 quarters ≥20%).
Read all positive updates
Company Guidance
Management's explicit guidance was that full‑year adjusted EBITDA margin is expected to be in the high‑30s (with the first three quarters seasonally strongest and Q4 lower due to year‑end incentive accruals), and that the company will deploy the roughly $109 million of net proceeds from the recent offering—alongside existing cash of $50.0 million and $15.5 million remaining on the repurchase program—into working capital, disciplined M&A, and continued investment in product/AI engineering, infrastructure and go‑to‑market while maintaining operating leverage and profitability. This outlook was delivered against Q2 results of $26.7 million revenue (+23% y/y), record adjusted gross profit of $22.9 million and adjusted gross margin of 86% (up 2 pts), adjusted EBITDA of $11.2 million (42% margin, +48%), adjusted net income of $7.2 million and adjusted EPS of $0.50, cash from operations of $10.6 million, free cash flow of $7.2 million (+50%), 447 new IDI customers (10.9k total), 25.5k new FOREWARN users (443k total) and 660 contracted realtor associations.Red Violet Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
87
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 94.08M | 90.25M | 75.19M | 60.20M | 53.32M | 44.02M |
| Gross Profit | 81.89M | 75.58M | 61.19M | 47.13M | 41.11M | 32.83M |
| EBITDA | 21.66M | 25.23M | 18.88M | 12.19M | 7.39M | 6.25M |
| Net Income | 14.10M | 13.15M | 7.00M | 13.53M | 616.00K | 655.00K |
Balance Sheet | ||||||
| Total Assets | 112.63M | 112.01M | 98.53M | 92.99M | 77.41M | 74.38M |
| Cash, Cash Equivalents and Short-Term Investments | 43.45M | 43.56M | 36.50M | 32.03M | 31.81M | 34.26M |
| Total Debt | 2.72M | 2.79M | 2.00M | 2.57M | 1.29M | 1.91M |
| Total Liabilities | 8.11M | 11.09M | 11.90M | 6.88M | 6.32M | 4.95M |
| Stockholders Equity | 104.53M | 100.93M | 86.63M | 86.11M | 71.09M | 69.43M |
Cash Flow | ||||||
| Free Cash Flow | 21.70M | 28.79M | 23.79M | 5.92M | 3.63M | 3.70M |
| Operating Cash Flow | 30.93M | 29.35M | 23.96M | 15.07M | 12.46M | 8.95M |
| Investing Cash Flow | -12.14M | -11.16M | -9.57M | -9.15M | -8.83M | -5.24M |
| Financing Cash Flow | -9.94M | -11.14M | -9.92M | -5.70M | -6.08M | 17.60M |
Red Violet Technical Analysis
Neutral
60.86
Price Trends
61.65
Positive
51.39
Positive
50.77
Positive
Market Momentum
1.70
Positive
51.26
Neutral
55.88
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 60.86 is below the 20-day moving average (MA) of 66.28, below the 50-day MA of 61.65, and above the 200-day MA of 50.77, indicating a neutral trend. The MACD of 1.70 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $923.92M | 56.45 | 16.24% | ― | 20.17% | 85.93% | |
71 Outperform | $712.63M | 23.94 | 12.98% | ― | 9.62% | -99.69% | |
69 Neutral | $715.85M | -46.48 | -5.93% | ― | 5.10% | 48.36% | |
63 Neutral | $890.42M | -82.91 | -3.98% | ― | -6.65% | -114.73% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $373.47M | -0.73 | -110.37% | ― | -13.33% | 45.52% | |
48 Neutral | $183.91M | -2.94 | 29.35% | ― | 0.35% | 29.79% |
* Technology Sector Average
RDVT
Red Violet
65.65
24.51
59.58%
DOMO
Domo
4.02
-10.33
-71.99%
BMBL
Bumble
2.73
-3.59
-56.80%
VTEX
VTEX
4.03
-0.16
-3.82%
RSKD
Riskified
5.32
0.27
5.35%
IBTA
Ibotta, Inc. Class A
38.42
6.78
21.43%
Red Violet Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Red Violet Announces Major Underwritten Equity Offering
Positive
Aug 7, 2026
On August 5, 2026, Red Violet, Inc. entered into an underwriting agreement with Raymond James Associates and Needham Company for an underwritten public stock offering that ultimately totaled 1,916,667 shares, including the full exercise of the u...
Financial Disclosures
Red Violet Reports Strong Preliminary Second Quarter Profitability
Positive
Aug 5, 2026
For the three months ended June 30, 2026, Red Violet reported estimated unaudited revenue of $26.7 million, net income of $5.0 million and adjusted EBITDA of $11.2 million. The company’s net income margin stood at 19%, while adjusted EBITDA ...
Executive/Board ChangesShareholder Meetings
Red Violet Shareholders Back Directors and Executive Pay
Positive
Jun 5, 2026
On June 3, 2026, Red Violet, Inc. held its 2026 Annual Meeting of Stockholders, with 12,094,664 of 14,112,391 eligible shares represented in person or by proxy as of the April 9, 2026 record date. Stockholders elected directors Derek Dubner, Willi...
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.