Summary of Conference Call Notes Industry Overview - **Industry**: Application Software, specifically focusing on Software as a Service (SaaS) in North America - **2025 Performance**: Application SaaS underperformed due to muted revenue growth, limited upward estimate revisions, and multiple compression driven by AI-related concerns. The valuation discount on application SaaS relative to broader software increased to approximately 37% from 20% a year ago [3][7][21]. Key Insights - **AI Concerns**: Peak AI fears were noted in 2025, leading to a shift in investor sentiment. Companies emphasized competitive advantages such as proprietary data and large installed bases but struggled to improve investor confidence [3][23]. - **Bull Case for 2026**: The bull case hinges on application software becoming the primary delivery mechanism for AI capabilities, potentially expanding the total addressable market and improving growth trajectories. However, the lack of clear growth inflection in 2025 left many vendors perceived as disrupted by AI [3][23][35]. - **CIO Survey Insights**: A survey indicated that 19% of CIOs operationalizing AI/ML technologies view application vendors as primary partners, an increase from 13% in the previous quarter. This suggests a shift in perception towards application software as a vehicle for AI functionalities [26][29]. Investment Recommendations - **Selective Approach**: A selective investment strategy is recommended, favoring companies with strong positioning in the "AI Success Framework" and idiosyncratic growth stories. Preferred companies include HUBS, KVYO, WIX, AMPL, BL, DSGX, and NAVN [2][7][52]. - **Price Target Adjustments**: Price targets for several companies were updated, reflecting changes in growth outlooks and market conditions. For example, HUBS was adjusted to $577, while KVYO was set at $42 [5][54]. Risks and Considerations - **AI Risks**: The report outlines three core areas of AI-related risks: DIY risk, start-up risk, and seat-based model risk. Evidence suggests that fears regarding these risks may be overstated, but ongoing monitoring is necessary [24][26][27]. - **Cyclical Headwinds**: The optimization cycle that began in 2022 is largely digested, with stabilization in key performance indicators like ARR and billings growth. However, broad-based positive spending revisions remain absent, necessitating a cautious approach [35][36]. - **2026 Spending Growth**: Software is expected to see modest growth in spending, projected at 3.8%, compared to declines in hardware and communications sectors. This indicates a relatively healthier positioning for software in IT spending plans [43][44]. Conclusion - **Outlook for 2026**: The outlook for application SaaS in 2026 is cautiously optimistic, with potential for improved sentiment as AI risks are reassessed and growth trajectories begin to stabilize. However, the absence of broad-based positive revisions in spending necessitates a selective investment approach [2][35][52].

Core Viewpoint - Vertex, Inc. is set to release its fourth quarter 2025 financial results on February 11, 2026, before market opening, followed by a conference call at 8:30 a.m. Eastern Time to discuss the results [1]. Company Overview - Vertex, Inc. is a leading global provider of indirect tax solutions, focusing on delivering trusted tax technology that enables global businesses to transact, comply, and grow confidently [3]. - The company offers tailored solutions for various industries covering major lines of indirect tax, including sales and consumer use, value-added tax, and payroll [3]. - Vertex is headquartered in North America and has offices in South America and Europe, aiming to simplify the complexity of continuous compliance for leading global brands [3].

Vertex Earns Two Placements on Built In’s Best Places to Work List, Highlighting Three Consecutive Years of RecognitionKING OF PRUSSIA, Pa., Jan. 06, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), a leading global provider of indirect tax solutions, today announced it has been recognized by Built In as one of the Best Places to Work in 2026. The annual awards honor employers across the U.S. whose benefits and compensation set the standard for today’s workforce. Vertex was h ...

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 2.26% (gross) and 2.01% (net), compared to the Russell 2000 Growth Index’s 12.19% return. During the quarter, all asset classes except fixed income outside the U.S. posted positive returns. In addition, please check the fund’s top five holdings to know its best picks in 202 ...

Core Insights - Vertex Inc. is recognized as a promising investment opportunity, particularly following the expansion of its partnership with CPA.com to include an AI-driven sales tax compliance solution [1][2] Group 1: Product Development - The newly launched AI-powered sales tax compliance solution aims to assist accounting firms in providing automated sales and tax compliance services to their clients [2] - This solution allows Client Advisory Services and State and Local Tax teams to evaluate exposure, enabling firms to manage compliance through a white-labeled platform or by referring clients to automated services [2] Group 2: Market Position and Future Outlook - The launch of the automated tax compliance services is seen as a significant advancement in Vertex's efforts to support the accounting community, with expectations of unlocking new revenue streams for CPA firms [3] - BMO Capital Markets forecasts that 2026 will be a recovery year for application and vertical software stocks, predicting Vertex will benefit from a strong tax season for the second consecutive year [3][4] Group 3: Company Overview - Vertex Inc. is a leading global provider of indirect tax software and solutions, focusing on automating, managing, and ensuring compliance with complex tax regulations worldwide [4]

Key Points New York City-based Hyperion Capital Advisors initiated a stake in Vertex during the third quarter, buying up 540,000 shares. The shares were worth about $13.39 million at quarter-end. Vertex is now the fund’s third-largest holding, accounting for 7.16% of total AUM. These 10 stocks could mint the next wave of millionaires › On November 13, New York City-based Hyperion Capital Advisors disclosed a new position in Vertex (NASDAQ:VERX), acquiring 540,000 shares valued at approximately $ ...

Artificial intelligence was certainly top of mind for chief financial officers this year. AI-enabled transformation and ROI are key topics of discussion between CFOs, their boards, the broader C-suite, and other stakeholders.As 2025 draws to a close, it’s time for predictions about what’s to come in the new year. Fortune asked more than a dozen CFOs of prominent companies: How do you think AI will continue to shape finance in 2026?The finance chiefs broadly expect AI, including agentic AI, to shift from exp ...

Core Insights - Tensile Capital Management increased its stake in Vertex by acquiring 160,559 shares, bringing total holdings to 3.8 million shares valued at $94.3 million as of September 30 [2][11] - Vertex's stock price has decreased by 65% over the past year, significantly underperforming the S&P 500, which is up 13% during the same period [3][12] - Vertex reported a 12.7% revenue growth and a 29.6% growth in cloud revenue in the third quarter, alongside a new $150 million share-repurchase program [10] Company Overview - Vertex is a leading provider of tax technology software and services, focusing on enterprise clients [6] - The company generates revenue through software licenses, SaaS subscriptions, implementation, training, and tax-related outsourcing services [9] - Vertex's market capitalization is $3.1 billion, with a trailing twelve months (TTM) revenue of $732.2 million and a net income of -$53.6 million [4] Financial Metrics - Vertex's annual recurring revenue (ARR) stands at $648 million, with a net revenue retention rate of 107% [12] - The company has a significant cash generation capability, reporting $43.5 million in adjusted EBITDA for the third quarter [10] - Vertex's stock price was $19.68 as of the last market close [4]

Group 1 - The article discusses the increasing importance of charitable donations during the year-end season, highlighting that many organizations rely on these contributions to achieve financial stability [1] - The 2017 Tax Cuts and Jobs Act (TCJA) has led to a decline in donor participation by nearly doubling the standard deduction and limiting itemized deductions, which has reduced the number of taxpayers who itemize their deductions [2][3] - The Dells' recent pledge of $6.25 billion for "Trump Accounts" represents one of the largest philanthropic commitments in U.S. history, aimed at supporting children's accounts created by the One Big Beautiful Bill Act (OBBBA) [5][6] Group 2 - The Trump accounts, established under OBBBA, allow contributions of up to $5,000 per year, with additional contributions possible from employers, which do not count towards the annual limit [8][7] - The Employee Retention Credit (ERC) program, designed to assist businesses during the pandemic, has faced significant delays and complexities, with the National Taxpayer Advocate urging the IRS to resolve outstanding claims by the end of 2025 [23][27][28] - The IRS has been criticized for its handling of ERC claims, with many businesses still awaiting refunds, highlighting the need for timely processing and clarity in eligibility [24][26][27]

Core Insights - Vertex Pharmaceuticals announced clinical data demonstrating the benefits of CASGEVY (exagamglogene autotemcel) for patients aged 5 years and older with severe sickle cell disease (SCD) or transfusion-dependent beta thalassemia (TDT) [1][2] - The data includes the first clinical results for children aged 5-11 years and long-term outcomes for patients aged 12 years and older, to be presented at the American Society of Hematology (ASH) Annual Meeting [1][4] Company Overview - Vertex is a global biotechnology company focused on creating transformative medicines for serious diseases, including SCD and TDT [28][29] - The company has a robust pipeline of investigational therapies across various serious diseases, leveraging deep insights into human biology [28] Product Information - CASGEVY is a non-viral, ex vivo CRISPR/Cas9 gene-edited cell therapy that aims to increase fetal hemoglobin (HbF) levels in patients with SCD and TDT [8][14] - The therapy has shown potential to reduce or eliminate vaso-occlusive crises (VOCs) in SCD patients and the need for regular blood transfusions in TDT patients [8][14] Clinical Study Results - In the Phase 3 CLIMB-151 study for children with SCD, all patients with sufficient follow-up achieved the primary endpoint of being free from VOCs for at least 12 consecutive months [5] - In the Phase 3 CLIMB-141 study for children with TDT, all patients with sufficient follow-up achieved transfusion independence for at least 12 consecutive months while maintaining a hemoglobin level of at least 9 g/dL [5] - Long-term data for patients aged 12 years and older showed that 100% of SCD patients achieved VOC-free status for a mean duration of 35.3 months, while 98.2% of TDT patients achieved transfusion independence for a mean duration of 41.4 months [4] Regulatory and Future Plans - Vertex plans to initiate global regulatory filings for CASGEVY in the 5-11 age group in the first half of next year, having received a Commissioner's National Priority Voucher from the FDA to expedite the review process [12] - The company aims to extend studies to include younger children aged 2-4 years [10][12]