Red Violet (NASDAQ:RDVT) Announces Quarterly Earnings Results

Red Violet (NASDAQ:RDVT) announced its quarterly earnings results on Wednesday. The company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.06, reports. The company had revenue of $27.75 million during the quarter, compared to the consensus estimate of $27.22 million. Red Violet had a net margin of 16.54% and a return on equity of 16.12%.

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

• Red Violet reported record third-quarter revenue of $27.8 million, up 20%, and adjusted EBITDA of $11 million, up 22%, with a 40% margin. Operating cash flow also reached a record $12.7 million, and trailing 12-month revenue exceeded $100 million.
• Growth was broad across customer groups and industries, with 383 new IDI billable customers and continued strength in financial services, background screening, law enforcement, and collections. Contractual revenue rose to 78% of the total, while gross revenue retention held at 96%.
• IDI’s real estate business declined at a high-single-digit rate year over year, and management expects softness to persist until housing market conditions improve. FOREWARN’s growth partly offset the weakness, with double-digit revenue growth and nearly 20,000 users added.
• The company plans to keep investing in its platform, AI, product development, and sales capacity while pursuing strategic acquisitions. It ended the quarter with $165.7 million in cash and U.S. Treasury investments and no debt, following an offering that generated about $109 million in net proceeds.

Red Violet Stock Down 9.8%

Shares of NASDAQ RDVT traded down $7.84 during mid-day trading on Thursday, hitting $72.16. 383,246 shares of the company were exchanged, compared to its average volume of 171,117. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of 64.41 and a beta of 1.73. The stock has a 50 day simple moving average of $77.16 and a 200-day simple moving average of $57.51. Red Violet has a 1-year low of $33.40 and a 1-year high of $83.15.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Raymond James Financial began coverage on shares of Red Violet in a report on Thursday, September 17th. They issued an “outperform” rating and a $90.00 target price for the company. Zacks Research downgraded Red Violet from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 20th. Wall Street Zen raised shares of Red Violet from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Weiss Ratings upgraded shares of Red Violet from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, October 13th. Finally, Lake Street Capital raised their price target on shares of Red Violet from $62.00 to $73.00 and gave the stock a “buy” rating in a research report on Tuesday, August 11th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $86.00.

Insider Buying and Selling at Red Violet

In other news, Director William Livek purchased 2,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was acquired at an average cost of $71.49 per share, for a total transaction of $142,980.00. Following the completion of the acquisition, the director directly owned 22,733 shares in the company, valued at $1,625,182.17. This represents a 9.65% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 8.90% of the stock is currently owned by corporate insiders.

Trending Headlines about Red Violet

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

• Positive Sentiment: Q3 2026 revenue rose 20% year over year to a record $27.8 million, topping estimates of $27.22 million. Adjusted earnings were $0.47 per share versus the $0.41 consensus and $0.39 a year earlier. The company also reported record operating cash flow of $12.7 million, expanding margins, and strong demand for identity intelligence. Red Violet third-quarter 2026 results
• Positive Sentiment: B. Riley raised its price target to $110 from $85 and maintained a Buy rating, signaling increased optimism about RDVT’s prospects. B. Riley price-target update
• Positive Sentiment: Needham raised its target to $100 from $90 and reiterated a Buy rating, adding to the favorable analyst signals after the earnings report. Needham price-target update
• Neutral Sentiment: Although the reported results and analyst updates are positive, RDVT traded lower in the session. The provided articles do not explain the divergence, so the move may reflect factors beyond these headlines.

About Red Violet

Red Violet, Inc (NASDAQ: RDVT) is a technology company that develops cloud-based identity intelligence and information solutions. Its platform helps organizations access, analyze and connect data to support investigations, risk management, fraud prevention, compliance and other decision-making activities.

The company’s products include idiCORE, an investigative and information services platform designed for users such as law enforcement agencies, government organizations, corporate security teams, insurance companies, financial institutions, collection agencies and other businesses.