Vertex serves enterprise and mid-market customers across industries with a recurring revenue model supported by long-term subscription contracts and embedded integrations with major ERP and commerce platforms. Cloud revenue totaled $94.6 million growing 23% year-over-year, with e-invoicing business growth supported by upcoming regulatory mandates in Europe, and AI-driven Smart Categorization capabilities improving tax workflow automation.
Cyborg Score Rationale
Vertex delivered Q4 2025 revenue growth of 9.1% and returned to full-year profitability in 2025, with subscription and cloud revenue expansion supporting double-digit ARR growth and continued revenue growth expected in 2026. However, the company has lost approximately 70% of its value despite steady growth and margin expansion.
Top Insights
Cloud revenue accelerating at 23% YoY while achieving full-year 2025 profitability return demonstrates operational leverage
E-invoicing business entering first full year of contribution with tailwind from European regulatory mandates
Stock down 70% despite steady growth creates valuation opportunity; analyst consensus 12-month target of $30.56 implies 106% upside
Gross Revenue Retention declined to 94% in Q4 2025, indicating some customer churn pressures in competitive environment
Named Competitors
ONESOURCE — Enterprise tax software and compliance solutions
AvaTax — Cloud-based sales tax automation and reporting
SAP Tax — ERP-integrated tax compliance module
Recent Developments
(February 2026) Q4 2025 earnings showed 9.1% revenue growth to $194.7M with cloud revenue up 23% YoY and return to full-year profitability
(February 2026) FY2026 guidance targets $823.5M-$831.5M revenue with 25% cloud growth and $188M-$192M adjusted EBITDA