Recent News
Aug. 21, 2025 — red violet scheduled a presentation at the Midwest IDEAS Investor Conference for late August. Oct. 20, 2025 — Interactive Data, LLC (an rdvt company) announced an integration with TazWorks to extend ID verification into the background‑screening market. Oct. 29, 2025 — FOREWARN agreed to provide identity‑verification services to the Salt Lake Board of REALTORS® for its 9,000+ members. Nov. 7, 2025 — red violet appeared on TIME’s “America’s Growth Leaders of 2026” list. Nov. 11, 2025 — the company scheduled a presentation at the Raymond James TMT & Consumer Conference for December.
Technical Analysis
Directional indicators show a strong trend environment (ADX 26.97) but with directional bias leaning negative: DI+ at 29.07 has peaked and reversed (bearish), while DI− at 15.98 dipped and reversed upward (bearish). This combination signals trending strength now aligned with downward directional pressure, which weighs on near‑term price appreciation versus the valuation backdrop.
MACD reads 0.86 with a 1.18 signal and a peak‑and‑reverse MACD trend. MACD below its signal line and decreasing implies bearish momentum, reinforcing the directional indicators’ pressure and arguing for a subdued short‑term price trajectory relative to current valuation.
MRO at 23.05 with a peak‑and‑reverse trend registers a positive oscillator value; price sits above the model target, indicating potential for a pullback. That oscillator signal aligns with momentum indicators and supports a near‑term moderation of upside potential against the company’s stated valuation.
RSI sits at 54.77 with a peak‑and‑reverse trend. The RSI level shows neither extreme overbought nor oversold conditions but, given the reversal, signals recent topping of momentum and a higher likelihood of consolidation near current levels in the coming weeks.
Price structure offers mixed horizon cues: last close $52.72 remains above the 200‑day average ($45.74), which supports the longer‑term case for outperformance relative to extended peers; however, price trades below the 20‑day average ($55.89) and the 12‑day EMA showed a peak and reversal, signaling short‑term weakness. Price sits beneath the lower 1x Bollinger band reading ($53.09), which highlights elevated short‑term volatility and an increased probability of a corrective move before broader trend resumption.
Fundamental Analysis
Revenue totaled $23,083,000 with YoY revenue growth of 6.01% and a QoQ revenue change of -6.78%. Gross profit reached $19,461,000, producing a gross margin of 84.31%, which supports high incremental profitability on additional revenue.
Operating performance shows EBIT $4,576,000 and EBITDA $7,282,000. Operating (EBIT) margin equals 19.82%, a 56.91% QoQ improvement and a 51.24% YoY improvement, reflecting expanding operating leverage. That EBIT margin sits below the industry peer mean (33.65%) and median (44.81%), indicating profit conversion lags typical peer levels despite clear improvement.
EPS came in at $0.39 versus an estimate of $0.31, producing an EPS surprise of 25.81% and an EPS beat of $0.08. Forward EPS of $0.225 implies a forward P/E of 213.03x, while TTM P/E stands at 129.46x; those multiples position the company at the high end of market valuation measures.
Balance‑sheet strength stands out: cash and short‑term investments $45,352,000 and current ratio 8.39x support liquidity and operational optionality. Total debt remains modest at $2,862,000, yielding debt‑to‑assets ~2.55% and interest coverage roughly 457.6x, demonstrating a capital structure with extremely low leverage relative to operating earnings.
Capital allocation and cash generation metrics present a mixed signal versus valuation: free cash flow $7,290,000 produces a free cash flow yield of 1.03%, slightly below the industry peer mean of 1.39%. Return on equity 4.14% and return on assets 3.89% improved materially QoQ and YoY but remain modest in absolute terms.
Valuation context: market multiples (P/E 129.46x, P/B 6.93x, P/S 30.55x, enterprise multiple 91.00x) reflect a premium to many standard comparators; the current valuation as determined by WMDST: over‑valued. The premium ties to strong cash generation, low leverage, and strategic contract wins, but fundamentals must continue to expand earnings and cash conversion to justify present multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 38.8 M |
| Operating Cash Flow | $ 10.2 M | |
| Capital Expenditures | $ -2.88 M | |
| Change In Working Capital | $ 454.0 K | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 6.5 M | |
| End Period Cash Flow | $ 45.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 23.1 M | |
| Forward Revenue | $ 4.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 3.6 M | |
| Depreciation | $ 2.7 M | |
| Depreciation and Amortization | $ 2.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 18.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 19.5 M | |
| EBITDA | $ 7.3 M | |
| EBIT | $ 4.6 M | |
| Operating Income | $ 4.6 M | |
| Interest Income | $ 386.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 386.0 K | |
| Income Before Tax | $ 5.0 M | |
| Tax Provision | $ 749.0 K | |
| Tax Rate | 15.0 % | |
| Net Income | $ 4.2 M | |
| Net Income From Continuing Operations | $ 4.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.31 | |
| EPS Actual | $ 0.39 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 25.806 % | |
| Forward EPS | $ 0.23 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 112.1 M | |
| Intangible Assets | $ 44.0 M | |
| Net Tangible Assets | $ 57.8 M | |
| Total Current Assets | $ 58.0 M | |
| Cash and Short-Term Investments | $ 45.4 M | |
| Cash | $ 45.4 M | |
| Net Receivables | $ 10.4 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 2.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 6.9 M | |
| Net Debt | — | |
| Total Debt | $ 2.9 M | |
| Total Liabilities | $ 10.3 M | |
| EQUITY | ||
| Total Equity | $ 101.7 M | |
| Retained Earnings | $ 9.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 7.28 | |
| Shares Outstanding | 13.967 M | |
| Revenue Per-Share | $ 1.65 | |
| VALUATION | Market Capitalization | $ 705.2 M |
| Enterprise Value | $ 662.7 M | |
| Enterprise Multiple | 91.002 | |
| Enterprise Multiple QoQ | -18.178 % | |
| Enterprise Multiple YoY | 29.859 % | |
| Enterprise Multiple IPRWA | high: 106.125 RDVT: 91.002 median: 89.9 mean: 81.945 low: -9.27 |
|
| EV/R | 28.709 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.102 | |
| Asset To Liability | 10.841 | |
| Debt To Capital | 0.027 | |
| Debt To Assets | 0.026 | |
| Debt To Assets QoQ | -8.655 % | |
| Debt To Assets YoY | 433.194 % | |
| Debt To Assets IPRWA | high: 0.783 median: 0.783 mean: 0.619 RDVT: 0.026 low: 0.012 |
|
| Debt To Equity | 0.028 | |
| Debt To Equity QoQ | -7.68 % | |
| Debt To Equity YoY | 449.414 % | |
| Debt To Equity IPRWA | high: 2.226 mean: 0.671 median: 0.609 RDVT: 0.028 low: -0.229 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.932 | |
| Price To Book QoQ | 4.806 % | |
| Price To Book YoY | 66.826 % | |
| Price To Book IPRWA | high: 8.626 RDVT: 6.932 mean: 4.356 median: 3.117 low: -2.378 |
|
| Price To Earnings (P/E) | 129.455 | |
| Price To Earnings QoQ | -20.002 % | |
| Price To Earnings YoY | 2.7 % | |
| Price To Earnings IPRWA | high: 148.385 median: 148.385 RDVT: 129.455 mean: 125.838 low: -49.89 |
|
| PE/G Ratio | 3.295 | |
| Price To Sales (P/S) | 30.549 | |
| Price To Sales QoQ | 4.542 % | |
| Price To Sales YoY | 52.842 % | |
| Price To Sales IPRWA | high: 46.298 median: 46.298 mean: 35.377 RDVT: 30.549 low: 1.932 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 213.032 | |
| Forward PE/G | 5.423 | |
| Forward P/S | 163.818 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 11.035 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.213 | |
| Asset Turnover Ratio QoQ | -0.332 % | |
| Asset Turnover Ratio YoY | 6.896 % | |
| Asset Turnover Ratio IPRWA | high: 0.301 RDVT: 0.213 mean: 0.154 median: 0.139 low: 0.004 |
|
| Receivables Turnover | 2.282 | |
| Receivables Turnover Ratio QoQ | 1.961 % | |
| Receivables Turnover Ratio YoY | -1.674 % | |
| Receivables Turnover Ratio IPRWA | high: 3.825 RDVT: 2.282 mean: 1.618 median: 1.465 low: 0.764 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 39.986 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -19.935 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -100.528 % | |
| Cash Conversion Cycle Days IPRWA | high: 107.783 mean: 4.589 median: -18.193 RDVT: -19.935 low: -151.467 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.452 | |
| CapEx To Revenue | -0.125 | |
| CapEx To Depreciation | -1.065 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 101.7 M | |
| Net Invested Capital | $ 101.7 M | |
| Invested Capital | $ 101.7 M | |
| Net Tangible Assets | $ 57.8 M | |
| Net Working Capital | $ 51.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 6.563 | |
| Current Ratio | 8.395 | |
| Current Ratio QoQ | -7.964 % | |
| Current Ratio YoY | -15.643 % | |
| Current Ratio IPRWA | RDVT: 8.395 high: 3.892 mean: 1.42 median: 1.193 low: 0.378 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.393 | |
| Cost Of Debt | 0.293 % | |
| Interest Coverage Ratio | 457.6 | |
| Interest Coverage Ratio QoQ | 66.34 % | |
| Interest Coverage Ratio YoY | 83.187 % | |
| Interest Coverage Ratio IPRWA | RDVT: 457.6 high: 10.271 median: 8.159 mean: 7.01 low: -9.0 |
|
| Operating Cash Flow Ratio | 1.048 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 59.921 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 6.903 % | |
| Revenue Growth | 6.012 % | |
| Revenue Growth QoQ | -677.522 % | |
| Revenue Growth YoY | — | |
| Revenue Growth IPRWA | high: 12.246 % RDVT: 6.012 % mean: 0.079 % median: -0.557 % low: -15.551 % |
|
| Earnings Growth | 39.286 % | |
| Earnings Growth QoQ | -359.279 % | |
| Earnings Growth YoY | 128.301 % | |
| Earnings Growth IPRWA | RDVT: 39.286 % high: 11.111 % mean: -5.07 % median: -8.511 % low: -27.451 % |
|
| MARGINS | ||
| Gross Margin | 84.309 % | |
| Gross Margin QoQ | 0.462 % | |
| Gross Margin YoY | 2.057 % | |
| Gross Margin IPRWA | RDVT: 84.309 % high: 70.129 % median: 70.129 % mean: 63.204 % low: 29.277 % |
|
| EBIT Margin | 19.824 % | |
| EBIT Margin QoQ | 56.91 % | |
| EBIT Margin YoY | 51.236 % | |
| EBIT Margin IPRWA | high: 44.813 % median: 44.813 % mean: 33.651 % RDVT: 19.824 % low: -57.417 % |
|
| Return On Sales (ROS) | 19.824 % | |
| Return On Sales QoQ | 56.91 % | |
| Return On Sales YoY | 51.236 % | |
| Return On Sales IPRWA | high: 45.021 % median: 45.021 % mean: 33.355 % RDVT: 19.824 % low: -85.768 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.3 M | |
| Free Cash Flow Yield | 1.034 % | |
| Free Cash Flow Yield QoQ | 37.867 % | |
| Free Cash Flow Yield YoY | -18.519 % | |
| Free Cash Flow Yield IPRWA | high: 4.446 % mean: 1.39 % RDVT: 1.034 % median: 0.945 % low: -1.942 % |
|
| Free Cash Growth | 52.83 % | |
| Free Cash Growth QoQ | -42.691 % | |
| Free Cash Growth YoY | 8.941 % | |
| Free Cash Growth IPRWA | high: 669.826 % median: 78.113 % mean: 52.911 % RDVT: 52.83 % low: -528.685 % |
|
| Free Cash To Net Income | 1.73 | |
| Cash Flow Margin | 31.369 % | |
| Cash Flow To Earnings | 1.719 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.885 % | |
| Return On Assets QoQ | 47.494 % | |
| Return On Assets YoY | 116.314 % | |
| Return On Assets IPRWA | high: 4.086 % median: 4.086 % RDVT: 3.885 % mean: 3.317 % low: -4.436 % |
|
| Return On Capital Employed (ROCE) | 4.351 % | |
| Return On Equity (ROE) | 0.041 | |
| Return On Equity QoQ | 48.317 % | |
| Return On Equity YoY | 120.853 % | |
| Return On Equity IPRWA | high: 0.288 RDVT: 0.041 median: 0.039 mean: 0.032 low: -0.168 |
|
| DuPont ROE | 4.257 % | |
| Return On Invested Capital (ROIC) | 3.823 % | |
| Return On Invested Capital QoQ | 53.781 % | |
| Return On Invested Capital YoY | -189.974 % | |
| Return On Invested Capital IPRWA | high: 5.234 % median: 5.073 % mean: 4.314 % RDVT: 3.823 % low: -3.11 % |
|