B Riley highlighted Red Violet Inc. (ticker RDVT) as its top pick following the firm’s 26th Annual Institutional Investor Conference, maintaining a Buy rating and setting a $65 price target. The analyst firm noted that Red Violet’s shares have rebounded from their March lows, are slightly down year‑to‑date, and have outperformed the IGV software ETF by roughly 16%, indicating that the market is beginning to value the company on its own fundamentals rather than as part of broader application‑layer software.
The recommendation is underpinned by several data points: Javelin’s 2026 Identity Fraud Study recorded $38 billion in total fraud losses, about 2.5 times the Federal Trade Commission’s consumer‑reported figure; the FBI documented $20.9 billion in internet‑crime losses for 2025, a 26% year‑over‑year increase; and the Identity Theft Resource Center reported 3,322 data compromises in 2025, a 79% rise over the previous five years. Management said April was one of the strongest revenue months in company history, with a payroll‑processor contract that went live in April already contributing to results. Gross revenue retention improved to approximately 96%, up from 95% in the first quarter of 2026. TransUnion and Equifax each posted 14% revenue growth in Q1 2026, which B Riley views as independent validation of end‑market demand for Red Violet’s services.
The New York Federal Reserve’s quarterly report showed auto‑loan delinquency at an all‑time high, credit‑card delinquency near 2008‑era levels, total household debt reaching $18.8 trillion, and student‑loan delinquency at 10.3% of balances 90‑plus days past due. Each delinquent account creates a pool of resolution queries—including identity lookups and address validations—that flow through Red Violet’s platform. Consequently, Red Violet’s shares have risen about 66% from their March 52‑week low and 14% since the B Riley conference, trading at roughly 20 times the 2026 estimated EV‑to‑EBITDA multiple.
In its first‑quarter 2026 financial results, Red Violet reported earnings of $0.46 per share on revenue of $25.8 million, surpassing analyst forecasts.