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Vertex Inc

Vertex Inc

VERX
$12.26USD↓-0.08%-0.01 today

MARKET CAP

2.0B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$12 – $12

52W RANGE

$10
$27

AI Summary

Stalk
Sell NowMedium

VERX remains in a longer-term downtrend and now tests significant overhead resistance at the 200 SMA. A primary Bullish Exhaustion pattern and extreme overbought readings signal waning upside momentum, reinforcing a bearish medium-term posture. Although short-term EMAs are rising, price is extended, so bearish execution should be deferred until rejection at the 200 SMA region. Sell on rallies into that resistance zone for a pullback toward the 50 SMA and consolidation lows.

  • ↑Q2 revenue of $204M up 10.5% YoY; ARR reached $671M (+11.3%)
  • ↑Cloud revenue grew 17.9% as e-invoicing demand accelerates ahead of mandates
  • ↓Customer churn rose after key account bankruptcies, pressuring ARR retention
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The case for & against

Bull & Bear analysis

Bearish

Vertex, Inc. (NASDAQ: VERX) is a leading provider of tax technology solutions specializing in compliance and AI-driven applications. Their software solutions help businesses navigate complex regulatory requirements across various jurisdictions. Given the increasing global focus on tax compliance, Vertex positions itself at the forefront of an evolving landscape, mainly through its innovative offerings, including e-invoicing and cloud-based tax solutions.

Bull says

  • ↑Q2 revenue of $204M up 10.5% YoY; ARR reached $671M (+11.3%)
  • ↑Cloud revenue grew 17.9% as e-invoicing demand accelerates ahead of mandates
  • ↑Share buybacks of $26.5M under a $150M program signal confidence
  • ↑Net Revenue Retention at 105% for two consecutive quarters demonstrates stickiness
  • ↑High earnings yield, strong growth and positive analyst revisions support valuation
  • ↑Potential European e-invoicing mandates and AI-driven solutions boost future growth

Bear says

  • ↓Customer churn rose after key account bankruptcies, pressuring ARR retention
  • ↓Cloud conversions slowed due to elongated decision cycles, hindering revenue growth
  • ↓Profitability declined, reflecting weak margins and challenges converting revenue to earnings
  • ↓Negative momentum and high short interest indicate investor skepticism
  • ↓Elevated leverage and smaller size heighten financial risk under downturn scenarios
  • ↓Valuation appears stretched amid uncertain retention and profit outlooks

Investment themes with VERX

FinTech Lending↓ -2.43%

Financial technology companies providing loans

SOFI · COIN · FIS

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-04-2026neutral

Transcript signals

Bull points

  • Our growth thesis in e-invoicing is unfolding as anticipated. Customers who adopted our solution earlier this year are already returning to license additional country coverage.
  • In the second quarter, revenue was $184.6 million, up .6% year over year, and revenue growth was 12.4%, in line with expectations for the quarter.
  • Cloud revenue was $86.2 million in the second quarter, up .9% from last year's second quarter and ahead of our guidance for the year.

Bear points

  • However, as the quarter progressed for the first time, we saw macroeconomic factors that have been noted in the software industry in 2025 impact our customers and begin to affect their activity with us.
  • We took action to mitigate this, but it necessitated a reduction in our full-year guidance.
  • We attributed the decrease to two main factors. Lower growth of additional entitlements as our customers annual growth has slowed, keeping them within current bands of usage.
Read full transcript analysis ›