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Vertex

VERX on Nasdaq. Vertex sells tax compliance software to businesses that sell goods across jurisdictions. Market value $2.6bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to December 2025.

Cash flow or capital spending isn't reported, so free cash flow is unknown.

Should I look at this?

Not a fit for our list right now

Why it could be worth it

Nothing stands out yet.

What to watch out for

See Technology stocks that passed both tests

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
annual report to December 2025
n/a

We could not compute this from the filings.

Price to profit
past 12 months to June 2026
n/a

The filings do not give us enough to work this out.

Return on capital
five annual reports to December 2025
-2.1%five-year median

Each dollar kept in the business earns -2 cents a year. Above 10 is good.

Quality score: 56 of 100. Price score: 17 of 100. Our list needs 70 on quality and 60 on price.

$12.29 a share, 20% above its 1-year low

Over the past year the price has ranged from $10.21 to $26.54.

Pays no dividend

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

0.0
0.0
0.0
0.1
n/a
20212022202320242025
Revenue
$426m$492m$572m$667m$748m
Operating margin
-0.7%-1.6%-3.1%-0.3%0.3%
Debt to equity
n/a0.210.181.871.30
Shares outstanding
n/an/an/an/an/a

Health checks

  • Free cash flow positive4 of 4 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)6 of 8 checks we could run
  • Profit backed by cash (accruals)No
  • Debt1.30× equity
  • Revenue growth, five yearsStrong, 14.8% a year

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $204 million last quarter, up 11% on a year ago.
  • Profit: $9 million, after a loss of $961,000 a year ago.
  • It loses 2 cents on each $1 of sales, compared with 1 cents a year earlier.
  • Debt is $108 million more than cash, up from $52 million a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$170m
December 2024$178m
March 2025$177m
June 2025$185m
September 2025$192m
December 2025$195m
March 2026$197m
June 2026$204m
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$7m
December 2024-$68m
March 2025$11m
June 2025-$961,000
September 2025$4m
December 2025-$7m
March 2026-$3m
June 2026$9m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
n/a
Last annual report (10-K)
24 February 2026
Next quarterly (estimated, 10-Q)
3 November 2026

Who owns it

1 long-term investor we follow owns it, down from 2 last quarter. 228 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

6 investors own more than 5%.

  • Amanda Radcliffe
    Passive investor
    at least 20.9%−0.3 pts
    (filed with 15 related holders)
    Since 30 June 2025
  • BlackRock, Inc.
    Passive investor
    7.2%+1.1 pts
    Since 31 December 2025
  • 6.2%
    Since 31 March 2026
  • Morgan Stanley
    Passive investor
    5.3%
    Since 31 March 2026
  • at least 4.6%
    (filed with 1 related holder)
    Since 28 February 2025
  • at least 4.4%−0.7 pts
    (filed with 5 related holders)
    Since 31 March 2026
  • The Vanguard Group
    Passive investor
    Sold down below 5%
    Since 13 March 2026
  • Jenifer Westphal
    Passive investor
    Sold down below 5%
    Since 31 December 2024

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 2 insiders bought $1m of shares on the open market. 1 sold $82,365.

  • DeStefano David
    Director
    Sold
    Date
    28 May 2026
    Shares
    6,460
    Price
    $12.75
    Value
    $82,365
  • Young Christopher David
    President and CEO, Director
    Bought
    Date
    23 February 2026
    Shares
    60,000
    Price
    $12.18
    Value
    $730,800
  • ANDERSEN ERIC C.
    Director
    Bought
    Date
    20 February 2026
    Shares
    40,000
    Price
    $12.91
    Value
    $516,400

From Form 4 filings: insiders must report trades in their own company's shares within two days.

What could go wrong

Cheap for a reason is the question the numbers cannot answer.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.