RDVTRed Violet, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.3×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RDVT?
Red Violet, Inc. earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 18%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Cash conversion
- 2.26×
Cash conversion · 3.46× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.61%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −20% |
| FY2021 | −3.0% |
| FY2022 | 0.68% |
| FY2023 | 4.2% |
| FY2024 | 11% |
| FY2025 | 15% |
Details›
- Gross margin12 months to Q2 2026
- 85%
- Operating margin12 months to Q2 2026
- 18%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 34%
- Revenue, trailing twelve months
- $99M
- Free cash flow, trailing twelve months
- $34M
- Net income, trailing twelve months
- $16M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #39 of 96 by RyuScore