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VERX

Vertex, Inc.

VERX

Vertex, Inc. • NASDAQ
$19.67 ▲ 0.72% (+0.14)
Market Cap $3.14 B
52w High $60.71
52w Low $18.54
Dividend Yield 0%
P/E -56.2
Volume 1.05M
Outstanding Shares 159.55M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $192.112M ▲ $116.996M ▼ $4.045M ▲ 2.106% ▲ $0.025 ▲ $7.261M ▼
Q2-2025 $184.559M ▲ $125.064M ▲ $-961K ▼ -0.521% ▼ $-0.006 ▼ $22.882M ▲
Q1-2025 $177.062M ▼ $108.508M ▼ $11.13M ▲ 6.286% ▲ $0.07 ▲ $13.058M ▼
Q4-2024 $178.456M ▲ $130.225M ▲ $-67.798M ▼ -37.991% ▼ $-0.43 ▼ $26.694M ▲
Q3-2024 $170.435M $105.628M $7.221M 4.237% $0.046 $10.11M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $313.506M ▲ $1.222B ▲ $957.386M ▲ $264.472M ▲
Q2-2025 $284.386M ▲ $1.198B ▲ $950.147M ▼ $248.042M ▲
Q1-2025 $270.395M ▼ $1.154B ▼ $953.654M ▼ $200.49M ▲
Q4-2024 $305.208M ▲ $1.167B ▼ $987.439M ▲ $179.352M ▼
Q3-2024 $286.441M $1.191B $931.814M $259.026M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $4.045M ▲ $62.467M ▲ $-32.315M ▲ $-2.085M ▼ $28.031M ▲ $36.031M ▲
Q2-2025 $-961K ▼ $46.003M ▲ $-41.416M ▼ $496K ▲ $7.08M ▲ $30.152M ▲
Q1-2025 $11.13M ▲ $14.805M ▼ $-17.846M ▲ $-20.653M ▼ $-22.384M ▼ $-12.25M ▼
Q4-2024 $-67.798M ▼ $41.133M ▼ $-24.883M ▲ $6.252M ▲ $20.68M ▲ $17.897M ▼
Q3-2024 $7.221M $41.396M $-85.431M $-13.121M $-55.557M $18.365M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Cloud subscriptions
Cloud subscriptions
 $140.00M ▲$80.00M ▼$90.00M ▲$90.00M ▲
Services
Services
 $50.00M ▲$30.00M ▼$30.00M ▲$30.00M ▲
Software licenses
Software licenses
 $150.00M ▲$70.00M ▼$70.00M ▲$70.00M ▲
Software subscriptions
Software subscriptions
 $290.00M ▲$150.00M ▼$160.00M ▲$160.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been climbing steadily over the past several years, showing that Vertex is winning more business and expanding its footprint. Profitability, however, is still a work in progress. Gross profit has improved nicely, suggesting the core software and services are scaling well, but the company has hovered around break-even at the operating level and remains slightly loss-making at the bottom line. The direction of travel is positive: losses have narrowed, cash-style earnings have turned clearly positive, and the business looks much healthier than shortly after the IPO. Still, this is a growth story where management is spending heavily on people, product, and go‑to‑market, which keeps reported earnings under pressure.

Balance Sheet

Balance Sheet The balance sheet shows a company that has grown in size and invested significantly in its platform. Total assets have risen, with a notable build-up of cash in the most recent year, which gives Vertex a useful financial cushion. At the same time, debt has increased meaningfully, so the capital structure is now more leveraged than in prior years. Shareholder equity has edged down recently, reflecting accumulated losses and financing choices, which leaves a somewhat thinner capital buffer. Overall, the company appears adequately funded for now, but with a clearer reliance on borrowed money than in the past, which increases sensitivity to execution missteps or slower growth.

Cash Flow

Cash Flow Cash generation is a relative bright spot. Vertex has consistently produced positive cash flow from operations, and that cash flow has been strengthening as the business scales. After funding investments in its platform and infrastructure, the company still tends to end up with positive free cash flow in most years, demonstrating that it can largely fund its own growth. Capital spending has been steady rather than aggressive, indicating ongoing investment without overextension. The combination of rising operating cash flow, controlled investment levels, and a larger cash balance provides financial flexibility, though the higher debt load means ongoing discipline remains important.

Competitive Edge

Competitive Edge Vertex operates in a specialized and mission‑critical niche: indirect and direct tax technology for medium and large enterprises. Its deep integrations with major ERP systems, especially large platforms like SAP and Oracle, create high switching costs and make it embedded in customers’ core financial workflows. This, combined with decades of tax content and expertise across many jurisdictions, gives Vertex a meaningful moat that is difficult for newcomers to replicate quickly. A significant presence among large and global companies reinforces its brand and creates stable recurring revenue. The flip side is that it operates in a competitive space with other tax and compliance vendors, and it must continuously refresh its technology and content to maintain that edge.

Innovation and R&D

Innovation and R&D Innovation is a central part of the Vertex story. The company has successfully shifted from older on‑premise models toward cloud‑based, subscription software, which is now a major growth engine. It is layering in artificial intelligence, including a generative AI “copilot” that aims to simplify access to tax insights and improve productivity for tax professionals. The investment in Kintsugi AI points to a push down‑market into smaller businesses using AI‑driven automation. Vertex is also expanding into e‑invoicing and complying with new digital tax mandates globally, which opens additional product and geographic opportunities. These initiatives signal an active R&D agenda, but also come with execution risk: the company must prove that these new tools drive adoption, pricing power, and retention, not just higher development costs.

Summary

Vertex is a growing tax technology specialist with a strong position in a complex and sticky market. Revenue and gross profit are moving in the right direction, and cash generation is solid, but the company has yet to translate this fully into consistent accounting profits. The balance sheet shows more scale and liquidity than in earlier years, offset by higher debt and slimmer equity, making future execution more important. Strategically, Vertex benefits from deep ERP integrations, extensive tax content, and a blue‑chip customer base, all of which underpin a durable competitive position. At the same time, it operates in an evolving, competitive landscape where regulatory change, technology shifts, and customer budgets can all affect growth. Overall, the story centers on continued cloud and AI adoption, successful global expansion, and careful financial management to convert its entrenched niche into durable, high‑quality earnings over time.

NEWS

November 19, 2025 · 4:00 PM UTC

Vertex to Participate in the Citi's 2025 Global Healthcare Conference on December 3

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November 8, 2025 · 5:15 PM UTC

Vertex Presents Updated Phase 1/2 Data From RUBY-3 Study That Continue to Demonstrate Best-in-Class Potential for Povetacicept in Adults with IgA Nephropathy and Primary Membranous Nephropathy at American Society of Nephrology Kidney Week

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November 3, 2025 · 4:02 PM UTC

Vertex Reports Third Quarter 2025 Financial Results

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November 3, 2025 · 7:05 AM UTC

Vertex Announces Third Quarter 2025 Financial Results and $150 Million Class A Common Stock Repurchase Program

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October 30, 2025 · 4:00 AM UTC

Vertex Appoints New Leader in Europe to Advance Product Innovation and Strengthen Compliance

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