Red Violet Inc.
08/11/2026 | Press release | Distributed by Public on 08/11/2026 15:27
red violet Reports Second Quarter 2026 Financial Results Record Revenue of $26.7 Million, an Increase of 23%; Record Cash Flow from Operations of $10.6 Million (Form 8-K)
red violet Reports Second Quarter 2026 Financial Results
Record Revenue of $26.7 Million, an Increase of 23%; Record Cash Flow from Operations of $10.6 Million
BOCA RATON, Fla. - August 10, 2026 - Red Violet, Inc. (NASDAQ: RDVT), a leading identity intelligence and analytics company, today announced financial results for the quarter ended June 30, 2026.
"The demand we are seeing for identity intelligence has never been stronger, and red violet is exceptionally well positioned to capture it. In Q2, we added a record 447 new customers to IDI in a quarter where revenue, profitability, and cash flow all hit new highs," stated Derek Dubner, red violet's CEO. "Our success is rooted in our proprietary assets, including an AI-embedded architecture consisting of a unique entity resolution engine which fuels a differentiated identity graph, that continues to prove its value across consequential transactions in the economy. With no debt, more than $160 million in cash following our recently completed offering, and the strongest pipeline of strategic initiatives in the Company's history, we are positioned to extend our leadership in ways that were not possible even twelve months ago. We remain disciplined in how we deploy capital, yet we have never been more confident in the opportunities ahead."
Second Quarter Financial Results
For the three months ended June 30, 2026 as compared to the three months ended June 30, 2025:
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Total revenue increased 23% to $26.7 million.
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Gross profit increased 29% to $20.2 million. Gross margin increased to 76% from 72%.
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Adjusted gross profit increased 25% to $22.9 million. Adjusted gross margin increased to 86% from 84%.
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Net income increased 85% to $5.0 million, which resulted in earnings of $0.35 and $0.34 per basic and diluted share, respectively. Net income margin increased to 19% from 12%.
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Adjusted EBITDA increased 48% to $11.2 million. Adjusted EBITDA margin increased to 42% from 35%.
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Adjusted net income increased 58% to $7.2 million, which resulted in adjusted earnings of $0.51 and $0.50 per basic and diluted share, respectively.
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Net cash provided by operating activities increased 42% to $10.6 million.
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Cash and cash equivalents were $50.0 million as of June 30, 2026.
Second Quarter and Recent Business Highlights
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Announced the August 2026 closing of an underwritten public offering of 1,916,667 shares of common stock, including 250,000 shares of common stock sold pursuant to the full exercise of the underwriters' option, providing net proceeds of approximately $109.0 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from the offering for working capital and general corporate purposes, including potential strategic acquisitions.
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Added a record 447 customers to IDI™ during the second quarter, ending the quarter with 10,869 customers.
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Added 25,493 users to FOREWARN® during the second quarter, ending the quarter with 443,173 users. 660 REALTOR® Associations throughout the U.S. are now contracted to use FOREWARN.
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Purchased 74,500 shares of the Company's common stock year to date through June 30, 2026, at an average price of $41.87 per share pursuant to the Company's Stock Repurchase Program. As of June 30, 2026, the Company had $15.5 million remaining under the Stock Repurchase Program.
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Conference Call
In conjunction with this release, red violet will host a conference call and webcast today at 4:30 pm ET to discuss its quarterly 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-embedded 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 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 August 11, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 11, 2026 at 21:27 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]