Red Violet (NASDAQ:RDVT) Posts Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Red Violet (NASDAQ:RDVT) announced its quarterly earnings data on Wednesday. The company reported $0.46 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.14, FiscalAI reports. The firm had revenue of $25.83 million for the quarter, compared to analyst estimates of $24.63 million. Red Violet had a net margin of 14.99% and a return on equity of 14.48%.

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 Down 2.0%

Shares of NASDAQ RDVT traded down $0.98 during trading on Friday, hitting $48.11. The company had a trading volume of 86,939 shares, compared to its average volume of 120,985. The firm has a market capitalization of $678.93 million, a price-to-earnings ratio of 50.33 and a beta of 1.71. The stock has a fifty day simple moving average of $39.59 and a two-hundred day simple moving average of $47.24. Red Violet has a fifty-two week low of $33.40 and a fifty-two week high of $64.14.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RDVT. Invesco Ltd. lifted its holdings in Red Violet by 616.4% in the 4th quarter. Invesco Ltd. now owns 58,281 shares of the company’s stock valued at $3,319,000 after purchasing an additional 50,146 shares in the last quarter. XTX Topco Ltd lifted its stake in shares of Red Violet by 9.6% in the fourth quarter. XTX Topco Ltd now owns 9,942 shares of the company’s stock worth $566,000 after buying an additional 868 shares in the last quarter. Tudor Investment Corp ET AL lifted its stake in shares of Red Violet by 12.6% in the fourth quarter. Tudor Investment Corp ET AL now owns 78,944 shares of the company’s stock worth $4,496,000 after buying an additional 8,844 shares in the last quarter. Ophir Asset Management Pty Ltd boosted its position in Red Violet by 0.7% during the fourth quarter. Ophir Asset Management Pty Ltd now owns 638,598 shares of the company’s stock worth $36,368,000 after acquiring an additional 4,372 shares during the last quarter. Finally, AQR Capital Management LLC boosted its position in Red Violet by 2.0% during the fourth quarter. AQR Capital Management LLC now owns 79,086 shares of the company’s stock worth $4,504,000 after acquiring an additional 1,538 shares during the last quarter. 63.56% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

RDVT has been the topic of several research analyst reports. Zacks Research downgraded Red Violet from a “strong-buy” rating to a “hold” rating in a research note on Monday. Weiss Ratings cut Red Violet from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, February 9th. Finally, Wall Street Zen downgraded 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 given a Hold rating to the company’s stock. According to MarketBeat, Red Violet has a consensus rating of “Moderate Buy” and an average target price of $62.00.

About Red Violet

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.