Red Violet, Inc. Q1 FY2026 earnings call

Derek noted record revenue, margins, EBITDA, and strong new customer onboarding, attributing to disciplined execution. AI is a tailwind, enhancing product development and customer experience. Dan mentioned crossing $100M run rate, adjusted gross margin 85%, adjusted EBITDA margin 41%. IDI verticals had growth in various areas like financial, corporate risk, investigative, collections, emerging markets; ForeWarm had strong revenue expansion with user and association growth.

Revenue for the first quarter was a record $25.8 million, up 17% year over year. Adjusted gross profit increased 20 percent to $22 million, resulting in a record adjusted gross margin of 85 percent. Adjusted EBITDA increased 27 percent to $10.7 million, with a record margin of 41 percent. On the customer front, IDI added 400 new billable customers, bringing total customers to 10,422. ForeWarm grew to more than 417,000 users, with over 640 realtor associations under contract.

No formal timeline for maturity metrics. Focus on continuing execution, investing in cost structure for growth. Expect adjusted EBITDA margins in mid to high 30% range due to deliberate investment in long-term growth.

Refer to company's SEC filings for risks, no specific detailed risks discussed in the transcript beyond general mention

Q: Hey, congrats on the $100 million run rate... Is there a timeline to maturity?

A: No formal timeline, focuses on business model structure with fixed cost base and scaling.

Q: About new customer onboarding...

A: Q1 typically strong, due to multiple factors like marketing, customer engagement.

Q: About Q2 trends...

A: Historically Q1 strong, expect to leverage foundation, April was strong.

Q: About scaling go-to-market...

A: Invested in marketing, inside sales, strategic teams, growth broad-based.

Q: About AI investment...

A: AI is tailwind, relies on longitudinal identity graph, enhancing product development and customer use