Red Violet, Inc. Delivers Record Q4 and Full-Year 2025 Results: Investors See Strong Growth and Momentum

Key Highlights

• Q4 2025 Revenue: \$23.4 million, up 20% year-over-year (YoY), a new quarterly record.
• Full-Year 2025 Revenue: \$90.3 million, also up 20% YoY.
• Q4 Net Income: \$2.8 million, up 226% YoY; earnings per share (EPS) of \$0.20 (basic) and \$0.19 (diluted).
• Full-Year Net Income: \$13.2 million, up 88% YoY; EPS of \$0.94 (basic) and \$0.91 (diluted).
• Adjusted EBITDA: Q4 up 33% to \$5.9 million; Full-year up 31% to \$31.0 million.
• Cash Position: \$43.6 million in cash and cash equivalents at year-end, up from \$36.5 million.
• Customer Growth: IDI added 169 customers in Q4, ending the year with 10,022 billable customers; FOREWARN users grew to 390,018, with 17,809 users added in Q4.
• Stock Buybacks: Company repurchased 57,812 shares at an average price of \$44.01; \$16.4 million remains for repurchases.
• Continued Margin Expansion: Q4 gross margin rose to 72% (from 70%); Adjusted gross margin hit 83% (from 82%).
• Growth in Large Customers: 127 customers generated over \$100,000 in revenue each in 2025, up from 96 in 2024.

Detailed Financial Performance

Quarterly Performance (Q4 2025 vs Q4 2024)

• Total revenue: \$23.4 million, up 20%.
• Gross profit: \$16.8 million, up 23%; gross margin improved to 72% from 70%.
• Adjusted gross profit: \$19.5 million, up 21%; adjusted gross margin increased to 83% from 82%.
• Net income: \$2.8 million (EPS: \$0.20 basic, \$0.19 diluted), up 226% (Net income margin rose to 12% from 4%).
• Adjusted EBITDA: \$5.9 million, up 33% (margin: 25%, up from 23%).
• Adjusted net income: \$3.1 million (EPS: \$0.22 basic, \$0.21 diluted), up 53%.
• Operating cash flow: \$6.7 million (unchanged YoY).

Full-Year Performance (2025 vs 2024)

• Total revenue: \$90.3 million, up 20%.
• Gross profit: \$65.1 million, up 26%; gross margin improved to 72% from 69%.
• Adjusted gross profit: \$75.4 million, up 23%; adjusted gross margin rose to 84% from 81%.
• Net income: \$13.2 million (EPS: \$0.94 basic, \$0.91 diluted), up 88% (Net income margin up to 15% from 9%).
• Adjusted EBITDA: \$31.0 million, up 31% (margin: 34%, up from 31%).
• Adjusted net income: \$18.7 million (EPS: \$1.33 basic, \$1.30 diluted), up 44%.
• Operating cash flow: \$29.3 million, up 22% YoY.

Operational and Strategic Updates

• Red Violet continues to see strong adoption of its IDI and FOREWARN platforms, both growing user bases and deepening relationships with higher-tier, higher-spending customers.
• FOREWARN is now contracted with over 620 REALTOR® Associations, underscoring continued penetration in real estate and risk mitigation markets.
• Management highlights the company’s differentiation via its cloud-native, AI-enabled architecture, and proprietary longitudinal identity graph, positioning it strongly in regulated and mission-critical markets.
• Ongoing focus for 2026 includes deeper workflow integration, further technology differentiation, and sustainable value creation for shareholders.

Shareholder-Relevant and Potentially Price-Sensitive Information

• Share Repurchases: The company bought back 57,812 shares at an average cost of \$44.01, signaling confidence in the share value. \$16.4 million remains for further repurchases, providing potential support to the share price.
• Expansion in High-Value Customers: Significant increase in customers contributing over \$100,000 in annual revenue (127 in 2025 vs 96 in 2024) reflects success in upselling and could boost future margins and profitability.
• Strong Cash Generation: Operating cash flow and free cash flow grew robustly, with cash and equivalents at a healthy \$43.6 million, providing flexibility for future investments, buybacks, or potential M&A.
• Margin Improvements: The company continues to expand gross and EBITDA margins, signaling operational leverage and improved profitability.
• Customer and User Growth: Notable increases in platform usage, especially within key regulated industries, could be a leading indicator of future revenue growth.
• Guidance Themes: While not providing specific 2026 guidance, management’s focus on technology advancement and workflow integration suggests continued investment and potential upside if execution remains strong.

Business Overview and Market Position

Red Violet, Inc. develops cloud-native, AI-enabled identity intelligence platforms. Its CORE™ platform powers solutions for identity verification, risk mitigation, fraud detection and prevention, regulatory compliance, and customer acquisition. The company’s products, such as IDI and FOREWARN, are widely used by organizations ranging from enterprises to real estate associations, supporting frictionless commerce and enhanced safety.

The company’s strong technology stack and market focus differentiate it from competitors, particularly in regulated and mission-critical environments. This has led to impressive revenue and profit growth, high customer retention, and a growing base of high-value customers.

Supplemental Metrics

• IDI Billable Customers: Grew from 8,241 at the start of 2024 to 10,022 by year-end 2025.
• FOREWARN Users: Increased from 236,639 to 390,018 in the same period.
• Contractual Revenue Percentage: Remained strong and stable at 74-77% throughout the year.
• Gross Revenue Retention: Remained high at 93-97%, reflecting minimal loss of recurring revenue.

Conference Call and Webcast

Red Violet will host a conference call and webcast to discuss results and business updates. Investors can access the replay via the company’s investor relations website.

Conclusion

Red Violet, Inc. posted another record year in 2025, highlighted by robust revenue growth, accelerating profitability, strong cash generation, and ongoing strategic execution. The company’s differentiated technology, expanding high-value customer base, and continued investment in innovation position it well for further growth. The active share repurchase program and substantial remaining authorization signal management’s confidence and may provide continued support for the share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult their financial advisors before making any investment decisions. Past performance is not indicative of future results. This article is based on publicly available information as of the date of publication and may not reflect subsequent developments.

View Red Violet, Inc. Historical chart here