📊 VERX Key Takeaways
Is Vertex, Inc. (VERX) a Good Investment?
Vertex demonstrates strong gross margins (63.5%) typical of software businesses, but fails to achieve operating profitability despite $196.6M in revenue, with negative operating income of -$10.6M indicating excessive operating expenses. Critical liquidity concerns (current ratio 0.86x) combined with high leverage (debt/equity 1.37x) and negative interest coverage (-2.7x) create significant financial stress, despite positive free cash flow generation and a reasonable cash buffer of $252.5M.
Vertex, Inc. Key Strengths (VERX)
- Strong gross margin of 63.5% indicating solid underlying unit economics and pricing power
- Positive free cash flow of $16M demonstrates ability to generate cash despite GAAP losses
- Substantial cash position of $252.5M provides runway for operational improvements
VERX Stock Risks: Vertex, Inc. Investment Risks
- Current ratio of 0.86x signals potential liquidity crisis and difficulty meeting short-term obligations
- Negative interest coverage ratio (-2.7x) indicates company cannot service debt from operating income
- Extreme YoY revenue growth (14,161.5%) likely acquisition-driven rather than organic; integration risks and revenue sustainability unclear
- Operating loss of -$10.6M on $196.6M revenue suggests inability to control operating expenses despite substantial gross profit
Key Metrics to Watch
- Operating income trend toward profitability and positive operating margins
- Current ratio improvement above 1.0x to resolve liquidity concerns
- Interest coverage ratio achieving positive territory (>2.0x)
- Free cash flow sustainability and debt paydown trajectory
Vertex, Inc. (VERX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
VERX Profit Margin, ROE & Profitability Analysis
VERX vs Technology Sector: How Vertex, Inc. Compares
How Vertex, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Vertex, Inc. Stock Overvalued? VERX Valuation Analysis 2026
Based on fundamental analysis, Vertex, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Vertex, Inc. Balance Sheet: VERX Debt, Cash & Liquidity
VERX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Vertex, Inc.'s revenue has grown significantly by 76% over the 5-year period, indicating strong business expansion.
VERX Revenue Growth, EPS Growth & YoY Performance
VERX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $177.1M | -$2.5M | N/A |
| Q3 2025 | $170.4M | -$961.0K | N/A |
| Q2 2025 | $161.1M | -$961.0K | N/A |
| Q1 2025 | $156.8M | $2.7M | N/A |
| Q3 2024 | $145.0M | $2.7M | N/A |
| Q2 2024 | $139.7M | $2.7M | N/A |
| Q1 2024 | $132.8M | $2.7M | N/A |
| Q3 2023 | $126.2M | -$334.0K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Vertex, Inc. Dividends, Buybacks & Capital Allocation
VERX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Vertex, Inc. (CIK: 0001806837)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VERX
What is the AI rating for VERX?
Vertex, Inc. (VERX) has an AI grade of C with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VERX's key strengths?
Claude: Strong gross margin of 63.5% indicating solid underlying unit economics and pricing power. Positive free cash flow of $16M demonstrates ability to generate cash despite GAAP losses.
What are the risks of investing in VERX?
Claude: Current ratio of 0.86x signals potential liquidity crisis and difficulty meeting short-term obligations. Negative interest coverage ratio (-2.7x) indicates company cannot service debt from operating income.
What is VERX's revenue and growth?
Vertex, Inc. reported revenue of $196.6M.
Does VERX pay dividends?
Vertex, Inc. pays dividends, with $146.1M distributed to shareholders in the trailing twelve months.
Where can I find VERX SEC filings?
Official SEC filings for Vertex, Inc. (CIK: 0001806837) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VERX's EPS?
Vertex, Inc. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VERX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Vertex, Inc. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VERX stock overvalued or undervalued?
Valuation metrics for VERX: ROE of -1.0% (sector avg: 22%), net margin of -1.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is VERX's AI grade for 2026?
Our dual AI analysis gives Vertex, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VERX's free cash flow?
Vertex, Inc.'s operating cash flow is $38.0M, with capital expenditures of $22.0M. FCF margin is 8.1%.
How does VERX compare to other Technology stocks?
Vs Technology sector averages: Net margin -1.3% (avg: 18%), ROE -1.0% (avg: 22%), current ratio 0.86 (avg: 2.5).