Red Violet, Q3 2026 Earnings Call Transcript

Red Violet delivered record third-quarter revenue and operating cash flow, with revenue up 20% and adjusted EBITDA up 22%, while maintaining a 40% margin. Growth was broad across its identity-intelligence markets, supported by customer additions, deeper usage and rising demand linked to digital transactions and increasingly sophisticated AI-driven fraud. Contractual revenue reached 78% of the total, and management cited this recurring base and diversified contributions as supporting confidence in growth through year-end and into 2027. Collections is contributing strongly as more accounts enter recovery, while IDI’s real-estate business remains weak amid a difficult housing market; management expects that softness to persist until conditions improve. The company plans continued investment in its platform, AI, product development and sales, and will pursue acquisitions selectively, backed by substantial cash and no debt.