Vertex, Inc. VERX

Information TechnologySoftware & IT ServicesUnited States of America

Last close 14.86 USD on Nov 1, 2026, −23.3% year to date

Quant rating

Quant rating C Rank 221 of 389 in Information Technology

Growth B 60 of 389
Valuation C 232 of 389
Quality C 170 of 389
Revisions D 297 of 389
Momentum C 168 of 389

Wall Street consensus Buy (2.31)Average target 17.13 USD +15.3%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 2.5B
Enterprise value: 2.6B
52-week range: 10.22 – 23.13
3-year range: 10.22 – 58.95
Dividend yield: –
Beta (5 years): 0.76
Shares outstanding: 162M
Next earnings: Nov 4, 2026

About the company

Vertex, Inc. is a global provider of indirect tax solutions. The Company and its subsidiaries operate as solutions providers of state, local and value-added tax calculation, compliance, and analytics, offering software products that are sold through software licenses and software-as-a-service (cloud) subscriptions. It also provides implementation and training services in connection with its software license and cloud subscriptions, transaction tax returns outsourcing, and other tax-related services. Its software includes tax determination, compliance and reporting, tax data management and document management tools, analytics and insights, as well as pre-built integrations with business applications. Its tax-determination solutions enable real-time calculation of indirect taxes and applicable fees for sale and purchase transactions. Its compliance and reporting solutions enable the automation of signature-ready returns and remittance of indirect tax to appropriate jurisdictions.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	748	667	572	492	426	–
Revenue growth	12.2%	16.5%	16.4%	15.5%	13.6%	14.8%
EPS (basic, normalized)	0.64	0.61	0.39	0.30	0.33	–
EPS growth	4.9%	56.4%	30.0%	−9.1%	–	–
Gross margin	64.3%	63.9%	60.9%	60.7%	62.0%	62.4%
Net margin	1.0%	−7.9%	−2.3%	−2.5%	−0.3%	−2.4%
ROE	3.3%	−24.4%	−5.4%	−5.4%	−0.6%	−6.5%

Balance sheet, last quarter
Cash & short-term investments (mil)	230
Current ratio	0.87x
Long-term debt (mil)	339
Net debt (mil)	108
Total equity (mil)	241
Net debt / equity	0.45x
Net debt / EBITDA	0.67x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	748	+12.2%	3.5x	162	+8.5%	16.1x	0.64	+4.9%	23.2x
2026	827	+10.5%	3.1x	209	+29.2%	12.4x	0.82	+28.6%	18.0x
2027	914	+10.5%	2.8x	260	+24.4%	10.0x	1.02	+24.2%	14.5x
2028	1,017	+11.3%	2.5x	317	+22.1%	8.2x	1.27	+24.4%	11.7x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	827	0.0%	0.0%	0.0%	0.82	+0.2%	+1.6%	+13.8%
2027	914	0.0%	−0.6%	−1.0%	1.02	0.0%	−3.0%	+17.6%
2028	1,017	0.0%	−1.0%	−2.3%	1.27	+0.1%	−6.9%	+19.7%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	157	161	170	178	177	185	192	195	197	204
Sales mean (mil)	155	161	166	177	177	185	192	195	195	202
Surprise	+1.2%	+0.3%	+2.9%	+0.9%	+0.1%	0.0%	+0.2%	0.0%	+0.9%	+0.8%
EPS reported	0.15	0.15	0.16	0.15	0.15	0.15	0.17	0.17	0.17	0.20
EPS mean	0.13	0.13	0.14	0.14	0.13	0.14	0.16	0.16	0.17	0.19
Surprise	+16.5%	+16.2%	+17.6%	+9.2%	+11.5%	+5.6%	+6.3%	+4.3%	+2.9%	+4.8%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
VERX Vertex, Inc.	2.5B	0.67x	1.0%	10.02x	18.0x	14.5x	12.4x	10.0x
MSFT Microsoft Corporation	3.88T	0.22x	40.3%	8.24x	26.2x	21.9x	16.2x	13.1x
ORCL Oracle Corporation	396.1B	2.81x	26.6%	5.92x	16.0x	11.9x	9.4x	6.6x
CRM Salesforce, Inc.	188.6B	1.57x	18.0%	4.91x	13.7x	14.3x	11.1x	10.3x
NOW ServiceNow, Inc.	109.1B	0.61x	13.2%	8.33x	26.5x	21.9x	17.8x	15.1x
SNOW Snowflake Inc.	108.0B	−0.10x	−28.4%	50.18x	139.4x	101.7x	97.1x	70.0x
Mean		0.96x	11.8%	14.60x	40.0x	31.0x	27.3x	20.9x
Median		0.64x	15.6%	8.28x	22.1x	18.2x	14.3x	11.7x

Technical analysis

1M+38.5%
3M+15.7%
1Y−39.0%
3Y−32.7%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Vertex, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	748	667	572	492	426	375
Cost of revenue	267	241	224	193	162	165
Gross profit	482	426	349	298	264	209
Selling, general & administrative expenses	362	317	281	243	205	248
Research & development	83.7	66.7	58.2	41.9	44.0	54.3
Depreciation/amortization	27.1	23.4	17.8	16.2	12.5	11.2
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	6.8	–	–	–	–	–
Other operating expenses	−0.7	21.3	9.1	5.3	4.9	0.2
Operating income	2.3	−2.2	−17.5	−8.1	−2.9	−105
Net interest income (expense)	5.2	4.1	−4.2	−2.0	−1.0	−3.1
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	7.6	1.9	−21.7	−10.1	−3.9	−108
Provision for taxes	0.4	54.6	−8.6	2.2	−2.4	−32.8
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	7.2	−52.7	−13.1	−12.3	−1.5	−75.1
Extraordinary items	–	–	–	–	–	–
Net income	7.2	−52.7	−13.1	−12.3	−1.5	−75.1
EBIT, normalized	19.9	2.9	−9.1	−4.5	7.0	−102
EBITDA, normalized	117	85.7	62.8	56.6	51.8	−69.5
Basic EPS, normalized	0.64	0.61	0.39	0.30	0.33	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Vertex, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	314	305	77.7	103	73.3	303
Receivables	183	164	142	103	76.9	77.2
Total inventory	–	–	–	–	–	–
Prepaid expenses	34.3	32.6	22.2	20.4	20.5	13.3
Other current assets	29.0	34.1	25.0	16.9	24.9	9.2
Total current assets	561	536	267	243	196	403
Property, plant & equipment	219	190	115	118	119	56.6
Goodwill	392	358	258	252	270	16.3
Intangibles	39.0	41.5	41.2	44.2	36.1	34.4
Long-term investments	15.0	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	44.2	41.5	79.0	61.7	49.8	48.8
Total assets	1,271	1,167	760	719	670	559
Liabilities
Accounts payable	37.6	36.2	23.6	14.3	13.0	8.9
Payable/accrued	–	–	–	–	–	–
Accrued expenses	107	99.3	94.8	76.8	70.0	58.9
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	0.1	0.1	2.6	2.3	0.3	0.9
Other current liabilities	431	402	320	310	286	223
Total current liabilities	575	537	441	403	369	292
Long-term debt	338	335	44.1	46.7	0.1	0.2
Minority interest	–	–	–	–	–	–
Other liabilities	99.7	115	22.1	39.5	70.9	37.2
Total liabilities	1,012	987	507	489	440	329
Shareholders' equity
Preferred stock	0	–	0	0	0	0
Common stock	0.2	0.2	0.2	0.1	0.1	0.1
Additional paid-in capital	316	278	275	245	223	207
Retained earnings (accumulated deficit)	−46.1	−53.3	−0.6	12.5	24.8	25.8
Treasury stock	−10.1	–	–	–	–	–
Other equity	−1.4	−45.9	−21.7	−27.8	−17.5	−3.1
Total equity	259	179	253	230	230	229
Total liabilities & shareholders' equity	1,271	1,167	760	719	670	559

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Vertex, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	7.2	−52.7	−13.1	−12.3	−1.5	−75.1
Depreciation, depletion & amortization	96.9	82.7	71.9	61.2	44.8	32.2
Deferred taxes	−5.4	51.1	−11.6	−1.3	−3.1	−33.5
Non-cash items	53.3	71.9	46.8	27.6	31.2	127
Changes in working capital	13.5	11.8	−19.7	−11.2	18.9	8.8
Cash from operations	166	165	74.3	63.8	90.3	59.5
Investing activities
Capital expenditures	−118	−159	−68.2	−60.4	−43.4	−32.8
Other investing cash flows	−5.8	0.7	2.1	−11.6	−251	−11.6
Cash from investing	−124	−158	−66.2	−72.0	−295	−44.4
Financing activities
Financing cash flow items	−34.6	−74.3	−31.5	−34.4	−12.1	−21.8
Cash dividends paid	–	–	–	–	–	−146
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	1.8	306	5.0	51.5	3.0	382
Cash from financing	−32.8	231	−26.5	17.1	−9.1	214
Foreign exchange effects	3.2	−1.0	0.7	−0.4	−0.5	0
Net change in cash	12.2	237	−17.6	8.5	−214	229
Free cash flow	47.6	6.0	6.1	3.4	46.9	26.7

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.