AvidXchange Holdings (AVDX) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 1179.5
• Beta (1Y): 1.06
• Revenue Growth: 10.46%
• EPS Growth: N/A
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 206,445,980
• 10 Day Avg. Volume: 3,101,743
• 30 Day Avg. Volume: 3,189,742
• PEG Ratio: 0.39
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -34.84
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: 9.27
• 1Y Price Target: $9.86
• Price Target Upside: 0.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 61 Neutral
• Price Target: $10.50 ▲(7.25%Upside)

The overall stock score of 61 reflects a mixed outlook. The most significant factor is the high P/E ratio, indicating overvaluation concerns. Despite strong revenue growth and improving cash flows, profitability remains a challenge. The positive technical momentum offers some near-term optimism, while the acquisition news provides a strategic long-term opportunity, albeit not factored into the score due to its nature as a corporate event.

Positive Factors

Acquisition Premium

The acquisition by TPG and Corpay reflects a 45% premium over the $6.89 closing price as of March 12, 2025.

Cost Efficiencies

Even on a standalone basis, there is significant potential for cost efficiencies at AVDX, while its net cash balance sheet and outstanding NOLs offer additional flexibility/upside.

Strategic Partnership

The deal from AVDX's point of view is seen positively with CPAY considered the best strategic partner.

Negative Factors

Earnings Miss

AVDX's 1Q25 results showed misses across the board, leading to a suspension of guidance due to the acquisition.

Revenue Growth

1Q demonstrated slower-than-expected revenue growth, primarily driven by lower-than-expected transaction growth, implying slower sequential growth and transaction retention presumably remaining below 100%.

AvidXchange Holdings Business Overview & Revenue Model

Company Description

AvidXchange Holdings, Inc. is a leading provider of accounts payable and payment automation solutions for the middle market. The company offers a cloud-based software platform that streamlines the entire invoice-to-payment process, helping businesses improve efficiency, reduce costs, and maintain control over their financial operations. AvidXchange serves a wide range of industries, including real estate, financial services, construction, and healthcare, providing tailored solutions to meet the specific needs of each sector.

How the Company Makes Money

AvidXchange makes money primarily through its subscription-based revenue model. Customers pay recurring fees for access to its software-as-a-service (SaaS) platform, which offers a suite of tools for automating accounts payable processes. Additionally, the company generates revenue from transaction fees when clients use its payment services to execute payments through its network. AvidXchange benefits from partnerships with banks and other financial institutions, which help facilitate transactions and expand its market reach. The company also offers value-added services, such as data analytics and supplier management, which provide additional revenue streams.

AvidXchange Holdings Financial Statement Overview

Summary

AvidXchange Holdings shows promising revenue growth and strong gross margins but faces challenges with operational profitability and return on equity. The balance sheet reflects a solid capital structure with moderate leverage, while cash flow statements indicate improving free cash flow generation.

Income Statement

AvidXchange Holdings shows a positive trend in revenue growth with a 38.3% increase from 2020 to 2025. Gross profit margin is strong at approximately 70.2% for the TTM, indicating efficient cost management. However, the company is struggling with profitability as evidenced by negative EBIT and a low net profit margin of 0.4% for the TTM, suggesting challenges in controlling operational expenses.

Balance Sheet

The company maintains a healthy equity ratio of 34.1% for the TTM, indicating a strong capital structure. However, the debt-to-equity ratio is modest at 0.11, reflecting moderate leverage. Return on equity is low at 0.3% for the TTM due to minimal net income, suggesting inefficiencies in generating returns from shareholders' equity.

Cash Flow

There is a notable improvement in free cash flow, with a growth rate of 34.9% from 2024 to the TTM period, showing enhanced cash generation capabilities. The operating cash flow to net income ratio is robust at 46.5, indicating strong cash earnings relative to profits. However, the free cash flow to net income ratio is lower at 38.3, highlighting potential constraints in cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	441.28M	438.94M	380.72M	316.35M	248.41M	185.93M
Gross Profit	309.84M	317.16M	259.41M	198.49M	148.32M	102.17M
EBITDA	45.36M	34.02M	3.30M	-47.37M	-153.46M	-53.42M
Net Income	1.84M	8.14M	-47.33M	-101.28M	-199.65M	-101.25M
Balance Sheet
Total Assets	1.99B	2.09B	2.48B	2.21B	2.27B	726.51M
Cash, Cash Equivalents and Short-Term Investments	389.28M	389.30M	451.62M	461.55M	562.82M	252.46M
Total Debt	75.14M	75.40M	143.72M	150.82M	191.02M	178.57M
Total Liabilities	1.31B	1.42B	1.83B	1.55B	1.54B	404.99M
Stockholders Equity	679.17M	671.83M	656.45M	657.44M	723.05M	321.52M
Cash Flow
Free Cash Flow	70.65M	52.34M	-9.85M	-56.51M	-86.99M	-56.18M
Operating Cash Flow	85.68M	71.93M	8.45M	-28.70M	-68.67M	-44.13M
Investing Cash Flow	-7.29M	-11.31M	51.95M	-140.35M	-84.11M	-36.56M
Financing Cash Flow	-185.68M	-440.27M	290.85M	-1.73M	1.57B	193.79M

AvidXchange Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVDX, the sentiment is Positive. The current price of 9.79 is above the 20-day moving average (MA) of 9.78, above the 50-day MA of 9.29, and above the 200-day MA of 9.24, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 72.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVDX.

AvidXchange Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVTC	81 Outperform	$2.30B	17.99	24.65%	0.56%	17.39%	100.46%
PAYO	75 Outperform	$2.40B	22.91	15.97%	―	14.86%	-0.94%
RAMP	71 Outperform	$2.13B	93,566.67	-0.26%	―	13.02%	-105.82%
DAVA	66 Neutral	$885.47M	39.26	2.85%	―	7.58%	-57.13%
EVCM	64 Neutral	$1.88B	―	-3.09%	―	-1.96%	19.43%
AVDX	61 Neutral	$2.02B	1,179.52	0.27%	―	10.46%	―
Sector *	56 Neutral	$3.16B	5.05	-5.68%	5.76%	8.05%	-41.83%

AvidXchange Holdings Corporate Events

AvidXchange Holds Successful Annual Stockholders Meeting

On June 26, 2025, AvidXchange Holdings, Inc. conducted its annual meeting of stockholders, where key proposals were voted on, including the election of directors and the ratification of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025. The meeting saw a quorum of 82.31% of outstanding shares, and all proposals, including executive compensation, were approved, reflecting strong shareholder support and potentially strengthening the company’s governance and financial oversight.

The most recent analyst rating on (AVDX) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on AvidXchange Holdings stock, see the AVDX Stock Forecast page.

AvidXchange Acquired by TPG and Corpay for $2.2B

On May 6, 2025, AvidXchange Holdings announced its acquisition by TPG, in partnership with Corpay, for $2.2 billion. The transaction, which values AvidXchange at $10.00 per share, represents a significant premium over its recent stock prices and is expected to close in the fourth quarter of 2025. This acquisition will transition AvidXchange to a private company, allowing it greater flexibility to invest in growth and enhance its payment solutions. The move is anticipated to strengthen AvidXchange’s position in the AP automation industry, providing it with resources to scale its platform and deliver innovative solutions to its customers.