Red Violet Inc (RDVT) 2025 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Red Violet's third quarter 2025 earnings conference call. (Operator Instructions)

各位女士、先生，大家好，歡迎參加 Red Violet 2025 年第三季財報電話會議。（操作說明）

I would now like to introduce your host for today's conference, Camilo Ramirez Senior Vice President, Finance and Investor Relations. Please go ahead.

現在我謹向大家介紹今天會議的主持人，卡米洛·拉米雷斯，財務和投資者關係高級副總裁。請繼續。

Good afternoon and welcome. Thank you for joining us today to discuss our third quarter 2025 financial results. With me today is Derek Dubner, our Chairman and Chief Executive Officer, and Daniel MacLachlan, our Chief Financial Officer. Our call today will begin with comments from Derek and Dan, followed by a question-and-answer session. I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit our investors page on our website www.redviolet.com.

下午好，歡迎光臨。感謝各位今天蒞臨現場，與我們共同探討2025年第三季財務表現。今天陪同我的是我們的董事長兼執行長德里克·杜布納，以及我們的財務長丹尼爾·麥克拉克倫。今天的電話會議將首先由 Derek 和 Dan 發言，然後進行問答環節。我想提醒各位，本次通話正在進行網路直播和錄音。通話結束後，我們將在網站上提供本次活動的錄影回放。若要觀看網路直播，請造訪我們網站 www.redviolet.com 上的投資者頁面。

Before we begin, I would like to advise listeners that certain information discussed by management during this conference call are forward-looking statements covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those stated or implied by our forward-looking statements due to risk and uncertainties associated with the company's business. The company undertakes no obligation to update the information provided on this call. For a discussion of risk and uncertainties associated with Red Violet's business, I encourage you to review the company's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K and subsequent 10-Qs.

在開始之前，我想告知各位聽眾，管理層在本次電話會議中討論的某些資訊屬於前瞻性陳述，受 1995 年《私人證券訴訟改革法案》安全港條款的保護。由於公司業務存在風險和不確定性，實際結果可能與我們前瞻性聲明中所述或暗示的結果有重大差異。本公司不承擔更新本次電話會議中所提供資訊的義務。如需了解與 Red Violet 業務相關的風險和不確定性，我建議您查閱該公司向美國證券交易委員會提交的文件，包括最新的 10-K 表格年度報告和後續的 10-Q 表格。

During the call, we may present certain non-GAAP financial information relating to adjusted gross profit, adjusted gross margin, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, and free cash flow. Reconciliations of these non-GAAP financial measures to their most directly comparable US GAAP financial measure are provided in the earnings press release issued earlier today.

在電話會議期間，我們可能會提供一些與調整後毛利、調整後毛利率、調整後 EBITDA 利潤率、調整後淨利潤、調整後每股收益和自由現金流相關的非公認會計準則財務資訊。今天稍早發布的獲利新聞稿中提供了這些非GAAP財務指標與其最直接可比較的美國GAAP財務指標的調節表。

In addition, certain supplemental metrics that are not that are not necessarily derived from any underlying financial statement amounts may be discussed, and these metrics and their definitions can also be found in the earnings press release issued earlier today.

此外，還可以討論一些不一定源自任何基礎財務報表金額的補充指標，這些指標及其定義也可以在今天早些時候發布的獲利新聞稿中找到。

With that, I am pleased to introduce Red Violet's Chairman and Chief Executive Officer Derek Dubner.

在此，我很高興地向大家介紹紅紫羅蘭公司董事長兼執行長德里克·杜布納。

Good afternoon and thank you for joining us today to discuss our 3rd quarter financial results. We are pleased to report another record-breaking quarter delivering new highs across all key financial metrics. This quarter's results reflect the exceptional effort and focus of our team and the continued confidence our customers place in Red Violet's platform and solutions. We continue to see strong uptake and expanding utilization of our products across a diverse set of industries. Our momentum remains broad-based and durable. The business continues to scale efficiently while delivering record financial results.

下午好，感謝各位今天蒞臨本中心，共同探討第三季財務表現。我們很高興地宣布，本季再次打破紀錄，所有關鍵財務指標都創下新高。本季的業績反映了我們團隊的卓越努力和專注，以及客戶對 Red Violet 平台和解決方案的持續信心。我們看到，我們的產品在各個行業中持續獲得強勁的市場認可，並且使用範圍不斷擴大。我們的發展勢頭依然強勁且持久。公司在保持高效擴張的同時，也取得了創紀錄的財務表現。

We've built a virtuous cycle. Our innovation created the industry's leading cloud native platform and solutions which are driving record growth and financial performance, which in turn fuels continued investment, creating powerful competitive advantages. We continue to invest in areas that define our future.

我們建立了一個良性循環。我們的創新打造了業界領先的雲端原生平台和解決方案，推動了創紀錄的成長和財務業績，進而促進了持續投資，創造了強大的競爭優勢。我們將繼續投資那些決定我們未來的領域。

Platform capabilities, product introductions, and advancements. Go to market expansion and the continued integration of AI across our operations.

平台功能、產品發布和發展。拓展市場並持續將人工智慧融入我們的營運中。

Now let's briefly run through the numbers. Revenue for the quarter came in at a record $23.1 million up 21%. Our adjusted gross profit was a record $19.4 million resulting in a record adjusted gross margin of 84%. Adjusted EBITA for the quarter was a record $9 million resulting in a record margin of 39%. Adjusted net income for the quarter was a record $5.8 million producing record adjusted earnings of $0.39 per diluted share.

現在我們來簡單看一下這些數字。本季營收達到創紀錄的 2,310 萬美元，成長 21%。我們調整後的毛利達到創紀錄的 1,940 萬美元，調整後的毛利率也達到創紀錄的 84%。本季調整後 EBITA 達到創紀錄的 900 萬美元，利潤率達到創紀錄的 39%。本季調整後淨收入創下 580 萬美元的歷史新高，調整後每股攤薄收益也創下 0.39 美元的歷史新高。

During the quarter we generated a record $7.3 million in free cash flow. Once again, we added over 300 customers to IDI during the quarter, ending the third quarter at over 9,800 customers. Within forewarned, we added over 25,000 users and ended the quarter with over 590 realtor associations now contracted to use FOREWARN.

本季我們創造了創紀錄的730萬美元自由現金流。本季度，IDI 的客戶數量再次增加了 300 多人，第三季末客戶總數超過 9,800 人。在 Forewarn 的推動下，我們新增了超過 25,000 名用戶，並在季度末與超過 590 家房地產經紀人協會簽訂了合同，使用 FOREWARN。

The momentum we've observed throughout the year continued. Volumes across the platform were strong and steady throughout the third quarter. We have historically noted when one-time transactional revenue impacts our results.

我們全年觀察到的發展動能得以延續。第三季度，平台整體交易量維持強勁穩定。我們歷來都會記錄一次性交易收入對業績的影響。

In this quarter, there were no meaningful one-time transactions. Performance reflects consistent core business activity. Our investigative vertical continues to be strong with our steady focus on law enforcement agency and investigative customers. Our emerging markets vertical was strong as well, driven by retail, legal, repossession, government and healthcare.

本季沒有發生任何實質的一次性交易。業績反映了核心業務的持續活躍。我們專注於執法機構和調查客戶，調查業務持續保持強勁勢頭。我們的新興市場業務也表現強勁，主要得益於零售、法律、資產回收、政府和醫療保健等產業的推動。

In government, with recent wins, including a large state toll authority, state departments of revenue, Secretary of State offices, and more, we are very encouraged by the path set by our public sector division. As well, momentum from collections and financial and corporate risk carried over. Given this traction and the fact that our strong performance is yielding robust cash generation, we have the flexibility to keep investing in our highest impact initiatives without compromising profitability.

在政府方面，我們最近取得了一些勝利，包括成立了大型州收費公路管理局、州稅務部門、州務卿辦公室等等，我們對公共部門部門所取得的成就感到非常鼓舞。此外，催收以及金融和企業風險帶來的動能也延續了下來。鑑於目前的良好勢頭以及我們強勁的業績帶來了可觀的現金流，我們有能力繼續投資於最具影響力的項目，而不會影響獲利能力。

As we continue to advance opportunities across our enterprise pipeline, which is the strongest we've seen to date, investment in go to market capabilities is ongoing, expanding teams in various verticals. The bottom line is that we are firing on all cylinders and finely tuned where we sit today. Our rule of 40 score notched an impressive 60%. Notwithstanding, we are not content. We are using AI to advance multiple initiatives that enhance the intelligence and efficiency of our platform, further distancing ourselves from the competition. Specifically, automation of internal workflows to reduce cycle times and scale productivity. Expansion and enrichment of proprietary data assets, strengthening our competitive mode and application of advanced models to detect and interpret risk signals, improving the speed and precision of our insights.

隨著我們不斷推進企業通路的各種機會（這是我們迄今為止所見過的最強勁的管道），我們對市場拓展能力的投資也在持續進行，並在各個垂直領域擴大團隊。總之，我們目前各方面都運作良好，並且已經對現狀進行了精細調整。我們的 40 法則評分取得了令人矚目的 60%。儘管如此，我們並不滿足。我們正在利用人工智慧推進多項舉措，以提高我們平台的智慧性和效率，從而進一步拉開與競爭對手的距離。具體而言，實現內部工作流程自動化，以縮短週期時間並提高生產力。擴展和豐富專有數據資產，加強我們的競爭模式，應用先進模型來檢測和解釋風險訊號，提高我們洞察的速度和精度。

Each of these initiatives reinforces our broader strategy to make our solutions smarter, faster, and more valuable with every iteration. Moreover, these endeavors will ultimately drive operational efficiency and translate to an even stronger margin profile in the future.

這些舉措都強化了我們更廣泛的策略，即透過每一次迭代使我們的解決方案更聰明、更快速、更有價值。此外，這些努力最終將提高營運效率，並在未來轉化為更強的利潤率。

While our larger competitors are burdened by legacy systems and bureaucratic decision making, our strategic investments in modern platform technology allow us to better serve customers today while building structural advantages that will keep us at the forefront for years to come.

當我們的大型競爭對手受到傳統系統和官僚決策的束縛時，我們對現代平台技術的策略性投資使我們能夠更好地服務於當今的客戶，同時建立結構性優勢，使我們在未來幾年內保持領先地位。

Finally, we announced a $15 million increase to our share repurchase program. We had approximately $3.9 million remaining from our previous authorization. And given the healthy balance sheet growth not withstanding our continued investment in our business, we believe the share repurchase program is an important element of our broader capital allocation strategy.

最後，我們宣布將股票回購計畫增加 1,500 萬美元。我們先前獲得的授權資金還剩下約390萬美元。儘管我們持續投資於自身業務，但鑑於資產負債表仍保持健康成長，我們認為股票回購計畫是我們更廣泛的資本配置策略的重要組成部分。

In the third quarter, we purchased 15,437 shares of common stock at an average price of $42.26 and to date, in totality under the program, we have purchased 553,921 shares at a weighted average price of $20.

第三季度，我們以平均每股 42.26 美元的價格購買了 15,437 股普通股；截至目前，根據該計劃，我們累計購買了 553,921 股，加權平均價格為每股 20 美元。

Now, I'll turn it over to Dan to discuss the financials.

現在，我將把發言權交給丹，讓他來討論財務狀況。

Thanks, Derek, and good afternoon everyone. We are pleased to report another exceptional quarter extending the strong momentum established in the first half of the year. We achieved new highs across all key financial metrics, underscoring the scalability, efficiency, and durability of our business model. Our sales pipeline continues to expand with an increasing number of larger customer wins across our verticals. With this momentum and disciplined execution, we remain confident in our ability to deliver a strong finish to the year. Turning now to our third quarter results, for clarity, all the comparisons I will discuss today will be against the third quarter of 2024 unless noted otherwise.

謝謝德里克，大家下午好。我們很高興地宣布，本季又取得了卓越的成績，延續了上半年建立的強勁勢頭。我們在所有關鍵財務指標上都取得了新高，突顯了我們商業模式的可擴展性、效率和持久性。隨著我們在各個垂直領域贏得越來越多的大客戶，我們的銷售管道持續擴大。憑藉著這股動能和嚴謹的執行力，我們仍有信心在年底前取得佳績。現在來看看我們第三季的業績，為了清楚起見，除非另有說明，我今天討論的所有比較都將與 2024 年第三季進行比較。

Total revenue was a record $23.1 million up 21% over the prior year. We generated a record $19.4 million in adjusted gross profit, delivering a record adjusted gross margin of 84%, up 1% point. Adjusted EBITDA came in at a record $9 million an increase of 35% over the prior year, producing a record adjusted EBITDA margin of 39%, up 4% points. Adjusted net income increased 75% to a record $5.8 million resulting in record adjusted earnings of $0.39 per diluted share.

總收入創下2,310萬美元的紀錄，較上年成長21%。我們實現了創紀錄的 1,940 萬美元調整後毛利，調整後毛利率達到創紀錄的 84%，成長了 1 個百分點。調整後 EBITDA 達到創紀錄的 900 萬美元，比前一年成長 35%，調整後 EBITDA 利潤率達到創紀錄的 39%，成長 4 個百分點。經調整後的淨收入增長了 75%，達到創紀錄的 580 萬美元，從而實現了創紀錄的經調整後每股攤薄收益 0.39 美元。

Turning to the details of our P&L, as mentioned, revenue for the third quarter was $23.1 million with balanced growth across verticals. Within IDI, we continue to see strong demand for our solutions and healthy customer expansion, adding 304 billable customers sequentially to end the quarter with 9,853 customers.

再來看我們的損益表細節，如同前面提到的，第三季營收為 2,310 萬美元，各垂直領域都實現了均衡成長。在IDI內部，我們繼續看到對我們解決方案的強勁需求和健康的客戶成長，本季新增304個計費客戶，使本季末客戶總數達到9853個。

Our investigative vertical continues to perform exceptionally well. Reflecting sustained demand from both new and existing law enforcement agencies and investigative customers. Growth was driven by higher transaction volumes, new customer wins, and deeper integration of our solutions into customer workflows.

我們的調查報道部門持續表現優異。反映了來自新舊執法機構和調查客戶的持續需求。成長的驅動力來自更高的交易量、新客戶的贏得以及我們的解決方案與客戶工作流程的更深入整合。

Our emerging markets vertical delivered another strong quarter with the retail, legal, repossession, government, and healthcare industries all contributing meaningful growth. Demand across these industries underscores the versatility of our platform and its ability to address a diverse range of use cases.

我們的新興市場業務部門又迎來了一個強勁的季度，零售、法律、資產回收、政府和醫療保健產業都做出了顯著的成長。這些產業的需求凸顯了我們平台的通用性及其應對各種不同用例的能力。

Collections delivered another quarter of strong performance, marking its second consecutive period of high 10s revenue growth. The steady recovery within collections continues to build momentum, and we believe we are well positioned to capture further growth as a trusted leader in this space.

收款業務又一個季度表現強勁，連續第二季實現 10% 以上的營收成長。收款業務的穩定復甦動能持續增強，我們相信，作為該領域值得信賴的領導者，我們已做好充分準備，以實現進一步成長。

Our financial and corporate risk vertical delivered strong growth this quarter, driven by solid performance across our core financial services customers and continued traction within the background screening industry. Over the past year we have expanded our presence in this space through targeted product innovation and enhanced go to market execution resulting in several significant new customer wins, including a recent contract with one of the largest payroll processors in the country. The return on these investments is increasing, further strengthening our position in the market and driving continued company-wide growth.

本季度，我們的金融和企業風險業務實現了強勁成長，這主要得益於我們核心金融服務客戶的穩健表現以及在背景調查行業的持續成長勢頭。過去一年，我們透過有針對性的產品創新和加強市場推廣執行，擴大了我們在該領域的業務，贏得了幾個重要的新客戶，包括最近與該國最大的薪資處理商之一簽訂的合約。這些投資的回報正在增加，進一步鞏固了我們在市場中的地位，並推動了公司整體的持續成長。

Lastly, IDI's real estate vertical, which excludes FOREWARN, experienced a slight year over year decline as high home prices and interest rates continued to pressure affordability and weigh on housing activity.

最後，IDI 的房地產垂直業務（不包括 FOREWARN）同比略有下降，因為高房價和高利率繼續給住房負擔能力帶來壓力，並抑制了住房活動。

Turning now to FOREWARN, which continues to strengthen its position as the leading proactive safety tool for real estate professionals. Revenue grew at a solid double-digit percentage rate driven by ongoing adoption and engagement across realtor associations. During the quarter, we added more than 25,000 users and now have over 590 associations contracted to use for warm.

接下來我們來看看 FOREWARN，它繼續鞏固其作為房地產專業人士領先的主動安全工具的地位。受房地產經紀人協會持續採用和參與的推動，收入實現了兩位數的穩健成長。本季度，我們新增了 25,000 多名用戶，目前已有 590 多個協會簽約使用我們的服務。

Contractual revenue accounted for 75% of total revenue in the quarter, down 2% points from the prior year. Gross revenue retention remains strong at 96%, improving by 2% points over prior year.

本季合約收入佔總收入的 75%，比去年同期下降 2 個百分點。總收入留存率保持強勁，達到 96%，比上年提高了 2 個百分點。

Moving back to the P&L, our cost of revenue exclusive of depreciation and amortization, increased $0.3 million or 9% to $3.6 million. Adjusted gross profit increased 23% to a record $19.4 million resulting in a record adjusted gross margin of 84%, up 1% point from the prior year. Our sales and marketing expenses increased $0.6 million or 12% to $5.4 million for the quarter, driven primarily by higher personnel related expenses. General and administrative expenses increased $0.8 million or 13% to $6.8 million reflecting higher personnel related costs. Appreciation and amortization increased $0.3 million or 11% to $2.7 million for the quarter. Net income increased $2.5 million or 145% to $4.2 million for the quarter. Adjusted net income increased $2.5 million or 75% to a record $5.8 million resulting in record adjusted earnings of $0.39 per diluted share.

回到損益表，不包括折舊和攤提的收入成本增加了 30 萬美元，增幅為 9%，達到 360 萬美元。經過調整後的毛利成長了 23%，達到創紀錄的 1,940 萬美元，經調整後的毛利率也創下 84% 的紀錄，比前一年增長了 1 個百分點。本季度，我們的銷售和行銷費用增加了 60 萬美元，增幅為 12%，達到 540 萬美元，主要原因是人員相關費用增加。一般及行政費用增加 80 萬美元，增幅 13%，達到 680 萬美元，反映出人員相關成本增加。本季增值和攤銷增加 0.3 百萬美元，增幅 11%，達到 270 萬美元。本季淨利成長250萬美元，增幅達145%，達420萬美元。經調整後的淨收入增加了 250 萬美元，增幅達 75%，達到創紀錄的 580 萬美元，從而使經調整後的每股攤薄收益達到創紀錄的 0.39 美元。

Moving on to the balance sheet, cash and cash equivalents were $45.4 million at September 30, 2025, compared to $36.5 million at December 31, 2024. Current assets totaled $58 million compared to $46.2 million at year end, while current liabilities were $6.9 million down from $10.3 million. We generated a record $10.2 million in cash from operating activities in the third quarter compared to $7.2 million in the same period last year. Free cash flow for the quarter was a record $7.3 million a 51% increase from $4.8 million a year ago. We purchased 15,437 shares of company stock at an average price of $42.26 per share under our stock repurchase program during the third quarter. On November 3, 2025, the board authorized a $15 million increase in the company's stock repurchase program. Currently we have $18.9 million remaining under the repurchase program.

接下來來看資產負債表，截至 2025 年 9 月 30 日，現金及現金等價物為 4,540 萬美元，而截至 2024 年 12 月 31 日為 3,650 萬美元。流動資產總額為 5,800 萬美元，而上年末為 4,620 萬美元；流動負債為 690 萬美元，而上年末為 1,030 萬美元。第三季度，我們從經營活動中獲得了創紀錄的 1,020 萬美元現金，而去年同期為 720 萬美元。本季自由現金流達到創紀錄的 730 萬美元，比去年同期的 480 萬美元成長了 51%。第三季度，我們根據股票回購計劃，以每股 42.26 美元的平均價格購買了 15,437 股公司股票。2025 年 11 月 3 日，董事會批准將公司股票回購計畫的金額增加 1,500 萬美元。目前，我們的回購計畫還剩下 1,890 萬美元。

In closing, our third quarter results reflect another period of consistent execution and profitable growth. We continue to extend our leadership across markets. Deliver record performance and strengthen our foundation for long-term value creation. We remain confident in our ability to close out 2025 as another record year for Red Violet. With that, our operator will now open the line for Q&A.

綜上所述，我們第三季的業績反映了我們又一個持續執行和獲利成長的時期。我們持續擴大在各市場的領先地位。取得創紀錄的業績，並鞏固我們創造長期價值的基礎。我們仍有信心在 2025 年為 Red Violet 再創佳績。接下來，我們的接線員將開通問答線路。

Thank you.

謝謝。

At this time, we will conduct the question-and-answer session.

屆時我們將進行問答環節。

(Operator Instructions)

（操作說明）

Josh Nichols, B Riley Securities.

Josh Nichols，B Riley Securities。

Yeah, thanks for taking my question. Great to see another record quarter a lot of good things to unpack with the record keeping of margins, bumping right up against 40%. You're hiring, the share buyback clearly indicating that you have some really good confidence about the trajectory the business is on.

謝謝你回答我的問題。很高興看到另一個創紀錄的季度，利潤率創下歷史新高，有很多值得關注的亮點，利潤率已經逼近 40%。你們正在招聘，股票回購清楚地顯示你們對公司的發展軌跡非常有信心。

You mentioned two big wins, the toll authority and then the large payroll processor. Maybe if you want to just give us a little bit more detail about some of the traction you're seeing in those larger public and enterprise sector customers and how you see that playing out over the coming months and and throughout next year.

你提到了兩場重大勝利，分別是收費公路管理機構和大型薪資處理機構。或許您可以更詳細地介紹一下您在大型公共和企業部門客戶中看到的進展情況，以及您認為這種情況在未來幾個月和明年將如何發展。

Sure, thanks, Josh. Derek here. Nice to talk to you. As for the last 18 months or so we've been investing in our public sector division and our background screening solutions. We've brought a number of new products to market and have built in some really differentiated capabilities in the platform to serve those markets, and we've also invested in our teams.

好的，謝謝你，喬許。我是德里克。很高興和你聊天。在過去18個月左右的時間裡，我們一直在投資我們的公共部門部門和背景調查解決方案。我們已將許多新產品推向市場，並在平台中建立了一些真正差異化的功能來服務這些市場，同時我們也對我們的團隊進行了投資。

We've surrounded a number of thought leaders with some very terrific individuals to go to market and penetrate those markets and given that those are a little bit of a longer sales cycle, it's nice to see that in the last six months or so we're really starting to see the green shoots. We did win one of the larger state toll authorities against very significant, a very large competitor, and they clearly saw the differentiation in our products and our solutions in testing.

我們圍繞著一些思想領袖，組建了一個非常優秀的團隊，負責開拓市場並滲透這些市場。鑑於這些市場的銷售週期相對較長，令人欣慰的是，在過去的六個月左右，我們真的開始看到一些積極的跡象。我們擊敗了實力雄厚、規模龐大的競爭對手，贏得了一個較大的州收費公路管理機構的合同，他們在測試中清楚地看到了我們產品和解決方案的差異化優勢。

And so, we're very excited about that. As I mentioned, we're also winning at a number of departments of revenue and Secretaries of State for a number of very interesting use cases across the public sector. And these are wins that we can sort of, model and duplicate across the country. So, we're very excited about those opportunities in payroll processing and in the background screening area, as we mentioned, we did enter into a multi-year contract with one of the largest payroll processors. And we're very excited about that opportunity and we are also testing with others of the same size in both public sector and background screening. So yes, you can hear our confidence. We are very pleased with the results. We are, as I mentioned, firing on all cylinders and extremely excited about 2026, where those larger opportunities are there for us to win.

所以，我們對此感到非常興奮。正如我所提到的，我們也在多個稅務部門和國務大臣那裡贏得了許多非常有趣的公共部門應用案例的認可。這些成功經驗我們可以藉鏡、複製，並在全國推廣。因此，我們對薪資處理和背景調查領域的這些機會感到非常興奮，正如我們所提到的，我們確實與一家最大的薪資處理公司簽訂了多年合約。我們對此機會感到非常興奮，我們也在公共部門和背景調查領域與其他同等規模的公司進行測試。是的，你能感受到我們的自信。我們對結果非常滿意。正如我之前提到的，我們目前正全力以赴，對 2026 年充滿期待，因為屆時我們將迎來更大的機遇，並有機會贏得勝利。

Thanks, and then just diving in on that. I mean to win this large toll award, pretty significant here, and you made a point that you think this is replicable, any kind of color that you can give us on like, how many of these large toll authorities or payroll processing background screeners are and the opportunity to win those in terms of the addressable market.

謝謝，然後我就直接上手研究了。我的意思是，贏得這項數額巨大的收費公路合同意義重大，而且您也指出您認為這種模式可以復制，您能否透露一些信息，比如有多少大型收費公路管理機構或薪資處理背景調查機構，以及從潛在市場角度來看，贏得這些機構的機會有多大？

Yeah, Josh, hi, this is Dan. Thanks for the question. So, look, when we talk about public sector and you know Derek gave some color about being able to potentially leverage that win and replicate it across a number of states, right? I mean, at this point, probably every state in the country has, some kind of size to authority, whether that's more of a jurisdictional local size or across the whole state. So, we think that market is substantial, and we've only just tapped the surface, obviously announcing, one of the larger wins, but you know there's at least 49 other states to kind of figure out and go after, which is great.

是的，喬什，你好，我是丹。謝謝你的提問。所以，你看，當我們談到公共部門時，你知道德里克也提到了一些關於如何利用這場勝利並將其複製到多個州的細節，對吧？我的意思是，目前全國可能每個州都有某種程度的權力規模，無論是地方管轄範圍還是全州範圍。所以，我們認為這個市場規模很大，目前只是觸及了冰山一角。顯然，我們宣布了一項較大的勝利，但你知道，至少還有 49 個州需要我們去了解和爭取，這很棒。

When we talk about the background screening industry, that is just an enormous industry. We spent the last, 18 to 24 months, as Derek talked about really building out our product suite, our team, our go to market strategy. And the opportunity pipeline that has developed over the last 12 months and the conversion of that pipeline to win in the last six months, including one of the largest payroll processors in the country. It is just extremely exciting as you can imagine, you could probably name off a handful of the large payroll processors, right? There some really big players in the space and then there's a broad range of what I would kind of consider kind of the medium range. So, we're just getting started in both of those and today the revenue from those two areas has not been a meaningful contributor to our growth, and that's what makes us so excited going into 2026. As these start to develop, as the contracts come to fruition, the volumes take shape, we're extremely excited about what this will allow us to accomplish in 2026 with landing these and additional over the course of the near and medium term.

當我們談到背景調查產業時，那真是一個龐大的產業。在過去的 18 到 24 個月裡，我們一直在聽 Derek 談論如何真正建立我們的產品套件、我們的團隊和我們的市場推廣策略。過去 12 個月發展的機會管道，以及過去 6 個月這些管道轉化為實際的成功案例，其中包括全國最大的薪資處理公司之一。這真是太令人興奮了，你可以想像，你可能能說出好幾家大型薪資處理公司的名字，對吧？這個領域既有一些真正的大公司，也有很多我認為屬於中型規模的公司。所以，我們在這兩個領域都才剛起步，目前這兩個領域的收入對我們的成長還沒有做出實質的貢獻，而這正是我們對 2026 年充滿期待的原因。隨著這些項目開始發展，隨著合約的落實，交易量逐漸成形，我們對這些項目以及近期和中期內的其他項目將在 2026 年取得的成就感到非常興奮。

Appreciate it. Thanks. I'll hop back in the queue.

謝謝。謝謝。我重新排隊。

Thanks, Josh.

謝謝你，喬希。

Thank you, Josh.

謝謝你，喬許。

Thank you.

謝謝。

Eric Martinuzzi, Lake Street Capital Markets LLC.

Eric Martinuzzi，Lake Street Capital Markets LLC。

Yeah, Mike, congrats on the strong quarter as well. I wanted to dive into FOREWARN you had a nice expansion there in the number of realtor associations using FOREWARN. I think you've said in the past that there's roughly 1100 realtor associations nationwide, and we're now at Over 590 of them that are FOREWARN customers. Curious to know if you've had any renewals in that installed base and then what's been sort of the ability to raise ARPU on the on that install base and if you have a plan to add additional features functionality where that could be a potential on renewal for that install base.

是的，麥克，也祝賀你取得了強勁的季度業績。我想深入了解 FOREWARN，你們在使用 FOREWARN 的房地產經紀人協會數量方面取得了不錯的進展。我想你以前說過，全國大約有 1100 個房地產經紀人協會，而現在我們已經有超過 590 個協會成為 FOREWARN 的客戶。我很想知道你們的已安裝用戶群是否有續訂，以及你們是否有能力提高該已安裝用戶群的平均每用戶收入 (ARPU)，還有你們是否有計劃添加其他功能，從而有可能提高該已安裝用戶群的續訂率。

Yeah, Eric, thanks. This is Dan and I appreciate the question. Yeah, one of the great things that we've seen and FOREWARN since we brought this to market, call it 5 or 6 years ago, is that the uptake within the associations and the continued renewals and usage and increase. In usage in the user base has been amazing. And so yes, we've seen a number of renewals over the last 5 years. Most of the contracts are 1 to 2 year agreements. Some are a little bit longer than that. So we've been through a number of renewal cycles with great retention obviously across the board, and you know we do have some escalations, within some of those agreements from year to year. But we've been really focused on going out and grabbing market share and haven't spent a tremendous amount of time at looking at kind of optimizing the price point. We think we've done a good job. We feel that we're priced very well in the market, but we do have the ability with renewals and continued expansion to increase prices as we move to newer associations and as we come up for renewals.

好的，艾瑞克，謝謝。我是丹，感謝您的提問。是的，自從我們五、六年前將這項服務推向市場以來，我們看到的最棒的事情之一就是協會的接受度、持續的續訂、使用和成長。用戶群的使用情況非常驚人。所以，是的，過去5年我們看到了很多續約案例。大部分合約期限為1至2年。有些比這稍長一些。所以我們已經經歷了好幾個續約週期，顯然整體續約率都很高，而且你也知道，有些協議的條款每年都會有所調整。但我們一直專注於搶佔市場份額，並沒有花太多時間去研究如何優化價格點。我們認為我們做得很好。我們認為我們的定價在市場上非常合理，但隨著續約和業務的不斷拓展，以及我們加入新的協會和續約臨近，我們有能力提高價格。

And Eric, this is Derek. You're absolutely right that with an installed base of close to 400,000 users, it's an incredible asset. They are the type of users that interact very frequently. We've priced FOREWARN intentionally to be unlimited searches for the safety of the individual professionals so that they search each and every time they're contacted by a prospect to verify identity. And because of that, because of how much the real estate professional really has expressed to us, they love FOREWARN. We have a number of features that we're looking at developing and we've been interacting with surveys and other means of communication with these realtors to understand what they'd like to see, and that is definitely informing the product roadmap around for FOREWARN additional features. And of course, then you know there comes the opportunity to build in some pricing around some excellent features above and beyond.

艾瑞克，這位是德里克。您說得完全正確，擁有近 40 萬用戶的裝機量，這的確是一項巨大的資產。他們是互動非常頻繁的使用者類型。為了保障專業人士的安全，我們刻意將 FOREWARN 的搜尋次數設為無限次，讓他們在每次與潛在客戶聯繫時都能進行搜尋以驗證身分。正因為如此，也因為房地產專業人士向我們表達瞭如此強烈的喜愛，他們才如此熱愛 FOREWARN。我們正在考慮開發一些功能，並且一直在透過調查和其他溝通方式與這些房地產經紀人互動，以了解他們希望看到什麼，這無疑會影響 FOREWARN 附加功能的產品路線圖。當然，接下來就有機會圍繞一些額外的出色功能來制定價格了。

I understand. The growth in the IDI side of the house. I know not all customers are created equal, but it was relatively similar number of customers. You added 308 customers in Q2 and 304 customers in Q3. What is the pipeline look like for Q4?

我明白。IDI業務的成長。我知道並非所有顧客都一樣，但顧客數量相對接近。第二季新增 308 位客戶，第三季新增 304 位客戶。第四季的產品線規劃如何？

So yeah, the pipeline for what I would say is you know the next call it 2-3-4 quarters is extremely strong, and we're very excited about the larger opportunities within that pipeline. And of course, you know we've made mention on some of those larger opportunities that just fell in, and we've contracted here recently. The third quarter and subsequent to the third quarter. So, you know one thing I will say is, as fourth quarter we do have what I would consider a seasonal slower quarter in regard to less business days in November and December. 20% or so of our business is still transactional revenue. So, we do see a little bit of seasonality just from less business days when you look at the holidays in November and December. So, you know we're very excited about the continued onboarding and that pipeline of customers, but from a sequential basis, the expectation is you wouldn't necessarily see another 300 in incremental or sequential growth in customers, but compared to fourth quarter of last year, we're confident that you'll see some really strong growth within the customer base.

所以，是的，未來兩到四個季度的業務儲備非常強勁，我們對這些業務儲備中蘊藏的更大機會感到非常興奮。當然，你也知道，我們已經提到了一些突然出現的大機遇，而且我們最近也在這裡進行了收縮。第三季及之後。所以，我要說的一點是，第四季通常是季節性淡季，因為11月和12月的工作日較少。我們大約20%的業務收入仍然是交易收入。所以，我們確實可以看到一些季節性因素，例如11月和12月假期期間工作日減少。所以，你知道，我們對持續的客戶成長和客戶管道感到非常興奮，但從環比來看，預計客戶數量不一定會再增加 300 人，但與去年第四季相比，我們有信心客戶群將會出現非常強勁的成長。

You started to touch a little bit there on my gross margin question, and I was looking back a year ago. You were down sequentially on gross margin, and I think it was tied to the transaction volumes. Is that your expectation here in Q4 of 25' versus Q3 of 25'?

你剛才稍微提到了我的毛利率問題，我當時正在回顧一年前的情況。你們的毛利率環比下降，我認為這與交易量有關。這是您對25年第四季與25年第三季相比的預期嗎？

You're saying sequentially on the gross margin number whether the expectation is we would be a little down or consistent.

您是在說，根據毛利率的連續變化，預期是會略有下降還是會保持穩定。

Correct.

正確的。

Yeah, the expectation for us is that we continue to have, incredible leverage at that gross margin level. It's a relatively fixed cost of revenue for us, so we would think that Q4 at this point would be in line with what we've seen in Q3, right around that 83% to 84%, call it 82%, 83%, 84% gross margin level.

是的，我們期望能夠繼續維持如此高的毛利率優勢。對我們來說，這是一項相對固定的收入成本，因此我們認為第四季度目前的毛利率應該與第三季持平，在 83% 到 84% 左右，或者說 82%、83%、84% 的毛利率水準。

Got it. I said that was my last, but I got to ask you on the buyback, your average price on the repurchases in Q3 at $42.26 looking at the stock today at $54.53, is the current share price attractive to the management team and the board?

知道了。我說過這是我的最後一個問題，但我必須問你關於股票回購的問題，你第三季的平均回購價格是每股 42.26 美元，而現在的股價是每股 54.53 美元，目前的股價對管理團隊和董事會來說有吸引力嗎？

I would say yes, it is attractive to the management team and the board. We're very excited about what we've built. We know that we have differentiated assets in our platform and our solutions that are clearly have competitive advantages over the competition. And for us it's just a matter of the continual customer realization of that in the marketplace. So, and we haven't even talked about the new product roadmap and all the things that we're working on. So, we're extremely excited for 26', 27', and beyond. And make no mistake, our best use of capital is investing in this business because of the enormous opportunities at our foot right in front of us, but to have the buyback as just one more, essential tool in the toolbox of the capital allocation strategy. We believe that it has served us very well. We've been very opportunistic, and we believe that should we use any of those dollars and buyback our stock, that we'll look back two years from now and we'll feel the same.

我認為是的，這對管理團隊和董事會都很有吸引力。我們對自己所取得的成就感到非常興奮。我們知道，我們的平台和解決方案擁有差異化資產，這些資產顯然比競爭對手具有明顯的競爭優勢。對我們來說，這只是一個客戶在市場上不斷認識到這一點的問題。所以，我們甚至還沒有談到新產品路線圖以及我們正在進行的所有工作。所以，我們對26年、27年以及未來都感到無比興奮。毫無疑問，我們利用資本的最佳方式是投資這項業務，因為我們眼前就蘊藏著巨大的機遇，但回購只是資本配置策略工具箱中又一個不可或缺的工具而已。我們認為它對我們非常有幫助。我們一直非常善於把握機會，我們相信，如果我們用這些資金回購股票，兩年後我們回首往事，也會有同樣的感覺。

Thanks for taking my question.

謝謝您回答我的問題。

Thank you.

謝謝。

Thank you, Eric.

謝謝你，埃里克。

Thank you. This concludes the question-and-answer session. I would now like to turn it back to Derek Dubner for closing remarks.

謝謝。問答環節到此結束。現在我謹將發言權交還給德瑞克·杜布納，請他作總結發言。

To close, Red Violet continues to execute exceptionally well operationally, financially, and strategically. We are performing with focus and precision against a strategy designed to sustain growth, expand profitability, and deepen our competitive edge with a talented team, a scalable model, and clear strategic direction. We remain confident in our ability to continue creating meaningful value for our customers and shareholders.

總之，紅紫羅蘭在營運、財務和策略方面繼續表現出色。我們正以專注和精準的態度執行旨在維持成長、擴大獲利能力並憑藉優秀團隊、可擴展模式和清晰策略方向來深化競爭優勢的策略。我們仍然有信心繼續為客戶和股東創造有意義的價值。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。節目到此結束。您現在可以斷開連線了。