Red Violet Q4 Revenue Soars 20% to $23.4M with 25% EBITDA Margin
Red Violet posted Q4 revenue of $23.4 million (up 20%) with an 83% adjusted gross margin and $5.9 million in adjusted EBITDA (25% margin), boosting free cash flow to $18.2 million. The IDI customer base grew to 10,022 and high-value clients climbed to 127, but no 2026 guidance was provided.
1. Q4 Financial Highlights
Red Violet posted record Q4 revenue of $23.4 million, up 20% year-over-year, with an adjusted gross profit of $19.5 million (83% margin) and adjusted EBITDA of $5.9 million (25% margin), driven by robust demand across its identity resolution platform.
2. Customer Growth and Market Segments
The IDI billable customer base expanded by 169 to end Q4 with 10,022 customers, while high-value clients generating over $100,000 in annual revenue rose to 127 from 96, reflecting successful upselling and enterprise wins; however, the real estate vertical declined due to rising home prices and interest rates.
3. Cash Flow and Future Outlook
Full-year free cash flow increased to $18.2 million from $14.4 million, though Q4 free cash flow dropped to $3.7 million from $4.4 million last year, partly due to elevated year-end incentive compensation; management provided no formal 2026 guidance, adding uncertainty around growth expectations and new contract revenue timing.