Is Red Violet, Inc. (RDVT) Halal?

NASDAQ Technology United States $495M
✓ HALAL
Confidence: 95/100
Red Violet, Inc. (RDVT) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, Red Violet, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Application), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
5.8%
/ 30%
1.3%
/ 30%
1.86%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
5.8%
/ 33%
1.3%
/ 33%
1.86%
/ 5%
✓ HALAL
MSCI 2.0%
/ 33%
37.0%
/ 33%
8.2%
/ 33%
1.86%
/ 5%
✗ NOT HALAL
S&P 0.3%
/ 33%
5.8%
/ 33%
1.3%
/ 33%
1.86%
/ 5%
✓ HALAL
FTSE 2.0%
/ 33%
37.0%
/ 33%
8.2%
/ 50%
1.86%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
38.5
Forward: 22.6
EPS
$0.91
P/B Ratio
4.9
EV/EBITDA
32.7
EV: $454M
Revenue
$90M
Growth: 19.6%
Beta
1.7
High volatility
Current Ratio
7.2

Profitability

Gross Margin 83.7%
Operating Margin 6.8%
Net Margin 14.6%
Return on Equity (ROE) 14.0%
Return on Assets (ROA) 8.0%

Cash Flow & Balance Sheet

Operating Cash Flow$29M
Free Cash Flow$18M
Total Debt$3M
Debt-to-Equity2.8
Current Ratio7.2
Total Assets$112M

Price & Trading

Last Close$36.28
50-Day MA$42.85
200-Day MA$48.72
Avg Volume121K
Beta1.7
52-Week Range
$32.23
$64.14

About Red Violet, Inc. (RDVT)

CEO
Mr. Derek Dubner
Employees
250
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$495M
Currency
USD

Red Violet, Inc., an analytics and information solutions company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. Red Violet, Inc. was incorporated in 2017 and is headquartered in Boca Raton, Florida.

Purification Calculator

As a halal stock with 1.86% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Red Violet, Inc. (RDVT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Red Violet, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Red Violet, Inc.'s debt ratio?

Red Violet, Inc.'s debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.0%.

Does Red Violet, Inc. require dividend purification?

Yes, Red Violet, Inc. has an impermissible income ratio of 1.86%, which means 1.86% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Red Violet, Inc.'s key financial metrics?

Red Violet, Inc. has a market capitalization of $495M, trailing P/E ratio of 38.5, and revenue of $90M. The company maintains a gross margin of 83.7% and a net margin of 14.6%. Return on equity stands at 14.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.