Is the business good?
How good a business is VERX?
Vertex, Inc. earns −3.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−3.0%
Return on invested capital · cost of capital 9.0% · 12 points below what the capital costs: growth destroys value
- Operating margin
- −1.7%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- R&D as % of revenue
- 11%
R&D as % of revenue
- Gross margin
- 64%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −28% |
| FY2021 | −0.69% |
| FY2022 | −1.6% |
| FY2023 | −3.1% |
| FY2024 | −0.33% |
| FY2025 | 0.31% |
Details›
- Gross margin12 months to Q1 2026
- 64%
- Operating margin12 months to Q1 2026
- −1.7%
- Net margin12 months to Q1 2026
- −0.84%
- Free cash flow margin
- 7.9%
- R&D as % of revenue
- 11%
- Revenue, trailing twelve months
- $768M
- Free cash flow, trailing twelve months
- $61M
- Net income, trailing twelve months
- −$6.4M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −3.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #78 of 90 by Smart Score