Key Highlights

  • Adjusted diluted EPS was USD 0.47 against an estimate of USD 0.41, while GAAP EPS was USD 0.35.
  • Revenue was USD 27.75 million against USD 23.08 million a year earlier, with an estimate of USD 27.22 million.
  • Adjusted EBITDA was USD 11.0 million at a 40% margin, and net cash from operations was USD 12.7 million.
  • Cash and U.S. Treasury securities totaled USD 165.7 million at September 30, 2026, with no Debt outstanding.

What drove Revenue of USD 27.75 million in the quarter, and what did the company do with the Capital it raised in August? Red Violet, Inc. (NASDAQ:RDVT) reported adjusted diluted EPS of USD 0.47 against an estimate of USD 0.41, with GAAP EPS of USD 0.35. Revenue compares with USD 23.08 million a year earlier and an estimate of USD 27.22 million. The company closed an underwritten public offering on August 7, 2026 that produced net proceeds of USD 108.7 million.

Customers, Users and Revenue Mix

Revenue rose 20%, which the company attributed to onboarding of new customers and Volume across the existing base. Revenue from existing customers was USD 26.1 million, up 21%, while revenue from new customers was USD 1.6 million, up 11%. Customers with pricing contracts accounted for 78% of total revenue against 75% a year earlier, with the remaining 22% from transactional customers.

The IDI billable customer base reached 11,252 customers, with 383 added during the quarter, against 9,853 a year earlier. The FOREWARN user base reached 462,861 users, with 19,688 added in the quarter, against 372,209 a year earlier, and more than 665 REALTOR associations across the U.S. are contracted to use it.

Costs, Margins and Profit

Cost of revenue excluding Depreciation and amortization was USD 4.0 million against USD 3.6 million, and the company said it fell to 14% of revenue from 16% because its data licensing is largely fixed-cost. Its largest data supplier accounted for 44% of data Acquisition costs, and an amendment extended that agreement through April 30, 2031. Gross Profit was USD 21.0 million at a 76% gross margin, and adjusted gross Margin was 85%.

Sales and Marketing expenses were USD 6.2 million against USD 5.4 million. General and administrative expenses were USD 9.0 million against USD 6.8 million, which the company tied to personnel, share-based compensation and professional fees of USD 2.2 million against USD 1.2 million. Net Income was USD 5.4 million against USD 4.2 million, and adjusted net income was USD 7.3 million. The effective tax rate was 20% against 15%.

Capital Allocation and Balance Sheet

The offering covered 1,916,667 shares at USD 60.00 per share, including 250,000 shares from the full exercise of the underwriters' option, with gross proceeds of USD 115.0 million. Cash and cash equivalents together with U.S. Treasury securities totaled USD 165.7 million, and nine-month purchases of Treasury securities were USD 98.9 million, with the first Maturity in March 2027.

Net cash from operations was USD 29.9 million for nine months against USD 22.7 million. The company did not repurchase stock during the quarter under its USD 30.0 million authorization, and it has bought a total of USD 14.5 million of stock since the program began. Material commitments under data licensing and cloud services agreements totaled USD 32.4 million, which management said it funds from cash, Treasury securities and operating cash flow.

Benchmarks Ahead

Revenue of USD 27.75 million sits alongside adjusted EPS of USD 0.47 and GAAP EPS of USD 0.35, while cash and Treasury securities of USD 165.7 million sit alongside no debt. The 11,252 IDI customers and 462,861 FOREWARN users are the customer markers the company reports.

Management gave no numeric guidance. It referenced the first Treasury maturity in March 2027, continued Investment in its go-to-market capabilities and diligence on potential strategic targets, which carried USD 0.2 million of acquisition-related costs this quarter.