Vertex (VERX) was Down -30% in Q3. Here’s Why

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]