Vertex (NASDAQ:VERX) Releases Earnings Results, Beats Estimates By $0.01 EPS

Vertex (NASDAQ:VERX) issued its quarterly earnings data on Monday. The company reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.19 by $0.01, Briefing.com reports. Vertex had a negative net margin of 0.84% and a positive return on equity of 26.04%. The business had revenue of $203.97 million for the quarter, compared to analysts’ expectations of $202.21 million. During the same period in the previous year, the business earned $0.15 earnings per share. The company’s revenue was up 10.5% on a year-over-year basis.

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

• Q2 revenue and profitability exceeded expectations. Revenue rose 10.5% year over year to $204 million, while adjusted EBITDA increased 33% to $51 million and the margin expanded to 25%.
• E-invoicing momentum accelerated ahead of French and German mandates, including several six-figure enterprise wins and growing cross-sell activity among existing customers. Management expects adoption and multi-country deployments to support cloud growth into late 2026 and 2027.
• Cloud conversions and sales cycles are taking longer than expected. Vertex reduced its full-year cloud revenue growth outlook to 18%, citing delayed customer migrations, elongated procurement cycles, and slower new-logo execution, although management characterized the issue as timing rather than lost revenue.
• AI adoption is improving internal productivity, with 89% of employees using core AI tools and reported engineering-efficiency gains, but AI-related revenue is not yet material. Customer-facing products remain largely in the build and validation phase, with broader commercialization expected primarily in 2027.
• Vertex raised its full-year adjusted EBITDA outlook to $206 million-$210 million while narrowing revenue guidance to $825 million-$830 million. The company also repurchased $26.5 million of stock during the quarter, with $93.4 million remaining under its authorization.

Vertex Trading Up 3.8%

Shares of Vertex stock opened at $13.40 on Tuesday. The business has a fifty day simple moving average of $12.42 and a 200-day simple moving average of $13.46. Vertex has a fifty-two week low of $10.21 and a fifty-two week high of $33.54. The firm has a market cap of $2.17 billion, a price-to-earnings ratio of -268.00 and a beta of 0.83. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 1.37.

More Vertex News

Here are the key news stories impacting Vertex this week:

• Positive Sentiment: Q2 earnings exceeded expectations: Vertex reported adjusted earnings of $0.20 per share, ahead of the $0.19 consensus estimate and up from $0.15 a year earlier. Revenue increased 10.5% year over year to approximately $204.0 million, also topping the $202.2 million consensus cited by some analysts. Vertex quarterly earnings report
• Positive Sentiment: Cash generation and profitability improved: Gross profit rose to $131.3 million, operating losses narrowed to $4.4 million, and operating cash flow reached $30.9 million. The company ended the quarter with $230.5 million in cash and equivalents. Vertex Q2 2026 financial data
• Positive Sentiment: Analyst target increased: BMO Capital Markets raised its price target from $14 to $15 while retaining a “market perform” rating. The higher target reflects some confidence in Vertex’s execution, although the rating remains cautious.
• Positive Sentiment: Insider buying provides a supportive signal: Recent filings show substantially more insider purchases than sales over the past six months, including purchases by CEO Christopher Young and other executives. This may indicate management views the current valuation as attractive. Vertex insider trading activity
• Neutral Sentiment: Full-year outlook is broadly in line: Vertex guided for 2026 revenue of $825 million to $830 million, compared with the $827.2 million analyst consensus, suggesting no major change to expectations.
• Negative Sentiment: Q3 guidance was slightly below estimates: Management forecast third-quarter revenue of $208 million to $211 million, versus the $211.6 million consensus. That modest shortfall, along with the company’s still-negative net margin, could weigh on sentiment despite the quarterly earnings beat. Vertex Q2 earnings and guidance

Institutional Investors Weigh In On Vertex

Several hedge funds and other institutional investors have recently bought and sold shares of VERX. Advisors Asset Management Inc. raised its position in shares of Vertex by 25.7% during the first quarter. Advisors Asset Management Inc. now owns 1,933 shares of the company’s stock valued at $68,000 after buying an additional 395 shares during the last quarter. Victory Capital Management Inc. lifted its stake in shares of Vertex by 9.9% in the third quarter. Victory Capital Management Inc. now owns 8,354 shares of the company’s stock valued at $207,000 after buying an additional 753 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Vertex by 1.4% in 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 buying an additional 1,121 shares during the period. California State Teachers Retirement System grew its position in Vertex by 2.2% during the second quarter. California State Teachers Retirement System now owns 63,009 shares of the company’s stock worth $2,226,000 after buying an additional 1,383 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in Vertex during the second quarter worth about $54,000. 70.32% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

VERX has been the subject of a number of recent analyst reports. DA Davidson set a $15.00 target price on shares of Vertex in a research report on Friday, May 8th. Weiss Ratings downgraded shares of Vertex from a “sell (d)” rating to a “sell (e+)” rating in a research report on Monday, May 11th. Wall Street Zen lowered shares of Vertex from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Citigroup increased their price objective on shares of Vertex from $15.00 to $16.00 and gave the company a “neutral” rating in a report on Friday, May 8th. Finally, TD Cowen began coverage on shares of Vertex in a research note on Monday, June 29th. They set a “buy” rating and a $14.00 price objective on the stock. Six investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $20.07.

About Vertex

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.