Red Violet (NASDAQ:RDVT) Posts Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Red Violet reported EPS of $0.35, beating estimates by $0.03, and delivered a record quarter with $25.8 million revenue (up 17% YoY), an adjusted gross margin of 85%, adjusted EBITDA of $10.7 million (41% margin) and operating cash flow up 32%.
• Customer and usage momentum accelerated as IDI added 400 billable customers to reach 10,422 and FOREWARN grew to over 417,000 users and 640 realtor associations, while management says AI layered on its proprietary identity graph is boosting product velocity and signal quality.
• The company crossed a $100M run rate, holds $43.5 million in cash with $15.6M remaining on its buyback, expects near-term adjusted EBITDA in the mid‑to‑high 30% range, and the stock jumped to $43.60 (market cap ~$615M) on the results.

Red Violet (NASDAQ:RDVT - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.03, Zacks reports. Red Violet had a return on equity of 12.88% and a net margin of 14.57%.

Here are the key takeaways from Red Violet's conference call:

• Record quarterly results — $25.8 million revenue (up 17% YoY, >20% on a normalized basis), record adjusted gross margin of 85%, adjusted EBITDA of $10.7 million (41% margin), and adjusted EPS of $0.46, with operating cash flow up 32%.
• Customer and usage growth — IDI added 400 billable customers to reach 10,422, while FOREWARN grew to >417,000 users and 640 realtor associations, signaling broader adoption and deeper integration.
• AI is a stated competitive multiplier — management says AI layered on its proprietary longitudinal identity graph is accelerating development velocity, improving product utility, and enhancing data attribution and signal quality.
• Capital allocation and margin path — company crossed a $100M run rate, holds $43.5 million cash, repurchased shares with $15.6M remaining on the buyback, and expects near-term adjusted EBITDA in the mid‑to‑high 30% range as it continues deliberate investments toward longer‑term margin targets.

Red Violet Stock Performance

Shares of Red Violet stock traded up $3.18 on Wednesday, hitting $43.60. The company had a trading volume of 342,782 shares, compared to its average volume of 97,008. The stock has a market capitalization of $615.20 million, a price-to-earnings ratio of 47.55 and a beta of 1.71. Red Violet has a 1 year low of $33.40 and a 1 year high of $64.14. The stock has a 50 day moving average of $39.42 and a 200-day moving average of $47.25.

Institutional Trading of Red Violet

Institutional investors and hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd raised its stake in shares of Red Violet by 145.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 567 shares of the company's stock worth $32,000 after purchasing an additional 336 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Red Violet by 160.6% in the second quarter. Tower Research Capital LLC TRC now owns 1,032 shares of the company's stock valued at $51,000 after acquiring an additional 636 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of Red Violet in the fourth quarter valued at approximately $103,000. Legal & General Group Plc grew its holdings in shares of Red Violet by 143.5% in the second quarter. Legal & General Group Plc now owns 2,888 shares of the company's stock valued at $142,000 after acquiring an additional 1,702 shares in the last quarter. Finally, Envestnet Asset Management Inc. bought a new position in shares of Red Violet in the third quarter valued at approximately $201,000. 63.56% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages have recently issued reports on RDVT. Weiss Ratings downgraded Red Violet from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, February 9th. Zacks Research lowered shares of Red Violet from a "strong-buy" rating to a "hold" rating in a research note on Monday. Finally, Wall Street Zen cut shares of Red Violet from a "strong-buy" rating to a "buy" rating in a report on Friday, January 23rd. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $62.00.

Red Violet Company Profile

Red Violet, Inc NASDAQ: RDVT is a provider of advanced data, analytics and technology solutions designed to help organizations mitigate financial crime, fraud and security risks. The company’s cloud-native platform consolidates and enriches data from proprietary, public and third-party sources, applying artificial intelligence and machine learning to deliver insights across the risk-management lifecycle. Red Violet’s suite of services includes behavior-based transaction monitoring, automated watchlist and negative-news screening, enhanced due diligence and real-time geospatial threat intelligence.

Leveraging proprietary algorithms, Red Violet offers products that enable compliance teams to streamline anti-money laundering processes, improve fraud detection and respond swiftly to emerging threats.

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