Vertex (VERX)
NASDAQ:VERX
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Vertex
(NASDAQ:VERX)
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Rating:59Neutral
Price Target:
$13.00
▲(5.26% Upside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by improving fundamentals and strong cash generation, supported by constructive 2026 guidance for re-accelerating growth and higher EBITDA margins. These positives are tempered by an expensive valuation (very high P/E), a longer-term weak technical trend (below key moving averages), and near-term execution risks highlighted by weaker collections/FCF and restructuring actions.
Positive Factors
Strong cash generation
Consistently strong operating cash flow (~$165M in 2024–2025) and positive free cash flow give Vertex durable internal funding to support R&D, product rollouts, buybacks, and debt service. Reliable cash conversion cushions cyclical revenue swings and underpins strategic investments over the next 2–6 months.
Negative Factors
Elevated leverage
A sizable debt load relative to equity (≈$360M debt vs ~$259M equity) raises structural financial risk if revenue or margins weaken. Higher leverage constrains flexibility for opportunistic investments or acquisitions and increases sensitivity to cash‑flow volatility when servicing interest or refinancing debt.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently strong operating cash flow (~$165M in 2024–2025) and positive free cash flow give Vertex durable internal funding to support R&D, product rollouts, buybacks, and debt service. Reliable cash conversion cushions cyclical revenue swings and underpins strategic investments over the next 2–6 months.
Read all positive factors
Vertex (VERX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.98B
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)399.4
Beta (1Y)1.08
Revenue Growth12.25%
EPS GrowthN/A
CountryUS
Employees1,900
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.17
Shares Outstanding77,801,254
10 Day Avg. Volume975,702
30 Day Avg. Volume1,331,364
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 Cap1.01
Enterprise Value/Revenue2.68
Enterprise Value/Gross Profit4.22
Enterprise Value/Ebitda29.46
Forecast
1Y Price Target
$18.42Price Target Upside49.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)0.74
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 07, 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
Neutral
12.35
Price Trends
13.05
Negative
16.27
Negative
21.47
Negative
Market Momentum
-0.44
Negative
49.18
Neutral
80.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERX, the sentiment is Neutral. The current price of 12.35 is above the 20-day moving average (MA) of 11.89, below the 50-day MA of 13.05, and below the 200-day MA of 21.47, indicating a neutral trend. The MACD of -0.44 indicates Negative momentum. The RSI at 49.18 is Neutral, neither overbought nor oversold. The STOCH value of 80.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $2.28B | 19.41 | 18.70% | ― | 16.43% | ― | |
68 Neutral | $2.00B | 465.26 | 0.49% | ― | 10.01% | ― | |
66 Neutral | $1.80B | -156.46 | -5.49% | ― | 16.84% | 0.51% | |
63 Neutral | $3.07B | 36.75 | 7.99% | ― | 12.17% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.78B | 73.55 | 4.25% | ― | 28.38% | ― | |
59 Neutral | $1.98B | 399.40 | 2.97% | ― | 12.25% | ― |
* Technology Sector Average
VERX
Vertex
12.37
-27.44
-68.93%
CALX
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43.56
2.25
5.45%
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17.48
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-23.57%
GBTG
Global Business Travel Group
5.86
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-13.31%
INTA
Intapp
22.45
-32.99
-59.51%
FRSH
Freshworks
8.16
-6.32
-43.65%
Vertex Corporate Events
Business Operations and Strategy
Vertex Launches Global Value Creation and AI Initiative
Negative
Apr 28, 2026
On April 28, 2026, Vertex, Inc. announced that its board approved a global Value Creation Plan aimed at becoming a more AI-enabled company, sharpening investment on key growth opportunities and improving operational efficiency. As part of this pla...
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.