Red Violet, Inc. Reports 20% Revenue Growth to $90.3 Million for Fiscal Year 2025

Red Violet, Inc. reported a significant increase in its financial performance for the fiscal year ended December 31, 2025, with total revenue rising to $90.3 million, a 20% increase from $75.2 million in 2024. The company also achieved a net income of $13.2 million, up 88% from the previous year's $7.0 million. Adjusted EBITDA for the year was $31.0 million, reflecting a 31% increase compared to $23.6 million in 2024. The growth in revenue was primarily driven by the onboarding of new customers and increased volume from existing clients, with the number of billable customers for IDI rising to 10,022 from 8,926, and FOREWARN users increasing to 390,018 from 303,418.

In terms of operational developments, Red Violet's cost of revenue increased by 5% to $14.7 million, but the cost as a percentage of revenue decreased to 16% from 19% in 2024, indicating improved efficiency. Sales and marketing expenses rose by 22% to $21.8 million, reflecting the company's investment in expanding its go-to-market capabilities. General and administrative expenses also increased by 16% to $30.0 million, driven by higher personnel-related costs and share-based compensation. The company maintained a strong cash position, with cash and cash equivalents totaling $43.6 million as of December 31, 2025.

Strategically, Red Violet has focused on enhancing its technology platform, CORE, which integrates artificial intelligence and machine learning to provide identity intelligence solutions. The company has also extended its relationship with its largest data supplier, which accounts for 45% of its total data acquisition costs, through an agreement that runs until April 2031. This extension is expected to support the company's ongoing data needs and operational capabilities.

Looking ahead, Red Violet anticipates continued growth driven by the increasing demand for data-driven identity intelligence solutions across various sectors. The company is committed to expanding its product offerings and enhancing its technology to meet evolving customer needs. However, it also acknowledges potential challenges, including macroeconomic conditions that could impact customer spending and the competitive landscape in the data and analytics sector. The company plans to leverage its existing resources and cash flows to fund operations and capital expenditures while remaining open to future capital-raising opportunities if necessary.