Red Violet, Inc. reported a 17% increase in revenue for the first quarter of 2026, reaching $25.8 million compared to $22.0 million in the same period last year. The company's net income also rose by 28% to $4.4 million, resulting in earnings per share of $0.31 and $0.30 on a basic and diluted basis, respectively. The gross profit increased by 22% to $19.3 million, with a gross margin improvement to 75% from 72%. Adjusted EBITDA for the quarter was $10.7 million, reflecting a 27% increase and an adjusted EBITDA margin of 41%, up from 38% in the prior year.
The growth in revenue was primarily driven by a 24% increase in revenue from existing customers, which totaled $23.7 million, while revenue from new customers decreased by 28% to $2.1 million. The company’s billable customer base for its IDI brand grew to 10,422, up from 9,241 a year earlier, and the FOREWARN user base expanded to 417,680, an increase from 325,336 users. The company attributed the revenue growth to volume expansion among existing customers, although it noted a decline in revenue from new customer acquisitions.
Operationally, Red Violet continued to invest in its growth, with sales and marketing expenses increasing by 8% to $5.9 million, and general and administrative expenses rising by 28% to $7.9 million. The increase in general and administrative expenses was largely due to higher personnel-related costs and share-based compensation. The company also incurred $0.3 million in acquisition-related costs during the quarter, reflecting its ongoing efforts to explore strategic opportunities.
In terms of cash flow, Red Violet generated $6.6 million from operating activities, a 32% increase from the previous year. The company ended the quarter with cash and cash equivalents of $43.5 million. Additionally, Red Violet repurchased 73,250 shares of its common stock under its Stock Repurchase Program, which has a remaining authorization of $15.6 million as of April 30, 2026. The company remains focused on expanding its market presence and enhancing its product offerings, with a commitment to driving long-term growth and profitability.
About Red Violet, Inc.
Red Violet, Inc. develops proprietary AI/ML-driven identity intelligence solutions for public and private sector organizations. Its CORE platform unifies vast datasets to enable real-time risk mitigation, fraud prevention, and regulatory compliance. Serving industries like finance, healthcare, law enforcement, and real estate, the company offers scalable, cloud-native analytics tools that enhance decision-making, operational efficiency, and safety through advanced data integration and analysis.
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