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Disclaimer: This content is for informational and educational purposes only and should not be construed as financial or investment advice. Always do your own research and consult a licensed financial advisor before making investment decisions.
Disclosure: The author does not hold a position in RDVT.
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RDVT

Analysis as of: 2026-06-14
Red Violet, Inc.
Red Violet provides cloud-based identity intelligence software and data that help enterprises and public agencies verify identities, assess risk, investigate subjects, and support compliance workflows.
ai cloud cybersecurity enterprise software
On Yahoo Finance ...
Jump to: Summary • Analysis • Opportunity • Risk • Trends • LE Structure • Third Party Analyst Consensus

Summary

Profitable trust data with privacy-limited upside
A small profitable identity-intelligence vendor is positioned to benefit as AI automates more high-consequence decisions. The upside is meaningful if it moves from query tool to embedded trust layer, but privacy law and data-rights durability should cap how far the multiple can expand.

Analysis

Thesis
Red Violet can compound from a profitable identity-intelligence vendor into a deeper trust layer for AI-driven onboarding, fraud, safety, and compliance workflows; the upside comes from more automated decisions per customer, while the main ceiling is privacy-law and data-rights durability rather than lack of demand.
Last Economy Alignment
AI should increase the number of identity and risk decisions customers automate, and Red Violet owns a data graph plus workflow hooks that stay useful when agents replace humans. The cap is that privacy rules and larger bundled suites can narrow its lawful data edge.
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Opportunity Outlook

Average Implied 5-Year Multiple
2.7x (from 5 most recent analyses)
Reasoning
This is already a profitable, contract-heavy, usage-led data software business with real workflow embedment. I expect growth to come from more automated identity and fraud decisions, deeper penetration of existing accounts, new channel distribution, and modest success in higher-value trust controls. I do not assume a heroic rerating because privacy risk, supplier economics, and larger bundled platforms should keep the terminal multiple disciplined.
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Risk Assessment

Overall Risk Summary
The main risk is not whether the product works. It is whether Red Violet can preserve lawful, economic access to valuable identity data while moving up the stack into harder-to-bypass trust workflows before privacy regulation, supplier economics, or larger platforms reduce its strategic leverage.
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Last Economy Structure

AI Industrial Score
0.56
They own a hard-to-recreate identity graph and the workflow hooks that AI systems will call when companies automate risky decisions. That should grow usage, but privacy rules and bigger software suites can still squeeze the moat.
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Third Party Analyst Consensus

12-Month Price Target
$63.50
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