B. Riley elevated Red Violet to a top pick following the investment firm's 26th Annual Institutional Investor Conference, maintaining a Buy rating and a $65 price objective. The firm pointed to recent industry statistics and company-specific results as evidence that demand for identity verification services is strengthening in the current environment.
Red Violet shares have recovered from their March lows and currently sit modestly down on the year, having outperformed the IGV software ETF by roughly 16%. B. Riley said the market appears to be re-pricing the company on its standalone fundamentals rather than treating it as part of a broader application-layer software cohort.
Data points cited by B. Riley
- Javelin’s 2026 Identity Fraud Study recorded $38 billion in total fraud losses, a figure B. Riley noted is approximately 2.5 times the amount reported by consumers to the Federal Trade Commission.
- The FBI reported $20.9 billion in internet crime losses for 2025, an increase of 26% year-over-year.
- The Identity Theft Resource Center logged 3,322 data compromises in 2025, representing a 79% rise compared with five years earlier.
Management for Red Violet confirmed that April ranked among the company’s strongest months for revenue. The April ramp included initial contributions from a payroll processor contract that went live that month. B. Riley also flagged an improvement in gross revenue retention to about 96%, up from 95% in the first quarter of 2026.
The analyst note referenced revenue growth at larger credit-data providers as corroboration of market demand. Both TransUnion and Equifax reported 14% revenue growth in the first quarter of 2026, which B. Riley views as independent validation of end-market strength for identity and fraud-related services.
Macroeconomic and credit trends
B. Riley cited findings from the New York Fed’s quarterly report showing auto loan delinquency at an all-time high and credit card delinquency approaching levels last seen around 2008, with total household debt reaching $18.8 trillion. The same report indicated student loan delinquency at 10.3% of balances 90-plus days past due.
The firm noted that each delinquent account creates a set of resolution actions - including identity lookups and address validations - which are services that channel through Red Violet’s platform. Those flows, B. Riley argued, represent recurring demand for the company’s verification products.
Share performance and valuation
Shares of Red Violet have climbed roughly 66% from their March 52-week low and about 14% since the B. Riley conference. On B. Riley’s numbers, the stock trades for nearly 20 times estimated 2026 EV-to-EBITDA.
Recent financial results
Red Violet reported first-quarter 2026 results that surpassed analyst expectations, recording earnings of $0.46 per share on revenue of $25.8 million. B. Riley reiterated that these results, along with improving retention metrics and new contract contributions, bolster the firm’s Buy rating and $65 target.
Bottom line
B. Riley’s conference follow-up frames Red Violet as well positioned to benefit from persistently elevated fraud losses and rising delinquency-driven verification demands. The firm’s view rests on a mix of third-party industry studies, federal and private-sector loss reports, company-reported monthly revenue strength, contract ramp activity, and improving retention metrics.