Red Violet Inc.
03/05/2026 | Press release | Distributed by Public on 03/05/2026 16:27
red violet Announces Fourth Quarter and Full Year 2025 Financial Results Fourth Quarter Revenue Increased 20% to a Record $23.4 Million Full Year 2025 Revenue Increased 20% to[...]
red violet Announces Fourth Quarter and Full Year 2025 Financial Results
Fourth Quarter Revenue Increased 20% to a Record $23.4 Million
Full Year 2025 Revenue Increased 20% to $90.3 Million, Generating GAAP EPS of $0.91
BOCA RATON, Fla. - March 4, 2026 - Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2025.
"We concluded 2025 with record fourth quarter results, capping a year defined by disciplined execution and continued momentum across the enterprise," stated Derek Dubner, red violet's CEO. "Our cloud-native architecture, embedded artificial intelligence, and extensive longitudinal identity graph continue to differentiate us in the marketplace, particularly in regulated and mission-critical environments. The durability and scalability of our model are evident in our 20% revenue growth, margin expansion, and continued customer adoption. As we enter 2026, we remain focused on deepening workflow integration, advancing our technology differentiation, and driving sustainable long-term value for shareholders."
Fourth Quarter Financial Results
For the three months ended December 31, 2025 as compared to the three months ended December 31, 2024:
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Total revenue increased 20% to $23.4 million.
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Gross profit increased 23% to $16.8 million. Gross margin increased to 72% from 70%.
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Adjusted gross profit increased 21% to $19.5 million. Adjusted gross margin increased to 83% from 82%.
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Net income increased 226% to $2.8 million, which resulted in earnings of $0.20 and $0.19 per basic and diluted share, respectively. Net income margin increased to 12% from 4%.
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Adjusted EBITDA increased 33% to $5.9 million. Adjusted EBITDA margin increased to 25% from 23%.
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Adjusted net income increased 53% to $3.1 million, which resulted in adjusted earnings of $0.22 and $0.21 per basic and diluted share, respectively.
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Cash from operating activities remained consistent at $6.7 million.
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Cash and cash equivalents were $43.6 million as of December 31, 2025.
Full Year Financial Results
For the year ended December 31, 2025 as compared to the year ended December 31, 2024:
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Total revenue increased 20% to $90.3 million.
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Gross profit increased 26% to $65.1 million. Gross margin increased to 72% from 69%.
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Adjusted gross profit increased 23% to $75.4 million. Adjusted gross margin increased to 84% from 81%.
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Net income increased 88% to $13.2 million, which resulted in earnings of $0.94 and $0.91 per basic and diluted share, respectively. Net income margin increased to 15% from 9%.
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Adjusted EBITDA increased 31% to $31.0 million. Adjusted EBITDA margin increased to 34% from 31%.
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Adjusted net income increased 44% to $18.7 million, which resulted in adjusted earnings of $1.33 and $1.30 per basic and diluted share, respectively.
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Cash from operating activities increased 22% to $29.3 million.
Fourth Quarter and Recent Business Highlights
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Added 169 customers to IDI™ during the fourth quarter, ending the year with 10,022 customers.
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Added 17,809 users to FOREWARN® during the fourth quarter, ending the year with 390,018 users. Over 620 REALTOR® Associations are now contracted to use FOREWARN.
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Continued growth in the onboarding of higher-tier customers, with 127 customers contributing over $100,000 of revenue in 2025 compared to 96 customers in 2024.
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Purchased 57,812 shares of the Company's common stock during the fourth quarter and year to date through February 27, 2026, at an average price of $44.01 per share pursuant to the Company's Stock Repurchase Program. As of February 27, 2026, the Company had $16.4 million remaining under the Stock Repurchase Program.
Conference Call
In conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly and full year results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at www.redviolet.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com.
About red violet®
At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our cloud-native, AI-enabled identity intelligence platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, enhance safety, and mitigate fraud and the related financial losses borne by society. For more information, please visit www.redviolet.com.
Company Contact:
Camilo Ramirez
Red Violet, Inc.
561-757-4500
[email protected]
Investor Relations Contact:
Steven Hooser
Three Part Advisors
214-872-2710
[email protected]
Use of Non-GAAP Financial Measures
Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and free cash flow ("FCF"). Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest income, income tax (benefit) expense, depreciation and amortization, share-based compensation expense, acquisition-related costs, litigation costs, and write-off of long-lived assets. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, acquisition-related costs, litigation costs, and write-off of long-lived assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment and capitalized costs included in intangible assets.
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Red Violet Inc. published this content on March 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 05, 2026 at 22:28 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]