Start here if you're new
what it is
Red Violet sells identity and fraud tools that help companies find people, verify them, and avoid getting scammed.
how it gets paid
Last year Red Violet made $90M in revenue. IDI analytics was the main engine at $62M, or 69% of sales.
why it's growing
Revenue grew 20.0% last year. The quarter showed the same thing the full year did: steady top-line growth and strong unit economics.
what just happened
Red Violet posted $23.4 million in quarterly revenue, up 20%, while adjusted gross margin reached 83%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
68.6x trailing p/e — you're paying up for this one
8.1% return on capital — nothing to write home about
$0.50 fy2024 eps est
xvary composite: 63/100 — average
What they do
Red Violet sells identity and fraud tools that help companies find people, verify them, and avoid getting scammed.
Its edge is data piled on data. Red Violet's CORE platform takes massive messy datasets and turns them into usable identity intelligence, and that gets stickier as customers feed it more searches and outcomes. The company did $90 million in annual revenue with just 215 employees, which tells you the product scales faster than the payroll.
How they make money
$90M
annual revenue · their business grew +20.0% last year
IDI analytics
$62M
FOREWARN
$25M
Other and emerging
$3M
The products that matter
identity intelligence platform
idio
$87.6M · 97% of revenue
this is the company in product form. idio generated $87.6M of the $90.3M revenue base and supports the 83% adjusted gross margin that keeps investors paying a software multiple.
core engine
expansion beyond the core platform
new vertical initiatives
$2.7M · less than 3% of revenue
this is the growth option, not the earnings engine. At $2.7M, it is too small to bail you out if the main platform cools.
option value
Key numbers
68.6x
trailing p/e
Price-to-earnings ratio → how many dollars you pay for $1 of profit → you are paying a premium price for a small company.
$90M
annual revenue
Revenue → total sales before expenses → the company is still small, which makes the current valuation harder to ignore.
23.3%
operating margin
Operating margin → profit after running the business → this is healthy for software and explains why investors give it a premium multiple.
$2M
long-term debt
Long-term debt → money owed over years → 0% of capital means the balance sheet is clean.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 20 / 100
- long-term debt $2M (0% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for RDVT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Red Violet posted $23.4 million in quarterly revenue, up 20%, while adjusted gross margin reached 83%.
The quarter showed the same thing the full year did: steady top-line growth and strong unit economics. Annual revenue hit $90 million, up 20.0%, while the business stayed profitable.
$23.4M
revenue
$0.21
eps
83%
gross margin
the number that mattered
83% gross margin matters most because gross margin → money left after direct costs → it shows this business can grow without carrying a heavy cost backpack.
source: company earnings report, 2026
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What could go wrong
the top risk here is multiple compression if revenue growth slows while the stock still trades like a premium software name.
med
premium valuation with narrow room for error
The stock trades at 68.6x trailing earnings on $0.91 of GAAP EPS. Analysts are looking for growth to cool into roughly 14% territory after a 20% year. That's still healthy. It is not obviously healthy enough for this multiple.
At a $537M market cap, a lower valuation multiple can hit the stock harder than a small earnings beat helps it.
med
a narrow moat in a market with bigger rivals
Management's estimated 5% market share tells you there is room to grow. It also tells you Red Violet is not the category owner. Bigger incumbents can spend more, sell through wider channels, and make customer acquisition harder.
If growth gets more expensive to buy, the 83% gross margin story stops flowing through to the bottom line the way investors expect.
med
revenue concentration in idio
Idio contributes $87.6M of the $90.3M revenue base. New verticals contribute $2.7M. In human-speak, the diversification story is still too small to protect you if the core product cools.
If demand weakens in the main platform, the rest of the portfolio is not large enough to offset it.
68.6x earnings on $0.91 of GAAP EPS means this stock is priced for continued clean execution. The balance sheet can handle volatility. The multiple may not.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth
whether 20% growth stays closer to 20% than 14%
The stock trades at 68.6x earnings because investors still see a fast grower. If growth slips into the mid-teens, the business may still look fine while the stock re-rates lower.
calendar
Q1 2026 earnings report
Scheduled for May 6, 2026. You want proof that revenue growth and adjusted gross margin are both still holding up.
metric
adjusted gross margin around 83%
This is the evidence that the platform still behaves like software. If margin slips while growth cools, the premium narrative weakens fast.
concentration
whether new verticals move beyond $2.7M
Right now, idio is 97% of revenue. You want the newer products to become financially visible, not just strategically interesting.
Analyst rankings
earnings predictability
30 / 100
Low predictability means quarterly earnings are harder to model. In human-speak, you should expect a bumpier ride than the gross margin suggests.
risk rank
2
This business screens as safer than 80% of stocks. That's balance-sheet safety, not valuation safety.
source: institutional data
Institutional activity
institutional ownership data for RDVT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$53
current price
n/a
target midpoint · n/a from current
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