Vertex, Inc. (VERX)
NASDAQ:VERX
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Vertex
(NASDAQ:VERX)
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Rating:56Neutral
Price Target:
$14.00
▲(24.22% Upside)
Action:ReiteratedDate:02/17/26
The score is driven by solid cash generation and improving profitability, supported by constructive 2026 guidance for re-accelerating growth and stronger adjusted EBITDA margins. Offsetting this are very bearish technicals (price far below key moving averages with weak momentum signals) and an unattractive valuation with an extremely high P/E.
Positive Factors
Cloud & recurring revenue momentum
Robust cloud growth reflects durable migration to subscription delivery and deeper product embedding in customers' transaction flows. High cloud mix supports predictability, recurring ARR expansion, and higher lifetime value as customers rely on continuous content and rate updates.
Negative Factors
Elevated leverage
A sizeable debt load relative to equity raises financial risk during growth slowdowns or margin pressure. Higher leverage constrains strategic flexibility, increases interest obligations, and magnifies downside if cash generation weakens or requires redirection to servicing debt.
Read all positive and negative factors
Positive Factors
Negative Factors
Cloud & recurring revenue momentum
Robust cloud growth reflects durable migration to subscription delivery and deeper product embedding in customers' transaction flows. High cloud mix supports predictability, recurring ARR expansion, and higher lifetime value as customers rely on continuous content and rate updates.
Read all positive factors
Vertex (VERX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)1.52M
Price to Earnings (P/E)399.4
Beta (1Y)1.11
Revenue Growth13.83%
EPS Growth-273.23%
CountryUS
Employees1,900
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.17
Shares Outstanding77,801,254
10 Day Avg. Volume1,128,977
30 Day Avg. Volume1,521,850
Financial Highlights & Ratios
PEG Ratio-3.48
Price to Book (P/B)11.12
Price to Sales (P/S)3.85
P/FCF Ratio41.56
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue2.36
Enterprise Value/Gross Profit3.72
Enterprise Value/Ebitda26.01
Forecast
1Y Price Target
$18.45Price Target Upside63.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.75
Revenue Forecast (FY)$827.19M
Vertex Business Overview & Revenue Model
Company Description
Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally. It offers tax determination, compliance and reporting, tax data management, d...
How the Company Makes Money
Vertex makes money primarily by selling software and cloud services that automate and support indirect tax compliance for businesses. Its revenue model is centered on (1) recurring subscriptions for cloud-based tax calculation and compliance produ...
Vertex Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows profitability across different segments, revealing which areas contribute most to the company's bottom line.
Shows profitability across different segments, revealing which areas contribute most to the company's bottom line.
Data provided by:
The Fly
The FlyVertex Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive and forward-looking tone: Vertex reported solid double-digit full-year revenue growth, strong cloud momentum, positive retention (NRR 105%), profitable operations (adjusted EBITDA and margins stable), meaningful AI and e-invoicing early traction, and a strong balance sheet. Headwinds included lower true-up revenue that mechanically reduced reported growth, slightly higher attrition concentrated in smaller accounts, weaker Q4 collections impacting free cash flow, and higher operating investments (R&D, S&M) to support AI and Ecosio integration. Management outlined clear plans to address controllable attrition, accelerate AI/product-led upsell, and pursue e-invoicing and SAP migration opportunities. Overall, the positives (growth, profitability, product traction, balance sheet) outweigh the near-term headwinds.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 revenue of $194.7M, up 9.1% YoY and in line with guidance; full-year revenue $748.4M, up 12.2% YoY.
Negative Updates
True-Up Revenue Shortfall Impacting Growth
True-up revenue in 2025 was ~$10M lower than 2024. This reduced FY 2025 revenue growth by just under ~2 percentage points and reduced Q4 YoY revenue growth by ~4 percentage points; subscription growth similarly impacted (~2 ppt for year, ~5 ppt for Q4).
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 revenue of $194.7M, up 9.1% YoY and in line with guidance; full-year revenue $748.4M, up 12.2% YoY.
Read all positive updates
Company Guidance
Management guided full-year 2026 revenue of $823.5 million to $831.5 million (implying roughly 10.0%–11.1% growth vs. 2025's $748.4M), cloud revenue growth of 25%, and adjusted EBITDA of $188.0 million to $192.0 million (about a 23% margin at the midpoint); for Q1 2026 they guided revenue of $193.5 million to $196.5 million and adjusted EBITDA of $40.5 million to $43.5 million (approximately a 21.5% margin at the midpoint).Vertex Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 748.44M | 666.78M | 572.39M | 491.62M | 425.55M |
| Gross Profit | 454.51M | 426.13M | 348.58M | 298.49M | 263.66M |
| EBITDA | 104.51M | 102.01M | 56.95M | 53.07M | 41.84M |
| Net Income | 7.21M | -52.73M | -13.09M | -12.30M | -1.48M |
Balance Sheet | |||||
| Total Assets | 1.27B | 1.17B | 759.93M | 719.19M | 670.21M |
| Cash, Cash Equivalents and Short-Term Investments | 314.01M | 305.21M | 77.72M | 102.98M | 73.33M |
| Total Debt | 359.62M | 351.89M | 66.97M | 73.52M | 28.61M |
| Total Liabilities | 1.01B | 987.44M | 506.95M | 489.47M | 440.12M |
| Stockholders Equity | 258.92M | 179.35M | 252.98M | 229.72M | 230.08M |
Cash Flow | |||||
| Free Cash Flow | 69.31M | 99.05M | 6.10M | 3.43M | 46.92M |
| Operating Cash Flow | 165.54M | 164.82M | 74.33M | 63.85M | 90.29M |
| Investing Cash Flow | -123.75M | -158.15M | -66.17M | -72.05M | -294.78M |
| Financing Cash Flow | -32.78M | 231.26M | -26.48M | 17.09M | -9.10M |
Vertex Technical Analysis
Negative
11.27
Price Trends
13.78
Negative
16.76
Negative
22.16
Negative
Market Momentum
-0.72
Negative
31.51
Neutral
34.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERX, the sentiment is Negative. The current price of 11.27 is below the 20-day moving average (MA) of 12.34, below the 50-day MA of 13.78, and below the 200-day MA of 22.16, indicating a bearish trend. The MACD of -0.72 indicates Negative momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERX.
Vertex Risk Analysis
Vertex disclosed 42 risk factors in its most recent earnings report. Vertex reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vertex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.26B | 19.41 | 18.70% | ― | 18.18% | 70.94% | |
68 Neutral | $3.24B | 197.73 | 2.22% | ― | 4.89% | 55.80% | |
68 Neutral | $2.03B | 465.26 | 0.49% | ― | 12.14% | -19.29% | |
66 Neutral | $1.71B | ― | -5.49% | ― | 17.11% | -19.12% | |
63 Neutral | $2.94B | 36.75 | 7.99% | ― | 5.71% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.80B | 399.40 | 2.97% | ― | 13.83% | -273.23% |
* Technology Sector Average
VERX
Vertex
10.80
-27.68
-71.93%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.