Vertex (NASDAQ:VERX) Announces Earnings Results, Meets Estimates

Vertex (NASDAQ:VERX) posted its earnings results on Wednesday. The company reported $0.17 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.17, FiscalAI reports. The company had revenue of $194.71 million during the quarter, compared to analyst estimates of $194.33 million. Vertex had a positive return on equity of 26.84% and a negative net margin of 7.32%.Vertex’s revenue was up 9.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.15 earnings per share.

Here are the key takeaways from Vertex’s conference call:

• Q4 and FY performance: Q4 revenue was $194.7M (in line with guidance) and Adjusted EBITDA of $42.5M beat the high end of guidance; full‑year revenue was $748.4M (+12.2%) with solid profitability and cash generation.
• 2026 outlook: Management guided to $823.5M–$831.5M revenue, ~25% cloud growth and $188M–$192M Adjusted EBITDA (≈23% margin at midpoint), signaling confidence in restoring growth.
• AI-first strategy: New CEO is prioritizing AI (Vertex Copilot, Smart Categorization) to automate tax workflows, improve customer success coverage and drive upsell—management views AI as a major growth vector.
• Growth headwinds and retention pressure: 2025 saw lower true‑up revenue (~$10M below 2024), moderated upsell/cross‑sell and slightly higher attrition concentrated in smaller accounts (lost accounts averaged < $50k ARR), which weighed on NRR/ARR growth.
• Compliance & e‑invoicing traction: First full year in e‑invoicing produced meaningful wins (including a seven‑figure European healthcare logo), 39‑country coverage, and >20% ARR uplifts in some existing accounts, supporting land‑and‑expand opportunities.

Vertex Trading Down 13.8%

NASDAQ:VERX opened at $12.83 on Thursday. The company has a market capitalization of $2.05 billion, a P/E ratio of -36.66, a PEG ratio of 2.28 and a beta of 0.59. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 1.27. Vertex has a 12 month low of $12.39 and a 12 month high of $52.74. The firm has a fifty day simple moving average of $19.03 and a 200-day simple moving average of $22.51.

Vertex declared that its board has initiated a share buyback program on Monday, November 3rd that authorizes the company to repurchase $150.00 million in shares. This repurchase authorization authorizes the company to buy up to 4.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on VERX shares. Stifel Nicolaus set a $16.00 price objective on Vertex in a research note on Wednesday. Robert W. Baird set a $25.00 target price on shares of Vertex in a report on Tuesday, November 4th. Piper Sandler lowered shares of Vertex from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $32.00 to $20.00 in a research report on Monday, February 2nd. Needham & Company LLC cut their price objective on shares of Vertex from $30.00 to $20.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, The Goldman Sachs Group set a $25.00 target price on shares of Vertex in a research report on Wednesday, January 14th. Ten equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Vertex has an average rating of “Moderate Buy” and a consensus target price of $29.67.

Trending Headlines about Vertex

Here are the key news stories impacting Vertex this week:

• Positive Sentiment: Management delivered solid top‑line growth and raised forward expectations: Q4 revenue $194.7M (+9.1% Y/Y) and FY2025 revenue $748.4M (+12.2%); FY2026 revenue guidance of $823.5M–$831.5M and adjusted EBITDA guidance of $188M–$192M — guidance above consensus supports upside. Vertex Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Cloud and recurring revenue momentum: cloud revenue grew ~23% in Q4 and ~28% for FY2025; ARR rose ~11% to $671M. Non‑GAAP operating income, adjusted EBITDA and non‑GAAP EPS improved, and FY2025 showed a return to GAAP net income — all point to improving profitability. Vertex Inc.: Vertex Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Strategic growth drivers highlighted: management cited upcoming European e‑invoicing mandates and early traction for AI‑driven tax workflow products (Smart Categorization). The company also repurchased ~$10M of shares under its buyback authorization. These items support acceleration potential and shareholder returns. Vertex Inc (VERX) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic AI …
• Neutral Sentiment: Earnings largely met Street estimates: Q4 non‑GAAP EPS $0.17 and revenue ~$194.7M came in line with consensus, so there were no major surprises in the headline numbers. Vertex (VERX) Q4 Earnings Match Estimates
• Neutral Sentiment: Full earnings call/transcript available — management commentary emphasizes execution on cloud, e‑invoicing cadence and AI; read details in the transcript for product/renewal color that could move the name. Vertex (VERX) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Customer‑retention and cash metrics showed minor deterioration: net revenue retention fell to 105% (from 109%), gross revenue retention to 94%, and free cash flow declined vs. prior year — potential warning signs on expansion and cash conversion. Vertex Announces Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Analyst price‑target cut: Needham trimmed its PT from $30 to $20 while keeping a Buy — the cut may cap near‑term upside and inject short‑term selling pressure despite the buy rating. Vertex Inc. (VERX) PT Lowered to $20 at Needham

Institutional Trading of Vertex

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Raymond James Financial Inc. purchased a new stake in Vertex during the 2nd quarter valued at about $54,000. Global Retirement Partners LLC purchased a new stake in Vertex in the fourth quarter valued at approximately $32,000. Advisors Asset Management Inc. increased its holdings in Vertex by 25.7% in the 1st quarter. Advisors Asset Management Inc. now owns 1,933 shares of the company’s stock worth $68,000 after buying an additional 395 shares during the period. Empowered Funds LLC acquired a new position in Vertex in the 4th quarter worth approximately $45,000. Finally, Johnson Financial Group Inc. purchased a new position in Vertex during the 3rd quarter worth approximately $130,000. Institutional investors and hedge funds own 70.32% of the company’s stock.

Vertex Company Profile

Vertex Energy, Inc (NASDAQ: VERX) is a specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States. The company collects and processes a variety of waste petroleum products, including used motor oil and industrial lubricants, which it converts into ultra-low-sulfur diesel, asphalt, and other refined products. By leveraging proprietary re-refining technologies and strategic feedstock sourcing, Vertex Energy aims to deliver cost-effective, lower-carbon fuel solutions to wholesale and retail customers across the country.

Headquartered in Houston, Texas, Vertex operates a network of refining and blending facilities in key regions, including the Central, Northeast and Mid-Atlantic markets.