Goldman Sachs Remains Bullish on Vertex (VERX) After Q3 2025 Results

Core Insights - Vertex, Inc. (NASDAQ:VERX) is recognized as an overlooked tech stock with potential investment opportunities [1] Financial Performance - For Q3 2025, Vertex reported total revenue of $192.1 million, reflecting a year-over-year increase of 12.7% [4] - The growth in revenue was primarily driven by a significant 29.6% increase in cloud revenue [4] - The company achieved a non-GAAP EPS of $0.17, surpassing expectations, and reported adjusted EBITDA of $43.5 million [4] Analyst Sentiment - Goldman Sachs reduced its price target for Vertex from $43 to $28 on November 5, 2025, while maintaining a "Buy" rating, citing short-term challenges such as customer bankruptcies and rapid cloud migrations [2] - Conversely, William Blair's analyst Jake Roberge reaffirmed a "Buy" rating on November 3, highlighting increased pipeline activity from SAP ecosystem migrations and successful adoption of e-invoicing solutions [3] Strategic Initiatives - Vertex announced a $150 million stock repurchase program, marking its first-ever buyback initiative [4] - The management anticipates strong growth potential from SAP ecosystem migrations and the adoption of its e-invoicing solution, which is currently utilized by over 100 customers [5] Market Position - Vertex specializes in providing global indirect tax solutions, assisting businesses in navigating complex tax regulations [5]