Vertex, Inc. (VERX) Stock Forecast & Price Target

Vertex Inc. has demonstrated strong cloud revenue performance, reporting approximately $86 million, which reflects a year-over-year growth of around 30%, with organic growth of 26%, bolstered by the addition of Ecosio. The company projects a 14% growth in subscription revenue for the year, slightly adjusted from a previous estimate of 16%, indicating consistent revenue generation potential. Additionally, Vertex's upside scenario suggests a possible top-line outperformance of about 5%, which could lead to a significant expansion in market multiples, further enhancing its financial attractiveness.

Vertex Inc. has revised its full year revenue guidance lower by approximately $12 million to $752 million at the midpoint, indicating a growth rate of roughly 12.8% for 2025. Additionally, the third quarter revenue growth guidance of around 12.5% year-over-year is approximately 2.5 percentage points below consensus estimates, which suggests a weaker than anticipated performance going into the fourth quarter with expected growth of about 11.5%. Overall, the company's second quarter results were softer than expected, primarily due to lower usage growth and a slowdown in the SAP ecosystem, which has negatively impacted its overall outlook.