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Red VioletRDVT -0.42%68 Net Margin % is 16.99% as of Mar. 2026. GuruFocus rates RDVT with a GF Score™ of 68/100 and a GF Value™ of $41.88 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,832 Software companies, Red Violet ranks better than 84.57% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Red Violet's Net Income for the
three
months ended in Mar. 2026 was $4.39 Mil. Red Violet's Revenue for the
three
months ended in Mar. 2026 was $25.83 Mil. Therefore, Red Violet's net margin for the quarter that ended in Mar. 2026 was 16.99%.
The historical rank and industry rank for Red Violet's Net Margin % or its related term are showing as below:
RDVT'
s Net Margin % Range Over the Past 10 Years
Min: -367.79 Med: -9.27 Max: 22.47
Current: 14.99
RDVT's Net Margin % is ranked better than 84.57% of 2832
companies
in the Software industry
Industry Median: 2.61
vs RDVT: 14.99
Red Violet (NAS:RDVT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Red Violet Net Margin % Related Terms
Red Violet Net Margin % Historical Data
* Premium members only.
The historical data trend for Red Violet's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Red Violet's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Red Violet Net Margin % vs Software Industry
For the Software industry and Technology sector, Red Violet's Net Margin % distribution charts can be found below:
* The bar in red indicates where Red Violet's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Red Violet (RDVT) has a Net Margin % of 16.99% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Red Violet and its competitors. According to the industry distribution chart, Red Violet ranks #437 out of 2832 companies in the Software industry, placing it in the top 15.4%.
Is Red Violet's Net Margin % too high?
Red Violet's current Net Margin % is 16.99%. The Software industry median Net Margin % is 2.61. Red Violet's value of 16.99% is 551% above this industry median. Based on the distribution chart, Red Violet ranks #437 out of 2832 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Red Violet has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Violet's Net Margin % compare to GTM and MITK?
According to the Software industry distribution chart, Red Violet ranks #437 out of 2832 companies for Net Margin %. This places Red Violet in the top 15% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.61. Red Violet's value of 16.99% is 551% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.61, based on 2,832 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Red Violet's current Net Margin % of 16.99% is 551% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Red Violet and its competitors. For the Software industry, the median Net Margin % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Violet's current Net Margin % is 16.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Violet stock overvalued right now?
Based on GuruFocus' analysis, Red Violet (RDVT) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.88, compared to a current price of $66.43 — trading 58.6% above its estimated fair value. The current Net Margin % is 16.99% and 551% above the Software industry median of 2.61. Red Violet's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Red Violet (RDVT), the current Net Margin % is 16.99% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Red Violet (RDVT) Overvalued in 2026?
Based on GuruFocus' analysis, Red Violet stock appears to be overvalued.
The current stock price of $66.43 is trading 58.6% above its estimated GF Value™ of $41.88.
GuruFocus considers Red Violet to be Significantly Overvalued.
Key valuation signals for RDVT:
Net Margin %: 16.99%
GF Value™: $41.88 vs. price of $66.43 (58.6% above fair value)
Industry Position: 551% above the Software median (#437 of 2832)
No single metric tells the full story. See the RDVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Violet Inc builds proprietary technologies and applies analytical capabilities to deliver identity intelligence. The company's solutions enable the real-time identification and location of people, businesses, assets, and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Its cloud-native, AI-enabled identity intelligence platform, CORE, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The company generates substantially all of its revenue from licensing its solutions.
68GF Score
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