Red Violet (NASDAQ:RDVT) Announces Earnings Results, Beats Expectations By $0.17 EPS

Red Violet (NASDAQ:RDVT) issued its quarterly earnings data on Monday. The company reported $0.50 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.17, FiscalAI reports. Red Violet had a return on equity of 16.48% and a net margin of 16.54%.The business had revenue of $26.72 million for the quarter, compared to analyst estimates of $25.62 million.

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

• Red Violet reported record Q2 results across revenue, margins, profitability, and cash flow: revenue rose 23% to $26.7 million, adjusted EBITDA increased 48% to $11.2 million, and adjusted EBITDA margin reached a record 42%.
• IDI customer growth accelerated, with a record 447 new billable customers added and the customer base reaching 10,869. Management said growth was broad-based across verticals, including background screening, investigative services, collections, and financial services.
• FOREWARN added 25,493 users in the quarter, reaching 443,173 users and 660 contracted Realtor associations while maintaining a 100% association renewal rate. Its expansion into home healthcare targets an estimated 4 million workers and more than 12,000 agencies.
• The company raised approximately $109 million in net proceeds through a public offering, strengthening its balance sheet and providing capital for product development, AI initiatives, working capital, and potential strategic acquisitions.
• Management expects continued investment in product development, AI engineering, infrastructure, and go-to-market personnel, while still targeting full-year adjusted EBITDA margins in the high 30s. Federal public-sector sales remain slower than desired because of procurement, budgeting, and implementation timelines, although the pipeline is growing.

Red Violet Trading Up 8.5%

Shares of RDVT stock opened at $71.22 on Wednesday. The stock has a market cap of $1.01 billion, a price-to-earnings ratio of 63.59 and a beta of 1.83. The stock has a 50-day moving average of $62.25 and a 200-day moving average of $49.61. Red Violet has a 1-year low of $33.40 and a 1-year high of $71.25.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on RDVT. Zacks Research lowered Red Violet from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 4th. Lake Street Capital upped their price objective on Red Violet from $62.00 to $73.00 and gave the company a “buy” rating in a research note on Tuesday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Red Violet in a report on Wednesday, August 5th. B. Riley Financial raised their price objective on shares of Red Violet from $65.00 to $81.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Finally, Wall Street Zen downgraded shares of Red Violet from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Red Violet has a consensus rating of “Moderate Buy” and an average price target of $77.00.

Insider Buying and Selling

In other Red Violet news, CFO Daniel Maclachlan sold 12,000 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $57.43, for a total transaction of $689,160.00. Following the completion of the transaction, the chief financial officer owned 358,902 shares in the company, valued at approximately $20,611,741.86. This trade represents a 3.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Derek Dubner sold 12,000 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $57.43, for a total transaction of $689,160.00. Following the completion of the transaction, the chief executive officer owned 557,273 shares in the company, valued at $32,004,188.39. This trade represents a 2.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 46,000 shares of company stock valued at $2,641,880 in the last ninety days. Insiders own 8.90% of the company’s stock.

Hedge Funds Weigh In On Red Violet

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

Key Stories Impacting Red Violet

Here are the key news stories impacting Red Violet this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Red Violet reported Q2 EPS of $0.50, well above the $0.33–$0.34 analyst consensus and up from $0.28 a year earlier. Revenue reached $26.72 million, surpassing the $25.62 million estimate. The company also reported a 16.54% net margin and 16.48% return on equity. Red Violet Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Results showed strong earnings growth. The company’s quarterly performance reinforced the bullish case that Red Violet is converting revenue growth into improving profitability. Coverage of the results highlighted the $26.7 million revenue figure and continued earnings momentum. Red Violet Announces Q2 2026 Revenue and Earnings Growth
• Positive Sentiment: Management’s earnings call gives investors additional detail. The Q2 2026 earnings-call transcript provides further commentary on operating performance and the company’s outlook, supporting investor evaluation of whether recent growth can continue. Red Violet Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Short-interest data offers little meaningful signal. Reported short interest was zero shares as of August 11, unchanged from the prior report, with a zero-day short-interest ratio. This suggests limited evidence of substantial bearish positioning, but the figures do not provide a new fundamental catalyst.
• Neutral Sentiment: An investor-letter article presented a bullish historical view of Red Violet’s resilience and rebound potential, but it was based on an investment manager’s second-quarter 2025 letter rather than new company results. The Resilient Bull Case for Red Violet
• Negative Sentiment: Valuation remains a risk. With a price-to-earnings ratio above 60 and the shares near their 52-week high, RDVT may need to sustain above-consensus growth to justify further gains. Any slowdown or weaker outlook could prompt profit-taking.

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.