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 RamirezRed Violet, Inc.561-757-4500[email protected]
Investor Relations Contact:Steven Hooser Three Part Advisors214-872-2710[email protected]
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 ofDecember 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 sharesissued and outstanding, as of December 31, 2025 and 2024
-
-
Common stock—$0.001 par value, 200,000,000 shares authorized, 14,151,350 and13,936,329 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:
