Recent developments highlight Red Violet's continued revenue and customer growth, strong financial performance, and strategic capital raising to support expansion.

• Red Violet reported Q3 2026 revenue of $27.8 million, a 20% increase year-over-year, with gross margin of 76%, net income margin of 20%, and adjusted EBITDA margin of 40% [N1][S2].
• The company added 383 customers to its IDI brand and 19,688 users to FOREWARN in Q3 2026, ending with 11,252 IDI customers and 462,861 FOREWARN users [N1][S2].
• Red Violet closed an underwritten public offering in Q3 2026, raising net proceeds of $108.7 million to support growth initiatives [N1][S2].
• Over 665 REALTOR® Associations across the U.S. are contracted to use FOREWARN, indicating broad adoption in the real estate sector [N3].
• The company continues to expand its AI identity platform across key markets and is pursuing M&A growth opportunities [N3].
• Management holds regular cybersecurity risk meetings and reported no material cybersecurity incidents in the recent period [S1].

Red Violet's integration of AI and machine learning into its CORE™ platform positions it well to address growing demand for real-time identity intelligence and analytics across multiple industries. The company's expanding customer base and user growth in both IDI and FOREWARN brands demonstrate market acceptance. Strong financial performance with increasing revenue, profitability, and cash generation, alongside a recent capital raise, provide resources to invest in product development and market expansion. The land-and-expand sales model supports scalable growth within existing customers, potentially increasing revenue per customer over time.

Red Violet faces competition from larger firms with greater financial and technical resources, which could pressure pricing and market share. Regulatory changes related to consumer privacy and technology use could increase compliance costs or restrict data usage, impacting product offerings and profitability. Macroeconomic factors such as reduced technology and marketing budgets among customers could negatively affect demand. Execution risks include the ability to sustain operating profits and cash flow to fund growth and product development. Dependence on recurring contracts requires ongoing customer engagement and retention.

Red Violet's moat is anchored in its proprietary AI-embedded CORE™ platform that integrates extensive proprietary and public data assets with regulated workflows, enabling real-time identity intelligence at enterprise scale. Its differentiated technology supports complex analytics and automation that enhance efficiency and outcomes across risk management, compliance, and investigative functions. The company's established customer base across diverse industries, combined with its land-and-expand sales approach and recurring revenue contracts, contribute to customer retention and revenue visibility. Additionally, its focus on regulated workflows and compliance creates barriers to entry for competitors lacking similar capabilities.

• Competitive Pressure: The company competes with larger firms that have greater financial, technical, sales, and marketing resources, which may impact market share and pricing.
• Regulatory and Privacy Risks: Changes in laws or regulations related to consumer privacy or technology use could increase costs or restrict data collection and product capabilities.
• Macroeconomic Sensitivity: Economic downturns could reduce customer spending on technology and marketing, affecting revenue growth.
• Execution Risks: Sustaining operating profits and cash flow is necessary to fund product development and market expansion; failure to do so could hinder growth.
• Cybersecurity Risks: Although no material incidents occurred recently, future cybersecurity events could adversely affect operations and reputation.

• Red Violet, Inc. is a Delaware corporation focused on identity intelligence solutions that enable real-time identification and location of people, businesses, assets, and their interrelationships for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition [S1][S2].
• The company operates a cloud-native, AI-embedded identity intelligence platform called CORE™, which integrates proprietary data assets and regulated workflows to deliver actionable insights and accelerate decision-making at enterprise scale [S1][S2].
• Red Violet markets its solutions primarily through two brands: IDI™ and FOREWARN®. IDI serves diverse industries with analytics and information solutions, including financial services, insurance, healthcare, law enforcement, and others. FOREWARN is an app-based solution tailored for the real estate industry [S1][S2].
• As of September 30, 2026, IDI had 11,252 billable customers and FOREWARN had 462,861 users, showing growth from prior periods [S2].
• Revenue is generated substantially from licensing fees accessed via hosted environments through online interfaces, batch processing, API, and custom integrations. Revenue recognition is based on transactional usage, monthly fees, or a combination, with most contracts being annual or longer with auto-renewal [S1][S2].
• For the three months ended September 30, 2026, total revenue was $27.8 million, a 20% increase from the prior year period. Gross margin was 76%, net income margin was 20%, and adjusted EBITDA margin was 40% [S2].
• Net income for the three months ended September 30, 2026 was $5.4 million, with earnings per basic and diluted share of $0.35 [S2].
• Cash and cash equivalents as of September 30, 2026 were $68.1 million, with short-term investments of $36.3 million, totaling $165.7 million including U.S. Treasury securities, and the company had no debt [S2].
• Liquidity ratios as of September 30, 2026 included a current ratio of 16.21 and a cash ratio of 13.9, indicating strong liquidity [S2].
• The company employs a 'land and expand' sales approach, starting with trials and transactional purchases, then expanding usage across departments and geographies as customers derive benefits [S1][S2].
• Red Violet closed an underwritten public offering in Q3 2026, raising net proceeds of $108.7 million [S2].
• The company faces industry risks including competition from larger firms with greater resources, regulatory changes affecting data privacy and technology use, and macroeconomic factors influencing customer spending on technology and marketing [S1].
• Management holds monthly Information Security Management System meetings and reports quarterly to the Board on cybersecurity risks; no material cybersecurity incidents occurred in the year ended December 31, 2025 [S1].
• Revenue contracts include deferred revenue balances expected to be realized within 12 months, and the company applies ASC 606 revenue recognition standards with portfolio approach practical expedient [S1].