Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, with the Conestoga Micro-Cap Composite returning 11.7% net-of-fees, while the Russell Microcap Growth Index returned 19.9% [1] Company Overview - Vertex, Inc. (NASDAQ:VERX) specializes in enterprise tax technology solutions for various industries, including retail, wholesale, and manufacturing [2][3] - As of October 17, 2025, Vertex, Inc. had a market capitalization of $3.98 billion, with shares closing at $24.33, reflecting a one-month return of -2.45% and a 52-week decline of 41.48% [2] Financial Performance - For Q2 2025, Vertex, Inc. reported revenue of $184.6 million, representing a year-over-year increase of 14.6% [4] - The company's revenue growth has moderated, and elongated enterprise sales cycles have negatively impacted near-term results, compounded by slower IT spending among multinational customers [3] Investment Sentiment - Despite acknowledging Vertex, Inc.'s potential, the company is not among the 30 most popular stocks among hedge funds, with 25 hedge fund portfolios holding the stock at the end of Q2 2025, down from 27 in the previous quarter [4] - Investor sentiment has been cautious due to profitability concerns stemming from investments in product development and macroeconomic challenges [3]