Vertex, Inc. (VERX)
Vertical SaaSSaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
Vertex, Inc. has demonstrated a steady upward trajectory, with trailing revenue reaching $0.75B in Q1 2026, up from $0.72B in Q3 2025. The 12.5% YoY growth in Q1 2026 represents a notable acceleration from the 8.6% recorded in Q3 2025, indicating a re-acceleration phase. Gross margins, however, have shown slight compression, declining from 66.5% in Q3 2025 to 64.0% in Q1 2026, suggesting potential investments in cloud infrastructure or a shift in revenue mix. Free Cash Flow (FCF) margin experienced a sharp drop from 16.1% in Q3 2025 to 4.8% in Q1 2026, likely reflecting increased capital expenditures or working capital absorption as the company scales. Despite this, the underlying revenue base is expanding, reinforcing a solid scale of operations.
Operational & Go-to-Market (GTM) Efficiency
The Rule of 40 score—a composite of revenue growth and FCF margin—has weakened significantly, falling from 24.7 in Q3 2025 to 17.4 in Q1 2026. This decline is primarily driven by the aforementioned FCF margin contraction, suggesting that recent growth investments are not yet translating into proportional cash profitability. Without disclosed Net Revenue Retention (NRR) or CAC payback metrics, it is challenging to fully assess GTM efficiency, but the 64% gross margin provides a reasonable buffer for reinvestment. The acceleration in growth (from 8.6% to 12.5%) implies that R&D and sales spend may be yielding higher top-line returns, though the cash efficiency lag warrants close monitoring. A stronger NRR figure, if disclosed, would help validate customer expansion dynamics.
Market Valuation & Sentiment
Vertex’s EV/Revenue multiple has risen sharply from 0.5x in Q3 2025 to 2.9x in Q1 2026, reflecting a re-rating likely driven by improved growth sentiment and the company’s position in the vertical SaaS space. This multiple, while higher, remains reasonable relative to historical SaaS benchmarks. Insider activity shows a net selling value of $-813.2K over the last 10 filings, with zero insider purchases, signaling a cautious internal perspective on current valuation levels. Wall Street analysts maintain a Consensus Buy (10 Buys, 7 Holds) with an average price target of $18.44, suggesting modest upside from current levels. The positive analyst sentiment contrasts with insider caution, creating a nuanced outlook where operational momentum supports the bull case, but cash flow efficiency and insider behavior warrant careful risk assessment.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
Vertex, Inc. (VERX) is a Vertical SaaS SaaS company with a market cap of $2.0B as of Q2 2026. The company trades at 2.6x EV/Revenue and has delivered +16.6% revenue growth year-over-year. With a gross margin of 64% and FCF margin of 4.7%, Vertex, Inc. scores 21 on the Rule of 40 — placing it in the median range of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
EV/Revenue is 2.6x (sector median: 5.0x) — trading at a discount of 2.4x relative to peers.
Rule of 40 is 21.2% (sector median: 33.1%) — underperforming peers by 11.8%.
Revenue Growth is 16.6% (sector median: 17.6%) — in-line with peers.
Gross Margin is 64.2% (sector median: 73.7%) — underperforming peers by 9.5%.
FCF Margin is 4.7% (sector median: 11.8%) — underperforming peers by 7.1%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Negative leverage. Growth is being achieved at the expense of deteriorating margins (increasing operating loss).
Insider Trading Activity
Analyst Ratings
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