Abstract
Red Violet, Inc. will report quarterly results on November 04, 2026 Post-Mkt; this preview compiles last quarter’s actuals, the company’s latest projections for the current quarter with year-over-year comparisons, and recent institutional commentary to frame likely stock drivers.
Market Forecast
Consensus for the current quarter points to revenue of 27.22 million US dollars, up 20.23% year over year, EBIT of 5.69 million up 64.89%, and EPS of 0.42 up 33.79%; the implied setup is consistent with stable unit economics and modest operating leverage, while year-over-year EPS growth trails EBIT growth. The company’s main business remains Identity and Information Solutions, with ongoing expansion in data usage and customer cohorts; management’s forecast implies sustained mid-80s gross margin profile and a net margin comparable to recent results. The highest potential growth driver continues to be Identity and Information Solutions, with estimated revenue of 27.22 million for the quarter and year-over-year growth of 20.23%, supported by higher query volumes and enterprise adoption.
Last Quarter Review
The previous quarter delivered revenue of 26.72 million US dollars, a gross profit margin of 85.71%, GAAP net profit attributable to the parent company of 4.96 million US dollars with a net profit margin of 18.56%, and adjusted EPS of 0.50, representing 78.57% year-over-year growth. Operating momentum was solid as revenue grew 22.71% year over year and GAAP net profit increased 13.04% quarter over quarter, with the business continuing to benefit from favorable data mix and cohort maturation. Identity and Information Solutions generated 26.72 million US dollars of revenue, up 22.71% year over year, driven by higher usage intensity among enterprise and mid-market customers.
Current Quarter Outlook
Main business trajectory
Identity and Information Solutions remains the core revenue engine, and management’s forecast aligns with an approximate 20.23% year-over-year increase to 27.22 million US dollars this quarter. The unit’s economics benefit from a high gross margin model, evidenced by the prior quarter’s 85.71% gross margin, which supports incremental operating leverage as volume scales. The shape of forecasted EPS growth, rising 33.79% year over year versus 64.89% for EBIT, suggests increased reinvestment below the operating line or a normalization of non-operating items relative to the prior-year base; nonetheless, the gap still reflects expanding operating efficiency. New customer wins and broader use cases across identity verification, fraud mitigation, and risk analytics are the practical pathways to sustain double-digit top-line growth this quarter, while pricing discipline and data procurement efficiency underpin margins.
Largest growth opportunity
Within Identity and Information Solutions, the most promising opportunity this quarter is expanding enterprise adoption and query depth in risk decisioning applications, which tie directly to the company’s 27.22 million US dollars revenue estimate and 20.23% year-over-year growth. The last quarter’s 22.71% year-over-year revenue increase indicates continued momentum that can compound as larger accounts scale usage across multiple workflows, shortening sales cycles and increasing wallet share. Margin durability in the mid-80s provides room to price for value and still deliver attractive contribution margins, so incremental growth should translate to a disproportionate EBIT lift this quarter alongside the 64.89% forecast increase. The growth vector depends most on maintaining high-quality, broad, and timely data signals, which in turn stabilizes conversion and retention in risk-driven verticals such as financial services, e-commerce, and marketplaces.
What likely moves the stock
Three variables appear most impactful for shares this quarter: delivery against the revenue estimate of 27.22 million US dollars, visibility on sustained mid-80s gross margins, and the cadence of EPS versus EBIT. A revenue result meaningfully above the 20.23% year-over-year growth marker would reinforce the narrative of durable demand elasticity in identity, while a miss could raise questions about seasonality and macro-sensitive usage. Investors will also focus on whether the net profit margin can track close to last quarter’s 18.56%, as that would validate operating leverage; a meaningful divergence would push attention to opex ramp or mix effects. Guidance color around enterprise expansion, pipeline conversion rates, and cohort monetization should set the tone for the next quarter’s consensus revisions and likely determine near-term multiple expansion or compression.
Analyst Opinions
Institutional commentary over the past several months has skewed cautiously positive, with more bullish than bearish takes centered on sustained double-digit top-line growth and resilient margins, while neutral voices emphasize valuation discipline and execution risk. Bullish analysts highlight the forecasted 20.23% revenue growth and an outsized 64.89% EBIT increase as evidence of compounding operating leverage and sticky demand for identity and risk solutions. Several research desks point to last quarter’s 85.71% gross margin and 18.56% net margin as a sturdy base that supports consistent free cash generation and reinvestment capacity, keeping the model attractive through macro variability. The constructive view also notes that adjusted EPS of 0.50 last quarter, up 78.57% year over year, sets a firm benchmark for execution; meeting or modestly exceeding the 0.42 EPS estimate would likely be interpreted as confirmation that reinvestment and scaling can coexist. Overall, the balance of opinions leans positive, with the majority expecting the company to meet or slightly beat Street numbers on revenue and EBIT while maintaining margin discipline and reiterating a growth cadence around 20% year over year.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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