AvidXchange Holdings (AVDX) AI Stock Analysis

• Market Cap: $2.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 1189.2
• Beta (1Y): 0.95
• Revenue Growth: 8.04%
• EPS Growth: 39.57%
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 207,698,750
• 10 Day Avg. Volume: 1,361,662
• 30 Day Avg. Volume: 1,819,857
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 45.97
• 1Y Price Target: $10.50
• Price Target Upside: 5.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $10.50 ▲(5.63% Upside)

AvidXchange Holdings' overall score is primarily influenced by its strong financial performance in terms of revenue growth and a solid balance sheet. However, the negative P/E ratio and overbought technical indicators present risks. The company's focus on innovation and market expansion is promising, but profitability and cash conversion efficiency remain areas for improvement.

Positive Factors

Acquisition

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

Strategic Partnerships

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

Synergies

Corpay expects to achieve significant synergies from the deal.

Negative Factors

Earnings

In contrast to recent quarters, adj. EBITDA missed Street expectations significantly, with incremental margins negative in the quarter.

Macro Challenges

AVDX's 1Q25 miss suggests exposure to discretionary purchases due to macro-induced weakness.

Revenue Growth

1Q demonstrated slower-than-expected revenue growth, primarily driven by lower-than-expected transaction growth.

AvidXchange Holdings Business Overview & Revenue Model

Company Description

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and cash flow manager that provides cash management solutions. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company markets its solutions through direct salesforces; strategic channel partnerships; and software and technology business partners. It serves real estate, homeowners associations, construction, financial services, healthcare facilities, social services, education, and media sectors. The company was incorporated in 2000 and is headquartered in Charlotte, North Carolina.

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 demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability remains a challenge, with negative net income and EBIT margins. Cash flow generation is improving, but efficiency in converting income to cash needs attention. Overall, the company is on a positive growth trajectory but must focus on enhancing profitability and cash conversion efficiency.

Income Statement

AvidXchange Holdings shows strong revenue growth with a TTM growth rate of 23.2%, indicating a positive trajectory. The gross profit margin is healthy at 72.5%, reflecting efficient cost management. However, the company struggles with profitability, as evidenced by a negative net profit margin of -1.8% and negative EBIT margin, suggesting challenges in controlling operating expenses.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The equity ratio is solid, reflecting a strong capital structure. However, the negative return on equity of -1.2% highlights inefficiencies in generating returns for shareholders, which could be a concern if not addressed.

Cash Flow

Cash flow analysis shows improvement, with a significant free cash flow growth rate of 361.8% TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is low at 6.8%, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is strong at 87.6%, showing good cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	446.72M	438.94M	380.72M	316.35M	248.41M	185.93M
Gross Profit	323.96M	317.16M	259.41M	198.49M	148.32M	102.17M
EBITDA	36.84M	34.02M	3.30M	-47.37M	-153.46M	-53.42M
Net Income	-8.06M	8.14M	-47.33M	-101.28M	-199.65M	-101.25M
Balance Sheet
Total Assets	2.00B	2.09B	2.48B	2.21B	2.27B	726.51M
Cash, Cash Equivalents and Short-Term Investments	407.23M	389.30M	451.62M	461.55M	562.82M	252.46M
Total Debt	74.80M	75.40M	143.72M	150.82M	191.02M	178.57M
Total Liabilities	1.32B	1.42B	1.83B	1.55B	1.54B	404.99M
Stockholders Equity	687.55M	671.83M	656.45M	657.44M	723.05M	321.52M
Cash Flow
Free Cash Flow	73.20M	52.34M	-9.85M	-56.51M	-86.99M	-56.18M
Operating Cash Flow	83.61M	71.93M	8.45M	-28.70M	-68.67M	-44.13M
Investing Cash Flow	-8.03M	-11.31M	51.95M	-140.35M	-84.11M	-36.56M
Financing Cash Flow	-160.24M	-440.27M	290.85M	-1.73M	1.57B	193.79M

AvidXchange Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 9.94 is above the 20-day moving average (MA) of 9.91, above the 50-day MA of 9.87, and above the 200-day MA of 9.59, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 71.77 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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	75 Outperform	$2.21B	16.19	25.17%	0.58%	12.92%	101.57%
PAYO	75 Outperform	$2.40B	25.26	13.86%	―	13.02%	-2.57%
EVCM	67 Neutral	$2.06B	―	-1.92%	―	-7.25%	51.12%
RAMP	66 Neutral	$1.86B	132.12	1.34%	―	12.16%	139.72%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
AVDX	60 Neutral	$2.06B	1,189.16	-1.17%	―	8.04%	39.57%
DAVA	51 Neutral	$600.94M	22.24	3.37%	―	7.13%	23.63%

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.