Red Violet, Inc. (RDVT) AI Stock Analysis

Red Violet, Inc. develops proprietary software and analytical tools that deliver identity intelligence solutions nationwide. Its core platforms include idiCORE, an investigative system used for identity verification, due diligence, regulatory compliance, and risk management, and FOREWARN, a mobile application that delivers real-time information to evaluate safety risks prior to face-to-face interactions. The company serves clients in financial services, insurance, retail, telecommunications, corporate security, collections, and law enforcement. Solutions aid in fraud detection, customer acquisition, and regulatory adherence. Red Violet markets its products via value-added distributors, resellers, strategic partners, and direct marketing.

Red Violet delivered a 5-year revenue compound annual growth rate of 21.1% from FY2020 to FY2025. Annual revenue expanded from $44.0M in FY2021 to $53.3M in FY2022, $60.2M in FY2023, $75.2M in FY2024, and $90.3M in FY2025, which reflected 20.0% annual growth. Gross margin widened from 74.6% in FY2021 to 83.7% in FY2025, while operating margin improved from -3.0% to 14.6% over the same period. Net income totaled $13.2M in FY2025 with diluted earnings per share of $1.12. Over the trailing twelve months ended June 30, 2026, revenue stood at $99.0M, supported by latest quarter year-over-year revenue growth of 22.7% and earnings growth of 88.9%.

As of June 30, 2026, Red Violet held $50.0M in cash and short-term investments against total debt of $2.6M, resulting in net cash of $47.3M. The company reported a current ratio of 10.88 and a debt-to-equity ratio of 0.02 with shareholders' equity of $111.6M. Operating cash flow reached $29.3M in FY2025, yielding $28.8M in free cash flow after $563,000 in capital expenditures. Cash deployment in FY2025 also included $915,000 for share buybacks and $4.2M in dividends paid.

Red Violet trades at a trailing price-to-earnings multiple of 64.9x, compared to the median of 28.1x for its US-listed Technology peers. The enterprise value to EBITDA ratio is 40.8x versus the peer median of 16.6x, and its price-to-sales multiple is 12.0x compared to 2.8x for peer group companies. The company's enterprise value is $1.17B against a market cap of $1.19B. Over the past 1 year, RDVT returned 39.0% compared to a 16.8% return for the S&P 500 benchmark, while its 5-year return of 135.0% outpaced the index gain of 83.0%.

Wall Street coverage consists of 4 analysts, with 2 Strong Buy ratings and 2 Buy ratings. The mean price target is $84.50, representing an upside of 14.2% from the last close of $74.00. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $106.7M and EPS of $1.66, representing 27.7% annual EPS growth. Red Violet has beaten earnings per share estimates in each of the last 4 quarters, and its next earnings date is scheduled for November 4, 2026.

This page is an AI-written research summary of Red Violet, Inc. (RDVT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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