RDVT

RED VIOLET INC

Technology | Small Cap

$0.25

EPS Forecast

$25.52

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-07-20

Red Violet Q1 2026: Revenue Climbs 17% on AI-Driven Growth, but the EPS Puzzle Persists

Tickers and metrics: RDVT, EPS, earnings surprise, EPS consensus, revenue forecast — all on the table as Red Violet, Inc. lays out its first quarter results for 2026.

Executive snapshot

Red Violet, Inc. (NASDAQ: RDVT) reported an enthusiastic start to 2026, with revenue for the three months ended March 31 rising 17% to $25.8 million. Net income reached $4.4 million, translating to GAAP earnings of $0.31 per basic share and $0.30 per diluted share. On an adjusted basis, earnings per share were $0.46, while Adjusted EBITDA climbed to $10.7 million with a margin of 41%.

Gross profit came in at $19.3 million, yielding a gross margin of 75%—with adjusted gross profit at $22.0 million and an adjusted gross margin of 85%. Cash generation remained solid, as net cash provided by operating activities increased 32% to $6.6 million.

What the numbers say, precisely

  • Revenue: $25.8 million, up 17% year over year.
  • GAAP net income: $4.4 million; EPS of $0.31 (basic) and $0.30 (diluted).
  • EPS (adjusted): $0.46.
  • Gross margin: 75% GAAP; adjusted gross margin 85%.
  • Gross profit: $19.3 million; Adjusted gross profit $22.0 million.
  • Adjusted EBITDA: $10.7 million; Adjusted EBITDA margin 41%.
  • Operating cash flow: $6.6 million, up 32% year over year.
  • One-time revenue: $1.2 million in the prior-year period, noted as a point of comparison.

The release also highlights that the quarter delivered “record revenue” and “record profitability” with strong customer onboarding. Management attributed the performance to its cloud-native, AI-embedded platform and a differentiated longitudinal identity graph aimed at AI-driven decisioning in regulated environments.

Management commentary and cadence

In a statement, CEO Derek Dubner emphasized the quarter’s strength, saying the company benefitted from robust demand and ongoing product investments. The narrative centers on the company’s AI-enabled platform and its ability to onboard new customers efficiently, underscoring a structural view of durable growth rather than one-off gains.

“Q1 2026 was an exceptional quarter, with record revenue, record profitability, and one of our strongest quarters ever for new customer onboarding,” Dubner remarked. “We continue to invest in our product roadmap and go-to-market capabilities because we are confident in the significant opportunity ahead.”

Implications for RDVT and sector peers

From a strategic standpoint, the results reinforce Red Violet’s positioning as a data analytics and information solutions provider that leans into AI-enabled capabilities within regulated settings. The combination of high gross margins and a meaningful Adjusted EBITDA uplift suggests operating leverage in the business model, helped by efficiency gains in onboarding and platform usage.

The company’s emphasis on a cloud-native, AI-integrated platform and a proprietary longitudinal identity graph could offer a defensible moat if these assets translate into more recurring revenue and higher customer lifetime value. For sector peers—especially those in analytics, data enrichment, and compliance-focused data services—the quarter signals that AI-enabled data platforms, paired with a scalable onboarding engine, can deliver meaningful margin expansion even as revenue grows.

However, the narrative rests on the absence of a disclosed revenue forecast for 2026. In the absence of explicit guidance, investors may interpret the quarter through the lens of earnings per share trajectory and EBITDA, while weighing the sustainability of profitability against potential competitive intensity and customer concentration risks.

Risks, questions, and what to watch

Key questions include: How sustainable is the current 17% revenue growth pace if AI demand cools or if onboarding costs rise? Will the company provide a revenue forecast or updated EPS consensus from analysts in subsequent quarters? The prior-year one-time revenue of $1.2 million is a known adjustment that could temper year-over-year comparisons going forward.

Investors should also watch for how much of the gross margin expansion is driven by mix versus price or efficiency, and whether the adjusted metrics continue to outpace GAAP results as the business scales. The sector’s appetite for AI-enabled decisioning in regulated contexts remains a tailwind, but regulatory shifts or platform competition could alter the trajectory.

Takeaways for investors

RDVT’s first quarter strengthens the narrative of AI-assisted analytics in a high-bar regulatory environment, with tangible improvements in profitability and cash generation. The absence of published EPS consensus or a revenue forecast leaves room for interpretation, meaning the stock may respond chiefly to how the company frames its next-quarter and full-year outlook.

For peers, the message is clear: a scalable, AI-anchored platform paired with efficient onboarding and strong gross margins can translate into meaningful earnings power, even amid competitive pressures. Expect attention to turn toward whether 2026’s pace can be sustained or if the company will need to lean on efficiency gains to maintain its margin profile as growth continues.

Note: This analysis incorporates the disclosed Q1 2026 metrics for RDVT (Red Violet, Inc.), including revenue of $25.8 million, GAAP EPS of $0.31 (basic) / $0.30 (diluted), and adjusted EPS of $0.46, with Adjusted EBITDA of $10.7 million. The company reported one-time prior-year revenue of $1.2 million and highlighted AI-driven product strengths and onboarding efficiency as growth levers.