📊 RDVT Key Takeaways
Is Red Violet, Inc. (RDVT) a Good Investment?
Red Violet maintains exceptional financial health with zero debt, $43.5M cash reserves, and strong 21% operating margins generating $6.5M in free cash flow. However, flat year-over-year revenue growth in a software services sector that should be expanding raises significant concerns about competitive positioning and market opportunity, making the business a potential value trap despite financial strength.
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 Red Violet, Inc. Stock? RDVT Key Strengths
- Pristine balance sheet with zero long-term debt and $43.5M cash (38% of total assets)
- Strong free cash flow generation at 25.2% FCF margin with minimal $63K capex requirements
- Solid profitability with 21.1% operating margin and 17.0% net margin despite revenue stagnation
- Exceptional liquidity at 11.22x current ratio providing significant strategic flexibility
- 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 Stock Risks: Red Violet, Inc. Investment Risks
- Zero revenue growth YoY - fundamental concern for software/services company with growth expectations
- Low ROE (4.2%) and ROA (3.9%) indicate poor capital deployment and inefficient asset utilization
- EPS growth of 82% driven by share buybacks rather than operational improvement - unsustainable growth driver
- Potential market saturation, competitive pressure, or product-market fit challenges causing revenue stagnation
- 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 rate - critical to identify if stagnation is temporary or structural
- Return on equity and return on assets - management must improve capital efficiency
- Operating cash flow sustainability - verify cash generation isn't masking operational decline
- Customer concentration, churn rates, and contract values - assess revenue quality and competitive positioning
- Revenue growth YoY
- Free cash flow margin
Red Violet, Inc. (RDVT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 11.22x current ratio provides a solid financial cushion.
RDVT Profit Margin, ROE & Profitability Analysis
RDVT vs Technology Sector: How Red Violet, Inc. Compares
How Red Violet, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Red Violet, Inc. Stock Overvalued? RDVT Valuation Analysis 2026
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.
Red Violet, Inc. Balance Sheet: RDVT Debt, Cash & Liquidity
RDVT Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
RDVT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $22.0M | $3.4M | $0.24 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Red Violet, Inc. Dividends, Buybacks & Capital Allocation
RDVT SEC Filings: Latest 10-K & 10-Q 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 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RDVT's key strengths?
Claude: Pristine balance sheet with zero long-term debt and $43.5M cash (38% of total assets). Strong free cash flow generation at 25.2% FCF margin with minimal $63K capex requirements. 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: Zero revenue growth YoY - fundamental concern for software/services company with growth expectations. Low ROE (4.2%) and ROA (3.9%) indicate poor capital deployment and inefficient asset utilization. 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 $25.8M.
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 $0.30.
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 May 2026, Red Violet, Inc. has a BUY rating with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is RDVT stock overvalued or undervalued?
Valuation metrics for RDVT: ROE of 4.2% (sector avg: 22%), net margin of 17.0% (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 $6.6M, with capital expenditures of $63.0K. FCF margin is 25.2%.
How does RDVT compare to other Technology stocks?
Vs Technology sector averages: Net margin 17.0% (avg: 18%), ROE 4.2% (avg: 22%), current ratio 11.22 (avg: 2.5).