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

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RDVT

Analysis as of: 2026-08-28

Red Violet, Inc.

red violet sells identity-intelligence software and data products used for fraud, verification, investigations, compliance, and professional safety workflows.

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

Summary

Trusted identity tollbooth with adjacent vertical optionality

This is a proven identity-intelligence niche with real cash flow, strong workflow embed, and credible room to broaden into higher-value verification gates. The upside is meaningful, but it depends on protecting lawful data access and turning adjacent channels into repeatable revenue.

Analysis

Thesis

RDVT can more than double by 2031 if it keeps moving from paid lookups to being the verification gate inside fraud, compliance, public-sector, and field-safety workflows; the August 2026 raise adds data-rights and tuck-in optionality without making capex the bottleneck.

Last Economy Alignment

AI increases the number of high-stakes decisions needing trusted identity checks, but RDVT must own the verification layer, not just sell raw data queries.

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Opportunity Outlook

Average Implied 5-Year Multiple

2.2x (from 5 most recent analyses)

Reasoning

The upside mostly comes from business compounding, not a heroic rerating. RDVT already has profitable products, sticky annual contracts, and real workflow embed. If it sustains core IDI growth, keeps FOREWARN strong, proves one or two new verticals, and uses cash to deepen data rights, revenue can roughly triple while the valuation multiple settles below today but stays premium to generic software.

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Risk Assessment

Overall Risk Summary

The business is proven and cash-rich, so the main failure mode is not product readiness or funding. The real risks are lawful access to third-party data, privacy-rule drift, and larger platforms owning the workflow gate so RDVT remains useful but captures less value just as expectations are elevated.

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Trends

Key Changes

No new operating disclosure landed in the last 7-10 days; the August 25 conference notice added visibility but no new metrics.
The market focus has shifted from funding risk to whether the August raise is deployed into unique data rights or accretive tuck-ins.
Near-term repricing now depends more on first proof of non-real-estate FOREWARN traction than on another clean quarterly print.

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Last Economy Structure

AI Industrial Score

0.49

They control trusted identity data and safety checks that AI agents and human workers both need before acting, so more automation can send more decisions through their system. The catch is that they do not fully own the raw data supply, so bigger platforms or tighter privacy rules could squeeze that advantage.

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Third Party Analyst Consensus

12-Month Price Target

$77.00

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