RDVT

Interested in Red Violet, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue rose 23% year over year to $26.7 million, while adjusted EBITDA increased 48% to $11.2 million and margins expanded to a record 42%. Adjusted net income and operating cash flow also reached new highs. Broad customer and market growth: Red Violet added a record 447 billable IDI customers, ending the quarter with 10,869, while four of its five revenue verticals posted all-time quarterly highs. Collections, investigative services and financial and corporate risk were key growth areas, though real estate remained weak. Expansion and capital flexibility: FOREWARN grew to 443,173 users and expanded into home healthcare, while Red Violet ended June with $50 million in cash and raised approximately $109 million through a public offering. Management plans to invest in AI, infrastructure and potential strategic acquisitions. Are These 3 Under-the-Radar AI Stocks the Next Big Growth Stories? Red Violet (NASDAQ:RDVT) reported record second-quarter results for 2026, with revenue, profitability and operating cash flow all reaching new highs as demand for identity intelligence solutions increased across its customer base. Revenue rose 23% year over year to $26.7 million, while adjusted EBITDA increased 48% to $11.2 million. The company’s adjusted EBITDA margin expanded seven percentage points to a record 42%. Adjusted net income grew 58% to $7.2 million, or $0.50 per diluted share, and cash flow from operations climbed 42% to $10.6 million. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chairman and Chief Executive Officer Derek Dubner said the quarter reflected broad demand for identity intelligence as businesses confront rising fraud, synthetic identities, digital transaction volumes and regulatory exposure. He said artificial intelligence has increased the urgency for organizations to verify who is involved in digital interactions. “Q2 was our strongest quarter across every financial metric,” Dubner said, citing revenue, gross margins, adjusted EBITDA, net income and operating cash flow. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Red Violet added 447 billable IDI customers during the second quarter, its highest quarterly customer-addition total, following 400 additions in the first quarter. The company ended the period with 10,869 IDI customers. Dubner said the gains reflected both new-market opportunities and customer wins from competitors. Chief Financial Officer Dan MacLachlan said the company has been moving toward medium-sized and larger enterprise customers, with growth occurring across several customer spending cohorts. → Is Wingstop's Growth Story Losing Steam? Four of Red Violet’s five revenue verticals reached all-time quarterly revenue highs, according to management. MacLachlan highlighted several areas of growth: Financial and corporate risk: Growth was led in part by background screening, while financial services increased through expanded usage among existing customers. Insurance also posted gains as the company expanded dedicated sales efforts. Investigative: This was Red Violet’s fastest-growing vertical on a percentage basis, with double-digit growth across law enforcement, private investigators, bail bond and process servers. Collections: Revenue grew more than 20%, driven by recurring demand as consumer delinquencies remained elevated and clients used the company’s tools at higher volumes to locate and recover accounts. Emerging markets: Retail, repossession and legal led growth, with additional contributions from marketing and education. IDI real estate revenue, excluding the company’s FOREWARN offering, declined modestly. MacLachlan said Red Violet remains cautious about a near-term rebound in that market because of limited housing inventory, elevated interest rates and high home prices. Contractual revenue represented 77% of total revenue, unchanged from the prior-year period. Gross revenue retention was 95%, down two percentage points year over year. FOREWARN, Red Violet’s proactive safety platform for identity verification before face-to-face encounters, added 25,493 users during the quarter and ended June with 443,173 users. The company said 660 Realtor associations were contracted to use the service, representing more than half of the approximately 1,300 Realtor associations nationwide. MacLachlan said FOREWARN maintained a 100% renewal rate among association customers and delivered strong double-digit revenue growth in the quarter. During the quarter, the company announced its expansion into home healthcare through FOREWARN for Home Healthcare. The offering is intended to provide caregivers and agencies with pre-visit household information and safety intelligence before visits to patients’ residences. Dubner said the company estimates that the U.S. market includes about 4 million home health aides and more than 12,000 Medicare-certified home health agencies. He said the company sees applications both for individual caregivers using a mobile app and for agencies integrating the service through application programming interfaces into scheduling or workforce-management systems. Management did not provide a specific revenue opportunity estimate or pricing outlook for the home healthcare expansion. Dubner said the company has developed its own estimates but intends to remain “close to vest” as it begins entering the market. Adjusted gross profit rose 25% to $22.9 million, producing an adjusted gross margin of 86%, up two percentage points. Sales and marketing expense increased 2% to $5.8 million, while general and administrative expense rose 14% to $8.3 million, primarily because of higher personnel costs. GAAP net income increased 85% to $5 million. Free cash flow rose 50% to $7.2 million. As of June 30, Red Violet had $50 million in cash and cash equivalents, up from $43.6 million at the end of 2025. Current assets totaled $65.2 million, while current liabilities were $6 million. The company also recently completed a public offering that generated approximately $109 million in net proceeds from new and existing investors. Management said the proceeds are intended for working capital, general corporate purposes and possible strategic acquisitions. Red Violet repurchased 74,500 shares year to date through June 30 at an average price of $41.87 per share. It had $15.5 million remaining under its stock repurchase authorization at quarter-end. Management said it expects to continue investing in product development, AI engineers, infrastructure and go-to-market capabilities. MacLachlan said Red Violet has historically added roughly 30 to 40 team members annually and believes it can continue investing while expanding margins because of the company’s operating leverage. Dubner said Red Violet is pursuing a multiyear product roadmap that includes vertical-specific application layers, natural-language interfaces and expanded data capabilities. He outlined three potential acquisition priorities: unique data assets that expand the company’s identity graph, enabling technology that accelerates development, and assets that deepen the company’s presence in targeted vertical markets. Management emphasized that acquisition decisions would be based first on strategic fit and synergies rather than a need to deploy capital. The company said it expects full-year adjusted EBITDA margin to remain in the high 30% range, noting that the fourth quarter typically carries higher year-end incentive compensation expenses. Red Violet, Inc (NASDAQ: RDVT) is a provider of advanced data, analytics and technology solutions designed to help organizations mitigate financial crime, fraud and security risks. The company’s cloud-native platform consolidates and enriches data from proprietary, public and third-party sources, applying artificial intelligence and machine learning to deliver insights across the risk-management lifecycle. Red Violet’s suite of services includes behavior-based transaction monitoring, automated watchlist and negative-news screening, enhanced due diligence and real-time geospatial threat intelligence. Leveraging proprietary algorithms, Red Violet offers products that enable compliance teams to streamline anti-money laundering processes, improve fraud detection and respond swiftly to emerging threats. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Red Violet Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Red Violet (RDVT) just paired its Q2 2026 earnings release with fresh details on a completed follow on equity offering, giving investors new information on recent revenue, profitability and plans for acquisition funded expansion. See our latest analysis for Red Violet. At a share price of $71.22 as of 11 August 2026, Red Violet’s recent Q2 update and equity raise come after a 90 day share price return of 55.88% and a 1 year total shareholder return of 66.83%, building on a very large 3 year total shareholder return of 243.60%. If this kind of momentum has your attention, it can be useful to widen the lens and see what else is moving. You might start with our 18 top founder-led companies After a 90 day surge and a fresh equity raise in the rearview mirror, Red Violet is no longer flying under the radar. Does it make more sense to commit at today’s price or wait for a cleaner entry on valuation? The most followed narrative currently pegs Red Violet’s fair value at $71.50, which is almost identical to the recent $71.22 close. The gap is tiny, so the narrative work behind that number really matters. Read the complete narrative. It is worth asking what supports that near one to one match between price and narrative fair value. The story leans heavily on steady revenue expansion, firm profit margins, and a rich future earnings multiple. The key point is how those pieces are expected to fit together over the next few years. Result: Fair Value of $71.50 (ABOUT RIGHT) Have a read of the narrative in full and understand what's behind the forecasts. However, Red Violet’s story can change quickly if identity analytics competition pressures pricing or if higher AI and data spending pushes margins below current expectations. Find out about the key risks to this Red Violet narrative. The narrative fair value pins Red Violet close to $71.50, which feels tidy given the current $71.22 share price. The preferred earnings multiple tells a very different story. The stock trades on a 61.4x P/E versus a 31.5x industry average, a 27.4x peer average and a fair ratio of 25.4x. That gap suggests investors are already paying a heavy premium for Red Violet, well above both sector norms and where the fair ratio indicates the market could move. The key question is whether you think the business can support that kind of premium for long, or if today’s price leaves little margin for error. See what the numbers say about this price — find out in our valuation breakdown. With Red Violet now firmly on investors’ radar, sentiment on the stock is understandably mixed. It makes sense to review the full picture yourself and decide how comfortable you are with both sides of the story, including the 2 key rewards and 1 important warning sign If Red Violet has sharpened your focus, do not stop with one stock. Broader ideas can help you spot opportunities and avoid over committing to a single story. Spot potential bargains early and check out companies highlighted in the 49 high quality undervalued stocks that may offer attractive valuations backed by solid fundamentals. Build a sturdier core to your portfolio and review stocks in the solid balance sheet and fundamentals stocks screener (50 results) that combine financial resilience with underlying business strength. Hunt for underfollowed opportunities and scan the screener containing 20 high quality undiscovered gems that might not be widely covered but still meet strict quality filters. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RDVT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 2026 results with revenue up 23% to $26.7 million, adjusted gross margin at 86%, adjusted EBITDA up 48% to $11.2 million, and adjusted net income up 58% to $7.2 million. Highest quarterly customer additions in history with 447 new IDI customers, ending at 10,869, indicating accelerating market recognition. Forewarn expansion into home healthcare, a substantial market with 4 million aides and 12,000 agencies, leveraging a proven playbook from real estate. Strong balance sheet with $109 million raised in a public offering, providing capital for strategic acquisitions and organic growth initiatives. Broad-based growth across verticals, with four of five verticals hitting record revenue, and strong performance in investigative, collections, and background screening. IDI real estate vertical declined modestly due to ongoing industry headwinds from limited inventory, elevated interest rates, and high home prices. Gross revenue retention decreased 2 percentage points to 95%. Federal public sector sales cycles are slower than expected, with conversions taking longer due to procurement and budgeting processes. General and administrative expenses increased 14% due to higher personnel costs, which could pressure margins if not offset by revenue growth. The company faces competition from larger incumbents, though it believes its differentiated platform provides an advantage. Warning! GuruFocus has detected 5 Warning Signs with RIOT. Is RDVT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide insights into the record 447 new IDI customer additions in Q2, specifically whether these wins are more greenfield or coming from competitors, and any updates on the federal public sector pipeline?A: Derek Zubner (Chairman and CEO): We're seeing a healthy mix of both greenfield and competitive wins. The demand is driven by emerging technologies like the gig economy, fintech, BNPL, and online sports betting, which create new use cases for identity intelligence. Dan McLaughlin (CFO) added that the company has focused on moving upmarket into medium and larger enterprises, and the pipeline is converting with significantly larger customer cohorts than in the past. Regarding the public sector, we won one of the largest law enforcement agencies in the country, displacing a major incumbent who even offered a price cut at the 11th hour; the agency chose us for our superior product. Federal sales cycles are slower due to procurement and budgeting, but the pipeline is growing, and we believe it's a matter of when, not if. Q: Can you quantify the size of the home healthcare market opportunity for Forewarn, and how will pricing compare to the real estate vertical?A: Derek Zubner (Chairman and CEO): We estimate there are 4 million licensed home healthcare workers and over 12,000 Medicare-certified home health agencies in the U.S. We're keeping specific market sizing close to the vest due to the competitive environment, but the opportunity is extremely sizable. The market parallels real estate closely, with individual caregivers needing pre-visit insights via mobile app and large agencies requiring API integration into their scheduling systems. We're seeing that agencies view this as a retention tool and a way to demonstrate they care about worker safety, which is becoming a legal imperative with new occupational safety laws. Q: Given the growth acceleration, are you planning to step up product or personnel investment, or do you have what you need for the next 18 months?A: Dan McLaughlin (CFO): We've historically added 30-40 new team members each year across product development, engineering, infrastructure, and go-to-market. We'll continue investing similarly, but the operating leverage of the model allows us to expand margins even with that investment. Derek Zubner (CEO) added that this is the largest opportunity set in the company's history, and they are "leaning in" by layering more AI onto their already AI-enabled infrastructure. He emphasized that while they expect to maintain healthy EBITDA margins, Red Violet is still a very early-stage company at $100 million in revenue with significant room to grow. Q: What drove the record financial performance in Q2, and can you break down the strength across the different verticals?A: Dan McLaughlin (CFO): Revenue reached a record $26.7 million, up 23%, with four of five verticals hitting all-time highs. Background screening was a standout with outsized growth, financial services grew solidly on expanded usage, and insurance posted healthy gains. Investigative was the fastest-growing vertical on a percentage basis, with law enforcement showing sequential revenue growth every quarter since Q4 2021. Collections grew over 20% driven by high consumer delinquencies. The only soft spot was IDI's real estate vertical, which declined modestly due to ongoing industry headwinds from limited inventory and high interest rates. Q: How is the company planning to deploy the approximately $109 million in net proceeds from the recent public offering?A: Derek Zubner (Chairman and CEO): The capital will be used for working capital, general corporate purposes, and potential strategic acquisitions. We've defined a clear framework for M&A with three criteria: acquiring unique data assets that expand our identity graph, acquiring enabling technology that accelerates product development, and expanding vertical market presence. We maintain a high bar and have walked away from potential transactions in the past. The capital gives us the capacity to act when the right opportunity presents itself, not the obligation to act for its own sake. Q: Can you elaborate on the five dimensions of the AI opportunity you see for the company?A: Derek Zubner (Chairman and CEO): The five dimensions are: 1) Risk signal intelligence - using AI to analyze our identity graph and transaction volumes to surface risk signals; 2) Intelligent data aggregation - AI-driven ingestion of unstructured public data into the identity graph in real-time; 3) New customer interaction layers - moving beyond static interfaces to vertical application layers and natural language interfaces; 4) Enterprise workflow automation - AI-driven automation across internal operations like compliance and customer support to expand operating leverage; and 5) AI-augmented development - using AI coding to compress development cycles and enable faster product iteration without linear team expansion. Q: What is the current state of Forewarn's expansion, and what are the key metrics for the real estate vertical?A: Derek Zubner (Chairman and CEO): Forewarn added over 25,000 new users in Q2, ending with over 443,000 users. We now have 660 realtor associations contracted, representing more than half of the approximately 1,300 realtor associations in the country. We maintain a 100% renewal rate among association customers. Forewarn has become a network effect moat, and we've now expanded into home healthcare, which represents the most significant vertical expansion since Forewarn's founding. Q: Can you provide more detail on the margin performance and expectations for the full year?A: Dan McLaughlin (CFO): Adjusted gross margin reached a record 86%, up 2 percentage points, and adjusted EBITDA margin hit a record 42%, up 7 percentage points. Adjusted net income increased 58% to $7.2 million, resulting in record adjusted earnings of $0.50 per diluted share. We continue to expect full-year adjusted EBITDA margin to be in the high 30s, as margins are seasonally strongest in the first three quarters and move down in Q4 due to year-end incentive compensation accruals. Q: How is the K-shaped economic environment impacting demand across your customer base?A: Derek Zubner (Chairman and CEO): The K-shaped environment creates tailwinds at both ends of the spectrum. Elevated transaction activity at the higher end drives demand from financial services, insurance, and background screening, while financial stress at the lower end drives demand from collections, repossession, investigative, and legal. We're increasingly convinced this is not simply cyclical but reflects a structural shift in how the economy has stratified, giving our demand profile durability and breadth that few businesses can claim.For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record financial results across all metrics, driven by the fundamental necessity of identity intelligence in a market increasingly compromised by AI-fueled fraud and synthetic identity. Attributed a record 447 new IDI customer additions to the platform's transition from a 'nice-to-have' to a foundational workflow requirement for organizations navigating high-stakes digital interactions. Maintained a structural advantage over legacy competitors by utilizing a purpose-built, cloud-native architecture (IRON) that embeds AI in its foundation rather than retrofitting it onto aging infrastructure. Benefited from a 'K-shaped' economic environment where high-end transaction activity drives financial services demand while lower-end financial stress fuels collections and investigative services. Established FOREWARN as the industry standard in real estate, with over half of all U.S. realtor associations now contracted, creating a powerful network effect and defensive moat. Initiated a major strategic pivot by expanding FOREWARN into the home health care sector, targeting 4 million aides facing similar uncontrolled environment risks as real estate professionals. Completed a $109 million public offering to provide the capacity for strategic acquisitions and accelerated product development while maintaining historical financial discipline. Anticipates full-year adjusted EBITDA margins in the high 30s, accounting for typical fourth-quarter seasonality related to incentive compensation accruals. Leveraging AI to compress development cycles, enabling the creation of vertical application layers and natural language interfaces that were previously unfeasible at the company's scale. Executing a disciplined M&A framework focused on unique data assets, enabling technologies, and vertical market expansion, with a high bar for strategic fit over mere valuation accretion. Focusing on five AI dimensions: risk signal intelligence, automated data ingestion, new customer interaction layers, enterprise workflow automation, and augmented coding for faster iteration. Expects continued growth in the public sector pipeline, noting that while federal conversions are slower due to procurement cycles, state and local law enforcement wins are accelerating. Reported record adjusted gross margin of 86% and adjusted EBITDA margin of 42%, demonstrating significant operating leverage as the company scales. Successfully displaced a large incumbent in a major law enforcement agency, with the client choosing IDI's superior intelligence over the competitor's last-minute price cuts. Maintained a 100% renewal rate among FOREWARN association customers, reinforcing the product's status as a non-negotiable safety standard. Identified real estate IDI (excluding FOREWARN) as the only declining vertical due to macro headwinds like limited inventory and elevated interest rates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted a healthy mix of greenfield opportunities and competitive displacements, fueled by emerging technologies like fintech and online sports betting. Confirmed that the larger customer pipeline ($100k+ cohorts) is converting well, with significant growth in mid-tier customer segments as well. Reported that while federal sales cycles remain slow, state and local law enforcement adoption is rapid, evidenced by a recent win against a major incumbent. The addressable market includes 4 million licensed workers and 12,000 agencies, with demand driven by new occupational safety laws and agency retention needs. Management is keeping specific pricing and penetration tactics 'close to the vest' due to the competitive environment but emphasized the direct parallel to their real estate success. The company plans to continue adding 30-40 team members annually, specifically targeting AI engineers and go-to-market staff. Management emphasized that their operating leverage allows for this continued investment while still expanding margins over the long term.

Red Violet, Inc. (RDVT) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +47.06%. A quarter ago, it was expected that this company would post earnings of $0.32 per share when it actually produced earnings of $0.46, delivering a surprise of +43.75%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Red Violet, which belongs to the Zacks Internet - Software and Services industry, posted revenues of $26.72 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.24%. This compares to year-ago revenues of $21.77 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Red Violet shares have added about 15% since the beginning of the year versus the S&P 500's gain of 13.3%. While Red Violet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Red Violet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.40 on $27.25 million in revenues for the coming quarter and $1.48 on $105.33 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software and Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Nebius Group (NBIS), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This an AI-centric cloud platform is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of -89.5%. The consensus EPS estimate for the quarter has been revised 3.9% higher over the last 30 days to the current level. Nebius Group's revenues are expected to be $585.12 million, up 456.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Red Violet, Inc. (RDVT) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record Revenue of $26.7 Million, an Increase of 23%; Record Cash Flow from Operations of $10.6 Million BOCA RATON, Fla., Aug. 10, 2026 (GLOBE NEWSWIRE) -- 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: Total revenue increased 23% to $26.7 million. Gross profit increased 29% to $20.2 million. Gross margin increased to 76% from 72%. Adjusted gross profit increased 25% to $22.9 million. Adjusted gross margin increased to 86% from 84%. 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%. Adjusted EBITDA increased 48% to $11.2 million. Adjusted EBITDA margin increased to 42% from 35%. 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. Net cash provided by operating activities increased 42% to $10.6 million. Cash and cash equivalents were $50.0 million as of June 30, 2026. Second Quarter and Recent Business Highlights 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. Added a record 447 customers to IDI™ during the second quarter, ending the quarter with 10,869 customers. 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. 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. 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 RamirezRed Violet, [email protected] Investor Relations Contact:Steven Hooser Three Part [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. FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether red violet is exceptionally well positioned to capture the strong demand for identity intelligence; whether our proprietary assets will continue to provide their value across consequential transactions in the economy; whether our cash position and pipeline of strategic initiatives will allow us to extend our leadership in ways that were not possible twelve months ago; whether we will be able to deploy the net proceeds of our recent public offering effectively for working capital and general corporate purposes, including potential strategic acquisitions; and whether we will be able to execute on the opportunities ahead. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading "Forward-Looking Statements" and "Risk Factors" in red violet's Form 10-K for the year ended December 31, 2025, filed on March 4, 2026, as may be supplemented or amended by the Company's other filings with the Securities and Exchange Commission (the “SEC”). We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Use and Reconciliation 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 FCF. Adjusted EBITDA is a financial measure equal to net income, the most directly comparable financial measure based on 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. The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA: The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income: The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit: The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF: In order to assist readers of our condensed consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business. We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, share-based compensation expense and the impact of other items not indicative of our ongoing operating performance. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income, adjusted to exclude share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, and other items not indicative of our ongoing operating performance, 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. Our adjusted gross profit is a measure used by management in evaluating the business’s current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets. We believe adjusted gross profit provides useful information to our investors by eliminating the impact of certain non-cash depreciation and amortization, and primarily the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business’s operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment, and capitalized costs included in intangible assets. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements. SUPPLEMENTAL METRICS The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release. We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material.

Revenue Increases 17% to a Record $25.8 Million; Net Income Increases 28% to $4.4 Million BOCA RATON, Fla., May 06, 2026 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended March 31, 2026. “Q1 2026 was an exceptional quarter, with record revenue, record profitability, and one of our strongest quarters ever for new customer onboarding. These results continue to demonstrate the structural strength, durability, and scalability of our model and are even more compelling considering the prior year period included $1.2 million of one-time revenue,” stated Derek Dubner, red violet’s CEO. “While there is considerable noise in the market about AI's potential to disrupt data and software businesses, we see our reality as precisely the opposite. We believe our cloud-native, AI-embedded platform and differentiated longitudinal identity graph are foundational to AI-driven decisioning in regulated environments. The demand we are seeing from customers validates this every quarter. We continue to invest in our product roadmap and go-to-market capabilities because we are confident in the significant opportunity ahead.” First Quarter Financial Results For the three months ended March 31, 2026 as compared to the three months ended March 31, 2025: Total revenue increased 17% to $25.8 million. Gross profit increased 22% to $19.3 million. Gross margin increased to 75% from 72%. Adjusted gross profit increased 20% to $22.0 million. Adjusted gross margin increased to 85% from 83%. Net income increased 28% to $4.4 million, which resulted in earnings of $0.31 and $0.30 per basic and diluted share, respectively. Net income margin increased to 17% from 16%. Adjusted EBITDA increased 27% to $10.7 million. Adjusted EBITDA margin increased to 41% from 38%. Adjusted net income increased 29% to $6.6 million, which resulted in adjusted earnings of $0.46 per basic and diluted share. Net cash provided by operating activities increased 32% to $6.6 million. Cash and cash equivalents were $43.5 million as of March 31, 2026. First Quarter and Recent Business Highlights Added 400 customers to IDI™ during the first quarter, ending the quarter with 10,422 customers. Added 27,662 users to FOREWARN® during the first quarter, ending the quarter with 417,680 users. Over 640 REALTOR® Associations throughout the U.S. are now contracted to use FOREWARN. Purchased 73,250 shares of the Company’s common stock year to date through April 30, 2026, at an average price of $41.90 per share pursuant to the Company’s Stock Repurchase Program. As of April 30, 2026, the Company had $15.6 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 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. FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether our cloud-native, AI-embedded platform and differentiated longitudinal identity graph will continue to be foundational to AI-driven decisioning in regulated environments and whether the continued investment in our product roadmap and go-to-market capabilities will produce a significant opportunity ahead. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading "Forward-Looking Statements" and "Risk Factors" in red violet's Form 10-K for the year ended December 31, 2025, filed on March 4, 2026, as may be supplemented or amended by the Company's other filings with the Securities and Exchange Commission (the “SEC”). We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Use and Reconciliation 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 FCF. Adjusted EBITDA is a financial measure equal to net income, the most directly comparable financial measure based on 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. The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA: The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income: The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit: The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF: In order to assist readers of our condensed consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business. We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, share-based compensation expense and the impact of other items not indicative of our ongoing operating performance. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income, adjusted to exclude share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, and other items not indicative of our ongoing operating performance, 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. Our adjusted gross profit is a measure used by management in evaluating the business’s current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets. We believe adjusted gross profit provides useful information to our investors by eliminating the impact of certain non-cash depreciation and amortization, and primarily the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business’s operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment, and capitalized costs included in intangible assets. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements. SUPPLEMENTAL METRICS The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release. We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material.

Image source: The Motley Fool. Wednesday, May 6, 2026 at 4:30 p.m. ET Chairman and Chief Executive Officer — Derek Dubner Chief Financial Officer — Daniel MacLachlan Need a quote from a Motley Fool analyst? Email [email protected] Derek Dubner, our Chairman and Chief Executive Officer, and Daniel MacLachlan, our Chief Financial Officer. Our call today will begin with comments from Derek and Daniel, followed by a question-and-answer session. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit our Investors page on our website, redviolet.com. Before we begin, I would like to advise listeners that certain information discussed by management during this conference call are forward-looking statements covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with Red Violet, Inc.'s business. Red Violet, Inc. undertakes no obligation to update the information provided on this call. For a discussion of the risks and uncertainties associated with Red Violet, Inc.'s business, I encourage you to review Red Violet, Inc.'s filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-Ks and subsequent 10-Qs. During the call, we may present certain non-GAAP financial information relating to adjusted gross profit, adjusted gross margin, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, and free cash flow. Reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures are provided in the earnings press release issued earlier today. In addition, certain supplemental metrics that are not necessarily derived from any underlying financial statement amounts may be discussed, and these metrics and their definitions can also be found in the earnings press release issued earlier today. With that, I am pleased to introduce Red Violet, Inc.'s Chairman and Chief Executive Officer, Derek Dubner. Derek Dubner: Good afternoon, everyone, and thank you for joining us. Before I walk through the quarter, I want to recognize our team. The results we are reporting today—record revenue, record margins, record EBITDA, and one of the strongest quarters for new customer onboarding in our company's history—are a direct outcome of disciplined execution. This is a team that consistently delivers, and that consistency is what drives the results you are seeing today. Now to the quarter. Revenue for the first quarter was a record $25.8 million, up 17% year over year. It is important to note that the prior year period included $1.2 million of one-time transactional revenue, so the underlying growth this quarter is stronger than the headline suggests. Adjusted gross profit increased 20% to $22.0 million, resulting in a record adjusted gross margin of 85%. Adjusted EBITDA increased 27% to $10.7 million, with a record margin of 41%. Adjusted net income was $6.6 million, producing record earnings of $0.46 per diluted share. Operating cash flow increased 32% to $6.6 million. This marks yet another quarter of consistent execution with high-teen growth and continued expansion in margins and cash flow. On the customer front, IDI added 400 new billable customers, one of the highest quarterly additions in our history, bringing total customers to 10,422. FOREWARN grew to more than 417,000 users with over 640 realtor associations under contract. These metrics reflect increasing adoption, deeper integration, and the growing reliance our customers place on our platform in their daily operations. At the same time, we continue to see a significant and expanding opportunity set in front of us, particularly as AI continues to unlock new capabilities across analytics, data aggregation, and customer interaction. Given the strength of our model and the level of cash flow we are generating, we are well positioned to invest proactively into that opportunity. Importantly, our opportunity in AI is not just about access to tools. It is about the foundation that we have built that those tools operate on. Our longitudinal identity graph, built and refined over time through real-world usage, is what enables us to generate actionable signals, not just data outputs. AI enhances our ability to analyze the foundational graph, identify patterns, and surface risk and insight with greater speed and precision. Similarly, our ability to aggregate and fuse new data is directly tied to our ability to resolve that data to unique individuals within our identity graph. Aggregating data is one thing, but correctly attributing it to the right individual over time is something entirely different. Whether it is distinguishing between thousands of individuals with the same name, resolving generational differences, or identifying underbanked consumers with limited public data, our platform is architected to unify fragmented data into a persistent, accurate identity—a continuously maintained and correctly attributed view of an individual over time, all powered by our proprietary engine. As we bring in additional data inputs, AI further enhances our ability to validate that data against our graph, then link and extract meaningful insight, reinforcing and extending the advantage we have built over the past. Across customer workflows, AI is also enhancing how our solutions are experienced, improving responsiveness, deepening integration, and increasing the utility of our platform in day-to-day decisioning. Internally, we are seeing accelerating adoption of AI across the organization, from engineering and security to operations and customer support, driving significant gains in productivity and development velocity. Within our technology organization in particular, development velocity has accelerated materially with teams leveraging AI and agentic tools to code, test, and deploy at rates we have not previously experienced. What historically required multiple resources can now often be accomplished by a single engineer operating with AI augmentation, significantly increasing our pace of product development and innovation. What we are observing is a compounding effect. As adoption deepens across the organization, the pace of improvement is accelerating, driving efficiency gains internally while simultaneously strengthening the value we deliver to customers. We are just scratching the surface. The net effect is that AI is acting as a force multiplier, increasing the value of our data, accelerating our pace of innovation, strengthening our position within the markets we serve, and further enhancing our AI-embedded layered architecture, which is fundamentally differentiated from the legacy technology stacks of our competition. Switching topics for a moment, I also want to revisit something we said several years ago, and Daniel will go into it in more detail. At that time, we outlined what this business would look like at a $100 million annual revenue run rate—specifically, adjusted gross margins exceeding 80% and adjusted EBITDA margins in the range of 35% to 40%. We had our skeptics, but that was guided by this team's knowledge and experience building similar businesses over the past three decades. Today, at our current scale, we already are delivering 85% adjusted gross margins and 41% adjusted EBITDA margins. This level of performance reflects the durability of our business and the operating leverage inherent in the model as we grow. We ended the quarter with $43.5 million in cash. We currently have $15.6 million remaining under our stock repurchase program after repurchasing 73,250 shares at an average price of $41.90 per share during the first quarter and through 04/30/2026. We will continue to allocate capital with discipline, balancing share repurchases with continued investment in our platform, data assets, and go-to-market capabilities. This was a strong start to 2026, and a continuation of the consistent, disciplined execution that defines who we are. With that, I will turn it over to Daniel. Daniel MacLachlan: Thanks, Derek. Good afternoon, everyone. We are off to an excellent start in 2026, delivering the highest revenue, adjusted gross profit, and adjusted EBITDA in our history—results that reflect the strength of our platform, the expanding reach of our solutions, and the consistency with which we are executing. I want to take a moment to put these results in context, because I think it speaks to something important about this team and this business model. As Derek mentioned, in March 2022, we laid out a framework on our earnings call of what this business looks like at $100 million in annual revenue. At the time, our run rate was approximately $45 million, our adjusted gross margin was 75%, and our adjusted EBITDA margin was 25%. We told you that at $100 million in annualized revenue, you could expect adjusted gross margin to exceed 80% and adjusted EBITDA margin to be in the range of 35% to 40%. We meant it, and we built toward it. This quarter, we crossed that revenue threshold for the first time—on $25.8 million in quarterly revenue, a $100 million-plus annual run rate—we delivered adjusted gross margin of 85% and adjusted EBITDA margin of 41%. Disciplined execution against a multiyear road map at the margins we said we would deliver is not something every management team can point to. But we can, and we are just getting started. At maturity, this business model is capable of adjusted gross margins in excess of 90% and adjusted EBITDA margins approaching 65%. The 2026 performance is evidence we are on the right path to get there. But we take a long-term view of this business, and we are not managing to a near-term margin target. We are managing toward the full potential of what we have built. Over the past decade, we have constructed a differentiated data and analytics platform—one that ingests, normalizes, and delivers intelligence at scale across a broad and growing set of use cases and end markets. The foundation we have built is what makes our AI actionable. AI is accelerating how we develop and deploy new capabilities, compressing development cycles and broadening the solutions we can bring to market. It is enhancing how our customers interact with our products, improving the speed and precision with which identity intelligence is surfaced and acted upon, and it is reshaping how we think about operational efficiency and scale, enabling us to accelerate productivity across the entire business. We are already seeing these benefits, and we expect their impact to compound. As we continue investing in AI, product development, and go-to-market capabilities, we expect adjusted EBITDA margins in the near term to trend in the mid- to high-30% range. We view that as a reflection of deliberate investment in the long-term growth of the business. The path to 65% adjusted EBITDA margins runs directly through the investments we are making today. Turning now to our first quarter results. For clarity, all the comparisons I will discuss today will be against the first quarter 2025 unless noted otherwise. Total revenue was a record $25.8 million, up 17% over the prior year. As Derek noted earlier, Q1 2025 included $1.2 million in one-time transactional revenue from two significant customer wins. Normalizing for that, our underlying growth rate this quarter would have been greater than 20%. We generated $22.0 million in adjusted gross profit, the highest to date, delivering a record adjusted gross margin of 85%, up two percentage points. Adjusted EBITDA came in at a record $10.7 million, up 27% over the prior year. Adjusted EBITDA margin expanded three percentage points to 41%, a new high. Adjusted net income increased 29% to $6.6 million, resulting in adjusted earnings of $0.46 per diluted share—both new highs. Turning to the details of our P&L, as mentioned, revenue for the first quarter was $25.8 million with solid performance across the business. Within IDI, we saw broad-based growth across our verticals, with particular strength in financial and corporate risk, and investigative. We added 400 billable customers sequentially to end the quarter with 10,422 customers. Financial and corporate risk was our fastest-growing vertical, with background screening leading the way with exceptional growth, continuing to benefit from the targeted product development and go-to-market investments we have made over the past year. Financial services delivered strong growth driven by deeper customer integration and volume expansion. In addition, both corporate risk and insurance contributed meaningful growth, rounding out a solid showing across the vertical. Investigative posted robust double-digit gains across every industry, including law enforcement, private investigators, bail bonds, and process servers. Law enforcement, in particular, continues its impressive trajectory, and we remain focused on deepening our penetration of the public sector. This vertical is expanding as a share of our total revenue, and we see significant runway ahead. Collections delivered steady gains this quarter. The recovery dynamic we have discussed in prior quarters remains intact, and we continue to see volume expansion from our existing customer base as the industry works through elevated delinquency levels. The vertical is maintaining its steady recovery, and we view it as a meaningful tailwind to our growth outlook. Emerging markets delivered healthy underlying expansion this quarter. The $1.2 million in one-time transactional revenue in Q1 2025 we noted earlier concentrated in this vertical, which creates a tough year-over-year comparison. Normalizing for that, the underlying growth rate was robust and in line with the demand momentum we continue to see across these industries. Retail, government, legal, repossession, and marketing all contributed meaningful growth. We remain encouraged by the breadth of activity throughout emerging markets as a significant long-term growth driver for the business. Lastly, IDI's real estate vertical, which excludes FOREWARN, delivered modest growth year over year, but is starting to show signs of stabilization following the prolonged pressure that elevated rates and affordability constraints have placed on housing activity. While the macro environment remains a headwind, we are encouraged by the trajectory and believe we are well positioned as conditions gradually improve. As to FOREWARN, the platform continued its impressive performance, delivering strong double-digit revenue expansion this quarter. We exited the quarter with over 417,000 users, up from 325,000 users a year ago. FOREWARN continues to gain traction with real estate professionals, who rely on it as an essential part of their daily workflow. We now have over 640 realtor associations contracted to use FOREWARN. Overall, contractual revenue accounted for 75% of total revenue in the quarter, up one percentage point from the prior year. Gross revenue retention remained strong at 95%, down one percentage point. Moving back to the P&L, our cost of revenue, exclusive of depreciation and amortization, increased $0.1 million, or 4%, to $3.8 million. Adjusted gross profit increased 20% to a record $22.0 million, resulting in a record adjusted gross margin of 85%, up two percentage points from the prior year. Our sales and marketing expenses increased $0.5 million, or 8%, to $5.9 million for the quarter, driven primarily by higher personnel-related expenses. General and administrative expenses increased $1.7 million, or 28%, to $7.9 million, driven primarily by higher personnel costs and acquisition-related activity. Depreciation and amortization increased $0.2 million, or 10%, to $2.8 million for the quarter. Net income increased $1.0 million, or 28%, to $4.4 million for the quarter. Adjusted net income increased $1.5 million, or 29%, to $6.6 million, the highest to date, resulting in record adjusted earnings of $0.46 per diluted share. Moving on to the balance sheet, cash and cash equivalents were $43.5 million at 03/31/2026, compared to $43.6 million at 12/31/2025. Current assets totaled $57.3 million, compared to $56.5 million at year-end, while current liabilities were $5.1 million, down from $7.9 million. We generated $6.6 million in cash from operating activities in the first quarter compared to $5.0 million in the same period last year. Free cash flow for the quarter was $3.1 million, a 24% increase from $2.5 million a year ago. In the first quarter and through 04/30/2026, we purchased 73,250 shares of company stock at an average price of $41.90 per share under our stock repurchase program. As of 04/30/2026, we had $15.6 million remaining under the repurchase program. In closing, crossing the $100 million revenue run rate threshold this quarter is a milestone worth acknowledging, but it is not a finish line. The same discipline and focus that got us here is what will take us to the next level. We have a clear line of sight to continued margin expansion, a platform that is scaling efficiently, and a team that has constantly and consistently delivered on what it said it would do. We are confident in our ability to build on this momentum, and we look forward to updating you on the progress throughout the year. We will now open the call for questions. Operator: Thank you. We will now open the call for questions. As a reminder, to ask a question, you will need to press 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star-1-1 again. Please stand by while we compile the Q&A roster. Our first question today is from Eric Martinuzzi with Lake Street Capital Markets. Your line is open. Eric Martinuzzi: Hey, congrats on the $100 million run rate. That is a very significant milestone that I know you guys have been working a long time to achieve, so great to see that. Question regarding we are always looking for kind of what is next. And given the achievement of those targets that you laid out back in March 2022, you talked a little bit in your prepared remarks, Daniel, about the at-maturity type model having in excess of 90% gross margins and then approaching 65% on the adjusted EBITDA. Obviously, that is the goal. Is there a timeline you are willing to communicate? Daniel MacLachlan: Thanks, Eric, and I appreciate the question. We are really excited about crossing that revenue threshold. That is a milestone and a good marker for us, but as I said earlier, it is just the beginning; it is not a finish line. When we talk about timelines to get to that maturity, we are not going to put a timeline on that today because we do not issue formal guidance, and pinning a year on a maturity-state outlook would be inconsistent with how we manage the business. What it comes down to is the structure of the business model. We operate a data and analytics platform with a largely fixed cost base. Once the platform is built and the data is in place, the marginal cost of an incremental transaction is very small. That means as revenue scales, an outsized share of every dollar flows to the bottom line. Our cost structure is built to support a meaningfully larger business than where we are today, and we are continuing to invest in that cost structure to enable future growth. So 65% at maturity is not a forecast and is not a target. It is the model output when you take a high fixed-cost, low marginal-cost platform and you let it scale to its natural operating leverage. For timelines, it is really about continuing what we are doing—building a good foundational business—and moving as quickly as we can toward those underlying metrics. Eric Martinuzzi: Okay. And then the other notable achievement here was new customer onboarding. As you went through the different verticals you serve, I did not really pick up on anything that was a substantial change versus your commentary last quarter, and maybe I am incorrect there. But what do you attribute the strength to? Is Q1 typically a time when you do onboard a significant number of new customers? Is there something going on in the macro or with the brand that is allowing you to achieve those numbers? Derek Dubner: Thanks, Eric. Q1 is generally strong. Industries tend to enter the new year with a little bit of wind in their sails. Maybe they are ready to deploy those budgets and get going. But I think what we would say is we have produced near-record onboarding—or at least at the very highs of our 12-month average—for quite a while now. We have always said that those are a great leading indicator of the revenue generation and success of the business in the out months, and that is bearing true, and that is why we use it as exactly that—a leading indicator. It is a confluence of many things ongoing within the organization. I think we are doing a very nice job of marketing ourselves, being present at conferences, engaging with our customers, and delivering what they want in products and solutions. We have always said we are very customer-centric, and we will never change. When we think about the next series of developments—whether it be functionality within an application for a certain industry—we are talking to our customers. We are finding out what they want, what they do not see in the competitive environment, and we execute upon that. I am very proud of the organization. That is why I started out with a thank you to the team. It is really brilliant execution over the last 18 months. We have an extraordinarily strong road map, and because of the AI implementations across the organization, we are seeing acceleration there. It has us very enthusiastic that we are well positioned for the future. Eric Martinuzzi: Got it. Last question for me. You talked about the growth in the quarter—up 17%—but really would have been even stronger when you back out the $1.2 million from the year-ago quarter. My math has the kind of apples-to-apples growth at around 24%. I know you are not in the business of giving guidance, but seasonal trends in the business historically would have Q2 up from Q1. Is there any reason that trend would be different this year? Daniel MacLachlan: Thanks, Eric. Historically, the first quarter has always been a really strong quarter for us. We noted Q1 2025 had a little additional in there in one-time transactional revenue, but going back historically, we have always had a good first quarter out of the gate. We try to replicate and grow that in Q2. Last year, if you look, we were probably down sequentially by about $200,000, but of course we were going against that transactional comp. We are not providing any formal guidance. For us, when we think about the business—and going back to 2024 and 2025—we talked about reaccelerating the growth rate. Obviously, we were able to do that. It is one foot in front of the other and continuing to execute. From a sequential basis, we have a great foundation coming out of the gate at $25.8 million. The expectation is we can leverage that and, over the next couple of quarters, grow from there. For the first quarter, April for the most part is closed, and what we saw in April was an extremely strong month. We are excited about what is happening in the business and looking forward to continuing to perform for the near, medium, and long term. Eric Martinuzzi: Great. Thanks for taking my questions. Operator: Our next question comes from Josh Nichols with B. Riley Securities. Your line is open. Josh Nichols: Yes, thanks for taking my question, and great to see the company taking back some stock this quarter. I wanted to ask two questions. One, about scaling up the go-to-market strategy. Historically you have been a little bit more narrowly focused, but when we think of that broadening out—inside sales, strategic sales, and distribution—what are your plans to grow those channels this year, and how are you investing in that? Daniel MacLachlan: Yeah, thanks, Josh. I will take that. If you look historically, especially in that go-to-market line—we provide some supplemental metrics around our sales and marketing personnel—we have invested there. We have invested on the marketing front, bringing in a highly skilled leader to build out that team. As Derek talked about earlier, we are at the conferences we need to be at, we are at the trade shows we need to be at, and we are continuing to engage with customers. That starts with a solid marketing foundation and builds out from there. On sales go-to-market, we have built out an extremely efficient and productive inside sales team. I think of that as the engine of the organization—highly skilled, verticalized subject matter experts across a broad group of industries and verticals. Tactically, over the last several years, we built out more of our strategic side in a number of areas where we have made investments. We have built out the strategic team. So growth is not only in some of those pockets where we have been investing; it is also across the broad and diverse industries and verticals we serve. We call out five main verticals in which we operate and break down revenue, but when you look at the amount of industries that roll up into that by verticals, it is around 25 or 26 different industries. The great thing about the growth we have seen this quarter—and have seen consistently—is that it is broad-based. It is in a number of areas, and it is not concentrated in one use case or one customer. That gives us a lot of confidence today to talk about how the business has been and how we expect it to perform in the future. Derek Dubner: Yeah, Josh, I know you are aware, but I will state it unequivocally that we are an early-stage company sitting in front of an enormous market opportunity, and we are very fortunate that we are generating very healthy cash flow. With that opportunity in front of us, the summary of our call today is that we are going to invest. The opportunity is that large. Our goal is not to set necessarily a record EBITDA margin tomorrow. We are building a very healthy foundational business with a view of 10 years out. The answer across the board is we expect to grow our team. This team is going to be methodical, deliberate, and directly in line with where the opportunity demands it. That includes go-to-market, your question, but also product, data, and definitely AI-driven capabilities. Over time that will create an inflection point. We will get to where revenue scales meaningfully without a commensurate increase in headcount because of what we are doing today and tomorrow. That is the model. We are not one of those companies that has bloated through the pandemic or is using AI as an excuse to eliminate personnel or a missed quarter or anything else. Net-net today, more employees—but a team that is going to operate at a fundamentally much higher level of productivity. Then that will flatten out, and you will see those margins just drive. Josh Nichols: Thanks. Then, Derek, you touched on it—always good to hear you talk a little bit about your thoughts on technology and the impact and tailwinds that you think that is going to bring to the business. Clearly, it is a rapidly evolving environment. Agentic capabilities with AI are something that has gotten a lot of focus recently. I am curious how you are thinking about investing in that, enhancing the company's agentic capabilities, and what that could do for the business as that scales up over the next few years. Derek Dubner: Yeah, sure, Josh. Thank you for the question. We spent some time on this in the fourth quarter in our earnings and full year, but I am happy to revisit it. AI, we do not perceive that as a threat to our business. It is a tailwind for us. I will restate it again: AI alone cannot replicate our data. We have built this longitudinal identity graph. It is billions of unified records, and it is tested and modeled and refined over years of actual usage. That is the foundation that AI needs to run on. For us, we have this healthy foundation built, and we can layer AI on top of it and better serve our customers in all different ways. In the risk signals we are generating, through an API connection our customers see it when they come into the office in the morning versus the competition’s solutions. Our competition is working on trying to complete migrations to the cloud from other architectures. We are cloud native, AI embedded from day one. We are using AI to compress development cycles and implement more AI across the organization. It is pulsating through the products and what we are doing every day—pair programming, agentic tools. We are very excited because as customers, especially small and medium size, become more adept at using it and getting agents into their workflow, we are completely usage-based and volume-based. That means they will access our products in much faster fashion—less manual activity—and more demand for the identities that we can clear every single day. It is necessary to come back to us. One person’s data on a given day to open a new bank account is only good for that moment in time. The next day, that person’s identity and profile may have changed. They might have been arrested the night before, they might now be divorced, they might have financial stress that occurred—a bankruptcy filing, a very large judgment. The next time the commercial or public sector sees that consumer, they need to clear that identity again and make a critical decision about that individual. We have been building for this for the last 11 years. We have built this identity graph to be extraordinarily high confidence. AI can only be directionally correct. We need to be accurate. Law enforcement is making critical decisions every day using our products, as are financial services and all of our industries. We are really well positioned. We are very excited about the innovation that is going on and the product road map, and very excited about introducing new products and updating you on that. Daniel MacLachlan: Thanks, Josh. Operator: Thank you. I am showing no further questions at this time, so I would like to turn it back to Derek Dubner for final remarks. Derek Dubner: Thank you. As we close, I want to reiterate that our performance this quarter reflects the strength of our strategy, the resilience of our business model, and the continued trust of our clients and partners. We remain focused on disciplined execution, responsible growth, and delivering long-term value to our shareholders. While the macro environment continues to evolve, we are confident in our positioning, our technology, and our team. We appreciate your continued support, and we look forward to updating you on our progress next quarter. Operator: Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect. Before you buy stock in Red Violet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Red Violet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Red Violet (RDVT) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Record quarter: Revenue rose 17% year-over-year to $25.8 million with adjusted gross margin of 85% and adjusted EBITDA margin of 41%, while adjusted net income was $6.6 million ($0.46/share) and operating cash flow increased 32%. Crossed $100 million run rate: Quarterly results put Red Violet above a $100 million annualized revenue run rate, matching management's earlier margin targets and highlighting a long-term model that could exceed 90% adjusted gross margin and approach 65% adjusted EBITDA (no timeline provided). Customer growth and AI tailwind: IDI added 400 new billable customers (total 10,422) and FOREWARN users grew to 417,000, while executives said AI is accelerating product innovation, internal development velocity, and could boost usage under the company's volume-based model. Interested in Red Violet, Inc.? Here are five stocks we like better. Are These 3 Under-the-Radar AI Stocks the Next Big Growth Stories? Red Violet (NASDAQ:RDVT) reported record first-quarter 2026 results, highlighting revenue growth, expanding profitability, and strong new customer additions, as executives pointed to continued operating leverage in the company’s data and analytics platform and a growing opportunity set tied to artificial intelligence. Chairman and CEO Derek Dubner said the company delivered “record revenue, record margins, record EBITDA,” and one of its strongest quarters for new customer onboarding. Revenue rose 17% year-over-year to a record $25.8 million. Dubner and CFO Dan MacLachlan noted that the first quarter of 2025 included $1.2 million of one-time transactional revenue, meaning “the underlying growth this quarter is stronger than the headline suggests,” Dubner said. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? On a non-GAAP basis, adjusted gross profit increased 20% to $22 million, producing a record adjusted gross margin of 85%. Adjusted EBITDA climbed 27% to $10.7 million, with a record adjusted EBITDA margin of 41%. Adjusted net income rose to $6.6 million, or $0.46 per diluted share, which management described as a quarterly high. Cash generation also improved. Operating cash flow increased 32% to $6.6 million, and MacLachlan said free cash flow was $3.1 million, up 24% from $2.5 million a year earlier. → A Prada Payday: Is AMC Back in Style? MacLachlan emphasized that the quarter marked the company’s first time surpassing a $100 million annualized revenue run rate, based on quarterly revenue of $25.8 million. He referenced a framework Red Violet shared in March 2022, when the company’s annual run rate was about $45 million, adjusted gross margin was 75%, and adjusted EBITDA margin was 25%. At that time, management said that at $100 million in annualized revenue, adjusted gross margin would exceed 80% and adjusted EBITDA margin would be 35% to 40%. “This quarter, we crossed that revenue threshold for the first time… We delivered adjusted gross margin of 85% and adjusted EBITDA margin of 41%,” MacLachlan said. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% He added that, “At maturity, this business model is capable of adjusted gross margin in excess of 90% and adjusted EBITDA margins approaching 65%.” However, in response to a question from Lake Street Capital Markets analyst Eric Martinuzzi, MacLachlan declined to provide a timeline for reaching those levels, noting the company does not issue formal guidance and describing the 65% figure as a model output tied to scaling a “high fixed cost, low marginal cost platform.” MacLachlan also said the company expects near-term adjusted EBITDA margins to “trend in the mid to high 30% range” as Red Violet invests in AI, product development, and go-to-market capabilities. Management pointed to strong customer additions at its IDI business. Dubner said IDI added 400 new billable customers in the quarter—“one of the highest quarterly additions in our history”—bringing total customers to 10,422. MacLachlan said growth within IDI was broad-based, with “particular strength in Financial and Corporate Risk and Investigative.” He described Financial and Corporate Risk as the fastest-growing vertical, with background screening “leading the way with exceptional growth,” benefiting from “targeted product development and go-to-market investments” over the past year. Financial services grew on “deeper customer integration and volume expansion,” and corporate risk and insurance also contributed, he said. Investigative, MacLachlan added, posted “robust double-digit gains across every industry,” including law enforcement, private investigators, bail bonds, and process servers, with law enforcement continuing an “impressive trajectory.” He said the public sector is becoming a larger share of total revenue and that the company sees “significant runway ahead.” Other vertical commentary included: Collections: MacLachlan said the “steady recovery” continued, with volume expansion as the industry works through elevated delinquency levels, which he called a “meaningful tailwind.” Emerging markets: He said underlying expansion was healthy, though year-over-year comparisons were affected because the prior-year one-time transactional revenue was concentrated in this vertical. He cited growth contributions from retail, government, legal, repossession, and marketing. IDI real estate (excluding FOREWARN): Modest growth and “signs of stabilization” after pressure from elevated rates and affordability constraints, with management still viewing the macro environment as a headwind. At FOREWARN, Dubner said the platform grew to more than 417,000 users and had over 640 realtor associations under contract. MacLachlan said FOREWARN delivered “strong double-digit revenue expansion” and noted user growth from 325,000 a year ago to more than 417,000 exiting the quarter. Across the company, MacLachlan said contractual revenue represented 75% of total revenue, up one percentage point from the prior year. Gross revenue retention was 95%, down one percentage point. Executives repeatedly framed AI as an accelerant to both product innovation and internal efficiency. Dubner said Red Violet’s “longitudinal identity graph” is foundational, enabling the company to generate “actionable signals, not just data outputs,” while AI enhances pattern recognition and speeds delivery of insights. He also described AI as improving responsiveness and integration across customer workflows and said internal adoption is increasing across engineering, security, operations, and customer support. Within technology teams, Dubner said “development velocity has accelerated materially” through AI and agentic tools, allowing engineers to code, test, and deploy faster than before. In response to a question from B. Riley Securities analyst Josh Nichols about agentic capabilities, Dubner said the company views AI as a “tailwind,” arguing that AI cannot replicate Red Violet’s data foundation. He described Red Violet as “cloud-native, AI-embedded from day one,” and said increased automation in customer workflows could drive higher usage in Red Violet’s volume-based model. Red Violet ended the quarter with $43.5 million in cash and cash equivalents, essentially flat with $43.6 million at the end of 2025. The company continued repurchasing shares, with Dubner and MacLachlan noting 73,250 shares were repurchased at an average price of $41.90 per share during the first quarter and through April 30, 2026. As of April 30, the company had $15.6 million remaining under its repurchase authorization. On the expense side, MacLachlan said cost of revenue (excluding depreciation and amortization) increased 4% to $3.8 million, while sales and marketing expense rose 8% to $5.9 million, primarily due to higher personnel costs. General and administrative expense increased 28% to $7.9 million, driven by higher personnel costs and acquisition-related activity. Depreciation and amortization rose 10% to $2.8 million. GAAP net income was $4.4 million, up 28%. Asked about seasonality and sequential expectations, MacLachlan said first quarters are typically strong for the company and reiterated that Red Violet does not provide formal guidance. He added that “April for the most part is closed” and described April as “just an extremely strong month,” saying the company was excited about performance heading into the rest of the year. Red Violet, Inc (NASDAQ: RDVT) is a provider of advanced data, analytics and technology solutions designed to help organizations mitigate financial crime, fraud and security risks. The company’s cloud-native platform consolidates and enriches data from proprietary, public and third-party sources, applying artificial intelligence and machine learning to deliver insights across the risk-management lifecycle. Red Violet’s suite of services includes behavior-based transaction monitoring, automated watchlist and negative-news screening, enhanced due diligence and real-time geospatial threat intelligence. Leveraging proprietary algorithms, Red Violet offers products that enable compliance teams to streamline anti-money laundering processes, improve fraud detection and respond swiftly to emerging threats. The article "Red Violet Q1 Earnings Call Highlights" was originally published by MarketBeat.