red violet Announces Fourth Quarter and Full Year 2025 Financial Results

Rhea-AI Summary

red violet (NASDAQ: RDVT) reported record fourth-quarter and full-year 2025 results, with Q4 revenue $23.4M and FY2025 revenue $90.3M, both up 20% year-over-year. GAAP diluted EPS for FY2025 was $0.91 and cash and equivalents totaled $43.6M at year-end.

Margins expanded (Q4 gross margin 72%, adjusted gross margin 83%), adjusted EBITDA grew (Q4 $5.9M; FY $31.0M), operating cash flow rose to $29.3M for the year, and the company repurchased shares leaving $16.4M available under its repurchase program.

Positive

• Revenue +20% YoY to $90.3M in FY2025
• GAAP EPS of $0.91 for FY2025
• Adjusted EBITDA +31% to $31.0M for FY2025
• Operating cash flow +22% to $29.3M for FY2025
• Customer growth: 10,022 IDI customers and 390,018 FOREWARN users

Negative

• Stock repurchases consumed capital, leaving $16.4M remaining under the program

News Market Reaction – RDVT

+1.71%

12 alerts

+1.71% News Effect

+9.8% Peak Tracked

-11.8% Trough Tracked

+$12M Valuation Impact

$743M Market Cap

0.4x Rel. Volume

On the day this news was published, RDVT gained 1.71%, reflecting a mild positive market reaction. Argus tracked a peak move of +9.8% during that session. Argus tracked a trough of -11.8% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $12M to the company's valuation, bringing the market cap to $743M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 Revenue: $23.4M FY 2025 Revenue: $90.3M FY 2025 GAAP EPS: $0.91 +5 more

8 metrics

Q4 2025 Revenue $23.4M Fourth quarter 2025, up 20% year-over-year

FY 2025 Revenue $90.3M Full year 2025, up 20% year-over-year

FY 2025 GAAP EPS $0.91 Full year 2025 GAAP diluted EPS

FY 2025 Net Income $13.2M Full year 2025, up 88% year-over-year

FY 2025 Adjusted EBITDA $31.0M Full year 2025, up 31% year-over-year

FY 2025 Operating Cash Flow $29.3M Cash from operating activities, up 22% year-over-year

Cash & Equivalents $43.6M Balance as of December 31, 2025

Shares Repurchased 57,812 shares at $44.01 Repurchased in Q4 2025 and through February 27, 2026

Market Reality Check

Price: $44.98 Vol: Volume 129,381 is close t...

normal vol

$44.98 Last Close

Volume Volume 129,381 is close to the 20-day average of 123,204 (relative volume 1.05x). normal

Technical Price at $44.25 is trading below the 200-day MA of $49.41, despite record earnings.

Peers on Argus

RDVT was up 2.48% while momentum peers were mixed (e.g., SMWB slightly up, IBTA ...

1 Up 1 Down

RDVT was up 2.48% while momentum peers were mixed (e.g., SMWB slightly up, IBTA down), and sector peers like DOMO (+10.26%) and RSKD (+3.74%) showed idiosyncratic moves. This points to stock-specific factors around earnings rather than a broad sector rotation.

Common Catalyst At least one peer, RSKD, also reported earnings, but overall moves appear company-specific rather than a unified software-sector reaction.

Previous Earnings Reports

5 past events · Latest: Nov 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 05	Q3 2025 earnings	Positive	+9.0%	Record Q3 2025 revenue and cash flow with strong margin expansion.
Aug 06	Q2 2025 earnings	Positive	-2.4%	Q2 2025 revenue and gross profit growth with solid customer additions.
May 07	Q1 2025 earnings	Positive	+15.2%	Record Q1 2025 revenue, strong net income growth and special dividend.
Feb 27	FY/Q4 2024 earnings	Positive	+6.8%	Q4 and full-year 2024 revenue growth with higher EBITDA and buybacks.
Nov 06	Q3 2024 earnings	Positive	+5.7%	Q3 2024 revenue up 20% with record gross profit and cash flow.

Pattern Detected

Earnings releases have generally driven positive moves, with 4 of the last 5 same-tag events showing gains, indicating a history of constructive reactions to financial updates.

Recent Company History

Over the past five earnings cycles from Q3 2024 through Q3 2025, red violet consistently reported double‑digit revenue growth, margin expansion, and rising cash flow. Price reactions to these earnings averaged around mid‑single digits, with four positive and one negative move. The latest release continues this pattern, showing 20% full‑year 2025 revenue growth and higher profitability, building on prior quarterly strength and continued customer and FOREWARN® user expansion.

Historical Comparison

+6.9% avg move · In the last 5 earnings releases, RDVT averaged a 6.86% move, mostly positive. Today’s full-year 2025...

earnings

+6.9%

Average Historical Move earnings

In the last 5 earnings releases, RDVT averaged a 6.86% move, mostly positive. Today’s full-year 2025 results extend that trend of solid growth and margin expansion versus prior quarters.

Earnings updates from Q3 2024 through Q3 2025 showed steady double‑digit revenue growth and improving margins, culminating in 2025 full‑year results with 20% revenue growth and higher profitability across GAAP and adjusted metrics.

Regulatory & Risk Context

Active S-3 Shelf · $150,000,000

Shelf Active

Active S-3 Shelf Registration 2025-11-19

$150,000,000 registered capacity

An effective Form S-3 shelf filed on 2025-11-19 allows Red Violet to issue up to $150,000,000 of mixed securities over time, with one recorded usage via a 424B5 on 2025-11-26. Any future takedowns could provide capital for corporate purposes but may also introduce dilution depending on structure.

Market Pulse Summary

This announcement highlighted record Q4 and full‑year 2025 results, with revenue up 20%, margins exp...

Analysis

This announcement highlighted record Q4 and full‑year 2025 results, with revenue up 20%, margins expanding, and adjusted EBITDA rising to $31.0M. Recent earnings history shows consistent double‑digit growth and generally positive market reactions. Management also continued share repurchases while maintaining $43.6M in cash and equivalents and access to a $150,000,000 effective shelf. Investors may watch future earnings, buyback activity, and any shelf takedowns as key signals.

Key Terms

gaap eps, gross margin, adjusted gross margin, net income margin, +3 more

7 terms

gaap eps financial

"Full Year 2025 Revenue Increased 20% to $90.3 Million, Generating GAAP EPS of $0.91"

GAAP EPS is the profit per share a company reports using U.S. Generally Accepted Accounting Principles, the standard rules for preparing financial statements. It shows how much net income is attributable to each share after recognized costs like operating expenses, taxes and long-term cost allocations, much like a household reporting its monthly savings after following a fixed budgeting checklist. Investors rely on GAAP EPS to compare profitability consistently across companies and reporting periods.

gross margin financial

"Gross margin increased to 72% from 70%.Adjusted gross margin increased to 83% from 82%."

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

adjusted gross margin financial

"Adjusted gross margin increased to 83% from 82%."

Adjusted gross margin is a measure of how much profit a company makes from its sales after accounting for certain expenses or one-time costs, but before deducting other operating expenses. It helps investors see the company's core profitability more clearly by removing factors that might distort the usual profit picture, similar to a runner measuring their speed without considering obstacles or weather. This metric provides a clearer view of the company's ongoing financial health.

net income margin financial

"Net income margin increased to 12% from 4%."

Net income margin measures the portion of a company’s sales that remains as profit after paying all costs, interest, and taxes, expressed as a percentage of revenue. It matters to investors because it shows how much profit a business keeps from each dollar of sales—like the slice of a pie left after all the bills are paid—helping compare profitability across companies and track whether management is improving efficiency or facing pressure on margins.

adjusted ebitda financial

"Adjusted EBITDA increased 33% to $5.9 million. Adjusted EBITDA margin increased to 25% from 23%."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted net income financial

"Adjusted net income increased 53% to $3.1 million, which resulted in adjusted earnings..."

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

stock repurchase program financial

"at an average price of $44.01 per share pursuant to the Company’s Stock Repurchase Program."

A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.

AI-generated analysis. Not financial advice.

Fourth Quarter Revenue Increased 20% to a Record $23.4 Million

Full Year 2025 Revenue Increased 20% to $90.3 Million, Generating GAAP EPS of $0.91

BOCA RATON, Fla., March 04, 2026 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2025.

“We concluded 2025 with record fourth quarter results, capping a year defined by disciplined execution and continued momentum across the enterprise,” stated Derek Dubner, red violet’s CEO. “Our cloud-native architecture, embedded artificial intelligence, and extensive longitudinal identity graph continue to differentiate us in the marketplace, particularly in regulated and mission-critical environments. The durability and scalability of our model are evident in our 20% revenue growth, margin expansion, and continued customer adoption. As we enter 2026, we remain focused on deepening workflow integration, advancing our technology differentiation, and driving sustainable long-term value for shareholders.”   

Fourth Quarter Financial Results

For the three months ended December 31, 2025 as compared to the three months ended December 31, 2024:

• Total revenue increased 20% to $23.4 million.
• Gross profit increased 23% to $16.8 million. Gross margin increased to 72% from 70%.
• Adjusted gross profit increased 21% to $19.5 million. Adjusted gross margin increased to 83% from 82%.
• Net income increased 226% to $2.8 million, which resulted in earnings of $0.20 and $0.19 per basic and diluted share, respectively. Net income margin increased to 12% from 4%.
• Adjusted EBITDA increased 33% to $5.9 million. Adjusted EBITDA margin increased to 25% from 23%.
• Adjusted net income increased 53% to $3.1 million, which resulted in adjusted earnings of $0.22 and $0.21 per basic and diluted share, respectively.
• Cash from operating activities remained consistent at $6.7 million.
• Cash and cash equivalents were $43.6 million as of December 31, 2025.
  
  

Full Year Financial Results

For the year ended December 31, 2025 as compared to the year ended December 31, 2024:

• Total revenue increased 20% to $90.3 million.
• Gross profit increased 26% to $65.1 million. Gross margin increased to 72% from 69%.
• Adjusted gross profit increased 23% to $75.4 million. Adjusted gross margin increased to 84% from 81%.
• Net income increased 88% to $13.2 million, which resulted in earnings of $0.94 and $0.91 per basic and diluted share, respectively. Net income margin increased to 15% from 9%.
• Adjusted EBITDA increased 31% to $31.0 million. Adjusted EBITDA margin increased to 34% from 31%.
• Adjusted net income increased 44% to $18.7 million, which resulted in adjusted earnings of $1.33 and $1.30 per basic and diluted share, respectively.
• Cash from operating activities increased 22% to $29.3 million.
  
  

Fourth Quarter and Recent Business Highlights

• Added 169 customers to IDI™ during the fourth quarter, ending the year with 10,022 customers.
• Added 17,809 users to FOREWARN^® during the fourth quarter, ending the year with 390,018 users. Over 620 REALTOR^® Associations are now contracted to use FOREWARN.
• Continued growth in the onboarding of higher-tier customers, with 127 customers contributing over $100,000 of revenue in 2025 compared to 96 customers in 2024.
• Purchased 57,812 shares of the Company’s common stock during the fourth quarter and year to date through February 27, 2026, at an average price of $44.01 per share pursuant to the Company’s Stock Repurchase Program. As of February 27, 2026, the Company had $16.4 million remaining under the Stock Repurchase Program.
  
  

Conference Call

In conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly and full year results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at www.redviolet.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com.

About red violet^®

At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our cloud-native, AI-enabled identity intelligence platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, enhance safety, and mitigate fraud and the related financial losses borne by society. For more information, please visit www.redviolet.com.

Company Contact:
Camilo Ramirez
Red Violet, Inc.
561-757-4500
ir@redviolet.com

Investor Relations Contact:
Steven Hooser
Three Part Advisors
214-872-2710
ir@redviolet.com

Use of Non-GAAP Financial Measures

Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and free cash flow ("FCF"). Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest income, income tax (benefit) expense, depreciation and amortization, share-based compensation expense, acquisition-related costs, litigation costs, and write-off of long-lived assets. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, acquisition-related costs, litigation costs, and write-off of long-lived assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment and capitalized costs included in intangible assets.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether we will remain focused on deepening workflow integration, advancing our technology differentiation, and driving sustainable long-term value for shareholders. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in red violet's Form 10-K for the year ended December 31, 2024 filed on February 27, 2025, as may be supplemented or amended by the Company's other Securities and Exchange Commission (“SEC”) filings, including the Form 10-K for year ended December 31, 2025 expected to be filed today. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

RED VIOLET, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
	December 31, 2025				December 31, 2024
ASSETS:
Current assets:
Cash and cash equivalents	$	43,557			$	36,504
Accounts receivable, net of allowance for doubtful accounts of $231 and $188 as of December 31, 2025 and 2024, respectively		10,697				8,061
Prepaid expenses and other current assets		2,281				1,627
Total current assets		56,535				46,192
Property and equipment, net		882				545
Intangible assets, net		39,264				35,997
Goodwill		5,227				5,227
Right-of-use assets		2,570				1,901
Deferred tax assets		6,585				7,496
Other noncurrent assets		949				1,173
Total assets	$	112,012			$	98,531
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable	$	1,977			$	2,127
Accrued expenses and other current liabilities		4,469				2,881
Current portion of operating lease liabilities		396				406
Deferred revenue		1,028				712
Dividend payable		-				4,181
Total current liabilities		7,870				10,307
Noncurrent operating lease liabilities		2,396				1,592
Other noncurrent liabilities		820				-
Total liabilities		11,086				11,899
Shareholders' equity:
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of December 31, 2025 and 2024		-				-
Common stock—$0.001 par value, 200,000,000 shares authorized, 14,151,350 and 13,936,329 shares issued and outstanding, as of December 31, 2025 and 2024		14				14
Additional paid-in capital		88,628				87,488
Retained earnings (accumulated deficit)		12,284				(870	)
Total shareholders' equity		100,926				86,632
Total liabilities and shareholders' equity	$	112,012			$	98,531

RED VIOLET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share data)
		Year Ended December 31,
		2025				2024
Revenue		$	90,252			$	75,189
Costs and expenses(1):
Cost of revenue (exclusive of depreciation and amortization)			14,675				13,997
Sales and marketing expenses			21,750				17,835
General and administrative expenses			30,017				25,875
Depreciation and amortization			10,672				9,562
Total costs and expenses			77,114				67,269
Income from operations			13,138				7,920
Interest income			1,420				1,400
Income before income taxes			14,558				9,320
Income tax expense			1,404				2,317
Net income		$	13,154			$	7,003
Earnings per share:
Basic		$	0.94			$	0.51
Diluted		$	0.91			$	0.50
Weighted average shares outstanding:
Basic			14,036,920				13,864,797
Diluted			14,398,047				14,125,825
(1) Share-based compensation expense in each category:
Sales and marketing expenses		$	764			$	606
General and administrative expenses			5,736				5,342
Total		$	6,500			$	5,948

RED VIOLET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)
	Year Ended December 31,
	2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	13,154			$	7,003
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,672				9,562
Share-based compensation expense		6,500				5,948
Write-off of long-lived assets		3				85
Provision for bad debts		760				342
Noncash lease expenses		509				556
Deferred income tax expense		911				2,018
Changes in assets and liabilities:
Accounts receivable		(3,396	)			(1,268	)
Prepaid expenses and other current assets		(654	)			(514	)
Other noncurrent assets		199				(656	)
Accounts payable		(150	)			496
Accrued expenses and other current liabilities		884				936
Deferred revenue		316				22
Operating lease liabilities		(359	)			(570	)
Net cash provided by operating activities		29,349				23,960
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(563	)			(169	)
Capitalized costs included in intangible assets		(10,593	)			(9,398	)
Net cash used in investing activities		(11,156	)			(9,567	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid related to net share settlement of vesting of restricted stock units		(6,044	)			(4,068	)
Repurchases of common stock		(915	)			(5,853	)
Dividend payable		(4,181	)			-
Net cash used in financing activities		(11,140	)			(9,921	)
Net increase in cash and cash equivalents	$	7,053			$	4,472
Cash and cash equivalents at beginning of period		36,504				32,032
Cash and cash equivalents at end of period	$	43,557			$	36,504
SUPPLEMENTAL DISCLOSURE INFORMATION:
Cash paid for interest	$	-			$	-
Cash paid for income taxes	$	629			$	607
Share-based compensation capitalized in intangible assets	$	1,599			$	1,627
Retirement of treasury stock	$	6,959			$	10,065
Right-of-use assets obtained in exchange of operating lease liabilities	$	1,153			$	-
Dividend declared not yet paid	$	-			$	4,181

Use and Reconciliation of Non-GAAP Financial Measures

Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF. Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest income, income tax (benefit) expense, depreciation and amortization, share-based compensation expense, acquisition-related costs, litigation costs, and write-off of long-lived assets. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, acquisition-related costs, litigation costs, and write-off of long-lived assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment and capitalized costs included in intangible assets.

The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA:

	Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands)	2025				2024				2025				2024
Net income	$	2,815			$	863			$	13,154			$	7,003
Interest income		(387	)			(368	)			(1,420	)			(1,400	)
Income tax (benefit) expense		(828	)			(124	)			1,404				2,317
Depreciation and amortization		2,769				2,481				10,672				9,562
Share-based compensation expense		1,371				1,496				6,500				5,948
Acquisition-related costs		-				-				358				7
Litigation costs		208				117				281				124
Write-off of long-lived assets		-				3				3				85
Adjusted EBITDA	$	5,948			$	4,468			$	30,952			$	23,646
Revenue	$	23,392			$	19,565			$	90,252			$	75,189
Net income margin		12	%			4	%			15	%			9	%
Adjusted EBITDA margin		25	%			23	%			34	%			31	%

The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income:

	Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands, except share data)	2025				2024				2025				2024
Net income	$	2,815			$	863			$	13,154			$	7,003
Share-based compensation expense		1,371				1,496				6,500				5,948
Amortization of share-based compensation capitalized in intangible assets		411				402				1,646				1,540
Acquisition-related costs		-				-				358				7
Litigation costs		208				117				281				124
Write-off of long-lived assets		-				3				3				85
Tax effect of adjustments(1)		(1,744	)			(879	)			(3,273	)			(1,712	)
Adjusted net income	$	3,061			$	2,002			$	18,669			$	12,995
Earnings per share:
Basic	$	0.20			$	0.06			$	0.94			$	0.51
Diluted	$	0.19			$	0.06			$	0.91			$	0.50
Adjusted earnings per share:
Basic	$	0.22			$	0.14			$	1.33			$	0.94
Diluted	$	0.21			$	0.14			$	1.30			$	0.92
Weighted average shares outstanding:
Basic		14,101,986				13,900,091				14,036,920				13,864,797
Diluted		14,554,080				14,366,545				14,398,047				14,125,825

(1)   The tax effect of adjustments is calculated using the expected combined federal and state statutory income tax rate, which was approximately 26.0% for the three months and the years ended December 31, 2025 and 2024.
We refined the methodology for calculating the tax effect of adjustments used in arriving at non-GAAP adjusted net income. Prior period amounts have been revised to conform to the current presentation. These revisions did not affect previously reported GAAP financial statements.

The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit:

	Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands)	2025				2024				2025				2024
Revenue	$	23,392			$	19,565			$	90,252			$	75,189
Cost of revenue (exclusive of depreciation and amortization)		(3,891	)			(3,472	)			(14,675	)			(13,997	)
Depreciation and amortization related to cost of revenue		(2,703	)			(2,431	)			(10,449	)			(9,349	)
Gross profit		16,798				13,662				65,128				51,843
Depreciation and amortization of certain intangible assets(1)		2,665				2,431				10,292				9,349
Adjusted gross profit	$	19,463			$	16,093			$	75,420			$	61,192
Gross margin		72	%			70	%			72	%			69	%
Adjusted gross margin		83	%			82	%			84	%			81	%

(1)   Depreciation and amortization of certain intangible assets primarily consists of the amortization of capitalized internal-use software development costs, which are included within intangible assets and amortized over their estimated useful lives.

The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF:

	Three Months Ended December 31,								Year Ended December 31,
(Dollars in thousands)	2025				2024				2025				2024
Net cash provided by operating activities	$	6,689			$	6,691			$	29,349			$	23,960
Less:
Purchase of property and equipment		(124	)			(17	)			(563	)			(169	)
Capitalized costs included in intangible assets		(2,914	)			(2,280	)			(10,593	)			(9,398	)
Free cash flow	$	3,651			$	4,394			$	18,193			$	14,393

In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business.

We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, and share-based compensation expense, and the impact of other items not indicative of our ongoing operating performance. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income, excluding share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, and other items not indicative of our ongoing operating performance, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. Our adjusted gross profit is a measure used by management in evaluating the business’s current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets. We believe adjusted gross profit provides useful information to our investors by eliminating the impact of certain non-cash depreciation and amortization, and primarily the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business’s operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment and capitalized costs included in intangible assets.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements.

SUPPLEMENTAL METRICS

The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release.

We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material.

	(Unaudited)
(Dollars in thousands)	Q1'24			Q2'24			Q3'24			Q4'24			Q1'25			Q2'25			Q3'25			Q4'25
Customer metrics
IDI - billable customers(1)	8,241			8,477			8,743			8,926			9,241			9,549			9,853			10,022
FOREWARN - users(2)	236,639			263,876			284,967			303,418			325,336			346,671			372,209			390,018
Revenue metrics
Contractual revenue %(3)	78	%		74	%		77	%		77	%		74	%		77	%		75	%		77	%
Gross revenue retention %(4)	93	%		94	%		94	%		96	%		96	%		97	%		96	%		95	%
Other metrics
Employees - sales and marketing	76			86			93			95			90			92			105			99
Employees - support	10			10			11			11			11			11			11			12
Employees - infrastructure	29			27			29			28			29			29			32			37
Employees - engineering	51			56			58			57			62			63			66			73
Employees - administration	25			25			26			25			24			28			28			29

(1)   We define a billable customer of IDI as a single entity that generated revenue in the last three months of the period. Billable customers are typically corporate organizations. In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.

(2)   We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period. A unique person can only have one user account.

(3)   Contractual revenue % represents revenue generated from customers pursuant to pricing contracts containing a monthly fee and any additional overage divided by total revenue. Pricing contracts are generally annual contracts or longer, with auto renewal.

(4)   Gross revenue retention is defined as the revenue retained from existing customers, net of reinstated revenue, and excluding expansion revenue. Revenue is measured once a customer has generated revenue for six consecutive months. Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.

FAQ

What were red violet (RDVT) fourth-quarter 2025 revenue and EPS results?

Red Violet reported Q4 2025 revenue of $23.4 million and GAAP Q4 diluted EPS of $0.19. According to the company, Q4 net income rose 226% and adjusted EBITDA was $5.9 million, reflecting margin expansion and stronger profitability.

How did red violet (RDVT) perform for full year 2025 in revenue and margins?

For FY2025 red violet reported $90.3 million in revenue, a 20% increase year-over-year. According to the company, gross margin expanded to 72% and adjusted gross margin reached 84%, driven by higher adjusted gross profit of $75.4 million.

What cash and liquidity position did red violet (RDVT) report at year-end 2025?

Red Violet ended 2025 with $43.6 million in cash and cash equivalents on the balance sheet. According to the company, operating cash flow increased 22% to $29.3 million for the year, supporting operations and buybacks.

What shareholder actions did red violet (RDVT) take related to stock repurchases in 2025?

The company purchased 57,812 shares year-to-date through February 27, 2026 at an average $44.01 per share. According to the company, $16.4 million remains available under the stock repurchase program as of February 27, 2026.

How did customer and user growth change for red violet (RDVT) in Q4 2025?

Red Violet added 169 IDI customers in Q4, finishing with 10,022 customers and added 17,809 FOREWARN users in the quarter. According to the company, FOREWARN now has 390,018 users and over 620 REALTOR associations contracted.