Red Violet (RDVT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with revenue of $26.7 million (up 23% year-over-year), record cash flow from operations of $10.6 million, and all key financial metrics at new highs.

• Added a record 447 new IDI customers and 25,493 FOREWARN users, ending with 10,869 IDI customers and 443,173 FOREWARN users.

• Completed a public offering, raising $109 million in net proceeds for working capital, corporate purposes, and potential acquisitions, boosting cash reserves to over $160 million.

• Platform differentiation driven by proprietary AI-embedded architecture and entity resolution engine, with accelerating demand across all served industries.

• FOREWARN expanded into home healthcare, marking its largest vertical expansion.

Financial highlights

• Adjusted gross margin reached a record 86% (up from 84%), with adjusted gross profit at $22.9 million (up 25%).

• Adjusted EBITDA rose 48% to $11.2 million (42% margin), and adjusted net income increased 58% to $7.2 million ($0.50 per diluted share).

• Net income increased 85% to $5.0 million, with net income margin improving to 19% from 12%.

• Cash flow from operations hit $10.6 million, up 42% year-over-year; free cash flow was $7.2 million, up from $4.8 million.

• Cash and cash equivalents stood at $50 million at quarter-end.

Outlook and guidance

• Full-year adjusted EBITDA margin expected to remain in the high 30s, with continued investment in product, AI, and go-to-market capabilities.

• Management confident in long-term growth, citing a robust pipeline, strong secular demand, and disciplined capital deployment.

• Existing resources and cash from the recent offering are expected to fund operations and capital needs for at least the next twelve months.