Vertex, Inc. (VERX) Stock

Vertex, Inc. (VERX) is a Technology stock trading at $13.48 (as of 2026-08-21), with a market capitalization of $987.00M and a trailing P/E of 276.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Vertex, Inc. develops tax technology for corporations, including software for tax determination, compliance and reporting, tax data and document management, and industry-specific solutions, delivered through software licenses and software-as-a-service subscriptions. It also provides related implementation and training, and offers transaction tax return outsourcing and other tax services for companies in the retail, communications, leasing, and manufacturing sectors in the United States and internationally.

Understand Vertex, Inc.: how it makes money

Vertex, Inc. sells tax technology software and related services for corporate tax determination, compliance, reporting, and tax data management. It earns money primarily from software subscriptions, including cloud-based solutions, and from implementation, training, and other tax services.

Vertex has a software-heavy model where software subscription revenue supports a high gross margin (63.5%), but the company is currently running at a negative operating margin (-5.4%), so operating expense levels are the key swing factor for profitability.

Revenue by segment (latest quarter)
Software	$0.2B
Services	$0.0B

Business quality (Weak): Good visibility into subscription versus services, and clear operating KPIs (ARR and retention). Segment data shown here appears limited, and some candidates overlap conceptually (cloud within subscription), so segment totals may not represent a full official reporting structure.

Bull case

Recurring revenue strength: Annual Recurring Revenue is 0.69 USD_B for the latest quarter, indicating a subscription-based revenue base.
Customer value retention is above 100%: Net Revenue Retention Rate is 105.0 percent, which suggests existing customers are generating more revenue over time than the prior period.
Cloud adoption is high among new logos: Percentage of New Logos Selecting Cloud-Based Solutions is 96.0 percent.

Bear case

Current profitability is negative: Operating margin is -5.4 percent in the latest quarter, which shows operating costs exceed operating gross profit.
Churn risk implied by gross retention: Gross Revenue Retention Rate is 95.0 percent, indicating some revenue reduction even if net retention is above 100%.
Services contribute a smaller share of revenue: Services Revenue is 0.03 USD_B versus 0.17 USD_B for software subscription revenue, so the profit model relies more on software subscriptions than services.

Valuation — source: SEC EDGAR (first-party)
Price	$13.48
Market Cap	$987.00M
P/E Ratio	276.1
EV / EBITDA	11.4
Price / Book	4.09
Price / Sales	1.25
FCF Yield	10.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$748.44M
Net Margin	1.0%
Return on Equity	1.5%
Debt / Equity	1.41
Current Ratio	0.87
Revenue Growth (YoY)	12.2%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.12 (distress)

Valuation vs Sector & Industry
Stock P/E	276.1
Sector P/E (Technology)	34.0
Industry P/E (Business Services)	30.2
vs Sector	712.4%
vs Industry	815.3%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($166.72M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Business Services
CEO	Christopher David Young
Employees	1,900
Country	US
IPO Date	2020-07-29

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.