Red Violet Posts 17% Revenue Growth to $25.8M, Net Income Up 28%
Red Violet’s Q1 2026 revenue rose 17% year-over-year to a record $25.8 million, driving gross profit up 22% to $19.3 million and net income up 28% to $4.4 million. Adjusted EBITDA climbed 27% to $10.7 million with cash from operations up 32% to $6.6 million and $43.5 million in cash reserves.
1. Record Quarterly Financial Performance
Red Violet reported 17% revenue growth in Q1 2026, reaching $25.8 million, and gross profit rose 22% to $19.3 million for a 75% margin. Net income increased 28% to $4.4 million, lifting net margin to 17% and earnings per share to $0.30 diluted.
2. Adjusted EBITDA and Cash Flow Growth
Adjusted EBITDA climbed 27% to $10.7 million, representing a 41% margin compared to 38% last year. Net cash from operations increased 32% to $6.6 million, bolstering cash and equivalents to $43.5 million as of March 31, 2026.
3. Customer and User Expansion
The company onboarded 400 new customers to its IDI platform, totaling 10,422, and added 27,662 users to FOREWARN, bringing its user base to 417,680. Over 640 REALTOR associations now contract for FOREWARN, highlighting strong demand in real estate risk solutions.
4. Share Repurchase and Balance Sheet Position
Red Violet repurchased 73,250 shares at an average price of $41.90 year to date, with $15.6 million remaining under its stock buyback program. This reflects management’s confidence and reinforces capital return alongside ongoing investments in AI and cloud-native platforms.