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Disclosure: The author does not hold a position in RDVT.

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RDVT

Analysis as of: 2026-06-28

Red Violet, Inc.

Red Violet sells identity intelligence software and data that help enterprises, public agencies, and real estate professionals verify identities, assess risk, and prevent fraud.

ai enterprise finance software

On Yahoo Finance ...

Jump to: Summary • Analysis • Opportunity • Risk • Trends • LE Structure • Third Party Analyst Consensus

Summary

Trusted identity data with room to compound

The business already shows the rare combination of real growth, strong margins, and low capital needs. The question is not whether demand exists, but how much of the AI-era trust layer it can own before data-rights and platform power cap the upside.

Analysis

Thesis

Profitable, low-capex identity intelligence should compound as AI multiplies the number of onboarding, fraud, and safety decisions that need trusted data; the upside is deeper workflow embedment and action-based pricing, while the ceiling remains data-rights durability.

Last Economy Alignment

AI should increase the volume of identity and fraud decisions that need trusted data, and RDVT has low seat-pricing exposure. The cap on upside is data-rights durability, privacy rules, and the risk that larger platforms own orchestration.

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Opportunity Outlook

Average Implied 5-Year Multiple

2.5x (from 5 most recent analyses)

Reasoning

This is a quality small-cap compounding case, not a moonshot. The company already has the hard parts in place: trusted data, embedded delivery, strong margins, cash generation, and real demand. I expect most value creation to come from deeper enterprise usage, more FOREWARN distribution, and modest expansion into action-level trust controls, while valuation likely stays healthy but does not need to re-rate higher.

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Risk Assessment

Overall Risk Summary

The core risk is not whether the product works; it is whether red violet can keep lawful, economic access to differentiated data while moving up the stack before larger platforms compress its role. The other key check is whether growth keeps converting into margin and cash flow once supplier costs and housing-linked FOREWARN variability pass through the model.

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Trends

Key Changes

No material company release or SEC filing surfaced in the last 10 days; the story is still anchored to the May 6, 2026 Q1 print and the May 29, 2026 Hawaii REALTORS rollout.
The stock remains close to its 52-week high, which raises expectations risk even without a new fundamental change.
The next credible repricing surface is still the expected early-August 2026 Q2 earnings report, where onboarding durability and margin conversion will be tested together.

Forecast update

Starting valuation is richer after the run, so more of the remaining upside must come from operating delivery rather than multiple expansion.

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Last Economy Structure

AI Industrial Score

0.56

They control hard-to-source identity data and the workflow hooks customers use to make real decisions, so more AI-driven transactions should mean more checks. The risk is that privacy rules or a bigger software stack could own the workflow and turn them into a background data feed.

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Third Party Analyst Consensus

12-Month Price Target

$63.50

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