Vertex (NASDAQ:VERX) Issues Quarterly Earnings Results, Meets Estimates

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

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 Stock Down 14.7%

VERX stock traded down $2.19 during midday trading on Wednesday, hitting $12.69. The stock had a trading volume of 3,441,791 shares, compared to its average volume of 2,097,073. Vertex has a 52-week low of $12.52 and a 52-week high of $52.74. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.01 and a quick ratio of 1.01. The business has a 50-day moving average of $19.16 and a two-hundred day moving average of $22.58. The firm has a market cap of $2.02 billion, a price-to-earnings ratio of -36.56, a price-to-earnings-growth ratio of 2.34 and a beta of 0.59.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Royal Bank of Canada lifted its position in Vertex by 36.3% in the 1st 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 in the last quarter. Advisors Asset Management Inc. increased its position in Vertex by 25.7% in the first quarter. Advisors Asset Management Inc. now owns 1,933 shares of the company’s stock worth $68,000 after buying an additional 395 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Vertex by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 81,935 shares of the company’s stock worth $2,869,000 after acquiring an additional 3,461 shares during the period. Prudential Financial Inc. raised its position in shares of Vertex by 92.1% during the 2nd quarter. Prudential Financial Inc. now owns 8,105 shares of the company’s stock valued at $286,000 after purchasing an additional 3,885 shares during the period. Finally, Russell Investments Group Ltd. boosted its stake in shares of Vertex by 10,910.6% in the second quarter. Russell Investments Group Ltd. now owns 13,543 shares of the company’s stock worth $479,000 after acquiring an additional 13,420 shares during the period. Institutional investors own 70.32% of the company’s stock.

Vertex declared that its board has approved a share buyback plan on Monday, November 3rd that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the company to buy up to 4.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several research firms have recently issued reports on VERX. Citizens Jmp reduced their target price on Vertex from $50.00 to $37.00 and set a “market outperform” rating for the company in a report on Tuesday, November 4th. Weiss Ratings reiterated a “sell (d)” rating on shares of Vertex in a research note on Wednesday, January 21st. BMO Capital Markets lowered their target price on shares of Vertex from $30.00 to $24.00 and set a “market perform” rating on the stock in a research note on Tuesday, November 4th. Jefferies Financial Group set a $28.00 price objective on Vertex in a report on Monday, November 3rd. Finally, JMP Securities set a $37.00 target price on Vertex in a research note on Tuesday, November 4th. Eleven 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’s stock. According to data from MarketBeat.com, Vertex has a consensus rating of “Moderate Buy” and an average target price of $31.60.

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.