Core Insights - Red Violet reported a record revenue of $90.3 million for the full year 2025, marking a 20% increase from 2024, with adjusted EBITDA margin at 34% [1][7] - The company achieved significant growth in the fourth quarter, with revenue rising 20% year over year to $23.4 million and adjusted EBITDA increasing by 33% to $5.9 million [4][5] Financial Performance - Adjusted net income for the fourth quarter rose 53% to $3.1 million, resulting in adjusted earnings of $0.21 per diluted share [3] - Free cash flow for the year was $18.2 million, up from $14.4 million in 2024, while Q4 free cash flow was $3.7 million [1][3] Customer Growth and Metrics - The number of IDI billable customers surpassed 10,000, reaching 10,022, while FOREWARN's user base expanded to 390,018 [7][9] - Customers contributing over $100,000 in revenue increased to 127, up from 96 in 2024, indicating growth in larger customer relationships [8] Revenue Model and Market Positioning - Approximately 90% of revenue is volume-driven, supported by contractual minimums, with a gross revenue retention rate of 95% [6][10] - The company emphasized its proprietary full-stack identity platform, "Iron," which integrates various technologies for enhanced data processing and machine learning capabilities [13][14] Strategic Initiatives - Management plans to prioritize capital for product development, AI, and go-to-market expansion while maintaining share repurchases, with $16.4 million remaining in the repurchase program [6][21] - The company added over 30 team members in 2025, focusing on product development and market expansion, with similar hiring plans for 2026 [20] Market Trends and Demand Drivers - Demand was balanced across verticals, driven by increased transaction volumes and deeper integration of solutions into customer workflows [11][12] - The company reported strong performance in background screening and investigative services, with significant growth in emerging markets [19]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 20% to a record $23.4 million, with adjusted gross profit reaching $19.5 million and an adjusted gross margin of 83% [6][21] - Adjusted EBITDA rose by 33% to $5.9 million, resulting in an adjusted EBITDA margin of 25% [6][21] - Adjusted net income increased by 53% to $3.1 million, translating to adjusted earnings of $0.21 per diluted share [6][21] - Free cash flow for Q4 was $3.7 million, while total free cash flow for 2025 was $18.2 million, up from $14.4 million in 2024 [8][26] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by 169 customers sequentially, ending Q4 with 10,022 customers [6][22] - FOREWARN added 17,809 users in Q4, ending with 390,018 users, and over 620 realtor associations contracted to use the platform [7][24] - The financial and corporate risk vertical showed strong revenue performance, driven by core financial services customers [22] - The background screening industry performed exceptionally well, supported by new products and integrations [22] Market Data and Key Metrics Changes - The emerging markets vertical contributed significantly to revenue growth in Q4, with continued adoption across diverse customer segments [23] - The collections vertical maintained high teens revenue growth, reflecting sustained demand and improved activity levels [23] - The real estate vertical, excluding FOREWARN, experienced a modest decline due to elevated home prices and interest rates [23] Company Strategy and Development Direction - The company is focused on expanding its AI-driven capabilities and broadening market reach while maintaining financial performance [18][19] - Strategic investments in automation and product development are expected to enhance efficiency and productivity [9][42] - The company aims to deepen integration within customer workflows and expand horizontally across industries [16][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's architecture and growth trajectory, highlighting robust demand across markets [5][18] - The company anticipates continued healthy top-line expansion in 2026, aiming to sustain momentum from previous years [40] - Management emphasized the importance of AI as a catalyst for greater utilization of their solutions, rather than a replacement [15][17] Other Important Information - Cash and cash equivalents were $43.6 million at the end of 2025, up from $36.5 million in 2024 [26] - The company repurchased 57,812 shares at an average price of $0.4401 per share, with $16.4 million remaining under the repurchase program [27] Q&A Session Summary Question: Update on enterprise customer pipeline for 2026 - Management noted excitement about the enterprise pipeline, with a record number of customers contributing over $100,000 annually, reflecting strong development [29][30] Question: Growth opportunities in law enforcement and public sector - Management highlighted public sector and background screening as key growth areas, with significant traction in law enforcement and state-level use cases [31][32] Question: Presence of whale-sized accounts in the pipeline - Management confirmed opportunities for large accounts in the pipeline, including a significant payroll processor contract expected to expand over time [36][38] Question: 2026 growth rate expectations - While not providing formal guidance, management indicated confidence in sustaining healthy growth rates, potentially exceeding mid-teens [40] Question: Use of cash in the next six months - Management emphasized investing in business growth, particularly in AI-enabled development and expanding customer workflows [41][42]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 20% to a record $23.4 million, with adjusted gross profit reaching $19.5 million and an adjusted gross margin of 83% [6][21] - Adjusted EBITDA rose by 33% to $5.9 million, resulting in an adjusted EBITDA margin of 25% [6][21] - Adjusted net income increased by 53% to $3.1 million, leading to adjusted earnings of $0.21 per diluted share [6][21] - Free cash flow for Q4 was $3.7 million, while total free cash flow for 2025 was $18.2 million, up from $14.4 million in 2024 [8][27] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by 169 customers sequentially, ending Q4 with 10,022 customers [6][22] - FOREWARN added 17,809 users in Q4, ending with 390,018 users, and over 620 realtor associations contracted to use the platform [7][24] - The financial and corporate risk vertical showed strong revenue performance, driven by core financial services customers [22] - The background screening industry performed exceptionally well, supported by new products and integrations [22] - The investigative vertical added approximately 200 law enforcement customers in 2025, reflecting increased reliance on the platform [22] Market Data and Key Metrics Changes - Revenue growth in emerging markets contributed significantly to Q4 revenue, with ongoing adoption providing a clear runway for sustained growth [23] - The collections vertical maintained high teens revenue growth, indicating a recovery and sustained demand [23] - The real estate vertical, excluding FOREWARN, experienced a modest decline due to elevated home prices and interest rates [23] Company Strategy and Development Direction - The company is focused on expanding its AI-driven capabilities and broadening market reach while maintaining financial performance [18][19] - Strategic investments in automation and product development are expected to enhance efficiency and productivity [9][42] - The company aims to deepen integration within customer workflows and expand horizontally across industries [16][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's architecture and trajectory, highlighting robust demand across markets [5][18] - The company anticipates continued healthy top-line expansion in 2026, aiming to sustain momentum from previous years [40] - Management emphasized the importance of AI as a catalyst for greater utilization of their solutions, rather than a replacement [15][42] Other Important Information - Cash and cash equivalents were $43.6 million at the end of 2025, up from $36.5 million in 2024 [26] - The company repurchased 57,812 shares at an average price of $0.4401 per share, with $16.4 million remaining under the repurchase program [27] Q&A Session Summary Question: Update on enterprise customer pipeline - Management noted excitement about the enterprise pipeline, with a record number of customers contributing over $100,000 annually, reflecting strong development [29][30] Question: Growth opportunities in law enforcement - Management highlighted public sector and background screening as key growth areas, with significant traction in law enforcement and state-level use cases [31][32] Question: Whale-sized accounts in the pipeline - Management confirmed opportunities for large accounts in the pipeline, including a significant payroll processor contract expected to generate multi-million dollar revenue over time [36][38] Question: 2026 growth outlook - While not providing formal guidance, management indicated confidence in sustaining healthy growth rates, potentially exceeding 20% [40] Question: Use of cash in the next six months - Management stated that cash will primarily be invested in business growth, particularly in AI-enabled development and expanding customer workflows [41][42] Question: Revenue contributions from new vs. existing customers - Management confirmed that growth in high-tier customers is a combination of new customer wins and increased spending from existing customers [47][48] Question: Headcount and hiring plans for 2026 - Management acknowledged some fluctuations in sales and marketing headcount but expects consistent hiring focused on product development and go-to-market initiatives [50][51] Question: Utilization of AI in operations - Management confirmed ongoing efforts to automate processes using AI, aiming to enhance productivity and efficiency across the organization [52][53]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 increased by 20% to a record $23.4 million, with adjusted gross profit reaching $19.5 million and an adjusted gross margin of 83% [6][21] - Adjusted EBITDA rose by 33% to $5.9 million, resulting in an adjusted EBITDA margin of 25% [6][21] - Adjusted net income increased by 53% to $3.1 million, leading to adjusted earnings of $0.21 per diluted share [6][21] - Free cash flow for Q4 was $3.7 million, while total free cash flow for 2025 was $18.2 million, up from $14.4 million in 2024 [9][27] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by 169 customers sequentially, ending Q4 with 10,022 customers [6][22] - FOREWARN added 17,809 users in Q4, totaling 390,018 users, with over 620 realtor associations contracted [7][25] - The financial and corporate risk vertical showed strong revenue performance, driven by core financial services customers [22] - The background screening industry performed exceptionally well, contributing to revenue growth [22] - The investigative vertical added approximately 200 law enforcement customers in 2025, reflecting increased demand [23] Market Data and Key Metrics Changes - Revenue for the year increased by 20% to $90.3 million, with adjusted gross profit of $75.4 million and adjusted EBITDA of $31 million [7][28] - The emerging markets vertical contributed significantly to revenue growth, indicating a clear runway for sustained growth [24] - The collections vertical maintained a positive trajectory with high teens revenue growth [24] - The real estate vertical, excluding FOREWARN, experienced a modest decline due to elevated home prices and interest rates [24] Company Strategy and Development Direction - The company is focused on expanding its AI-driven capabilities and broadening market reach while maintaining financial performance [19][20] - Strategic investments in automation and product development are expected to enhance efficiency and productivity [10][19] - The company aims to deepen integration within customer workflows and expand horizontally across industries [17][60] - The management emphasizes the importance of a robust technology stack and proprietary data processing frameworks to maintain competitive advantages [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's architecture and growth trajectory as it enters 2026 [5][19] - The digital transformation of identity, risk, and decision-making is accelerating, presenting significant opportunities for the company [60] - The company anticipates continued healthy top-line expansion, aiming to sustain momentum from previous years [43] Other Important Information - Cash and cash equivalents were $43.6 million at the end of 2025, up from $36.5 million in 2024 [27] - The company repurchased 57,812 shares at an average price of $0.4401 per share, with $16.4 million remaining under the repurchase program [28] Q&A Session Summary Question: Update on enterprise customer pipeline for 2026 - Management noted excitement about the enterprise pipeline, highlighting a record number of customers contributing over $100,000 annually, indicating strong development [31][32] Question: Growth opportunities in law enforcement and public sector - Management identified public sector and background screening as key growth areas, with significant traction in law enforcement and state-level use cases [33][34] Question: Presence of whale-sized accounts in the pipeline - Management confirmed opportunities for large accounts in the pipeline, including a significant payroll processor contract expected to expand over time [40][41] Question: Outlook for 2026 growth rate - While not providing formal guidance, management expressed confidence in sustaining healthy growth, aiming for continued acceleration [43] Question: Use of cash in the next six months - Management indicated that cash will primarily be invested in business growth, particularly in AI-enabled development and expanding customer workflows [44]

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.

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached a record $23.1 million, up 21% year-over-year [6][12] - Adjusted gross profit was a record $19.4 million, resulting in an adjusted gross margin of 84%, up one percentage point [6][12] - Adjusted EBITDA for the quarter was a record $9 million, an increase of 35% year-over-year, with an adjusted EBITDA margin of 39%, up four percentage points [12] - Adjusted net income increased 75% to a record $5.8 million, resulting in adjusted earnings of $0.39 per diluted share [12][17] - Free cash flow for the quarter was a record $7.3 million, a 51% increase from $4.8 million a year ago [17] Business Line Data and Key Metrics Changes - IDI added over 300 customers, ending the quarter with over 9,800 customers [6][12] - Forewarn added over 25,000 users, with over 590 realtor associations contracted [6][12] - The investigative vertical showed strong performance, driven by demand from law enforcement and investigative customers [12][14] - The emerging markets vertical, including retail, legal, repossession, government, and healthcare, contributed to growth [12][14] - Collections experienced high teens revenue growth, indicating a steady recovery [14] Market Data and Key Metrics Changes - Government sector wins included contracts with state toll authorities and departments of revenue, indicating strong public sector performance [7][22] - Gross revenue retention remained strong at 96%, improving by two percentage points year-over-year [15] Company Strategy and Development Direction - The company continues to invest in platform capabilities, product advancements, and AI integration to enhance competitive advantages [6][8] - The strategic focus is on expanding go-to-market capabilities and enhancing proprietary data assets [8][9] - A $15 million increase to the share repurchase program was announced, reflecting confidence in the company's growth trajectory [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing out 2025 as another record year, supported by a strong sales pipeline and disciplined execution [11][18] - The company is excited about the opportunities in the public sector and background screening markets, anticipating significant growth in 2026 [22][25] Other Important Information - Cash and cash equivalents were $45.4 million at the end of Q3 2025, up from $36.5 million at year-end 2024 [17] - The company purchased 15,437 shares at an average price of $42.26 during the quarter [17] Q&A Session Summary Question: Details on traction with larger public and enterprise sector customers - Management highlighted investments in the public sector division and background screening solutions, noting recent wins with state toll authorities and large payroll processors [22][23] Question: Addressable market for large toll authorities and payroll processing - Management indicated that every state has some form of toll authority, presenting substantial market opportunities, and emphasized the enormous background screening industry [24][25] Question: Renewals and ARPU growth for Forewarn - Management confirmed strong renewals and retention rates for Forewarn, with plans to add features that could enhance pricing during renewals [30][32] Question: Customer pipeline for Q4 - Management expressed excitement about the strong customer pipeline but noted potential seasonal slowdowns in Q4 due to fewer business days [34] Question: Expectations for gross margin in Q4 - Management expects gross margins to remain consistent with Q3 levels, around 82%-84% [38] Question: Attractiveness of current share price for buyback - Management affirmed that the current share price is attractive and emphasized the importance of investing in the business for long-term growth [39]

Core Insights - Red Violet, Inc. reported a record revenue increase of 21% to $23.1 million for the quarter ended September 30, 2025, alongside a significant net income increase of 145% to $4.2 million [1][7][19] - The company announced a $15 million increase to its share repurchase program, bringing the total authorized amount to $30 million [1][7] Financial Performance - Total revenue increased by 21% to $23.1 million compared to $19.1 million in the same quarter of the previous year [7][21] - Gross profit rose by 26% to $16.8 million, with gross margin improving to 73% from 70% [7][23] - Adjusted gross profit increased by 23% to $19.4 million, with adjusted gross margin rising to 84% from 83% [7][23] - Net income surged by 145% to $4.2 million, resulting in earnings of $0.30 and $0.29 per basic and diluted share, respectively [7][15] - Adjusted EBITDA grew by 35% to $9.0 million, with adjusted EBITDA margin increasing to 39% from 35% [7][21] Customer Metrics - The company added 304 customers to its IDI platform during the third quarter, ending with a total of 9,853 customers [7][31] - FOREWARN saw an addition of 25,538 users, bringing the total to 372,209 users, with over 590 REALTOR Associations contracted to use the service [7][31] Cash Flow and Liquidity - Net cash provided by operating activities increased by 40% to $10.2 million [7][16] - Cash and cash equivalents stood at $45.4 million as of September 30, 2025, compared to $36.5 million at the end of the previous year [7][12] Shareholder Returns - The company repurchased 15,437 shares at an average price of $42.26 per share during the third quarter [7][19] - The total remaining under the Stock Repurchase Program is $18.9 million [7][19]

Summary of Red Violet (RDVT) FY Conference Call Company Overview - **Company**: Red Violet (RDVT) - **Industry**: ID verification sector - **Key Offerings**: Aggregation of identity-related data from various databases, including liens, judgments, and credit header data, which is sold to different industries [1][2] Core Business Verticals - **Five Verticals Served**: 1. Collections 2. Financial and Corporate Risk 3. Investigative 4. Real Estate 5. Emerging Markets [3][12] Historical Context - **Management Background**: Previous experience includes building Seizen and TLO, both in the identity verification space, with significant sales to LexisNexis and TransUnion [4][5][6] Technology and Differentiation - **Cloud-Native Platform**: Built from the ground up using AWS, differentiating it from older products [7] - **AI Integration**: Utilizes AI to enhance data connections and improve transaction clarity [7][60] Use Cases - **Collections**: Validating debt records for accuracy [8] - **Real Estate**: Safety solutions for realtors, including background checks on potential clients [11][12] - **Financial Risk**: Background screening for job applicants, ensuring data accuracy [14][15] - **Investigative**: Tools for law enforcement to conduct investigations efficiently [18][19] Financial Performance - **Revenue Model**: Fixed cost nature with long-term agreements with data providers, leading to high contribution margins [23] - **Gross Profit Margin**: Reported over 80% gross profit and approaching 40% adjusted EBITDA margins [24] - **Customer Base**: Approximately 9,500 customers across various products, with significant growth potential [30] Market Position and Competition - **Competitive Landscape**: Competes with major players like TransUnion and LexisNexis but maintains a unique position due to its technology and data aggregation capabilities [39][40] - **Switching Costs**: Low for customers, allowing for quick onboarding and integration [34][36] Future Opportunities - **Public Sector Growth**: Anticipated increase in contracts due to upcoming RFPs, with potential for large contracts [43][46] - **Background Screening Expansion**: New product offerings in the background screening space, targeting large payroll companies [47][48] Key Performance Indicators - **Gross Retention Rate**: Reported at 97%, with guidance towards 90-95% [50] - **Net Revenue Retention**: Estimated to be in the mid to upper teens [51] Additional Insights - **AI as a Tool**: AI is leveraged for operational efficiency and enhancing customer interaction with the platform [62] - **Data Security**: Regular audits and certifications (PCI level one, SOC one, SOC two, ISO 27001) ensure data safety [70] Conclusion - Red Violet is positioned strongly within the ID verification sector, leveraging advanced technology and a diverse range of use cases to drive growth and maintain competitive advantages. The company is well-prepared to capitalize on emerging opportunities in the public sector and background screening markets.

Financial Data and Key Metrics Changes - Revenue for the quarter increased by 14% to $21.8 million, with a 21% growth when excluding a one-time transactional revenue of $1 million from the prior year [7][17] - Adjusted gross profit reached $18.2 million, resulting in a record adjusted gross margin of 84%, up two percentage points [8][18] - Adjusted EBITDA was $7.6 million, with a margin of 35%, down one percentage point from the previous year [8][18] - Adjusted net income increased by 6% to $4.1 million, resulting in adjusted earnings of $0.28 per diluted share [8][22] - Free cash flow for the quarter was $4.8 million, a 47% increase from $3.3 million a year ago [23] Business Line Data and Key Metrics Changes - IDI's billable customer base increased by 308 customers sequentially, ending the quarter with 9,549 customers [18] - The Investigative vertical led in percentage growth, driven by the addition of over 200 law enforcement agencies [19] - The emerging markets vertical led in revenue growth dollars, with strong contributions from legal, government, and retail industries [19] - Collections posted high teens revenue growth, the highest since 2020, indicating a recovery in that vertical [19] - ForWarn added over 21,000 users, now having over 575 realtor associations contracted [20] Market Data and Key Metrics Changes - Contractual revenue accounted for 77% of total revenue, up three percentage points from the prior year [21] - Gross revenue retention improved to 97%, an increase of three percentage points [21] Company Strategy and Development Direction - The company is focusing on increasing productivity through automation and machine learning applications to enhance operational efficiency [11][12] - Capital investment in AI is a key part of the long-term growth strategy, aimed at improving fraud detection and data quality [13] - The company is well-capitalized and agile, with the flexibility to pursue both organic and strategic growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive long-term value creation, citing a resilient business model and a clear roadmap for innovation [14] - The company is encouraged by the growth pipeline, particularly in larger enterprise accounts, and is optimistic about future opportunities in the public sector [30][34] Other Important Information - The company entered into an amendment with its largest data supplier, extending the agreement through April 30, 2031, with minimal cost escalation [21][43] - Sales and marketing expenses increased by 28% to $5.6 million, driven by higher personnel-related expenses [22] Q&A Session Summary Question: What are the expectations for securing larger accounts? - Management noted significant progress in penetrating larger enterprise accounts, with a growing pipeline and encouraging results from testing [28][30] Question: Are there opportunities related to government budget increases? - Management confirmed that recent government budget changes present significant opportunities, particularly in the public sector [34][36] Question: Is there a timeline for expanding ForWarn into other verticals? - Management is actively testing and marketing ForWarn in various key areas outside real estate, with expectations for updates in 2026 [39][40] Question: Can you elaborate on the amendment with the data supplier? - The amendment extends the term with the data supplier under similar terms, ensuring long-term partnership with minimal price escalation [43][44] Question: What is the outlook for customer retention? - Management expects retention rates to remain around 95% to 96%, supported by strong product functionality and customer need [48][49] Question: How will the company utilize its cash flow? - The company is evaluating various capital allocation strategies, including investments in AI, potential acquisitions, and share repurchase programs [52][54]

Core Insights - Red Violet, Inc. reported a 14% increase in revenue to $21.8 million for the quarter ended June 30, 2025, alongside a record cash flow from operations of $7.5 million [1][6]. Financial Performance - Total revenue increased by 14% to $21.8 million compared to $19.1 million in the same quarter last year [6]. - Gross profit rose by 18% to $15.7 million, with gross margin improving to 72% from 70% [6]. - Adjusted gross profit increased by 17% to $18.2 million, and adjusted gross margin improved to 84% from 82% [6]. - Net income grew by 2% to $2.7 million, resulting in earnings of $0.19 per basic share and $0.18 per diluted share [6]. - Adjusted EBITDA increased by 12% to $7.6 million, with adjusted EBITDA margin slightly decreasing to 35% from 36% [6]. - Net cash provided by operating activities surged by 31% to $7.5 million [6]. Customer Metrics - The company added 308 customers to its IDI platform during the second quarter, bringing the total to 9,549 customers [6]. - FOREWARN saw an addition of 21,335 users, ending the quarter with 346,671 users, with over 575 REALTOR Associations contracted to use the service [6]. Market Position and Strategy - The CEO expressed confidence in the company's ability to continue driving revenue growth and capitalize on significant opportunities ahead, highlighting strong customer onboarding and demand [2][6]. - The company has been successful in attracting higher-tier customers, with total customer spend increasing across key revenue cohorts [6].