What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-05 compared with 2025-08-06 · 71 added, 66 removed, 318 unchanged (30% of the section changed)

3 unchanged sentences

(Amounts in thousands, except share data)

June 30, 2025

September 30, 2025

December 31, 2024

2 unchanged sentences

Accounts receivable, net of allowance for doubtful accounts of $ 182 and $ 188 as of

June 30, 2025 and December 31, 2024, respectively

September 30, 2025 and December 31, 2024, respectively

Prepaid expenses and other current assets

18 unchanged sentences

Preferred stock—$ 0.001 par value, 10,000,000 shares authorized, and 0 shares

issued and outstanding, as of June 30, 2025 and December 31, 2024

issued and outstanding, as of September 30, 2025 and December 31, 2024

Common stock—$ 0.001 par value, 200,000,000 shares authorized, 13,967,217 and

13,936,329 shares issued and outstanding, as of June 30, 2025 and

13,936,329 shares issued and outstanding, as of September 30, 2025 and

December 31, 2024

7 unchanged sentences

(Amounts in thousands, except share data)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Costs and expenses:

18 unchanged sentences

(accumulated deficit)

Balance at March 31, 2024

Balance at June 30, 2024

Vesting of restricted stock units

2 unchanged sentences

statutory taxes

Common stock repurchased

Retirement of treasury stock

Share-based compensation

Balance at September 30, 2024

Balance at June 30, 2025

Balance at March 31, 2025

Vesting of restricted stock units

2 unchanged sentences

statutory taxes

Common stock repurchased

Retirement of treasury stock

Share-based compensation

Balance at June 30, 2025

Balance at September 30, 2025

Treasury stock

10 unchanged sentences

Share-based compensation

Balance at June 30, 2024

Balance at September 30, 2024

Balance at December 31, 2024

3 unchanged sentences

statutory taxes

Common stock repurchased

Retirement of treasury stock

Share-based compensation

Balance at June 30, 2025

Balance at September 30, 2025

See notes to condensed consolidated financial statements.

2 unchanged sentences

(Amounts in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

24 unchanged sentences

Net cash used in financing activities

Net increase (decrease) in cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

37 unchanged sentences

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock and is calculated using the treasury stock method for unvested shares.

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands, except share data)

1 unchanged sentence

Earnings per share:

(1) For the three and six months ended June 30, 2025 and 2024, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

(1) For the three and nine months ended September 30, 2025 and 2024, diluted weighted average shares outstanding are calculated by the inclusion of unvested restricted stock units ("RSUs").

Intangible assets, net

Intangible assets other than goodwill consist of the following:

June 30, 2025

September 30, 2025

December 31, 2024

7 unchanged sentences

The gross carrying amount of acquired intangible assets reflects the acquisition cost of certain data assets for which the Company has obtained perpetual usage rights.

Amortization expenses of $ 2,595 and $ 2,322 for the three months ended June 30, 2025 and 2024, respectively, and $ 5,095 and $ 4,536 for the six months ended June 30, 2025 and 2024, respectively, were included in depreciation and amortization expense.

As of June 30, 2025, intangible assets of $ 3,766 , included in the gross carrying amounts of software developed for internal use, have not yet commenced amortization, as they are not ready for their intended use.

The Company capitalized intangible asset costs of $ 2,784 and $ 2,847 during the three months ended June 30, 2025 and 2024, respectively , and $ 6,775 and $ 5,620 during the six months ended June 30, 2025 and 2024, respectively .

As of June 30, 2025, estimated amortization expense related to the Company’s intangible assets for the remainder of 2025 through 2030 and thereafter are as follows:

Amortization expenses of $ 2,651 and $ 2,382 for the three months ended September 30, 2025 and 2024, respectively, and $ 7,746 and $ 6,918 for the nine months ended September 30, 2025 and 2024, respectively, were included in depreciation and amortization expense.

As of September 30, 2025, intangible assets of $ 4,964 , included in the gross carrying amounts of intangible assets, have not yet commenced amortization, as they are not ready for their intended use.

The Company capitalized intangible asset costs of $ 3,723 and $ 2,708 during the three months ended September 30, 2025 and 2024, respectively , and $ 10,498 and $ 8,328 during the nine months ended September 30, 2025 and 2024, respectively .

As of September 30, 2025, estimated amortization expense related to the Company’s intangible assets for the remainder of 2025 through 2030 and thereafter are as follows:

(In thousands)

June 30, 2025

September 30, 2025

Remainder of 2025

1 unchanged sentence

Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination.

As of June 30, 2025 and December 31, 2024, the balance of goodwill of $ 5,227 was as a result of the acquisition of Interactive Data, LLC, a wholly-owned subsidiary of red violet, effective on October 2, 2014.

As of September 30, 2025 and December 31, 2024, the balance of goodwill of $ 5,227 was as a result of the acquisition of Interactive Data, LLC, a wholly-owned subsidiary of red violet, effective on October 2, 2014.

In accordance with ASC 350, “Intangibles - Goodwill and Other,” goodwill is tested at least annually for impairment, or when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable, by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that its fair value exceeds the carrying value.

The measurement date of the Company’s annual goodwill impairment test is October 1 .

The Company did no t record a goodwill impairment loss during the three and six months ended June 30, 2025 and 2024, and there was no accumulated goodwill impairment loss as of June 30, 2025.

The Company did no t record a goodwill impairment loss during the three and nine months ended September 30, 2025 and 2024, and there was no accumulated goodwill impairment loss as of September 30, 2025.

Revenue recognition

9 unchanged sentences

In some arrangements, a right to consideration for the Company's performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled accounts receivable.

As of June 30, 2025, the current and noncurrent portion unbilled accounts receivable of $ 1,344 and $ 1,241 , respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheets .

As of December 31, 2024, the current and noncurrent portion unbilled accounts receivable of $ 937 and $ 1,080 , respectively, were included within accounts receivable and other noncurrent assets, respectively , on the consolidated balance sheets.

As of September 30, 2025, the current and noncurrent portion of unbilled accounts receivable of $ 1,258 and $ 1,021 , respectively, were included within accounts receivable and other noncurrent assets, respectively, on the condensed consolidated balance sheets .

As of December 31, 2024, the current and noncurrent portion of unbilled accounts receivable of $ 937 and $ 1,080 , respectively, were included within accounts receivable and other noncurrent assets, respectively , on the consolidated balance sheets.

The Company's revenue arrangements do not contain significant financing components.

For the three months ended June 30, 2025 and 2024, 77 % and 74 % of total revenue was attributable to customers with pricing contracts, respectively, versus 23 % and 26 % attributable to transactional customers, respectively.

For the six months ended June 30, 2025 and 2024, 76 % of total revenue was attributable to customers with pricing contracts, versus 24 % attributable to transactional customers.

For the three months ended September 30, 2025 and 2024, 75 % and 77 % of total revenue was attributable to customers with pricing contracts, respectively, versus 25 % and 23 % attributable to transactional customers, respectively.

For the nine months ended September 30, 2025 and 2024, 75 % and 76 % of total revenue was attributable to customers with pricing contracts, respectively, versus 25 % and 24 % attributable to transactional customers, respectively.

Pricing contracts are generally annual contracts or longer, with auto renewal.

If a customer pays consideration before the Company transfers services to the customer, those amounts are classified as deferred revenue.

As of June 30, 2025 and December 31, 2024, the balance of deferred revenue was $ 806 and $ 712 , respectively, all of which is expected to be realized in the next 12 months.

In relation to the deferred revenue balance as of December 31, 2024, $ 183 and $ 494 was recognized into revenue during the three and six months ended June 30, 2025, respectively.

As of June 30, 2025, $ 19,931 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied , related to pricing contracts that have a term of more than 12 months, of which, $ 5,902 of revenue will be recognized in the remainder of 2025, $ 8,113 in 2026, $ 4,641 in 2027, $ 1,083 in 2028, $ 187 in 2029, and $ 5 in 2030.

As of September 30, 2025 and December 31, 2024, the balance of deferred revenue was $ 859 and $ 712 , respectively, all of which is expected to be realized in the next 12 months.

In relation to the deferred revenue balance as of December 31, 2024, $ 123 and $ 617 was recognized into revenue during the three and nine months ended September 30, 2025, respectively.

As of September 30, 2025, $ 19,820 of revenue is expected to be recognized in the future for performance obligations that are unsatisfied or partially unsatisfied , related to pricing contracts that have a term of more than 12 months, of which, $ 3,166 of revenue will be recognized in the remainder of 2025, $ 9,425 in 2026, $ 5,520 in 2027, $ 1,402 in 2028, $ 302 in 2029, and $ 5 in 2030.

The actual timing of recognition may vary due to factors outside of the Company’s control.

6 unchanged sentences

In each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter.

The Company concluded that, due to its established historical cumulative positive income before income taxes plus permanent differences for the recent years, projections of future taxable income, and the reversal of taxable temporary differences, the realization of deferred tax assets as of June 30, 2025 was more likely than not.

The Company’s effective income tax rate was 13 % and 22 % for the three months ended June 30, 2025 and 2024, respectively, and 19 % and 23 % for the six months ended June 30, 2025 and 2024, respectively, differing from the U.S.

The Company’s effective income tax rate was 15 % and 40 % for the three months ended September 30, 2025 and 2024, respectively, and 18 % and 28 % for the nine months ended September 30, 2025 and 2024, respectively, differing from the U.S.

statutory corporate federal income tax rate of 21 %.

For the three and six months ended June 30, 2025, the effective income tax rates were lower than the statutory rate, primarily attributable to the benefit of research and development tax credits, partially offset by state income taxes and nondeductible permanent differences.

In contrast, for the three and six months ended June 30, 2024, the effective income tax rates were higher than the statutory rate, primarily driven by state income taxes and nondeductible permanent differences, partially offset by the benefit of research and development tax credits.

For the three and nine months ended September 30, 2025, the effective income tax rates were lower than the statutory rate, primarily attributable to the benefit of research and development tax credits and excess tax benefit from share-based compensation, partially offset by state income taxes and nondeductible permanent differences.

In contrast, for the three and nine months ended September 30, 2024, the effective income tax rates were higher than the statutory rate, primarily driven by state income taxes and nondeductible permanent differences, partially offset by the benefit of research and development tax credits.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date.

3 unchanged sentences

Due to the existence of net operating loss carryforwards since inception, all of the Company’s income tax filings remain open for tax examinations.

The Company does no t have any material unrecognized tax benefits as of June 30, 2025 and December 31, 2024.

The Company does no t have any material unrecognized tax benefits as of September 30, 2025 and December 31, 2024.

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted into law.

1 unchanged sentence

ASC 740, “ Income Taxes ”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted.

The Company is currently evaluating the impact of the OBBBA on its financial statements and does not expect it to have a material impact on the Company’s effective tax rate.

The Company evaluated the impact of the OBBBA on its financial statements and concluded that it does not have a material impact on the Company’s effective tax rate.

Shareholders' equity

Common stock and treasury stock

As of June 30, 2025 and December 31, 2024, the number of issued shares of common stock was 13,976,841 and 13,936,329 , respectively.

As of September 30, 2025 and December 31, 2024, the number of issued shares of common stock was 13,967,217 and 13,936,329 , respectively.

The Company held no shares of treasury stock as of either date.

The changes in the number of issued shares of common stock and treasury stock were due to the following factor:

an aggregate of 58,117 shares of common stock were issued as a result of the vesting of RSUs, of which, 17,605 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock, with a cost of $727.

During the nine months ended September 30, 2025, the changes in the number of issued shares of common stock and treasury stock were due to the following factors:

• An aggregate of 66,767 shares of common stock were issued as a result of the vesting of RSUs, of which, 20,442 shares of common stock were withheld to pay withholding taxes upon such vesting, which were reflected in treasury stock at a cost of $ 860 .

All 20,442 shares of treasury stock were retired during the period .

• During the nine months ended September 30, 2025, the Company repurchased 15,437 shares of common stock under the Stock Repurchase Program, as defined below, which was reflected in treasury stock at a cost of $ 653 .

All 15,437 shares of treasury stock were retired during the period.

On May 2, 2022, the Board of Directors of the Company authorized the repurchase of up to $ 5.0 million of the Company's common stock from time to time, and subsequently on December 19, 2023 and March 28, 2024, the Board of Directors authorized the repurchase of an additional $ 5.0 million each, bringing the total authorization to $ 15.0 million (the "Stock Repurchase Program").

The Stock Repurchase Program does not obligate the Company to repurchase any shares and may be modified, suspended, or terminated at any time and for any reason at the discretion of the Board of Directors.

On November 3, 2025, the Board of Directors further authorized the repurchase of an additional $ 15.0 million under the Stock Repurchase Program, bringing the total authorization to $ 30.0 million.

On December 3, 2024, the Company declared a special cash dividend on its common stock of $ 0.30 per share (the “Dividend”) to shareholders of record as of January 31, 2025, and the aggregate amount of approximately $ 4.2 million was paid on February 14, 2025.

7 unchanged sentences

The primary purpose of the Amended and Restated Plan is to attract, retain, reward and motivate certain individuals by providing them with an opportunity to acquire or increase a proprietary interest in the Company and to incentivize them to expend maximum effort for the growth and success of the Company, so as to strengthen the mutuality of the interests between such individuals and the stockholders of the Company.

As of June 30, 2025, there were 2,657,597 shares of common stock available for future issuance under the Amended and Restated Plan.

As of September 30, 2025, there were 2,652,597 shares of common stock available for future issuance under the Amended and Restated Plan.

To date, all stock incentives issued under the Amended and Restated Plan have been in the form of RSUs.

1 unchanged sentence

The time-based condition for these awards is generally satisfied over three or four years with annual vesting.

Details of unvested RSU activity during the six months ended June 30, 2025 were as follows:

Details of unvested RSU activity during the nine months ended September 30, 2025 were as follows:

Number of units

4 unchanged sentences

Withheld as treasury stock (2)

Unvested as of June 30, 2025 (3)

(1) During the six months ended June 30, 2025, the Company granted an aggregate of 107,050 RSUs to certain employees and directors at grant date fair values ranging from $ 34.18 to $ 49.67 per share, with a vesting period ranging from three to four years .

Unvested as of September 30, 2025 (3)

(1) During the nine months ended September 30, 2025, the Company granted an aggregate of 112,050 RSUs to certain employees and directors at grant date fair values ranging from $ 34.18 to $ 49.67 per share, with a vesting period ranging from three to four years .

(2) Withheld as treasury stock represents shares withheld to pay statutory taxes upon the vesting of RSUs.

2 unchanged sentences

Such RSU grant will not vest unless and until the Company has achieved certain revenue for a portion of its business prior to December 31, 2030, the final achievement date deadline.

As of June 30, 2025, the Company determined that it is not probable that the performance criteria associated with 70,000 of the 130,000 RSUs will be met.

As of September 30, 2025, the Company determined that it is not probable that the performance criteria associated with 70,000 of the 130,000 RSUs will be met.

Accordingly, no share-based compensation expense has been recognized for these RSUs.

The 70,000 RSUs remain unvested and were included in "Unvested as of June 30, 2025" in the table above.

As of June 30, 2025, unrecognized share-based compensation expense associated with the granted RSUs amounted to $ 15,286 , which is expected to be recognized over a remaining weighted average period of 2.5 years.

Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30,

Six Months Ended June 30,

The 70,000 RSUs remain unvested and were included in "Unvested as of September 30, 2025" in the table above.

As of September 30, 2025, unrecognized share-based compensation expense associated with the granted RSUs amounted to $ 13,399 , which is expected to be recognized over a remaining weighted average period of 2.4 years.

Share-based compensation was allocated to the following accounts in the condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands)

7 unchanged sentences

On December 20, 2024, the Company entered into a non-cancellable 80-month operating lease agreement for its new Seattle office space of 6,709 rentable square feet (the "New Seattle Lease Agreement"), with the lease commencement date on May 1, 2025 (the "Commencement Date").

For the three and six months ended June 30, 2025 and 2024, a summary of the Company’s lease information is shown below:

Three Months Ended June 30,

Six Months Ended June 30,

For the three and nine months ended September 30, 2025 and 2024, a summary of the Company’s lease information is shown below:

Three Months Ended September 30,

Nine Months Ended September 30,

(In thousands)

7 unchanged sentences

The discount rate was based on information available as of the Commencement Date.

As of June 30, 2025 and December 31, 2024, the weighted-average remaining term of the Company's operating leases was 5.0 years and 4.3 years, respectively, and the weighted-average discount rate used to measure the operating lease liabilities was 8.36 % and 9.94 %, respectively.

As of June 30, 2025, scheduled future maturities and present value of the operating lease liabilities are as follows:

As of September 30, 2025 and December 31, 2024, the weighted-average remaining term of the Company's operating leases was 4.8 years and 4.3 years, respectively, and the weighted-average discount rate used to measure the operating lease liabilities was 8.30 % and 9.94 %, respectively.

As of September 30, 2025, scheduled future maturities and present value of the operating lease liabilities are as follows:

(In thousands)

June 30, 2025

September 30, 2025

Remainder of 2025

12 unchanged sentences

Information about reported segment revenue, segment net income, and significant segment expenses is shown as follows:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in thousands)

13 unchanged sentences

Consolidated net income

(1) Professional fees for the three and six months ended June 30, 2025, include $ 370 of acquisition-related costs incurred in connection with the due diligence of potential strategic targets.

Comparable acquisition-related costs were $ 0 and $ 7 for the three and six months ended June 30, 2024, respectively.

(1) Professional fees for the nine months ended September 30, 2025, include $ 358 of acquisition-related costs incurred in connection with the due diligence of potential strategic targets.

Comparable acquisition-related costs were $ 7 for the nine months ended September 30, 2024.

(2) Other segment items include primarily travel and entertainment, write-off of long-lived assets, and other selling, general and administrative expenses.

1 unchanged sentence

(a) Capital commitment

The Company incurred data costs of $ 2,417 and $ 2,406 for the three months ended June 30, 2025 and 2024, respectively , and $ 4,959 and $ 4,840 for the six months ended June 30, 2025 and 2024, respectively, under certain data licensing agreements.

The Company incurred data costs, included within cost of revenue (exclusive depreciation and amortization), of $ 2,423 and $ 2,328 for the three months ended September 30, 2025 and 2024, respectively , and $ 7,382 and $ 7,168 for the nine months ended September 30, 2025 and 2024, respectively, under certain data licensing agreements.

Effective on May 1, 2025, the Company entered into an amendment with its largest data supplier, extending the term of the agreement through April 30, 2031.

The Company may elect to extend the term for an additional twelve months upon written notice to this supplier at least 30 days prior to April 30, 2031.

This data supplier accounted for 46 % of the Company’s total data acquisition costs for the three months ended June 30, 2025 and 2024, and 45 % and 44 % for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the remaining minimum purchase commitment of this agreement through the end of the term is $ 24.7 million.

As of September 30, 2025, the remaining minimum purchase commitment of the agreement with this data supplier was $ 24.6 million.

In April 2025, the Company entered into a five-year , non-cancellable cloud services agreement with a third-party provider.

1 unchanged sentence

Costs incurred under this agreement are either (i) expensed as infrastructure fees and included in cost of revenue (exclusive of depreciation and amortization) when used in the delivery of our services to customers, or (ii) capitalized as internal-use software costs within intangible assets when consumed in the development or enhancement of the Company’s internal-use software.

As of June 30, 2025, the total material capital commitments under certain data licensing agreements and the cloud service agreement amounted to $ 43,979 , shown as follows:

As of September 30, 2025, the total material capital commitments under certain data licensing agreements and the cloud service agreement amounted to $ 44,909 , shown as follows:

(In thousands)

June 30, 2025

September 30, 2025

Remainder of 2025

23 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements