Shares of Red Violet, Inc. (RDVT) surged 5.02% in after-hours trading on Wednesday, following the release of its impressive first-quarter 2025 financial results. The data analytics company reported substantial growth across key metrics, surpassing analyst expectations and demonstrating strong momentum in its business operations.

Red Violet announced a 26% year-over-year increase in total revenue, reaching a record $22.0 million for Q1 2025. The company's profitability showed remarkable improvement, with net income soaring 93% to $3.4 million. Earnings per share came in at $0.24, significantly beating the analyst consensus estimate of $0.23. Gross profit jumped 37% to $15.8 million, while the gross margin expanded from 66% to 72%.

Investors were particularly encouraged by Red Violet's strong cash position and operational efficiency. The company reported a 16% increase in net cash provided by operating activities, totaling $5.0 million. As of March 31, 2025, Red Violet's cash and cash equivalents stood at a healthy $34.6 million. The robust financial performance, coupled with the company's improved margins and beat on both top and bottom lines, likely fueled the after-hours stock price surge as investors responded positively to the strong quarterly results.