Vertex, Inc. (VERX) AI Stock Analysis

Headquartered in King of Prussia, Pennsylvania, Vertex, Inc. specializes in delivering comprehensive tax technology solutions tailored for corporations operating in retail, communication, leasing, manufacturing, and other industries globally. Founded in 1978, the company offers a suite of services including tax determination, compliance and reporting, tax data management, document management, and industry-specific solutions. Vertex delivers software products through traditional software licensing and modern Software-as-a-Service subscriptions. In addition, Vertex provides implementation and training services, along with transaction tax returns outsourcing and other specialized tax-related services.

Between FY2021 and FY2025, annual revenue increased from $425.5M to $748.4M, reflecting a 5-year CAGR of 14.8%. Revenue grew 12.2% in FY2025, while gross margin stood at 60.7%. Operating margin improved from -3.1% in FY2023 to -1.0% in FY2025. After recording a net income of -$52.7M in FY2024, Vertex achieved positive net income of $7.2M in FY2025, with EPS of $0.64. For the latest quarter ended June 30, 2026, revenue increased 10.5% year-over-year, while quarterly earnings declined 44.0%. Trailing twelve month revenue reached $787.4M with an operating margin of 3.4% and net profit margin of 0.4%.

As of June 30, 2026, Vertex held $230.5M in cash and short-term investments against total debt of $349.9M, resulting in net debt of $119.4M. Shareholders' equity was $241.1M, yielding a debt-to-equity ratio of 1.45 and a current ratio of 0.87. In FY2025, the company generated $165.5M in operating cash flow and $47.6M in free cash flow. Cash deployment included capital expenditures of $118.0M and share buybacks of $10.1M.

At a last close of $13.37, Vertex has a market capitalization of $2.17B and an enterprise value of $2.02B. The stock trades at a forward P/E of 10.0x, lower than the median of its US-listed Technology peers of 18.8x. Its price-to-sales multiple is 2.8x, matching the peer group median of 2.8x, while its EV/EBITDA of 23.0x is higher than the peer median of 16.6x. Over the past year, VERX shares declined 45.2%, trailing the S&P 500 return of 16.8%.

Wall Street coverage consists of 4 Strong Buy, 3 Buy, and 8 Hold recommendations, with 0 Sell or Strong Sell ratings. The mean price target of $17.08 sits 27.7% above the last close of $13.37. For the fiscal year ending December 31, 2026, analysts estimate revenue of $827.1M and EPS of $0.82, representing projected EPS growth of 28.4%. Vertex has surpassed EPS estimates in each of the last 4 quarters. The next earnings date is scheduled for November 4, 2026.

This page is an AI-written research summary of Vertex, Inc. (VERX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: VERX income statement, VERX balance sheet, VERX key metrics, VERX analyst forecast, VERX chart. See the VERX stock overview for the latest quote and news.