Red Violet Inc

Red Violet Inc. reported second-quarter 2026 results for the period ended June 30, with revenue rising 23% to $26.7 million and net income nearly doubling to $5 million. Gross profit climbed 29% to $20.2 million, lifting gross margin to 76% from 72%, while adjusted EBITDA jumped 48% to $11.2 million and adjusted net income rose 58% to $7.2 million. Operating cash flow increased 42% to a record $10.6 million for the quarter, and the company added a record 447 new IDI customers, ending with 10,869 on the platform, while its FOREWARN product reached 443,173 users and 660 REALTOR Associations under contract. In August, Red Violet closed an underwritten public offering of 1,916,667 shares, including 250,000 shares from the underwriters' full exercise of their option, generating net proceeds of about $109.0 million, which together with existing funds gives it over $160 million in cash and no debt. The company repurchased 74,500 shares by June 30 at an average of $41.87 per share and had $15.5 million left on its buyback authorization, while diluted earnings came in at $0.34 and adjusted diluted earnings at $0.50 versus $0.51 on a basic basis.

Immersion Investment Partners highlighted Red Violet, Inc. in its Q2 2026 investor letter, describing a violent first-quarter contraction followed by a snapback. The firm stated that Red Violet's core identity offering is not exposed to AI threats and benefits from AI trends through its custom-built CORE platform. Management delivered expectation-beating top- and bottom-line results, and the company announced Forewarn's entry into the healthcare industry, with an immediately addressable revenue opportunity estimated at $50 million to $75 million. Immersion Investment Partners noted that even modest incremental revenue from Forewarn would significantly increase profitability. Red Violet closed at $65.65 per share on August 10, 2026, with a market capitalization of $1.05 billion.

Red Violet has closed its underwritten public offering of 1,916,667 shares of common stock, including the full exercise of the underwriters' option for an additional 250,000 shares, resulting in estimated net proceeds of approximately $108.6 million after deducting underwriting discounts, commissions, and estimated offering expenses. The company intends to use the net proceeds for working capital and general corporate purposes, including potential strategic acquisitions. Raymond James and Needham & Company acted as joint book-running managers, with B. Riley Securities and Craig-Hallum as co-managers, and Lake Street Capital Markets served as financial advisor to red violet.

Riverwater Partners highlighted Red Violet in its Q2 2026 Micro Opportunities Strategy investor letter, noting the data analytics and identity intelligence provider gained approximately 84%. The firm stated that Red Violet’s proprietary identity graph continues to take share in fraud prevention and investigative workflows, and it remains a top-five holding. Management is integrating AI into product development, and the market sees AI as a tailwind rather than a headwind for the company. Red Violet closed at $59.57 per share on July 23, 2026, with a market capitalization of $840.47 million, and its revenue increased 17% year-over-year to $25.8 million in Q1 2026.