2025 data reveals a 10-year high in new taxes enacted, and the first increase in average state sales tax rates in three years, as jurisdictions pivot to address budget shortfallsKING OF PRUSSIA, Pa., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), a leading global provider of indirect tax solutions, today released its 2025 End‑of‑Year U.S. Sales Tax Rates and Rules Report. Tracking 12,414 U.S. tax jurisdictions in 2025 where sales and use tax rate and rule changes o ...

Core Viewpoint - WuXi Biologics has entered into a license and research service agreement with Vertex Pharmaceuticals for the development of a trispecific T-cell Engager aimed at treating B-cell mediated autoimmune diseases [1][2]. Group 1: Agreement Details - Vertex Pharmaceuticals will have exclusive global rights to develop and commercialize the trispecific T-cell Engager at the preclinical stage [2]. - WuXi Biologics will receive an upfront payment and is eligible for additional milestone payments related to development, regulatory approvals, and sales, along with royalty payments [2]. Group 2: Company Overview - WuXi Biologics is a leading global Contract Research, Development, and Manufacturing Organization (CRDMO) that provides end-to-end solutions for biologics from concept to commercialization [4]. - The company employs over 12,000 skilled professionals across multiple countries, including China, the United States, Ireland, Germany, and Singapore, and is currently supporting 945 integrated client projects, with 74 in Phase III and 25 in commercial manufacturing as of December 31, 2025 [5]. Group 3: Commitment to Sustainability - WuXi Biologics emphasizes sustainability as a key component of long-term business growth, focusing on green technology innovations to provide advanced Green CRDMO solutions [6]. - The company is dedicated to achieving excellence in Environment, Social, and Governance (ESG) practices and collaborates with stakeholders to promote positive social and environmental impacts [6].

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].

Core Insights - Vertex, Inc. has been recognized as one of the Best Places to Work in 2026 by Built In, marking three consecutive years of recognition [1][2] - The awards are based on a data-driven evaluation of companies regarding compensation, benefits, and company culture [2][4] - Vertex emphasizes professional growth, flexible work options, and an inclusive culture, which are key factors in its recognition [2][3] Company Overview - Vertex, Inc. is a leading global provider of indirect tax solutions, focusing on delivering trusted tax technology for global businesses [6] - The company offers tailored solutions for various industries, covering major lines of indirect tax such as sales and consumer use, value-added tax, and payroll [6] - Vertex is headquartered in North America, with additional offices in South America and Europe, aiming to simplify compliance for leading global brands [6]

Core Insights - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% [1] - The fund's performance was impacted by a preference for application software companies, which faced headwinds due to market sentiment favoring cyclical semiconductors and quantum computing [3] Company Performance - Vertex, Inc. (NASDAQ:VERX) experienced a one-month return of -0.31% and a 52-week decline of 62.60%, closing at $19.56 per share with a market capitalization of $3.12 billion on January 5, 2026 [2] - For Q3 2025, Vertex reported revenue of $192.1 million, reflecting a year-over-year increase of 12.7% [4] - Vertex's earnings were slightly below expectations due to delays in enterprise contracts, pushing some revenues into later periods, although its two-year targets remain intact [3] Investment Sentiment - Vertex, Inc. is not among the 30 most popular stocks among hedge funds, with 22 hedge fund portfolios holding the stock at the end of Q3 2025, down from 25 in the previous quarter [4] - The company is viewed as having potential, but certain AI stocks are considered to offer greater upside potential with less downside risk [4]

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]

Company Overview - Vertex is a leading provider of tax technology solutions, focusing on automating complex tax compliance and reporting processes for large enterprises, leveraging both on-premise and cloud-based offerings [8] - The company generates revenue through software licenses, SaaS subscriptions, implementation and training services, and tax-related outsourcing services, serving corporations across various sectors including retail, communications, leasing, and manufacturing [11] Financial Performance - As of September 30, Vertex reported a market capitalization of $3.2 billion, with a revenue of $732.19 million and a net income of -$53.58 million [5] - In the most recent quarter, Vertex's revenue rose 12.7% year over year to $192.1 million, with cloud revenue increasing nearly 30%, and annual recurring revenue climbing to $648.2 million [9] Investment Activity - Hyperion Capital Advisors disclosed a new position in Vertex, acquiring 540,000 shares valued at approximately $13.39 million, which represents 7.16% of Hyperion's reported U.S. equity assets as of September 30 [2][4][6] - Vertex is now the third-largest holding in Hyperion's portfolio, indicating a preference for durable cash-generating businesses [6][9] Market Context - Vertex's stock has decreased by 63% over the past year, significantly underperforming the S&P 500, which is up about 15% during the same period [4] - The selloff in Vertex's stock appears driven by decelerating net revenue retention and investor fatigue with midcap software, rather than a collapse in demand [9]

Core Insights - CFOs anticipate that AI will transition from experimentation to a proven, enterprise-wide impact in finance by 2026, emphasizing the need for strong governance, trusted data, and human judgment [1] - AI is expected to be a core enabler of finance operations, automating processes and delivering real-time insights, thus transforming the role of CFOs from gatekeepers to transformational architects [2][3] Predictions for 2026 - Enterprises will demand measurable gains in speed, resilience, and decision quality from AI, moving away from pilots to full integration into capital planning and risk management [2] - AI will help finance teams move beyond automation to real-time insights and scenario modeling, enabling better risk anticipation and capital allocation [2][3] - CFOs will need to enact more discipline around technology investments, requiring clear ties between AI and business outcomes [3] AI's Role in Finance - AI will enable finance teams to run multiple M&A scenarios, predict customer churn, and stress-test capital allocation decisions, shifting the focus from reporting past events to shaping future outcomes [2][3] - The integration of AI into ERP systems will enhance forecasting, cash visibility, and compliance, reducing manual work and improving auditability [3] - AI literacy will become critical for CFOs, as nearly every business decision will involve AI, necessitating an understanding of potential investments and use cases [3] Challenges and Opportunities - Many CFOs are currently hesitant to adopt AI broadly due to market saturation and unclear value propositions, indicating a need for consolidation before widespread implementation [3] - The future of finance will rely on predictive analytics and competitive benchmarking to anticipate market shifts and optimize decision-making [3]

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]