📊 RDVT Key Takeaways
Is RDVT a Good Investment? Thesis Analysis
Red Violet demonstrates fortress-like financial health with zero debt, exceptional liquidity, and remarkable free cash flow generation (31.9% FCF margin). However, flat revenue growth combined with unsustainable 88% net income growth raises profitability quality concerns, suggesting cost-cutting rather than organic business expansion.
Red Violet shows strong, capital‑light profitability and cash generation with double‑digit operating/net margins, a ~32% FCF margin, and a debt‑free, cash‑rich balance sheet. While revenue was flat, earnings and EPS surged on improved operating efficiency; if top‑line growth reaccelerates while margins hold, earnings power can compound.
Why Buy RDVT? Key Strengths
- Zero debt and fortress balance sheet with $43.6M cash (38% of assets)
- Exceptional free cash flow generation at $28.8M with 31.9% FCF margin
- Outstanding liquidity metrics (7.18x current ratio) provides significant financial flexibility
- Solid net margins at 14.6% and reasonable ROE/ROA (13.0%/11.7%) demonstrate operational efficiency
- Debt-free balance sheet with substantial cash and low liabilities
- High free cash flow margin (31.9%) and minimal capex needs
- Improving profitability with 14.6% operating/net margins and 13% ROE without leverage
RDVT Investment Risks to Consider
- Revenue completely flat year-over-year (0% growth) signals stagnation in prepackaged software segment
- 87.8% net income growth with zero revenue growth is unsustainable and likely driven by one-time items or cost reductions rather than operational improvement
- Limited organic growth profile for a software company suggests mature/declining end markets or intense competition
- Minimal insider activity (1 Form 4 filing in 90 days) may indicate low insider confidence
- Flat revenue growth indicates potential demand or execution headwinds
- Margin expansion may be non-recurring or hard to sustain without growth
- Smaller scale can heighten volatility and customer concentration sensitivity
Key Metrics to Watch
- Revenue growth trajectory and customer acquisition trends in next quarters
- Quality of earnings - assess sustainability of net income growth relative to revenue
- Operating cash flow consistency and free cash flow sustainability
- Revenue growth YoY
- Free cash flow margin
RDVT Financial Metrics
💡 AI Analyst Insight
The 31.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 7.18x current ratio provides a solid financial cushion.
RDVT Profitability Ratios
RDVT vs Technology Sector
How Red Violet, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RDVT Overvalued or Undervalued?
Based on fundamental analysis, Red Violet, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RDVT Balance Sheet & Liquidity
RDVT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Red Violet, Inc.'s revenue has grown significantly by 105% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.50 reflects profitable operations.
RDVT Growth Metrics (YoY)
RDVT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $19.1M | $1.7M | $0.12 |
| Q2 2025 | $19.1M | $2.6M | $0.18 |
| Q1 2025 | $17.5M | $1.8M | $0.13 |
| Q3 2024 | $15.8M | $1.7M | $0.12 |
| Q2 2024 | $14.7M | $1.4M | $0.10 |
| Q1 2024 | $14.6M | $716.0K | $0.05 |
| Q3 2023 | $15.0M | $2.2M | $0.16 |
| Q2 2023 | $12.5M | -$98.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RDVT Capital Allocation
RDVT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Red Violet, Inc. (CIK: 0001720116)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RDVT
What is the AI rating for RDVT?
Red Violet, Inc. (RDVT) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RDVT's key strengths?
Claude: Zero debt and fortress balance sheet with $43.6M cash (38% of assets). Exceptional free cash flow generation at $28.8M with 31.9% FCF margin. ChatGPT: Debt-free balance sheet with substantial cash and low liabilities. High free cash flow margin (31.9%) and minimal capex needs.
What are the risks of investing in RDVT?
Claude: Revenue completely flat year-over-year (0% growth) signals stagnation in prepackaged software segment. 87.8% net income growth with zero revenue growth is unsustainable and likely driven by one-time items or cost reductions rather than operational improvement. ChatGPT: Flat revenue growth indicates potential demand or execution headwinds. Margin expansion may be non-recurring or hard to sustain without growth.
What is RDVT's revenue and growth?
Red Violet, Inc. reported revenue of $90.3M.
Does RDVT pay dividends?
Red Violet, Inc. does not currently pay dividends.
Where can I find RDVT SEC filings?
Official SEC filings for Red Violet, Inc. (CIK: 0001720116) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RDVT's EPS?
Red Violet, Inc. has a diluted EPS of $0.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RDVT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Red Violet, Inc. has a BUY rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RDVT stock overvalued or undervalued?
Valuation metrics for RDVT: ROE of 13.0% (sector avg: 22%), net margin of 14.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy RDVT stock in 2026?
Our dual AI analysis gives Red Violet, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RDVT's free cash flow?
Red Violet, Inc.'s operating cash flow is $29.3M, with capital expenditures of $563.0K. FCF margin is 31.9%.
How does RDVT compare to other Technology stocks?
Vs Technology sector averages: Net margin 14.6% (avg: 18%), ROE 13.0% (avg: 22%), current ratio 7.18 (avg: 2.5).