Red Violet (NASDAQ:RDVT) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Red Violet (NASDAQ:RDVT) released its quarterly earnings data on Wednesday. The company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.06, FiscalAI reports. Red Violet had a return on equity of 12.26% and a net margin of 12.96%.The firm had revenue of $23.39 million during the quarter, compared to analysts’ expectations 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 Stock Up 2.8%

Shares of Red Violet stock traded up $1.25 during trading on Wednesday, hitting $45.50. 94,648 shares of the company were exchanged, compared to its average volume of 114,304. Red Violet has a fifty-two week low of $32.23 and a fifty-two week high of $64.14. The firm has a 50 day moving average price of $47.54 and a 200 day moving average price of $50.74. The stock has a market capitalization of $641.10 million, a price-to-earnings ratio of 59.09 and a beta of 1.67.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in RDVT. Creative Planning acquired a new stake in shares of Red Violet during the second quarter worth $338,000. Integrated Quantitative Investments LLC purchased a new position in Red Violet during the fourth quarter worth about $300,000. Tidal Investments LLC purchased a new position in Red Violet during the second quarter worth about $277,000. First Trust Advisors LP acquired a new stake in Red Violet in the 3rd quarter worth about $276,000. Finally, Man Group plc purchased a new stake in Red Violet in the 3rd quarter valued at about $269,000. Institutional investors and hedge funds own 63.56% of the company’s stock.

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.