Red Violet (NASDAQ:RDVT) Shares Up 9% on Strong Earnings

Red Violet, Inc. (NASDAQ:RDVT)’s stock price was up 9% on Thursday following a better than expected earnings announcement. The company traded as high as $52.72 and last traded at $49.59. Approximately 87,056 shares traded hands during trading, a decline of 23% from the average daily volume of 113,141 shares. The stock had previously closed at $45.50.

The company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.06. The business had revenue of $23.39 million during the quarter, compared to the consensus estimate of $22.00 million. Red Violet had a net margin of 14.57% and a return on equity of 13.02%.

Red Violet News Summary

Here are the key news stories impacting Red Violet this week:

• Positive Sentiment: Record Q4 and full‑year results: Red Violet reported Q4 revenue of $23.4M (up 20%) and FY2025 revenue of $90.3M (up 20%), beat consensus Q4 EPS, showed margin expansion, stronger net income and higher adjusted EBITDA, increased cash to $43.6M and continued buybacks — clear fundamentals that support the stock. red violet Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Strategic push into enterprise & public sector + AI: Management highlighted expansion into larger enterprise and public‑sector verticals and continued investment in its AI‑enabled CORE™ identity platform — a message that supports sustainable revenue upsell and longer‑term contract visibility. Red Violet signals expansion into enterprise and public sector verticals while advancing AI-enabled platform
• Positive Sentiment: Product traction / customer wins: FOREWARN user growth and reseller traction continue (390k users; >620 REALTOR® Associations contracted). A recent local deal for FOREWARN identity verification (Greater Tulsa Association of REALTORS®) illustrates ongoing product adoption in safety/verification use cases. FOREWARN to Provide Identity Verification Services to Greater Tulsa Association of REALTORS®
• Neutral Sentiment: Earnings call transcript available — management commentary may clarify cadence: The Q4 2025 earnings call transcript is published (see link) — review for details on 2026 guidance, customer mix shifts and cadence of enterprise onboarding that will determine whether growth accelerates. Red Violet, Inc. (RDVT) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Insider selling noted in some summaries: Third‑party coverage flagged heavy insider sales activity over recent months (multiple sales by executives), which can be viewed negatively by investors even if sales are routine or for diversification. Monitor SEC filings for context. Red Violet, Inc. Reports 20% Revenue Growth for Q4 and Full Year 2025

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Wall Street Zen cut shares of Red Violet from a “strong-buy” rating to a “buy” rating in a research report on Friday, January 23rd. Lake Street Capital reissued a “buy” rating and set a $62.00 price objective on shares of Red Violet in a report on Thursday, November 6th. Weiss Ratings lowered Red Violet from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, February 9th. Finally, Zacks Research cut Red Violet from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 30th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $62.00.

Hedge Funds Weigh In On Red Violet

Several institutional investors have recently modified their holdings of the business. Ophir Asset Management Pty Ltd bought a new stake in shares of Red Violet during the 2nd quarter worth $11,892,000. Royal Bank of Canada grew its position in Red Violet by 247.4% during the fourth quarter. Royal Bank of Canada now owns 282,480 shares of the company’s stock valued at $16,088,000 after buying an additional 201,169 shares during the period. Brown Capital Management LLC increased its holdings in Red Violet by 31.3% during the second quarter. Brown Capital Management LLC now owns 469,340 shares of the company’s stock worth $23,092,000 after buying an additional 111,908 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Red Violet during the first quarter worth about $3,826,000. Finally, Wasatch Advisors LP raised its position in Red Violet by 10.4% in the third quarter. Wasatch Advisors LP now owns 888,857 shares of the company’s stock worth $46,443,000 after acquiring an additional 83,831 shares during the period. 63.56% of the stock is owned by institutional investors.

Red Violet Price Performance

The stock has a market capitalization of $652.09 million, a PE ratio of 51.42 and a beta of 1.67. The stock’s 50 day simple moving average is $47.06 and its two-hundred day simple moving average is $50.67.

Red Violet Company Profile

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.