Red Violet's strong earnings-beat streak supports its growth story, but the stock's rich valuation, high leverage, notable insider selling, and an already-negative asymmetry reading suggest the near-term risk/reward has turned unfavorable after running past its analyst target.
Thesis pillars
- Rich Valuation Risk↓Deteriorating
- Leverage Penalty Risk↓Deteriorating
- Notable Insider Selling→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 5, 2026, based on the 10-K filed Mar 4, 2026
Red Violet, Inc. (RDVT) Stock Analysis
Breakout setup
Technology · Software - Application
Hold if already holding. Not a fresh buy at $82.40, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.9% away).
Red Violet operates CORE, a cloud-native, AI-enabled identity intelligence platform marketed through its IDI and FOREWARN brands, serving 10,022 billable IDI customers and 390,018 FOREWARN users as of December 31, 2025. The company generated $90.3 million in revenue and $13.2... Read more
Hold if already holding. Not a fresh buy at $82.40, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.9% away). Chart setup: Golden cross, above all MAs, RSI 56, MACD bullish. Maintain position. Not compelling to add more. Score 6.3/10, moderate confidence.
Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: aggressive.
About Red Violet, Inc.
About Red Violet, Inc.
Red Violet's CORE identity-intelligence platform served 10,022 billable IDI customers and 390,018 FOREWARN users as of December 31, 2025, up from 8,926 and 303,418 a year earlier. The company generated $90.3 million in revenue and $13.2 million in net income in 2025, up from $75.2 million and $7.0 million in 2024, with 76% of revenue coming from customers on recurring pricing contracts and 24% from transactional usage.
Red Violet licenses identity-intelligence solutions through two brands: IDI, whose flagship idiCORE product serves financial services, insurance, healthcare, law enforcement, collections, and corporate-security customers, and FOREWARN, an app-based tool for real estate professionals to vet contacts before in-person meetings. Revenue comes almost entirely from licensing fees billed transactionally, via monthly fee, or a combination of both, under pricing contracts that are generally annual or longer with auto-renewal, sold through inside sales, a strategic sales team for major accounts, and third-party distributors and resellers. The company's data comes from public record, proprietary, and publicly available sources, but no individual customer accounted for more than 10% of total revenue in 2025 or 2024 — a diversified customer base that stands in contrast to Red Violet's data supply chain, where a single named data supplier, most recently extended through April 2031, dominates data acquisition spending.
Show full overview
Red Violet's customer base is diversified, but its data supply chain is not: the company's largest data supplier, one of the major credit bureaus, accounted for approximately 45% of total data acquisition costs in both 2025 and 2024. Red Violet extended that agreement in May 2025 through April 2031, locking in $23.2 million of remaining payment obligations, but the contract still lets the supplier terminate with 12 months' notice versus the 24 months Red Violet itself must give — an asymmetry that leaves the company's core data pipeline more exposed to a single counterparty's decision than its revenue concentration would suggest.
See also: Technology · Software - Application
From Red Violet, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-10-29Recent Developments — Red Violet, Inc.
Latest news
- NEWS Red Violet (NASDAQ:RDVT) Hits New 52-Week High - Here's What Happened - MarketBeat — MarketBeat positive
- NEWS Red Violet (NASDAQ:RDVT) Hits New 52-Week High - Here's What Happened - marketbeat.com — marketbeat.com positive
- NEWS Red Violet Inc. (RDVT) Q1 2026 Earnings: Strong EPS Beat Drives Share Rally - EPS Revision Trend - dars.gov.et — dars.gov.et positive
- NEWS Red Violet (RDVT) Projected to Post Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Red Violet Inc (RDVT) Earnings Forecast: Future EPS & Revenue Growth Estimates - tradingkey.com — tradingkey.com neutral
Generated 2026-10-29T11:53:51Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierlargest data supplier45%10-K Item 1: 'Our largest data supplier...accounted for approximately 45% of our total data acquisition costs both for the years ended December 31, 2025 and 2024.'
Material Events(8-K, last 90d)
- 2026-06-05Item 5.07LOWAt the June 3, 2026 Annual Meeting, all five director nominees were elected (though Steven Rubin received more "withhold" votes, 5,343,299, than "for" votes, 4,346,340) and Grant Thornton LLP was ratified as independent auditor for 2026. Routine annual-meeting matter.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $82.40, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (0.9% away). Chart setup: Golden cross, above all MAs, RSI 56, MACD bullish. Maintain position. Not compelling to add more. Analyst target $71.83 reached (−12.8%), stop $76.80 (−7.3%), A.R:R -1.1:1. Score 6.3/10, moderate confidence.
Analyst target $71.83 reached (−12.8% from $82.40); no take-profit level is published. Analyst target $71.83 reached (−12.8%), stop $76.80 (−7.3%), A.R:R -1.1:1. Stop-loss: $76.80.
Analyst target reached - limited upside remaining; Near 52-week high (0.9% away); Sector modifier (Technology): -0.8.
Red Violet, Inc. trades at a P/E of 72.3 (forward 46.8). TrendMatrix value score: 2.6/10. Verdict: Hold.
10 analysts cover RDVT with a consensus score of 4.1/5. Average price target: $85.
What does Red Violet, Inc. do?Red Violet operates CORE, a cloud-native, AI-enabled identity intelligence platform marketed through its IDI and...
Red Violet operates CORE, a cloud-native, AI-enabled identity intelligence platform marketed through its IDI and FOREWARN brands, serving 10,022 billable IDI customers and 390,018 FOREWARN users as of December 31, 2025. The company generated $90.3 million in revenue and $13.2 million in net income for 2025, with its largest data supplier accounting for approximately 45% of total data acquisition costs.