RDVT

Red Violet runs a cloud-native identity-intelligence platform (CORE) monetized through two brands — IDI (enterprise risk/fraud/compliance) and FOREWARN (real-estate safety app). The filing makes clear this is a sticky, licensing-driven business: IDI billable customers grew from 8,926 to 10,022 (+12.3%) and FOREWARN users jumped from 303,418 to 390,018 (+28.6%) in FY2025. That customer expansion shows up in the numbers — FY2025 revenue of $90.3M is up 20.0% YoY, the fifth consecutive year of growth (FY21 $44.0M → FY25 $90.3M, ~20% CAGR), and net income nearly doubled to $13.2M (+87.8%) on operating income of $13.1M (+65.9%). Operating leverage is real: revenue +20% drove operating income +66%, and diluted EPS jumped to $0.91 (+82%).

The balance sheet is fortress-grade and supports the premium multiple. Liabilities/equity is 0.11x, long-term debt is zero, and cash is $43.6M against just $11.1M of total liabilities. Operating cash flow of $29.3M dwarfs capex of $563K, so free cash conversion is excellent and the company is self-funding growth. ROE of 13.0% is modest only because the book is over-capitalized with cash; on tangible operating capital the returns are far higher. Retained earnings flipped from a small base to $12.3M (+1,512%), confirming the inflection from prior-period accumulated deficits to durable GAAP profitability. The MD&A frames the AI/ML angle as embedded from inception rather than bolted on — this matters because identity intelligence is exactly the workflow (fraud, KYC, due diligence) where enterprises are willing to pay for AI-driven automation.