RDVT · Red Violet, Inc.

Red Violet delivered a materially strong first quarter 2026, marked by record revenue, profitability, and operational metrics — all achieved while normalizing for $1.2 million of one-time revenue in Q1 2025. The 17% year-over-year revenue growth to $25.8 million was underpinned by broad-based strength across verticals: Financial and Corporate Risk led with exceptional background screening growth; Investigative posted robust double-digit gains across law enforcement and private sectors; and Emerging Markets showed healthy underlying expansion despite tough comparables. Margin expansion was structural: GAAP gross margin improved to 75% (from 72%), while Non-GAAP adjusted gross margin hit 85% — surpassing the company’s long-stated $100M annual run-rate target of >80%. Adjusted EBITDA margin reached 41%, also exceeding the 35–40% target range, confirming the scalability and operating leverage embedded in the cloud-native, AI-embedded CORE™ platform. Management explicitly attributed this performance to disciplined execution, deeper customer integration, and accelerating AI-driven productivity gains — particularly in engineering velocity and data fusion capabilities tied to its longitudinal identity graph. Customer metrics reinforced demand momentum: IDI™ added 400 billable customers (one of the highest quarterly additions in company history), bringing the total to 10,422; FOREWARN® grew to 417,680 users with over 640 REALTOR® Associations contracted. Capital allocation remained disciplined, with $2.7 million spent on share repurchases year-to-date through April 30, 2026, leaving $15.6 million available under the program. While no formal forward guidance was issued, management reaffirmed confidence in long-term margin potential — citing paths to >90% adjusted gross margins and ~65% adjusted EBITDA margins — and emphasized ongoing investment in AI, product, and go-to-market as deliberate enablers of that trajectory. The absence of near-term margin compression signals confidence in sustainable, high-quality growth.