Red Violet Raises $115 Million in Public Offering
The data-analytics provider reported first-quarter revenue of $25.8 million, a 17% increase from the prior year.
Red Violet (RDVT), the data-analytics provider, raised $115 million through an underwritten public offering of 1,916,667 shares of common stock on August 7, 2026. The offering resulted in estimated net proceeds of $108.6 million, which the company intends to use for working capital and potential strategic acquisitions.
The capital raise marked a shift in the company's treasury strategy. Red Violet had previously focused on share repurchases, purchasing 73,250 shares from the start of the year through April 2026.
First-quarter revenue rose 17% year-over-year to $25.8 million. While this represented a 10.3% sequential increase from the $23.4 million reported in the fourth quarter of 2025, the year-over-year growth rate slowed from the 20% increases recorded in the third and fourth quarters of 2025.
Profitability metrics improved during the quarter. Gross margin expanded to 75%, up from 72% in the previous quarter. Adjusted EBITDA margin rose to 41%, compared to 25% in the fourth quarter of 2025 and 39% in the third quarter of 2025. Net income margin reached 17%, up from 12% in the prior quarter.
Growth in the company's IDI segment accelerated, with 400 new customers added in the first quarter. This followed a period of slower acquisition, with 169 customers added in the fourth quarter and 304 in the third quarter of 2025.
User growth for the FOREWARN platform also increased, with 27,662 users added in the first quarter. This surpassed the 17,809 users added in the fourth quarter and the 25,538 added in the third quarter of 2025. The number of contracted REALTOR Associations for FOREWARN grew to over 640, up from over 620 in the prior quarter and over 590 in the third quarter of 2025.