Red Violet(NASDAQ) RDVT

Red Violet, Inc. helps businesses and government agencies verify identities. Its tools help organizations spot fraud and check consumer backgrounds quickly. These solutions make it safer for professionals to meet new clients.

Mapping the Identity Intelligence World

• idiCORE: Investigative platform used for due diligence, risk mitigation, and identity authentication by financial services and law enforcement agencies.
• FOREWARN: App-based tool for the real estate industry that provides instant knowledge about consumers before face-to-face meetings.
• Pricing Contracts: Subscription agreements for identity intelligence services; accounted for 77% of revenue for the three months ended June 30, 2026.
• Transactional Services: Solutions licensed on a per-use basis; represented 23% of revenue for the three months ended June 30, 2026.

Recent Moves and Market Reach

• Closed a public stock offering in August 2026 that generated $108.6 million in net proceeds for working capital and acquisitions.
• Increased the IDI billable customer base to 10,869 as of June 30, 2026, compared to 9,549 in the prior year.
• Grew the FOREWARN user base to 443,173 users by June 30, 2026, an increase of 25,493 users during the second quarter.
• Extended a contract with its largest data supplier through April 30, 2031, following an amendment in May 2025.

How the Technology Works

Red Violet uses a cloud-native platform with integrated artificial intelligence to automate labor-intensive data analysis. The company utilizes a land and expand strategy that starts with product trials and grows through increased reliance across different customer divisions.

The Second Quarter Scorecard

• Total revenue rose 23% to $26.7 million for the three months ended June 30, 2026.
• Net income increased 85% to $5.0 million during the three-month period ended June 30, 2026.
• Adjusted EBITDA, a non-GAAP measure that excludes interest, taxes, and depreciation, grew 48% to $11.2 million for the quarter ended June 30, 2026.
• Cash and cash equivalents reached $50.0 million as of June 30, 2026.

Bottom Line

Red Violet has evolved its core platform into a scalable tool for real-time identity intelligence. Its focus on automating workflows with artificial intelligence supports consistent customer growth across financial and professional sectors.