Vertex (NASDAQ:VERX) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Vertex (NASDAQ:VERX) posted its quarterly earnings results on Monday. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.01, Briefing.com reports. The business had revenue of $192.11 million during the quarter, compared to the consensus estimate of $191.62 million. Vertex had a negative net margin of 7.32% and a positive return on equity of 28.61%. Vertex’s revenue was up 12.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.16 EPS. Vertex updated its Q4 2025 guidance to EPS and its FY 2025 guidance to EPS.

Vertex Stock Down 3.8%

VERX stock opened at $19.91 on Wednesday. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.36. The company’s 50 day moving average is $24.69 and its 200 day moving average is $31.50. The stock has a market cap of $3.18 billion, a price-to-earnings ratio of -56.88, a price-to-earnings-growth ratio of 4.19 and a beta of 0.64. Vertex has a 1-year low of $19.21 and a 1-year high of $60.71.

Analyst Ratings Changes

A number of equities analysts have issued reports on VERX shares. Citigroup downgraded shares of Vertex from a “market outperform” rating to a “hold” rating in a report on Tuesday. Piper Sandler cut their price objective on shares of Vertex from $42.00 to $32.00 and set an “overweight” rating on the stock in a report on Tuesday. Weiss Ratings reissued a “sell (d)” rating on shares of Vertex in a report on Wednesday, October 8th. DA Davidson cut their price target on shares of Vertex from $29.00 to $23.00 and set a “neutral” rating on the stock in a report on Tuesday. Finally, UBS Group reissued a “market outperform” rating on shares of Vertex in a report on Tuesday. Twelve investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $33.60.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Wasatch Advisors LP bought a new position in Vertex during the second quarter valued at approximately $88,293,000. Ameriprise Financial Inc. grew its position in Vertex by 28.7% during the second quarter. Ameriprise Financial Inc. now owns 1,086,509 shares of the company’s stock valued at $38,392,000 after acquiring an additional 242,084 shares during the last quarter. Tidal Investments LLC grew its position in Vertex by 34.5% during the second quarter. Tidal Investments LLC now owns 400,285 shares of the company’s stock valued at $14,144,000 after acquiring an additional 102,654 shares during the last quarter. Royal Bank of Canada grew its position in Vertex by 36.3% during the first quarter. Royal Bank of Canada now owns 180,978 shares of the company’s stock valued at $6,336,000 after acquiring an additional 48,181 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Vertex by 1.4% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 83,056 shares of the company’s stock valued at $2,933,000 after acquiring an additional 1,121 shares during the last quarter. 70.32% of the stock is currently owned by institutional investors.

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

About Vertex

Vertex, Inc, together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools.