Reviewed listing: NASDAQ:RDVT · Analysis dated Oct 14, 2026
It has not been confirmed whether the basis of this analysis still holds today. Read it as a dated earlier assessment; it does not establish a current buying opportunity.
How does the company make money?
Red Violet sells digital information that helps companies identify people and businesses and understand the relationships between them. Customers use this information, for example, to prevent fraud, conduct checks, and support personal safety.
What supports the business?
Red Violet is not only growing but also retaining more profit before interest and taxes from its sales: in the second quarter of 2026, revenue rose 23%, while this profit rose 122%. Its growing customer base supports this improvement.
What could improve?
More customers and more intensive use could further increase profit, because key data costs do not rise equally with every sale. Successful acquisitions could provide additional help, but their benefits have not yet been demonstrated.
How is the stock price assessed?
This assessment refers to the analysis and its quoted price shown here. It is not a live quote or a personal recommendation to buy.
At 80.04 USD, the stock appears expensive despite the strong business. Following the capital increase, the market capitalization is approximately 78 times the earnings generated over the latest twelve months.
What is the main risk?
The high price assumes that available cash surpluses will grow strongly for many years. Even a slowdown in growth or poorly deployed acquisition capital could weigh significantly on the valuation.
What is the overall assessment?
Strong business with documented improvements in margins and cash flow, but a demanding valuation at 80.04 USD. Long-term growth requirements and the still-unproven deployment of capital currently prevent a positive overall assessment.
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