Software & Services: Buy Donnelley Financial and Red Violet

Internet Software & Services stocks look attractive on AI growth, subscription revenue and dividends, with DFIN and RDVT standing out despite macro uncertainty.

Apr. 7, 2026 at 4:54am

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A photorealistic studio still life featuring a stack of financial documents, a laptop, and a pen arranged on a clean, monochromatic background, conceptually representing the digital transformation and AI-driven analytics powering the next generation of financial compliance and identity verification software.Elegant, high-tech tools symbolize the digital future of financial compliance and identity intelligence.Boca Raton Today

The Internet-Software & Services industry is highly correlated to the economy, but companies like Donnelley Financial (DFIN) and Red Violet (RDVT) are standing out due to their systems of client retention through subscriptions and platforms, as well as their successful leveraging of AI in operations. The industry has lagged the broader market over the past year, but valuations remain attractive, making DFIN and RDVT compelling buys.

Why it matters

The Internet Software & Services industry is the backbone of the digital economy, and companies that can leverage AI and subscription-based models to drive growth and stability are well-positioned to outperform, even in the face of macroeconomic uncertainty.

The details

Donnelley Financial Solutions (DFIN) is transforming from a financial-printing business into a cloud-software provider focused on automating complex disclosure, compliance and transaction workflows. Around 42% of its revenue now comes from SaaS/software, and the company is benefiting from rising global compliance requirements and capital-markets activity. Red Violet, Inc. (RDVT) is a data analytics and identity intelligence company that provides cloud-native software solutions used for identity verification, fraud prevention, risk assessment and investigative analytics. The company's AI-driven identity intelligence solutions are seeing strong demand across financial services, insurance, government and real estate industries.

  • Donnelley Financial Solutions (DFIN) was spun off from R.R. Donnelley in the past.
  • Red Violet, Inc. (RDVT) is headquartered in Boca Raton, Florida.

The players

Donnelley Financial Solutions

A U.S.-based financial technology and compliance software company that helps public companies, investment firms and capital market participants manage regulatory reporting and investor communications.

Red Violet, Inc.

A U.S.-based data analytics and identity intelligence company that provides cloud-native software solutions used for identity verification, fraud prevention, risk assessment and investigative analytics.

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The takeaway

The Internet Software & Services industry is well-positioned for long-term growth, and companies like Donnelley Financial and Red Violet that can leverage AI, subscription models, and compliance/regulatory tailwinds are attractive investment opportunities despite near-term macroeconomic uncertainty.