Red Violet (RDVT) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $25.8 million, up 17% year-over-year, surpassing the $100 million annual run rate milestone, driven by expansion in the existing customer base.

• Net income increased 28% to $4.4 million, with net income margin rising to 17%.

• Adjusted EBITDA rose 27% to $10.7 million, with a record margin of 41%.

• Added 400 new billable IDI customers, bringing the total to 10,422; FOREWARN users grew to 417,680 as of March 31, 2026.

• Repurchased 73,250 shares at an average price of $41.90, with $15.6 million remaining under the repurchase program.

Financial highlights

• Revenue: $25.8 million, up 17% year-over-year; underlying growth rate exceeds 20% when excluding $1.2 million in prior-year one-time revenue.

• Adjusted gross profit: $22 million, up 20%; adjusted gross margin: 85%, up 2 percentage points.

• Gross profit increased 22% to $19.3 million; gross margin improved to 75% from 72%.

• Adjusted net income: $6.6 million, up 29%; adjusted EPS: $0.46 per diluted share.

• Operating cash flow: $6.6 million, up 32%; free cash flow: $3.1 million, up 24%.

• Cash and cash equivalents: $43.5 million at quarter-end.

Outlook and guidance

• Management expects continued margin expansion and efficient scaling, with a long-term view toward adjusted gross margins exceeding 90% and adjusted EBITDA margins approaching 65% at maturity.

• Near-term adjusted EBITDA margins expected to trend in the mid to high 30% range due to deliberate investment in growth.

• Management remains confident in the scalability and durability of the business model, emphasizing continued investment in product roadmap and go-to-market capabilities.

• Existing resources are projected to be sufficient to fund operations and capital expenditures for at least the next twelve months.

• April was an extremely strong month, supporting confidence in continued growth.