Vertex (NASDAQ:VERX) Issues Earnings Results

Vertex (NASDAQ:VERX) posted its earnings results on Wednesday. The company reported $0.17 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.17, FiscalAI reports. Vertex had a net margin of 0.96% and a return on equity of 25.25%. The firm had revenue of $194.71 million during the quarter, compared to analysts’ expectations of $194.33 million. During the same period in the previous year, the company earned $0.15 earnings per share. The company’s revenue was up 9.1% compared to the same quarter last year.

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 Performance

VERX opened at $12.37 on Friday. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 1.27. The stock’s 50 day moving average price is $18.88 and its two-hundred day moving average price is $22.44. The firm has a market capitalization of $1.97 billion, a P/E ratio of 309.33, a price-to-earnings-growth ratio of 1.97 and a beta of 0.59. Vertex has a 12-month low of $11.96 and a 12-month high of $50.79.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on VERX shares. Citigroup decreased their price objective on shares of Vertex from $22.00 to $15.00 and set a “neutral” rating for the company in a report on Thursday. Robert W. Baird set a $25.00 price target on Vertex in a research report on Tuesday, November 4th. The Goldman Sachs Group decreased their price target on Vertex from $26.00 to $23.00 and set a “buy” rating for the company in a research note on Thursday. Jefferies Financial Group downgraded Vertex from a “buy” rating to a “hold” rating and set a $16.00 price objective on the stock. in a research note on Wednesday. Finally, Piper Sandler reduced their target price on Vertex from $20.00 to $14.00 and set a “neutral” rating for the company in a report on Thursday. Nine equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $23.94.

Hedge Funds Weigh In On Vertex

A number of institutional investors and hedge funds have recently bought and sold shares of VERX. Prudential Financial Inc. grew its position in Vertex by 92.1% during the second quarter. Prudential Financial Inc. now owns 8,105 shares of the company’s stock worth $286,000 after buying an additional 3,885 shares in the last quarter. Tower Research Capital LLC TRC lifted its position in shares of Vertex by 363.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,070 shares of the company’s stock worth $285,000 after acquiring an additional 6,328 shares during the period. Inceptionr LLC acquired a new stake in shares of Vertex during the 4th quarter worth approximately $273,000. CANADA LIFE ASSURANCE Co grew its holdings in shares of Vertex by 39.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 7,311 shares of the company’s stock worth $259,000 after purchasing an additional 2,055 shares in the last quarter. Finally, Nomura Holdings Inc. bought a new stake in shares of Vertex during the third quarter valued at approximately $247,000. Institutional investors own 70.32% of the company’s stock.

Key Stories Impacting Vertex

Here are the key news stories impacting Vertex this week:

• Positive Sentiment: Vertex reported solid Q4 and full?year 2025 results: revenue +9.1% YoY in Q4 ($194.7M), full?year revenue +12.2% ($748.4M), cloud revenue +27.9% and a return to net income for the year. Management reiterated strong 2026 guidance (revenues $823.5M–$831.5M, ~25% cloud growth, higher adjusted EBITDA) and executed a ~$10M buyback—these are constructive for medium?term growth and margin improvement. Vertex Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Some analysts remain bullish despite cuts—Citizens JMP left a “market outperform” stance with a $25 target and Needham kept a “buy” rating (PT lowered to $20), signaling that parts of the Street still see significant upside if execution continues. Analyst Coverage
• Neutral Sentiment: Management highlighted AI product initiatives (Smart Categorization) and e?invoicing tailwinds in Europe on the earnings call — strategic positives but early in commercial ramp; see call notes/transcript for details. Q4 Earnings Call Highlights
• Neutral Sentiment: Q4 non?GAAP metrics improved (Adjusted EBITDA margin ~21.8%, non?GAAP EPS $0.17) but the company’s free cash flow weakened versus prior year—mixed operational signal for valuation. Quiver Quant Summary
• Negative Sentiment: Multiple firms cut price targets this morning — Citigroup (PT $22 ? $15, neutral), Piper Sandler ($20 ? $14, neutral) and others trimmed targets. Those cuts increase near?term selling pressure and reflect concern about growth/loss of investor confidence even though guidance was solid. Analyst Price Target Cuts
• Negative Sentiment: Customer?retention metrics ticked down (NRR 105% from 109%, GRR 94% from 95%) and free cash flow fell year?over?year — potential signs of pressure on upsell/renewals and cash conversion that could cap near?term multiple expansion. Financial Results

Vertex announced that its Board of Directors has authorized a stock repurchase plan on Monday, November 3rd that allows the company to buyback $150.00 million in shares. This buyback authorization allows the company to reacquire up to 4.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

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.