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Sells tax compliance software that calculates and manages sales tax and VAT for businesses across jurisdictions.
Sells tax compliance software that calculates and manages sales tax and VAT for businesses across jurisdictions.
Sells annual and multi-year subscriptions, so most revenue recurs, and typically plugs into the ERP systems customers already run, such as SAP and Oracle. Demand rose after a 2018 US Supreme Court ruling (Wayfair) let states require out-of-state online sellers to collect sales tax, multiplying the jurisdictions' rules to track.
Moat: narrow (switching costs, data, installed base). Deeply embedded in ERP/e-commerce billing systems and constantly updated tax-rate data are costly to replace.
Headquarters: King of Prussia, Pennsylvania, United States · Founded: 1978 · Employees: 2,100
Size Vertex (VERX) is a United States Information Technology company (Packaged Software) with a market value of $2.77B, the 1595th largest of 3,117 United States companies the cockpit tracks. Shares closed at $17.08 on 6 Nov 2026.
Performance Over six months the shares gained 14.4%, against -15.6% for the median peer and -1.1% for the United States market (cap-weighted) — 4th highest of 20 in its peer set.
Growth Revenue grew 10.8% over the last twelve months (peer median +19.8%); the operating margin is 1.1% (peer median 6.5%).
Valuation It trades at 17.4× forward earnings against a peer median of 34.9× (5th cheapest of 16).
Price implies For today's price to make sense, revenue must grow about 58% a year for seven years (Req g). Recent delivered growth is +15%, so the hurdle is +43 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 6.5 points below its cost of capital (8.3% WACC).
Backlog Backlog (remaining performance obligations) was $388M at 31 Dec 2025, up 13% on a year earlier — 0.5 years of trailing revenue. Backlog detail →
Credit Vertex has 1 bond outstanding ($345M).
Short interest Short interest is 6.9% of the free float (15 Oct 2026).
Next results Next results expected around 10 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $787M | $748M | $667M | $572M | $492M |
| Revenue growth | — | +12% | +16% | +16% | — |
| Gross profit | $471M | $451M | $399M | $328M | $282M |
| EBITDA | $120M | $109M | $114M | $79.4M | $74.1M |
| Net income | $3.58M | $7.21M | -$52.7M | -$13.1M | -$12.3M |
| Free cash flow | $72.4M | $69.3M | $86.5M | $24.1M | $18.3M |
| Capital expenditure | $123M | $118M | $87.1M | $68.2M | $73.4M |
| Total debt | $350M | $351M | $352M | $67.0M | $73.5M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Vertex VERX | $2.77B | +14% | +11% | 1% | 17.4× | 57.9% |
| Thomson Reuters TRI.TO | $49.1B | +25% | +6% | 26% | 24.8× | 2.7% |
| Wolters Kluwer WKL.AS | $22.0B | +54% | 0% | 26% | 15.9× | -3.0% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | VERX | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +33.8% | +3.1% | highest of 21 |
| 6-month return | +14.4% | -15.6% | 4th highest of 20 |
| Distance from 52-week high | -18.1% | -43.4% | 4th highest of 21 |
| Revenue growth (TTM) | +10.8% | +19.8% | 10th lowest of 21 |
| Operating margin | 1.1% | 6.5% | 7th lowest of 21 |
| Forward P/E | 17.4× | 34.9× | 5th cheapest of 16 |
| Growth the price implies (Req g, 7 yrs) | 57.9% | 12.6% | most demanding of 12 |
| Growth delivered (Del g) | +14.8% | +18.3% | 6th lowest of 12 |
| Hurdle (Req g minus delivered) | +43.1 pp | -3.5 pp | most demanding of 12 |
| ROIC minus cost of capital | -6.5 pp | -1.3 pp | 7th lowest of 20 |
| EV / EBITDA | 24.2× | 14.1× | 4th most expensive of 8 |
| Net debt / EBITDA | 0.8× | -0.9× | 2nd most indebted of 8 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Vertex VERX | United States | $2.77B | +14% | +11% | 1% | 17.4× | 57.9% | +14.8% |
| XD, Inc. 2400.HK | Hong Kong | $2.77B | -28% | +6% | 26% | 11.9× | 3.0% | +14.3% |
| JWIPC Technology 001339.SZ | China | $2.72B | -19% | +41% | 21% | 21.9× | n/a | n/a |
| Servyou Software 603171.SS | China | $2.84B | -16% | +6% | 5% | 72.7× | 40.3% | +5.9% |
| Tata Technologies TATATECH.NS | India | $2.86B | +6% | +22% | 13% | 34.9× | 28.3% | +18.3% |
| SPS Commerce SPSC | United States | $2.90B | +45% | +7% | 17% | 15.3× | 7.3% | +19.2% |
| Shijiazhuang Changshan Beiming Technology 000158.SZ | China | $2.64B | -35% | -14% | 2% | n/a | n/a | n/a |
| Beijing 51WORLD Digital Twin Technology 6651.HK | Hong Kong | $2.91B | -1% | +39% | -38% | n/a | n/a | n/a |
| Teradata TDC | United States | $2.96B | +1% | +1% | 8% | 11.6× | -5.4% | -2.0% |
| Intsig Information 688615.SS | China | $2.96B | -26% | +24% | 22% | 34.9× | 12.6% | +22.1% |
| Urban URBANCO.NS | India | $2.58B | +8% | +36% | -26% | n/a | n/a | n/a |
| Beijing Shiji Information Technology 002153.SZ | China | $3.02B | -27% | -4% | -3% | 492.7× | n/a | n/a |
| DHC Software 002065.SZ | China | $3.04B | -23% | -4% | 3% | 39.5× | 14.8% | +7.1% |
| Money Forward 3994.T | Japan | $2.52B | +51% | +35% | 2% | 2,235.1× | n/a | n/a |
| Shenzhen Infogem Technologies 300085.SZ | China | $3.06B | -23% | +2% | -11% | n/a | n/a | n/a |
| Meitu 1357.HK | Hong Kong | $2.50B | -9% | +24% | 24% | 12.8× | 7.5% | +25.5% |
| Liftoff Mobile LFTO | United States | $3.07B | n/a | +35% | 36% | 18.6× | -7.3% | +35.5% |
| Via Transportation VIA | United States | $3.07B | +118% | +29% | -17% | 259.2× | n/a | n/a |
| Cellebrite DI CLBT | United States | $3.13B | -2% | +18% | 11% | 38.0× | 22.8% | +19.5% |
| Guangdong Aofei Data Technology 300738.SZ | China | $2.44B | -34% | +24% | 23% | 42.6× | n/a | n/a |
| Tsinghua Tongfang 600100.SS | China | $3.15B | -22% | -11% | -2% | n/a | 30.2% | -10.3% |
Vertex has 1 bond outstanding with $345M face value.
Vertex reported $388M of remaining performance obligations at 31 Dec 2025, up 13% from a year earlier. That is 0.5 years of trailing revenue already under contract.