VERX
Vertex, Inc.

Vertex, Inc.VERX

Technology · Software - Application
17.08USD
-2.90%
Nov 09, 2026
VERX overview ready
Automated Indirect-Tax Compliance Software for Enterprises
Direct beneficiary and enterprise-focused pure play in automated indirect-tax determination, compliance reporting, e-invoicing, and tax-content workflow automation.
Primary theme is leading
Finance, Tax & Accounting Software is leading (+18.9pp vs SPY over 21 sessions; 5 of 6 members ahead of SPY).
Advancing price action
Longer-term context reads early recovery, with a near-term setup of daily advance.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Regulatory changes reducing complexity or compliance burden.
Market Nov 6Filing Sep 30Price action Nov 8Research Jul 29

Conviction Level

PriceAction9.1BusinessPerformance5.0BusinessQuality5.9Valuation3.5ThemeMomentum9.0Mixed — Revenue is growing at a steady pace (+11% year over year). No comparable quarterly EPS is available; net income turned negative at -$46.6M from $4.0M. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+18.9pp
Theme return
+13.9%
Beating SPY
5 of 6
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Advancing price action
Longer-term context reads early recovery, with a near-term setup of daily advance.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$2.8B
Avg Volume (60D)
1.5M
60 sessions
Revenue Growth YoY
+12.2%
FY2025 vs FY2024
Gross Margin
+64.6%
Trailing twelve months
Operating Margin
-2.1%
Trailing twelve months
Free Cash Flow Yield
+4.8%
Distance from 200DMA
+29.2%
P/E
N/M
EV / EBITDA
89.7x
EV / Sales
3.6x
Market metrics as of Nov 8, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Mixed

Revenue is growing at a steady pace (+11% year over year). No comparable quarterly EPS is available; net income turned negative at -$46.6M from $4.0M.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+11%
$213M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +9.1%
  2. +11%
  3. +11%
  4. +11%
Earnings growthTurned to a loss
-$46.6M
Net income -$46.6M. No comparable quarterly EPS is available.
Not enough comparable diluted EPS quarters for a YoY sequence.
Operating marginContracting
0.1%
-2.1 pp YoY · gross margin 65.7% (+2.6 pp)

Business Quality

5.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

The available comparisons disagreed; the intrinsic comparison is the more reliable method for this business and the others are published as dissent.
Vertex, Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

Company Research

Thesis
Direct beneficiary and enterprise-focused pure play in automated indirect-tax determination, compliance reporting, e-invoicing, and tax-content workflow automation.
Opportunity
Moderate opportunity
Government adoption of digital VAT, e-invoicing, continuous transaction controls, and near-real-time reporting is increasing the need for enterprises to automate transaction-tax calculation, documentation, filing, and transmission across jurisdictions.
Key risk
Regulatory changes reducing complexity or compliance burden.

Economic classification

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Business & Markets

Technology · Software - Application
What they do

Vertex, Inc. provides enterprise tax technology solutions that automate indirect tax determination, compliance, and reporting for businesses primarily in retail, wholesale, and manufacturing sectors across the US and internationally.

How it earns

The company generates revenue mainly through subscription-based software licensing and related services.

Products & services
Transaction tax determination
Compliance and reporting tools
Tax data management
Document management solutions
Analytics and insights
Pre-built integrations
Industry-specific indirect tax solutions
Customers & end markets
Retail trade companies
Wholesale trade companies
Manufacturing companies
Market position

A direct beneficiary and enterprise-focused pure play in automated indirect-tax determination and compliance reporting.

Demand drivers
Low cyclicality

Demand for tax compliance solutions is relatively stable and driven by regulatory requirements rather than economic cycles.