Red Violet (RDVT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with revenue of $26.7 million (up 23% year-over-year), record cash flow from operations of $10.6 million, and all key financial metrics at new highs.

• Added 447 new IDI customers and 25,493 FOREWARN users, ending with 10,869 IDI customers and 443,173 FOREWARN users, the highest single-quarter additions in company history.

• Completed a public offering, raising $109 million in net proceeds to support working capital, strategic acquisitions, and continued investment in growth.

• Platform differentiation is driven by proprietary AI-embedded architecture and entity resolution engine, with accelerating demand across all served industries.

Financial highlights

• Adjusted gross margin reached 86% (up 2 percentage points year-over-year); gross profit was $20.2 million (up 29%).

• Adjusted EBITDA increased 48% to $11.2 million, with a record 42% margin.

• Adjusted net income rose 58% to $7.2 million, or $0.50 per diluted share.

• Net income increased 85% to $5.0 million, with net income margin improving to 19% from 12%.

• Cash flow from operations grew 42% to $10.6 million; free cash flow up 50% to $7.2 million.

Outlook and guidance

• Full-year adjusted EBITDA margin expected to be in the high 30s, reflecting seasonal trends.

• Management remains confident in continued growth, with a strong pipeline, disciplined capital deployment, and focus on technology and strategic initiatives.

• Existing resources and cash from the recent offering are expected to fund operations and capital needs for at least the next twelve months.