Red Violet, Inc. Reports 26% Revenue Growth to $22.0 Million in Q1 2025

Red Violet, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue rising 26% to $22.0 million, compared to $17.5 million in the same period last year. The company attributed this growth to strong onboarding of new customers, which contributed an additional $1.3 million in revenue, and a 20% increase in revenue from existing customers, amounting to $3.2 million. The gross profit also saw a notable increase of 37% to $15.8 million, resulting in a gross margin improvement from 66% to 72%. Net income surged 93% to $3.4 million, translating to earnings of $0.25 per basic share and $0.24 per diluted share.

In terms of operational metrics, Red Violet's customer base expanded, with the number of billable customers for its IDI brand increasing to 9,241, up from 8,241 a year earlier. The FOREWARN platform also saw growth, adding 21,918 users to reach a total of 325,336 users. The company’s strategic focus on enhancing its go-to-market capabilities is reflected in a 46% increase in sales and marketing expenses, which rose to $5.4 million. General and administrative expenses also increased by 7% to $6.2 million, primarily due to higher personnel-related costs.

The company’s balance sheet remains strong, with total assets of $99.1 million as of March 31, 2025, compared to $98.5 million at the end of 2024. Cash and cash equivalents stood at $34.6 million, while total shareholders' equity increased to $91.8 million from $86.6 million. The reduction in current liabilities from $10.3 million to $5.1 million was notable, driven by the payment of a special cash dividend of $0.30 per share, totaling approximately $4.2 million, which was paid on February 14, 2025.

Looking ahead, Red Violet anticipates continued growth driven by its expanding customer base and the ongoing development of its identity intelligence solutions. The company plans to leverage its proprietary technology and analytical capabilities to enhance its offerings and drive further revenue growth. Despite potential macroeconomic challenges, including inflationary pressures, Red Violet believes its existing resources and projected cash flows will be sufficient to fund operations and capital expenditures for at least the next twelve months. The company remains committed to exploring additional capital-raising opportunities as needed to support its growth initiatives.