Red Violet, Inc.

Second quarter revenue was a record $26.7 million, up 23% from the prior year. Adjusted gross profit was $22.9 million, with adjusted gross margin at a record 86%, up 2 percentage points. Adjusted EBITDA was a record $11.2 million, up 48%, with adjusted EBITDA margin at 42%, up 7 percentage points. Adjusted net income rose 58% to $7.2 million, and adjusted earnings were $0.50 per diluted share. Cash flow from operations was a record $10.6 million, up 42%, and free cash flow was $7.2 million, up 50% from $4.8 million a year ago. Management reiterated expectations for full-year adjusted EBITDA margin to be in the high 30s; no explicit next-quarter revenue or EPS guidance was given.

Derek Dubner framed the quarter as proof that the identity intelligence market is accelerating, saying Red Violet’s platform is increasingly becoming a must-have amid rising fraud, AI-driven impersonation, and higher regulatory risk. He emphasized the company’s proprietary, AI-embedded entity resolution engine as a structural advantage over legacy competitors, and said the business is benefiting from broad demand across industries and from the K-shaped economy. He was especially upbeat about the record 447 IDI customer additions, the expansion of FOREWARN into home health care, and the company’s new strategic flexibility after the capital raise.

Daniel MacLachlan focused on operating leverage and balance sheet strength, noting that revenue, profitability, and cash flow all reached new highs together. He cited $26.7 million of revenue, $22.9 million of adjusted gross profit, 86% adjusted gross margin, $11.2 million of adjusted EBITDA, 42% adjusted EBITDA margin, and $7.2 million of adjusted net income; he also said cash from operations was $10.6 million and free cash flow was $7.2 million. On the balance sheet, he said cash and cash equivalents were $50 million at June 30, 2026 versus $43.6 million at year-end 2025, and that the company had repurchased 74.5 thousand shares year to date at an average price of $41.87, with $15.5 million remaining under the buyback program.

Analysts focused on what is driving the record 447 IDI customer additions, whether the wins are coming from greenfield demand or competitors, and how the company is progressing in public sector and federal accounts. Management said the mix is healthy across both new demand and competitive displacement, highlighted a large law enforcement win where Red Violet displaced an incumbent, and said federal is progressing but converting more slowly because of procurement and implementation cycles. Another key question centered on FOREWARN’s home health care expansion; management said the market includes an estimated 4 million home health aides and more than 12 thousand Medicare-certified agencies, but declined to quantify near-term revenue potential because it is a new entry and competitive market.