Wall Street kicks off a week full of potential flashpoints with a whisper
The S&P 500 was nearly flat and edged up by less than 0.1% to set an all-time high for a sixth straight day. The Dow Jones Industrial Average dipped 64 points, or 0.1%, while the Nasdaq composite added 0.3% to its own record.
Tesla rose 3% after its CEO, Elon Musk, said it signed a deal with Samsung Electronics that could be worth more than $16.5 billion to provide chips for the electric-vehicle company. Samsung's stock in South Korea jumped 6.8%.
Other companies in the chip and artificial-intelligence industries were strong, continuing their run from last week after Alphabet said it was increasing its spending on AI chips and other investments to $85 billion this year. Chip company Advanced Micro Devices rose 4.3%, and server-maker Super Micro Computer climbed 10.2%.
But an 8.3% drop for Revvity helped to keep the market in check. The company in the life sciences and diagnostics businesses reported a stronger profit for the latest quarter than Wall Street expected, but its forecast for full year profit disappointed analysts.
Companies are broadly under pressure to deliver solid growth in profits following big jumps in their stock prices the last few months. Much of the gain was due to hopes that Trump would walk back some of his stiff proposed tariffs, and critics say the U.S. stock market looks expensive unless companies produce bigger profits.
All told, the S&P 500 added 1.13 to 6,389.77 points. The Dow Jones Industrial Average dipped 64.36 to 44,837.56, and the Nasdaq composite rose 70.27 to 21,178.58.
More fireworks may be ahead this week. 'This is about as busy as a week can get in the markets,' according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.
Hundreds of U.S. companies are lined up to report how much profit they made during the spring, with nearly a third of the businesses in the S&P 500 index scheduled to deliver updates. That includes market heavyweights Apple, Amazon, Meta Platforms and Microsoft. Those companies have grown so huge that their stock movements can almost dictate what the overall S&P 500 index does. Microsoft alone is worth $3.8 trillion.
On Wednesday, the Federal Reserve will announce its latest decision on interest rates.
Trump has been angrily calling for the Fed to cut interest rates, a move that could give the economy a boost. But Fed Chair Jerome Powell insists that he wants more data about how Trump's tariffs are affecting the economy and inflation before the Fed makes its next move. Lower interest rates can fuel inflation, and the economy only recently came out of its scarring run where inflation briefly topped 9%.
The widespread expectation on Wall Street is that Fed officials will wait until September to resume cutting interest rates, though a couple of Trump's appointees could dissent in the vote. The Fed has been on hold with interest rates this year since cutting them several times at the end of 2024.
This week will also feature several potentially market-moving updates about the economy. On Tuesday will come reports on how confident U.S. consumers are feeling and how many jobs openings U.S. employers were advertising. Wednesday will show the first estimate of how quickly the U.S. economy grew during the spring, and economists expect to see a slowdown from the first three months of the year.
On Thursday, the latest measure of inflation that the Federal Reserve prefers to use will arrive. A modest reading could give the Fed more leeway to cut interest rates in the short term, while a hotter-than-expected figure could make it more cautious.
And Friday will bring an update on how many more workers U.S. employers hired during June than they fired.
Treasury yields held relatively steady in the bond market ahead of all that action. The yield on the 10-year Treasury edged up to 4.41% from 4.40% late Friday. The two-year Treasury yield, which more closely tracks expectations for Fed action, rose to 3.92% from 3.91%.
In stock markets abroad, indexes dipped in Europe following the announcement of the trade deal's framework.
Chinese stocks rose as officials from the world's second-largest economy prepared to meet with a U.S. delegation in Sweden for trade talks. Stocks climbed 0.7% in Hong Kong and 0.1% in Shanghai.
Indexes were mixed across the rest of Asia, where Japan's Nikkei 225 fell 1.1% for one of the world's bigger losses.
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Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at About red violet® At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. 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Provision for bad debts 274 224 Noncash lease expenses 257 272 Deferred income tax expense 1,187 1,081 Changes in assets and liabilities: Accounts receivable (2,024 ) (1,052 ) Prepaid expenses and other current assets (510 ) (370 ) Other noncurrent assets (162 ) (616 ) Accounts payable (293 ) 338 Accrued expenses and other current liabilities (863 ) (1,351 ) Deferred revenue 94 (93 ) Operating lease liabilities (220 ) (274 ) Net cash provided by operating activities 12,488 10,022 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (252 ) (117 ) Capitalized costs included in intangible assets (4,984 ) (4,738 ) Net cash used in investing activities (5,236 ) (4,855 ) CASH FLOWS FROM FINANCING ACTIVITIES: Taxes paid related to net share settlement of vesting of restricted stock units (727 ) (403 ) Repurchases of common stock - (5,853 ) Dividend payable (4,181 ) - Net cash used in financing activities (4,908 ) (6,256 ) Net increase (decrease) in cash and cash equivalents $ 2,344 $ (1,089 ) Cash and cash equivalents at beginning of period 36,504 32,032 Cash and cash equivalents at end of period $ 38,848 $ 30,943 SUPPLEMENTAL DISCLOSURE INFORMATION: Cash paid for interest $ - $ - Cash paid for income taxes $ 681 $ 439 Share-based compensation capitalized in intangible assets $ 752 $ 882 Retirement of treasury stock $ 727 $ 6,164 Right-of-use assets obtained in exchange of operating lease liabilities $ 1,153 $ - Use and Reconciliation of Non-GAAP Financial Measures Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF. 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We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment, and capitalized costs included in intangible assets. The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Net income $ 2,686 $ 2,637 $ 6,126 $ 4,421 Interest income (339 ) (314 ) (647 ) (679 ) Income tax expense 404 745 1,483 1,309 Depreciation and amortization 2,647 2,377 5,197 4,647 Share-based compensation expense 1,827 1,393 3,423 2,795 Litigation costs 4 (27 ) 13 - Acquisition-related costs 370 - 370 7 Write-off of long-lived assets 1 - 3 - Adjusted EBITDA $ 7,600 $ 6,811 $ 15,968 $ 12,500 Revenue $ 21,774 $ 19,056 $ 43,777 $ 36,567 Net income margin 12 % 14 % 14 % 12 % Adjusted EBITDA margin 35 % 36 % 36 % 34 % The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share data) 2025 2024 2025 2024 Net income $ 2,686 $ 2,637 $ 6,126 $ 4,421 Share-based compensation expense 1,827 1,393 3,423 2,795 Amortization of share-based compensation capitalized in intangible assets 413 286 822 561 Tax effect of adjustments(1) (809 ) (425 ) (1,422 ) (733 ) Adjusted net income $ 4,117 $ 3,891 $ 8,949 $ 7,044 Earnings per share: Basic $ 0.19 $ 0.19 $ 0.44 $ 0.32 Diluted $ 0.18 $ 0.19 $ 0.42 $ 0.31 Adjusted earnings per share: Basic $ 0.29 $ 0.28 $ 0.64 $ 0.51 Diluted $ 0.28 $ 0.28 $ 0.62 $ 0.50 Weighted average shares outstanding: Basic 14,018,629 13,780,074 14,008,385 13,888,569 Diluted 14,553,282 14,051,466 14,528,789 14,129,262 (1) The tax effect of adjustments is calculated using the expected federal and state statutory tax rate. The expected federal and state income tax rate was approximately 26.00% for the three and six months ended June 30, 2025, and 25.75% for the three and six months ended June 30, 2024. The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Revenue $ 21,774 $ 19,056 $ 43,777 $ 36,567 Cost of revenue (exclusive of depreciation and amortization) (3,501 ) (3,455 ) (7,162 ) (7,211 ) Depreciation and amortization related to cost of revenue (2,595 ) (2,322 ) (5,095 ) (4,536 ) Gross profit 15,678 13,279 31,520 24,820 Depreciation and amortization of certain intangible assets(1) 2,560 2,322 5,012 4,536 Adjusted gross profit $ 18,238 $ 15,601 $ 36,532 $ 29,356 Gross margin 72 % 70 % 72 % 68 % Adjusted gross margin 84 % 82 % 83 % 80 %(1) Depreciation and amortization of certain intangible assets primarily consists of the amortization of capitalized internal-use software development costs, which are included within intangible assets and amortized over their estimated useful lives. The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Net cash provided by operating activities $ 7,487 $ 5,717 $ 12,488 $ 10,022 Less: Purchase of property and equipment (202 ) (52 ) (252 ) (117 ) Capitalized costs included in intangible assets (2,515 ) (2,411 ) (4,984 ) (4,738 ) Free cash flow $ 4,770 $ 3,254 $ 7,252 $ 5,167 In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business. We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, share-based compensation expense and the impact of other non-recurring items, providing useful comparisons versus prior periods or forecasts. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. Our adjusted gross profit is a measure used by management in evaluating the business's current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets. We believe adjusted gross profit provides useful information to our investors by eliminating the impact of certain non-cash depreciation and amortization, and primarily the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business's operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment, and capitalized costs included in intangible assets. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements. SUPPLEMENTAL METRICS The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release. We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material. 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Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.
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The cryptocurrency market's 6.7% decline to begin August initially looked like the start of something uglier, but Monday's recovery has bulls breathing easier. Analysts attribute the drop primarily to profit-taking by traders following a strong rally in July, with no clear signs of panic selling or systemic weakness in the market. This narrative of "healthy consolidation" rather than collapse has emboldened dip buyers, with 95% of the top 100 cryptocurrencies posting gains in the past 24 hours. Ethereum today is up nearly 3% to above $3,600, and XRP is clinging to that all-important $3.00 price point. But with no top 10 coin breaking the 3% barrier, the real fun is reserved for meme coin traders—who really needed it after the recent bloodbath they went through. PUMP price: Bulls defeat the FUD remarkable turnaround validates our prior analysis that aggressive buybacks would eventually overwhelm selling pressure and that signs point to a price recovery—or at least heavy pressure against bears. Pump's PUMP fell to as low as $0.002283 in late July, well below the ICO price of $.004 when the token launched on July 14. The company raised $600 million after selling out its ICO in just 12 seconds, and the hype propelled PUMP to above a $6 billion fully diluted value just days later. But the hype didn't last, the price of PUMP soon came tumbling down. The company turned things around for PUMP holders when it announced token buybacks at the end of July just as the token hit bottom, which it has since carried out daily. The company is taking the daily revenue generated from its launchpad and putting it back into the chart, so far buying $23 million worth of PUMP, according to its own figures. As a result, PUMP is up more than 30% in the last seven days. So what do the charts say now? The token currently trades at $0.0034 and is approaching a critical broken support near the $0.0035-$0.0040 after the weekly surge. In terms of price direction, the last few days generated respectable bullish support after the token bottomed. Prices have already broken past two resistance levels around the $0.003 and $0.032 marks, which is a good sign for day and swing traders. The Relative Strength Index, or RSI, for PUMP sits at 67, approaching but not yet breaching the 70 overbought threshold. For context, RSI measures price momentum on a 0 to 100 scale. Readings above 70 typically signal overextension where profit-taking emerges while below 30 indicates oversold conditions ripe for bounces. At 67, PUMP shows strong buying pressure without triggering automatic-selling algorithms, suggesting room for PUMP's pump to grow. Traders would very likely interpret this as particularly bullish given the token's 35% weekly gain hasn't pushed the indicator into dangerous territory. The Average Directional Index, or ADX, for PUMP is at 27, which marks a very interesting development. ADX measures trend strength regardless of direction. As a general rule, numbers below 20 indicate no trend, 20-25 shows developing momentum, and above 25 confirms established directional movement until prices register 40 points or more, at which point the trend is considered to be very powerful. PUMP's ADX crossing above 25 signals the bearish correction that drove prices down 47% from May highs is either over or not strong enough to maintain the same bearish direction in case bears remain in play. The Exponential Moving Averages, or EMAs, for PUMP are also compelling. EMAs measure the average price of an asset over a set period of time. For PUMP, being such a young token, the 4-hour charts are where to look. The 50-period EMA (the average price of the last week or 50 candlesticks of 4 hours each) currently trades below the 200-period EMA (the average price of the last month, more specifically, 200 candlesticks of 4 hours each), and this is a textbook bearish formation for prices. But the narrowing gap between these averages (considering the prices are finally going up) suggests an impending "golden cross" reversal if prices keep heading in the same direction. When the faster EMA50 crosses above the slower EMA200, it historically marks the beginning of sustained uptrends. Smart money appears to be front-running this technical milestone. The coin is not there yet, but the price action can give bull traders some hope. The Squeeze Momentum Indicator shows 'off' status on the 4-hour chart, indicating volatility has already been released from recent compression. This diverges from daily timeframes showing continued squeeze, suggesting different trader cohorts are positioning for the next major move. When multiple timeframes align, explosive price action typically follows. The indicator currently points to a possible bounce from to the current support, which would not be unexpected considering the price spike. A trader might say it's a good accumulation zone for those expecting the recovery trend to remain in play for a while longer. Key Levels: Immediate support: $0.0030 (ascending trendline from July lows) Strong support: $0.0023 (July capitulation low and psychological floor) Immediate resistance: $0.003567 (current test level and prior rejection zone) Strong resistance: $0.004113 (50% retracement of entire decline, major breakout target) The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
