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→Stable
- Leverage Penalty Risk→Stable
- Notable Insider Selling→Stable
- +2 more pillars — see the Why tab for full reasoning
Red Violet, Inc. (RDVT) Stock Analysis
Catalyst-Driven edge
Technology · Software - Application
Hold if already holding. Not a fresh buy at $66.17, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% 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 $66.17, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away). Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 5.7/10, moderate confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 29d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. 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.
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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.
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.
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Rating Breakdown
1 floor-breaker
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $66.17, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away). Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Target $68.20 (+3.1%), stop $61.54 (−7.5%), A.R:R -1.2:1. Score 5.7/10, moderate confidence.
Take-profit target: $68.20 (+3.1% upside). Target $68.20 (+3.1%), stop $61.54 (−7.5%), A.R:R -1.2:1. Stop-loss: $61.54.
Analyst target reached - limited upside remaining; Near 52-week high (4.9% away); Expensive valuation.
Red Violet, Inc. trades at a P/E of 70.8 (forward 42.3). TrendMatrix value score: 3.2/10. Verdict: Hold.
8 analysts cover RDVT with a consensus score of 4.1/5. Average price target: $64.
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.