Core Insights - Spokane REALTORS Association has contracted with FOREWARN to provide safety services to over 2,400 real estate professionals in the Spokane area [1][3] - FOREWARN offers real-time information solutions that analyze billions of data points to help agents verify identities, check criminal histories, and validate client information using just a phone number [2][5] Company Offerings - The FOREWARN services will be available to Spokane REALTORS members at no additional cost, enhancing agent safety and confidence during client interactions [2][3] - FOREWARN's technology enables organizations to conduct risk assessments and due diligence efficiently, ensuring safer engagements and smarter interactions [5][6] Industry Context - The real estate industry often involves agents interacting with unknown prospects, making safety a critical concern [3] - The partnership between Spokane REALTORS and FOREWARN represents a proactive approach to addressing safety and risk management in real estate transactions [1][3]

Core Insights - Red Violet, Inc. will present at the 28th Annual Needham Growth Conference from January 8-16, 2026, with CEO Derek Dubner and CFO Dan MacLachlan hosting investor meetings on January 15, 2026 [1] Company Overview - Red Violet specializes in proprietary technologies and analytical capabilities to deliver identity intelligence, enabling organizations to operate with confidence [2] - The company's solutions facilitate real-time identification and location of people, businesses, assets, and their interrelationships, serving purposes such as identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition [2] - Red Violet's intelligent platform, CORE™, is designed for enterprises but is flexible enough for organizations of all sizes, transforming massive datasets into actionable intelligence [2] - The company's solutions contribute to frictionless commerce, enhance safety, and reduce fraud-related expenses for society [2]

Core Insights - The article emphasizes the importance of identifying underfollowed, promising stocks in sectors such as consumer retail, restaurants, and TMT (Technology, Media, and Telecommunications) companies. It advocates for a long-term investment perspective focused on companies with a competitive advantage that can adapt to industry changes [1]. Group 1: Investment Strategy - The company aims to identify businesses with a broad moat or deep-rooted competitive advantage that will persist over the years [1]. - In fast-changing industries, the focus is on whether companies possess the fundamental strength to adapt without losing their competitive edge [1]. - Quarterly developments are evaluated in the context of a company's long-term strategy, with recommendations for buy/sell positions based on significant deviations from this strategy [1].

Core Insights - The article emphasizes the importance of identifying underfollowed, promising stocks in sectors such as consumer retail, restaurants, and TMT (Technology, Media, and Telecommunications) companies. It advocates for a long-term investment perspective focused on companies with a competitive advantage that can adapt to industry changes [1]. Group 1: Investment Strategy - The company aims to identify businesses with a broad moat or deep-rooted competitive advantage that will persist over the years [1]. - In fast-changing industries, the focus is on whether companies possess the fundamental strength to adapt without losing their competitive edge [1]. - Quarterly developments are evaluated in the context of a long-term successful strategy, with recommendations for buy/sell positions based on significant deviations from this vision [1].

Company Overview - Red Violet, Inc. (RDVT) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jan 16, 2026 $25.00 Put option [1] - The company is currently ranked 2 (Buy) by Zacks in the Internet - Software and Services industry, which is in the top 41% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, one analyst has raised earnings estimates for Red Violet for the current quarter, increasing the Zacks Consensus Estimate from earnings of 13 cents per share to 15 cents [3] - The overall sentiment among analysts indicates a positive outlook for Red Violet, suggesting potential for a significant price movement in the stock [4] Options Market Dynamics - The high implied volatility in Red Violet's options suggests that traders are anticipating a substantial price movement, which could be due to an upcoming event that may trigger a rally or sell-off [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]

Summary of Red Violet Conference Call Company Overview - **Company Name**: Red Violet - **Ticker Symbol**: RDVT - **Industry**: Identity intelligence and data analytics - **Core Offering**: Cloud-native platform for identity verification, fraud detection, risk management, and compliance [1][2] Business Model and History - **Management Background**: The management team has nearly three decades of experience in the identity space, previously founding companies like SizenT and TransUnion [2][3] - **Cloud-Native Advantage**: Red Violet's cloud-native platform allows for scalability and flexibility, differentiating it from legacy competitors who struggle with technology updates [4] Use Cases and Verticals - **Key Verticals Served**: 1. **Collections**: Provides debt collectors with accurate contact information and bankruptcy status [5] 2. **Financial and Corporate Risk**: Background screening services for companies like Walmart to verify applicant data [6][7] 3. **Real Estate**: Offers safety solutions through the Forewarn app, which provides background checks for real estate agents [10][11] 4. **Investigative Services**: Supports law enforcement and private investigators in locating individuals and assets [12] 5. **Emerging Markets**: Focus on government contracts and potential growth in sectors like insurance [13] Financial Performance - **Revenue Model**: Predominantly contractual revenue, with 75% of revenue being contractual in nature [40] - **Free Cash Flow**: Last quarter's free cash flow was approximately $7 million, with adjusted EBITDA around $9 million [22] - **Cost Structure**: Fixed costs associated with data acquisition, with nearly 100% contribution margin on additional revenue [16] Growth Strategy - **M&A Strategy**: Filed a $150 million shelf for potential acquisitions, focusing on unique data assets and complementary technologies [23] - **Public Sector Focus**: Significant growth expected in public sector contracts, with a roadmap laid out for future revenue contributions [29][31] - **Background Screening Expansion**: Directly targeting end-users in the background screening space, with a notable contract expected to ramp up in 2026 [32][33] Competitive Landscape - **Main Competitors**: Direct competition with TransUnion and LexisNexis, with a focus on data quality and customer service [25][26] - **Market Position**: Red Violet has approximately 9,800 customers, compared to competitors with significantly larger customer bases [25] Technology and Innovation - **AI Integration**: Exploring the use of AI to enhance data processing and customer interactions, aiming for high confidence in identity verification [35][36] - **Data Quality**: Emphasis on high-quality data aggregation to improve customer outcomes and reduce inefficiencies [21][22] Key Challenges and Considerations - **Seasonality**: Revenue may experience seasonal fluctuations, particularly in Q4 due to fewer business days and year-end bonuses [40] - **Regulatory Compliance**: Maintaining compliance with regulations such as the Fair Credit Reporting Act while providing background checks [37] Conclusion - Red Violet is positioned for growth in multiple verticals, leveraging its cloud-native platform and strong management team to capitalize on emerging opportunities in identity verification and data analytics. The focus on public sector contracts and background screening services, combined with a robust financial position, suggests a positive outlook for future performance.

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Red Violet, Inc. (RDVT) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Red Violet has a historical EPS growth rate of 174.1%, with projected EPS growth of 41.5% for the current year, significantly outperforming the industry average of 11.3% [5] Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 42%, surpassing the industry average of 9.9%, and has an annualized cash flow growth rate of 47.4% over the past 3-5 years compared to the industry average of 8.6% [6][7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Red Violet have increased by 11.8% over the past month, indicating a positive trend in earnings estimate revisions [9] Group 5: Investment Positioning - With a Zacks Rank of 2 and a Growth Score of A, Red Violet is well-positioned for outperformance, making it an attractive option for growth investors [10][11]

Core Insights - Red Violet, Inc. (RDVT) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum [1] - The rising trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2] - The Zacks Rank system indicates strong agreement among analysts in revising earnings estimates upward, resulting in improved consensus estimates for the next quarter and full year [3] Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.15 per share, representing a 66.7% increase from the previous year's figure [5] - Over the past 30 days, the Zacks Consensus Estimate for Red Violet has increased by 66.67%, with one estimate moving higher and no negative revisions [5] Current-Year Estimate Revisions - The expected earnings for the full year are $1.16 per share, reflecting a 41.5% increase from the prior year [6] - The revisions trend for the current year shows promise, with one estimate moving higher and no negative revisions [6] Favorable Zacks Rank - The positive estimate revisions have led to a Zacks Rank of 2 (Buy) for Red Violet, indicating strong potential for outperformance [7] - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500 [7] Bottom Line - Investors have shown interest in Red Violet due to solid estimate revisions, as evidenced by a 9.4% gain in the stock over the past four weeks [8] - The company's earnings growth prospects may further drive the stock price higher, suggesting it could be a worthwhile addition to investment portfolios [8]

Core Viewpoint - Red Violet, Inc. (RDVT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - The Zacks Consensus Estimate for Red Violet indicates expected earnings of $1.16 per share for the fiscal year ending December 2025, with no year-over-year change, but a notable increase of 11.8% in estimates over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Red Violet to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Red Violet, Inc. will present at the Raymond James TMT and Consumer Conference from December 8-10, 2025, in New York [1] - CEO Derek Dubner and CFO Dan MacLachlan will host investor meetings on December 9, 2025 [1] Group 2 - Red Violet specializes in proprietary technologies and analytical capabilities to deliver identity intelligence [2] - The company's solutions are utilized for identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition [2] - The CORE™ platform is designed for enterprises but is adaptable for organizations of all sizes, transforming large datasets into actionable intelligence [2]