Red Violet (NASDAQ:RDVT) Posts Earnings Results

Red Violet (NASDAQ:RDVT) posted its quarterly earnings data on Wednesday. The company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.15 by $0.06, FiscalAI reports. Red Violet had a net margin of 14.57% and a return on equity of 13.02%. The company had revenue of $23.39 million for the quarter, compared to the consensus estimate of $22.00 million.

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

• Record results: Q4 revenue was $23.4 million (+20%) with record adjusted gross profit of $19.5 million (83% margin), adjusted EBITDA of $5.9 million (+33%), adjusted EPS $0.21, and FY2025 revenue of $90.3 million (+20%) with $18.2 million in free cash flow.
• Strong customer momentum drove expansion — IDI billable customers rose to 10,022, FOREWARN reached 390,018 users with 620+ realtor associations, and 127 customers generated over $100k in 2025 (up from 96).
• Management emphasized a durable competitive moat built on a cloud-native longitudinal identity graph and proprietary Iron entity-resolution framework with embedded AI, arguing AI will accelerate volume-driven usage (~90% of revenue) rather than commoditize their offering.
• No formal 2026 guidance was provided; the company plans to prioritize reinvestment in product, AI-enabled automation, and go-to-market initiatives while continuing share repurchases (≈$16.4M capacity remaining).

Red Violet Trading Up 1.7%

NASDAQ:RDVT opened at $46.28 on Friday. The stock has a 50-day moving average price of $47.06 and a 200 day moving average price of $50.67. The stock has a market capitalization of $652.09 million, a P/E ratio of 51.42 and a beta of 1.67. Red Violet has a 12-month low of $32.23 and a 12-month high of $64.14.

Institutional Investors Weigh In On Red Violet

A number of institutional investors have recently added to or reduced their stakes in RDVT. Creative Planning purchased a new stake in Red Violet in the 2nd quarter worth $338,000. Integrated Quantitative Investments LLC bought a new stake in shares of Red Violet in the fourth quarter worth about $300,000. Tidal Investments LLC bought a new stake in shares of Red Violet in the second quarter worth about $277,000. First Trust Advisors LP purchased a new stake in shares of Red Violet in the third quarter worth about $276,000. Finally, Man Group plc bought a new position in Red Violet during the third quarter valued at approximately $269,000. 63.56% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have issued reports on RDVT. Wall Street Zen lowered Red Violet from a “strong-buy” rating to a “buy” rating in a report on Friday, January 23rd. Weiss Ratings cut Red Violet from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, February 9th. Zacks Research downgraded Red Violet from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 30th. Finally, Lake Street Capital restated a “buy” rating and set a $62.00 target price on shares of Red Violet in a research note on Thursday, November 6th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target 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.