Shares of Red Violet, Inc. (RDVT) surged 6.08% in trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The data analytics company reported significant growth across key metrics, surpassing analyst expectations and demonstrating robust business performance.

Red Violet announced a record total revenue of $22.0 million for Q1 2025, marking a 26% increase compared to the same period last year. This figure beat the analyst consensus estimate of $20.43 million by 7.69%. The company's bottom line also showed remarkable improvement, with net income soaring 93% to $3.4 million. Adjusted earnings per share reached $0.33, surpassing the analyst estimate of $0.23 by an impressive 43.48%.

Other highlights from the quarterly report include a 37% increase in gross profit to $15.8 million, with gross margin improving from 66% to 72%. Adjusted EBITDA rose 47% to $8.4 million, and the adjusted EBITDA margin expanded from 32% to 38%. The company also reported a healthy financial position with cash and cash equivalents of $34.6 million as of March 31, 2025. These strong results across multiple financial metrics likely fueled investor enthusiasm, driving the stock's surge during the trading session.