Red Violet, Inc.

Red Violet, Inc.

RDVTยทNASDAQ

$53.36

-10%
TechnologySoftware - Application

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, and telecommunication companies; law enforcement and government agencies; and collections, corporate security, and investigative firms, as well as solutions used for purposes, such as risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. Red Violet, Inc. was incorporated in 2017 and is headquartered in Boca Raton, Florida.

At a Glance

Live Snapshot
Market Cap$752.85M
EPS0.9400
P/E Ratio56.77
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 56.8).

Valuation inputs: P/E 56.8, earnings yield +1.8%, momentum -10.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +13.0%, ROIC +11.4%).

Profitability stack: net margin +14.6%, ROE +13.0%, ROIC +11.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +9.9%, momentum -10.0%, net margin +14.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Red Violet, Inc. Market vs Earnings Trajectory

RDVT ยท NASDAQ

Loading price and EPS data...

Red Violet, Inc.

Red Violet, Inc. Fair Value Envelope

RDVT ยท NASDAQ

Our analysis suggests that RDVT has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $53.36, this represents a potential HIDDEN relative to our calculated worth for Red Violet, Inc..

Intrinsic Value
Current Price: $53.36
3Y+1998.0%
5Y-265.0%
10Y-158.0%
3Y+69.0%
5Y+161.0%
10Y+1868.0%
3Y+2035.0%
5Y-293.0%
10Y-178.0%
3Y+136.0%
5Y+350.0%
10Y-537.0%
3Y+693.0%
5Y+352.0%
10Y-280.0%
3Y+45.0%
5Y+115.0%
10Y+499.0%
Red Violet, Inc.

Red Violet, Inc. Profit Bridge

RDVT ยท NASDAQ
Revenue90.25M
Cost of Goods Sold (14.68M)
Gross Profit75.58M
Operating Expenses (62.44M)
Operating Income13.14M
Interest Expense (0.00)
Other Income/Expense1.42M
Pretax Income14.56M
Income Tax (1.40M)
Net Income13.15M
Net Income
13.15M

Profitability Analysis

Gross Margin

83.7%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

14.6%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

14.6%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

9.6%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

83.74%
Gross Profit Margin
3%
3Y+9.0%
5Y+24.0%
10Y+1276.0%
14.56%
Operating Profit Margin
38%
3Y+2050.0%
5Y-174.0%
10Y-105.0%
14.57%
Net Profit Margin
56%
3Y+1162.0%
5Y-174.0%
10Y-104.0%
13.03%
Return on Equity
61%
3Y+1404.0%
5Y-183.0%
10Y-112.0%
11.74%
Return on Assets
65%
3Y+1376.0%
5Y-190.0%
10Y-113.0%
11.36%
Return on Invested Capital
69%
3Y+2542.0%
5Y-180.0%
10Y-113.0%
RDVT

Red Violet, Inc. Cash Conversion Engine

RDVT ยท NASDAQ
Net Income13.15M
Depreciation & Amortization10.67M
Stock-Based Compensation6.50M
Change in Working Capital-3.16M
Others1.27M
Capital Expenditures-563.00K
Free Cash Flow28.79M

Cash Flow Quality Analysis

FCF Conversion Rate

218.8%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

1.9%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+21.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$3.16M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

rdvt

Red Violet, Inc. Funding & Solvency Profile

RDVT ยท NASDAQ
Cash & Cash Equivalents43.45M
Net Receivables11.91M
Inventory0.00
Other Current Assets1.94M
Total Current Assets57 M
Property, Plant & Equipment3.32M
Goodwill & Intangible Assets45.41M
Long-Term Investments0.00
Other Non-Current Assets1.03M
Total Non-Current Assets4 M
Total Assets
112.63M

Financial Health Analysis

Current Ratio

11.22x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.08x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

52 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

51% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Red Violet, Inc. Street Expectations Map

RDVT ยท NASDAQ

Wall Street analysts project that RDVT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 62.00, with estimates ranging from a low of 62.00 to a high of 62.00.

Lowest Target
62.00
16.19%
Consensus Target
62.00
16.19%
Highest Target
62.00
16.19%

The consensus 1-year price target stands at 62.00, with estimates ranging from a low of 62.00 to a high of 62.00.

Analyst Consensus Analysis

Upside Potential

+16.2%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Red Violet, Inc. Insider Positioning

RDVT ยท NASDAQ

During the last 12 months, insiders have sold $2.20M worth of RDVT shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

5.0K

288.10K

Net Activity

-288K

-$288K

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

35.7K

1.91M

Net Activity

-1.9M

-$1.91M

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
DJA

Dell Jeffrey Alan

Officer: Chief Information Officer

12.5K sharesโ€ข3 transactions

$694K

2
DD

Dubner Derek

Director, Officer, Other: Chief Executive Officer

9.4K sharesโ€ข1 transactions

$503K

3
RJP

Reilly James Patrick

Officer: President

9.4K sharesโ€ข1 transactions

$503K

4
MD

Maclachlan Daniel

Officer: Chief Financial Officer

9.4K sharesโ€ข1 transactions

$503K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.20M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$288K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
ย 

rdvt Dividend History

RDVT
10Y CAGR +0%
Latest $0.3
Annual $0.3
Stable dividend payments
Last Period: +0%