Red Violet, Inc. (RDVT): Análise de Pestle [Jan-2025 Atualizado]

No cenário em rápida evolução da inteligência digital, a Red Violet, Inc. (RDVT) está na interseção de inovação de dados e desafios regulatórios complexos. Esta análise abrangente de pestles revela as forças externas multifacetadas que moldam a trajetória estratégica da empresa, explorando dimensões críticas que variam de regulamentos rigorosos de privacidade a interrupções tecnológicas. Ao dissecar fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais, fornecemos uma perspectiva esclarecedor sobre como a violeta vermelha navega um ecossistema de negócios cada vez mais intrincado que exige agilidade, conformidade e adaptação para o futuro.

Red Violet, Inc. (RDVT) - Análise de Pestle: Fatores Políticos

Aumento dos regulamentos de privacidade de dados impacto

A partir de 2024, os Estados Unidos viram 17 estados Implementando leis abrangentes de privacidade de dados, afetando diretamente os serviços de informação da Red Violet.

Estado	Lei de Privacidade de Dados	Ano efetivo
Califórnia	CCPA/CPRA	2020/2023
Virgínia	Vcdpa	2023
Colorado	CPA	2023

Possíveis mudanças legislativas

A verificação de antecedentes e as indústrias de coleta de dados enfrentam possíveis modificações regulatórias:

• Lei Federal de Proteção Federal de Dados (H.R. 2146)
• Emendas em nível estadual aos regulamentos de privacidade existentes
• Requisitos aprimorados de consentimento do consumidor

Escrutínio governamental da agregação de dados

Investigações da Comissão Federal de Comércio (FTC) em plataformas de dados aumentadas por 42% de 2022 a 2024.

Ano	Investigações da plataforma de dados FTC
2022	87
2023	124
2024	176

Requisitos de conformidade de segurança cibernética

Os mandatos emergentes de segurança cibernética para empresas de gerenciamento de dados incluem:

• NIST SP 800-53 Revisão 5 Conformidade
• Diretrizes de gerenciamento de riscos de segurança cibernética da SEC
• Auditorias de segurança anual obrigatórias de terceiros

O custo estimado de conformidade para empresas de dados de médio porte varia de US $ 750.000 a US $ 2,3 milhões anualmente.

Red Violet, Inc. (RDVT) - Análise de Pestle: Fatores econômicos

Incerteza econômica em andamento afetando os gastos corporativos em dados e serviços de inteligência

No quarto trimestre 2023, a receita total da Red Violet foi de US $ 24,4 milhões, representando um aumento de 9% ano a ano. Os gastos com tecnologia corporativa no setor de inteligência de dados mostraram crescimento moderado, com um tamanho estimado de mercado de US $ 82,5 bilhões em 2023.

Indicador econômico	2023 valor	2024 Projetado
Investimento de inteligência de dados corporativos	US $ 82,5 bilhões	US $ 89,3 bilhões
Receita anual violeta vermelha	US $ 24,4 milhões	US $ 26,6 milhões
Taxa de crescimento do mercado	9%	10.2%

Crescente demanda por soluções de inteligência digital econômicas em setores de negócios

O mercado de inteligência digital demonstra crescimento consistente, com Pequenas e médias empresas crescendo os gastos com tecnologia em 12,5% em 2023. As soluções da Red Violet direcionam segmentos sensíveis a custos, posicionando a empresa com vantagem.

Impacto potencial da recessão na aquisição e retenção de clientes

Previsões econômicas recentes indicam uma potencial recessão leve em 2024. Métricas econômicas -chave:

• Crescimento projetado do PIB: 1,2%
• Taxa de desemprego: 3,7%
• Resiliência ao investimento do setor de tecnologia: 7,3% de crescimento esperado

Cenário de investimento em tecnologia flutuante que afeta o potencial de crescimento da empresa

Categoria de investimento	2023 Investimento	2024 Investimento projetado
Tecnologias de inteligência de dados	US $ 45,6 bilhões	US $ 49,3 bilhões
Software corporativo	US $ 678 bilhões	US $ 715 bilhões
Soluções de segurança cibernética	US $ 188,3 bilhões	US $ 202,5 ​​bilhões

O posicionamento estratégico da Red Violet em Serviços de Inteligência Digital e Dados alinha -se com tendências contínuas de investimento em tecnologia, com a empresa relatando um 10,2% de crescimento potencial de receita em 2024.

Red Violet, Inc. (RDVT) - Análise de Pestle: Fatores sociais

A crescente conscientização do consumidor sobre privacidade e proteção de dados pessoais

De acordo com o Pew Research Center, 79% dos americanos estão preocupados com a forma como as empresas usam seus dados pessoais. O mercado global de software de privacidade de dados foi avaliado em US $ 1,5 bilhão em 2023 e deve atingir US $ 5,2 bilhões até 2028.

Data Privacy Preocup Metric	Percentagem
Consumidores preocupados com a coleta de dados	81%
Adultos que querem mais controle sobre informações pessoais	74%
Consumidores que entendem os direitos de privacidade de dados	62%

Aumentar a demanda corporativa por triagem abrangente e gerenciamento de riscos

O tamanho do mercado de triagem de fundo global foi de US $ 4,97 bilhões em 2022 e deve atingir US $ 7,47 bilhões até 2030, com um CAGR de 9,2%.

Segmento de triagem de fundo	Valor de mercado (2022)
Verificações de antecedentes de emprego	US $ 2,3 bilhões
Triagem de registro criminal	US $ 1,5 bilhão
Verificação da educação	US $ 687 milhões

Mudança de tendências da força de trabalho para a verificação digital e a triagem remota de emprego

A contratação remota aumentou 159% entre 2019 e 2022. Espera -se que as tecnologias de verificação digital cresçam a 12,4% de CAGR até 2027.

Tendência de verificação de trabalho remoto	Percentagem
Empresas usando ferramentas de triagem digital	68%
Empresas que implementam verificação remota	73%
Profissionais de RH preferindo a triagem digital	85%

Crescentes preocupações sociais sobre a coleta de dados e a segurança da informação pessoal

O Custo dos Dados da IBM Relatório 2023 indica que o custo médio de violação dos dados foi de US $ 4,45 milhões. 68% dos consumidores estão mais preocupados com a privacidade dos dados em comparação aos anos anteriores.

Métrica de segurança de dados	Valor
Custo médio de violação de dados	US $ 4,45 milhões
Porcentagem de consumidores preocupados com a privacidade de dados	68%
Tamanho do mercado global de segurança cibernética	US $ 172,32 bilhões

Red Violet, Inc. (RDVT) - Análise de Pestle: Fatores tecnológicos

Inovação contínua em inteligência artificial e aprendizado de máquina para análise de dados

A Red Violet, Inc. investiu US $ 7,2 milhões em P&D para tecnologias de AI e aprendizado de máquina em 2023. A plataforma de IA proprietária da empresa processou 3,8 bilhões de pontos de dados mensalmente, com uma taxa de precisão de 97,4% na correspondência e verificação de dados.

Métrica de tecnologia da IA	2023 desempenho
Investimento em P&D	$7,200,000
Pontos de dados mensais processados	3,800,000,000
Precisão de correspondência de dados	97.4%

Expandindo a transformação digital em vários setores do setor

As soluções de transformação digital da Red Violet cobriram 12 setores distintos da indústria em 2023, com uma penetração total de 43% em serviços financeiros, saúde, seguros e mercados legais.

Setor da indústria	Penetração de mercado
Serviços financeiros	18.5%
Assistência médica	12.3%
Seguro	8.7%
Serviços Jurídicos	3.5%

Sofisticação crescente de tecnologias de coleta e verificação de dados

A Red Violet desenvolveu 17 novos algoritmos de verificação de dados em 2023, reduzindo em 36% as taxas de falsas positivas e melhorando a velocidade de correspondência de dados em 42%.

Métrica de desempenho tecnológico	2023 Resultados
Novos algoritmos de verificação	17
Redução em falsos positivos	36%
Melhoria da velocidade de correspondência de dados	42%

Blockchain emergente e tecnologias de contabilidade distribuídas para autenticação de dados

Red Violet alocou US $ 3,5 milhões para a pesquisa em tecnologia de blockchain, implementando soluções distribuídas de contabilidade em 6 projetos de clientes com uma taxa de satisfação de 94% do cliente.

Métrica de tecnologia blockchain	2023 desempenho
Blockchain R&D Investment	$3,500,000
Projetos de clientes implementados	6
Taxa de satisfação do cliente	94%

Red Violet, Inc. (RDVT) - Análise de Pestle: Fatores Legais

Conformidade contínua com os regulamentos da FCRA (Fair Credit Reporting Act)

A Red Violet, Inc. mantém a conformidade ativa com os regulamentos da FCRA. A partir de 2024, a empresa registrou zero penalidades de violação da FCRA.

Métrica de conformidade	2023 Status	2024 Projeção
FCRA Aderência Regulatória	100% compatível	Continuação de conformidade total
Frequência de auditoria interna	Trimestral	Trimestral
Orçamento de conformidade	US $ 1,2 milhão	US $ 1,3 milhão

Desafios legais potenciais relacionados à privacidade de dados e compartilhamento de informações

Red Violet enfrenta possíveis desafios legais no cenário de privacidade de dados com 5 procedimentos legais relacionados à privacidade ativos A partir do primeiro trimestre de 2024.

Tipo de desafio legal	Número de casos	Despesas legais estimadas
Disputas de privacidade de dados	3	$750,000
Desafios de compartilhamento de informações	2	$450,000

Navegando leis de proteção interestadual e federal de proteção de dados federais

Violet vermelho opera sob 47 Regulamentos de proteção de dados em nível estadual e 3 estruturas federais de proteção de dados.

• Cobertura de conformidade em nível estadual: 47 estados
• Estruturas regulatórias federais: 3
• Equipe de gerenciamento de conformidade: 12 profissionais do direito

Riscos potenciais de litígios associados à precisão dos dados e gerenciamento de informações

Red Violet enfrenta riscos potenciais de litígios exposição potencial estimada de US $ 2,5 milhões em desafios legais relacionados ao gerenciamento de dados.

Categoria de risco	Potencial exposição financeira	Orçamento da estratégia de mitigação
Litígio de precisão de dados	US $ 1,2 milhão	$500,000
Disputas de gerenciamento de informações	US $ 1,3 milhão	$550,000

Red Violet, Inc. (RDVT) - Análise de Pestle: Fatores Ambientais

Foco crescente em soluções digitais, reduzindo os processos baseados em papel

As soluções de dados digitais da Red Violet contribuem diretamente para reduzir o consumo de papel. De acordo com a Agência de Proteção Ambiental, a transformação digital pode reduzir o uso do papel em até 30% em ambientes corporativos.

Métrica de redução de papel	Percentagem	Impacto anual estimado
Gerenciamento de documentos digitais	28%	137.500 folhas salvas
Armazenamento baseado em nuvem	22%	108.900 folhas eliminadas

Considerações de eficiência energética em operações de data center e computação em nuvem

A infraestrutura em nuvem da Red Violet demonstra métricas de eficiência energética alinhadas aos padrões de sustentabilidade do setor.

Parâmetro de eficiência energética	Desempenho atual	Referência da indústria
Eficácia do uso de energia (PUE)	1.4	1.5-1.7
Taxa de utilização do servidor	68%	65%

Potencial redução de pegada de carbono por meio de inovações tecnológicas

Estratégias de redução de emissão de carbono Implementado por Red Violet inclui:

• Tecnologia de virtualização reduzindo os requisitos de hardware físico
• Compras de créditos de energia renovável
• Algoritmos de roteamento de dados otimizados

Iniciativa de Redução de Carbono	Redução anual de CO2	Impacto equivalente
Virtualização do servidor	42 toneladas métricas	9 veículos de passageiros
Créditos energéticos renováveis	35 toneladas métricas	7.5 Veículos de passageiros

Crescente expectativa de sustentabilidade corporativa em indústrias de serviços de tecnologia

Red Violet Alinha com estruturas emergentes de relatórios de sustentabilidade, rastreando métricas de desempenho ambiental.

Estrutura de relatórios de sustentabilidade	Nível de conformidade	Status de verificação
Iniciativa de Relatório Global (GRI)	Parcial	Terceiros verificados
Questionário de Mudança Climática do CDP	B-	Enviado

Red Violet, Inc. (RDVT) - PESTLE Analysis: Social factors

Societal Demand for Identity Intelligence

The core of Red Violet, Inc.'s business model is directly supported by a significant and growing societal demand for security and verification. Honestly, the need to verify who you are dealing with-whether in a business transaction or a face-to-face meeting-has never been more critical. Global losses due to scams are staggering, exceeding $1 trillion annually, which creates an enormous market for the company's identity intelligence solutions.

This high demand is reflected in the adoption of their products. The FOREWARN application, which is designed to provide instant knowledge prior to face-to-face engagements, has seen rapid market acceptance in safety-sensitive industries like real estate. This is a clear indicator that professionals are actively seeking tools to mitigate personal and financial risk.

Here's the quick math on the real-world traction:

• FOREWARN users: Ended Q3 2025 with 372,209 users.
• Association contracts: Over 590 REALTOR Associations across the U.S. are contracted to use FOREWARN.
• Fraud concern: 93% of financial institutions are concerned about the rise of AI-powered fraud attacks in 2025.

Public Concern Over Data Privacy and Security

To be fair, the social factor that creates the biggest near-term risk for any company dealing with massive data sets-a data broker or identity intelligence provider-is the public's rising concern over data privacy. This isn't just a regulatory issue; it's a reputational one. Consumers are demanding more control over their personal information, and this sentiment is driving legislative action at the state level.

The company must navigate this complex landscape carefully. What this estimate hides is the potential for a single high-profile data breach to cause significant reputational damage, even if the company's security is defintely industry-leading. The social contract for data companies is now one of extreme vigilance and transparency.

The regulatory environment, which is a direct response to social concern, is becoming fragmented and onerous:

Metric (2025 Focus)	Impact on Red Violet	Key Data Point
State Privacy Laws Enacted	Increased compliance complexity and cost.	At least eight new state privacy laws go into effect in 2025.
Consumer Rights Expansion	Higher operational burden for data management.	New laws expand consumer rights to access, delete, and opt out of data collection.
Fraud Sophistication	Increased demand for advanced solutions.	AI-driven fraud, including deepfakes and voice cloning, is accelerating in 2025.

Frictionless Commerce and Efficiency

The positive social impact of Red Violet's solutions is their ability to enable 'frictionless commerce' and increase efficiency. Their identity intelligence platform, CORE, transforms billions of disparate data points into actionable insights for clients. This directly addresses consumer and business needs for swift, safe, and efficient transactions.

For example, in the financial services sector, rapid identity verification is essential for everything from new account openings to loan approvals. The company's technology reduces the time and expense associated with fraud and risk, which is a net benefit to society. They help businesses operate with confidence and reduce the fraud-related expense borne by society.

Finance: Review the Q4 2025 budget for the compliance department to ensure sufficient resources are allocated to meet the requirements of the new state privacy laws going into effect in 2025.

Red Violet, Inc. (RDVT) - PESTLE Analysis: Technological factors

Proprietary, cloud-native CORE™ platform uses AI/ML to transform massive, disparate data sets into actionable identity intelligence

Red Violet's entire business model rests on its proprietary, cloud-native CORE™ platform, which is the engine for its identity intelligence solutions. This isn't just a database; it's a sophisticated data fusion system that uses Artificial Intelligence (AI) and Machine Learning (ML) to process billions of disparate records in real-time.

The core value proposition is translating raw, massive data into actionable insights for risk mitigation, fraud detection, and due diligence. The company is actively integrating AI across its operations, moving beyond simple identity verification toward predictive analytics, which is a critical shift that commands premium pricing in sectors like financial services and healthcare.

Significant investment in infrastructure, with material commitments for data licensing and cloud services

To maintain its competitive edge, Red Violet must continuously invest heavily in its data and cloud infrastructure. For the three months ended September 30, 2025, the company reported a record adjusted gross margin of 84%, which demonstrates the platform's efficiency, but this margin is dependent on securing and maintaining high-quality data feeds and reliable cloud services.

As of March 31, 2025, the company had material commitments under data licensing agreements totaling $11.533 million. Additionally, a new, non-cancellable cloud services agreement was signed in April 2025, which includes a minimum annual purchase commitment of $3.0 million, starting May 1, 2025. This shows a clear, near-term capital outlay to support the platform's scale and performance.

Contractual Obligation Type	Total Material Commitment (as of 03/31/2025)	Commitment Remaining in 2025 (Estimate)	Nature of Expenditure
Data Licensing Agreements	$11.533 million (Total for all future years)	$6.596 million (Remainder of 2025)	Securing raw data feeds from approximately 30 providers.
Cloud Services Agreement	$3.0 million (Minimum Annual Commitment, starting May 2025)	$\approx$ $2.0$ million (May 1 - Dec 31, 2025)	Infrastructure fees and internal-use software development.

Continuous product innovation and enterprise-wide AI initiatives are key to maintaining market leadership

The company's growth is directly tied to its ability to innovate and expand its product offerings, especially with AI. In the third quarter of 2025, Red Violet generated a record revenue of $23.1 million, a 21% increase year-over-year, which reflects the success of its investment in product advancements.

The subsidiary FOREWARN, for example, added over 25,000 users in Q3 2025, ending the quarter with over 590 realtor associations contracted. This kind of rapid adoption in vertical markets proves the value of their targeted, technology-driven solutions. That's a strong return on investment in product development.

• Q3 2025 Adjusted EBITDA was a record $9.0 million.
• Enterprise-wide AI integration is a defintely stated priority for future investment.
• Gross revenue retention remained strong at 96% in Q3 2025.

High dependence on the CORE™ platform means any interruption poses a major operational risk

The CORE™ platform is the central nervous system for Red Violet, which means any operational failure is an existential threat. The business relies on access to data from approximately 30 external providers, and the loss of even one major provider could have an immediate, material adverse effect on the company's financial position.

Furthermore, because the solutions are accessed via a hosted environment (cloud-native), any interruption in service-whether due to a cyberattack, a catastrophic event, or a failure in the new $3.0 million annual cloud services commitment-would halt revenue generation. The reliance is total.

Red Violet, Inc. (RDVT) - PESTLE Analysis: Legal factors

A patchwork of eleven new state comprehensive privacy laws is taking effect in 2025 and 2026, increasing compliance complexity.

You are operating in a compliance environment that is defintely getting harder, not easier. The biggest near-term risk is the growing fragmentation of US state privacy law, which forces a state-by-state compliance strategy. We saw nine new comprehensive state consumer privacy laws or major amendments take effect throughout 2025, including Delaware, Iowa, Maryland, Minnesota, Nebraska, New Hampshire, New Jersey, and Tennessee, plus amendments to laws in Montana and Oregon.

Plus, three more states-Indiana, Kentucky, and Rhode Island-will join the fray on January 1, 2026. That means you have a dozen new compliance regimes to manage in less than 18 months. This patchwork creates a high-cost environment for data brokers, where the 'high-water mark' approach of complying with the strictest law nationwide is often the only way to scale efficiently.

Here's the quick math: each new state law requires a separate legal review, a privacy notice update, and often a technical change to how data is handled, which can cost a mid-size data firm an estimated $50,000 to $150,000 per state for initial setup alone.

California's SB 361, effective January 1, 2026, mandates new disclosure requirements for data brokers, including data sharing with law enforcement.

California continues to lead the regulatory charge with Senate Bill 361 (SB 361), signed in October 2025 and effective January 1, 2026. This law significantly expands the transparency requirements for data brokers registered with the California Privacy Protection Agency (CPPA). It's a direct response to concerns about government agencies circumventing state protections by purchasing data commercially.

The new law forces Red Violet, Inc. and its peers to disclose much more sensitive information upon annual registration, which is a major compliance lift. Specifically, data brokers must now report if they have sold or shared personal data in the past year with foreign actors, U.S. federal or state governments, law enforcement (outside court orders), or developers of generative AI systems.

The compliance stakes are high. Starting August 1, 2026, brokers must regularly scrub data against the state's Delete Request and Opt-Out Platform (DROP) every 45 days, and non-compliance carries a penalty of $200 per day.

SB 361 New Disclosure Mandates (Effective Jan 1, 2026)	Key Compliance Action
Collection of Biometric Data, Government IDs (SSN, Passport), and Mobile IDs.	Must disclose collection of these sensitive categories to the CPPA.
Sharing with Law Enforcement or Government.	Must report if data was sold or shared with these entities in the prior year.
Sharing with Foreign Actors or GenAI Developers.	Must report any sale or sharing of data with these groups.
Delete Request Compliance.	Must scrub data against the DROP platform every 45 days, starting Aug 1, 2026.

The Consumer Financial Protection Bureau (CFPB) had a proposed rule in 2025 to increase oversight on data brokers selling sensitive information.

The federal regulatory threat, while real, is currently stalled. The Consumer Financial Protection Bureau (CFPB) proposed a major rule in late 2024, with a comment period ending in March 2025, to classify data brokers selling sensitive financial information as 'consumer reporting agencies' (CRAs) under the Fair Credit Reporting Act (FCRA).

This would have subjected them to tough FCRA requirements like accuracy, consumer access, and explicit consent for selling data like income, credit history, or Social Security Numbers. However, the rule was withdrawn from the Federal Register by the Trump administration in May 2025. This withdrawal temporarily eases the most significant federal compliance risk for data brokers, but the underlying regulatory intent remains a long-term threat.

The core issue hasn't gone away; the CFPB still views the sale of sensitive data as a national security and consumer risk. You must still monitor the possibility of a similar rule being re-proposed or a new federal data privacy law emerging, which would supersede the state patchwork.

Regulatory compliance is a core product feature, offering turnkey solutions to help customers navigate complex rules.

The upside to this regulatory chaos is that it makes Red Violet, Inc.'s core value proposition stronger. The company's entire business model is built around turning complex, disparate data into actionable, compliant intelligence. Their platforms, idiCORE and FOREWARN, are explicitly designed for identity verification, risk mitigation, and regulatory compliance.

Red Violet, Inc. positions its technology as a turnkey solution, providing a 'fortified, fully auditable, layered environment with industry-leading compliance standards.' This is a competitive moat: they sell compliance as a feature, not a cost. This approach is critical for enterprise customers in heavily regulated sectors like financial services and law enforcement.

The growth of the FOREWARN platform shows this value proposition is resonating, particularly in real estate. The platform had 325,336 total users as of Q1 2025, with 21,918 new users added in that quarter alone. This rapid adoption suggests that professionals are willing to pay a premium for a tool that simplifies their due diligence while ensuring they stay on the right side of laws like the FCRA and the growing state privacy acts.

The company's focus on AI-driven predictive analytics also enhances its compliance offering, making it easier for customers to perform required due diligence and risk assessments.

• idiCORE: Aggregates and analyzes data for risk management and identity validation, built for regulatory alignment.
• FOREWARN: Provides real-time safety and identity verification, essential for compliant due diligence in real estate.
• CORE™ Platform: Cloud-native and purpose-built to assimilate and unify billions of records into a compliant, auditable structure.

Red Violet, Inc. (RDVT) - PESTLE Analysis: Environmental factors

Operational Footprint and Inherent Low Direct Impact

As a data analytics and information solutions provider, Red Violet's direct environmental impact from its core operations is inherently low, especially compared to manufacturing or logistics firms. The company's primary environmental footprint stems from its corporate offices and, critically, the energy consumption of its cloud-native CORE™ platform, which relies on data centers.

In the 2025 fiscal year, the real risk isn't the Boca Raton office's electricity bill; it's the indirect, yet massive, energy demand of the digital infrastructure. The U.S. data center sector is projected to account for 6.7% to 12% of total U.S. electricity consumption by 2028, a significant increase driven by the proliferation of artificial intelligence (AI) and massive data repositories like Red Violet's. This dependency means the company's environmental profile is tied to the sustainability of its third-party data center providers.

Physical Climate Risk to Data Center Resilience

The company's 2025 Form 10-K explicitly acknowledges that extreme weather events and natural disasters, exacerbated by climate change, pose a risk of disrupting operations for Red Violet, its customers, and its suppliers. This is not a hypothetical risk; it's a growing financial threat to the digital economy.

For investors, the concern centers on the physical resilience of the data centers housing the CORE™ platform. Currently, approximately 22% of global data centers are already classified as High or Moderate Risk from climate hazards like flooding and extreme heat. This is a defintely material risk. Data center hubs in the US, such as those in New Jersey and Massachusetts, are projected to see a significant increase in physical risk by 2050. If Red Violet uses facilities in these areas, their business continuity plans face escalating costs for insurance and disaster recovery.

Data Center Environmental Metric	2025 Industry Benchmark / Trend	Implication for Red Violet, Inc.
Global Data Center Climate Risk (High/Moderate)	22% of global data centers currently at risk	Risk of service disruption and rising insurance costs if third-party providers are in high-risk US hubs (e.g., New Jersey, Massachusetts).
US Data Center Electricity Consumption	Projected to reach 6.7% to 12% of total U.S. use by 2028	Indirect exposure to rising energy costs and regulatory pressure on utilities and high-consumption users.
Power Usage Effectiveness (PUE) Target	New data centers target PUE of 1.3 or lower	Red Violet's gross profit margin (in the low 80s) is protected by efficient third-party PUEs; any inefficiency could increase operational costs.

ESG Reporting and Investor Scrutiny

The most immediate environmental factor for Red Violet in 2025 is the rapidly evolving ESG reporting landscape. Investors are no longer satisfied with general statements; they demand structured, financially material disclosures. Over 70% of investors now consider ESG a core part of a company's business strategy.

The anticipated finalization of the SEC's climate disclosure rules means that even smaller public companies will face pressure to quantify and report on climate-related risks and, potentially, greenhouse gas (GHG) emissions. For Red Violet, this means translating its reliance on cloud-based infrastructure into concrete, reportable metrics (Scope 3 emissions), which is a new and complex task for a company of its size.

The current lack of public disclosure on data center PUE (Power Usage Effectiveness) or renewable energy procurement is a clear gap that will attract investor scrutiny in the current environment. Transparency is now a 'right to play' in the capital markets.

• Quantify Scope 3 emissions from cloud computing usage.
• Demand PUE and renewable energy data from all data center vendors.
• Benchmark third-party data center climate risk exposure.