Vertex (NASDAQ:VERX) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Vertex beat quarterly expectations, reporting adjusted EPS of $0.17 versus the $0.16 estimate and revenue of $196.65 million, slightly above forecasts. Revenue rose 11.1% year over year.
• The company said its full-year outlook remains constructive, with Q2 revenue guidance of $200 million to $204 million and annual revenue guidance of $823.5 million to $831.5 million. It also raised full-year adjusted EBITDA guidance after cost-cutting actions.
• Vertex highlighted growth drivers including AI-enabled tax tools, expanding e-invoicing demand, and the Brinta acquisition, which adds Latin American coverage and positions the company for upcoming compliance mandates in Europe.

Vertex (NASDAQ:VERX - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.01, Briefing.com reports. The business had revenue of $196.65 million for the quarter, compared to analysts' expectations of $194.82 million. Vertex had a return on equity of 24.70% and a net margin of 0.96%.The business's quarterly revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.15 EPS.

Here are the key takeaways from Vertex's conference call:

• Q1 beat expectations with $196.6 million revenue (up ~11% YoY) and $44.1 million adjusted EBITDA (up ~18%), both above the high end of guidance.
• The April "value creation" actions (≈9% workforce reduction plus third‑party spend cuts) produced a $6.2 million pre‑tax charge in Q1 but are expected to generate ~$60–70 million of annual cash savings on a 2027 run‑rate and drove an increase to full‑year adjusted EBITDA guidance.
• Vertex is embedding AI around its deterministic tax engine (not replacing it); its first commercial AI, Smart Categorization, is in production and materially cuts SKU categorization time, improving productivity and support/service efficiency.
• The e‑invoicing business is growing well ahead of corporate rates, and the Brinta acquisition adds Latin American coverage and an AI‑native compliance architecture ahead of mandates in France (this year) and Germany (2027), which should drive back‑half revenue ramps.
• Vertex lowered its medium‑term revenue posture to "low double digits" growth (roughly 10–13%), down from prior mid/high‑teens targets, which may temper topline upside expectations for investors.

Vertex Price Performance

Shares of VERX traded up $0.26 during trading hours on Friday, hitting $14.93. 2,238,719 shares of the company were exchanged, compared to its average volume of 1,932,685. The company has a market capitalization of $2.39 billion, a PE ratio of 373.34 and a beta of 0.81. The firm has a fifty day simple moving average of $12.86 and a 200-day simple moving average of $16.97. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.98 and a quick ratio of 0.98. Vertex has a one year low of $10.59 and a one year high of $42.44.

Analyst Ratings Changes

VERX has been the topic of a number of research reports. Piper Sandler increased their price target on Vertex from $14.00 to $16.00 and gave the stock a "neutral" rating in a research report on Thursday. Stifel Nicolaus set a $16.00 target price on Vertex in a research report on Wednesday, February 11th. Weiss Ratings restated a "sell (d)" rating on shares of Vertex in a research report on Monday, April 20th. Jefferies Financial Group cut Vertex from a "buy" rating to a "hold" rating and set a $16.00 target price on the stock. in a research report on Wednesday, February 11th. Finally, BMO Capital Markets raised their target price on Vertex from $14.00 to $17.00 and gave the company an "outperform" rating in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $21.07.

Insider Buying and Selling at Vertex

In other Vertex news, insider Jeffrey Westphal bought 150,000 shares of the firm's stock in a transaction dated Tuesday, February 17th. The stock was acquired at an average price of $12.53 per share, with a total value of $1,879,500.00. Following the completion of the transaction, the insider directly owned 397,740 shares in the company, valued at approximately $4,983,682.20. This represents a 60.55% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Eric C. Andersen acquired 40,000 shares of Vertex stock in a transaction that occurred on Friday, February 20th. The shares were purchased at an average cost of $12.91 per share, with a total value of $516,400.00. Following the transaction, the director owned 150,341 shares of the company's stock, valued at approximately $1,940,902.31. The trade was a 36.25% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders bought 437,740 shares of company stock valued at $5,636,339. 43.25% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Vertex

Institutional investors have recently made changes to their positions in the business. Prudential Financial Inc. increased its stake in shares of Vertex by 92.1% in the second quarter. Prudential Financial Inc. now owns 8,105 shares of the company's stock worth $286,000 after purchasing an additional 3,885 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of Vertex by 363.3% in the second quarter. Tower Research Capital LLC TRC now owns 8,070 shares of the company's stock worth $285,000 after purchasing an additional 6,328 shares during the period. Atom Investors LP increased its stake in shares of Vertex by 39.6% in the fourth quarter. Atom Investors LP now owns 14,067 shares of the company's stock worth $281,000 after purchasing an additional 3,990 shares during the period. Inceptionr LLC bought a new position in shares of Vertex in the fourth quarter worth about $273,000. Finally, CANADA LIFE ASSURANCE Co increased its stake in shares of Vertex by 39.1% in the second quarter. CANADA LIFE ASSURANCE Co now owns 7,311 shares of the company's stock worth $259,000 after purchasing an additional 2,055 shares during the period. 70.32% of the stock is currently owned by institutional investors.

Key Stories Impacting Vertex

Here are the key news stories impacting Vertex this week:

• Positive Sentiment: Vertex reported first-quarter earnings of $0.17 per share, ahead of the $0.16 estimate, and revenue of $196.65 million, also above expectations; revenue rose 11.1% year over year. Vertex earnings call transcript
• Positive Sentiment: The company’s outlook also looks constructive, with Q2 revenue guidance of $200 million-$204 million and full-year revenue guidance of $823.5 million-$831.5 million, both roughly in line with or slightly above consensus. Vertex Q1 2026 financial results
• Positive Sentiment: BMO Capital Markets raised its price target on Vertex from $14 to $17 and reiterated an outperform rating, while Piper Sandler also lifted its target from $14 to $16, signaling improved confidence in the stock’s upside. BMO Capital Markets price target increase
• Neutral Sentiment: Zacks and other market commentary focused on the earnings beat and key metrics, reinforcing the view that investors are re-evaluating the company after the report. Compared to Estimates, Vertex Q1 Earnings
• Neutral Sentiment: Technical-chart coverage noted that Vertex is showing strength on the Nasdaq chart, which may be adding short-term momentum to the move. Vertex move higher signals strength on The Nasdaq chart

About Vertex

Vertex Energy, Inc NASDAQ: VERX is a specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States. The company collects and processes a variety of waste petroleum products, including used motor oil and industrial lubricants, which it converts into ultra-low-sulfur diesel, asphalt, and other refined products. By leveraging proprietary re-refining technologies and strategic feedstock sourcing, Vertex Energy aims to deliver cost-effective, lower-carbon fuel solutions to wholesale and retail customers across the country.

Headquartered in Houston, Texas, Vertex operates a network of refining and blending facilities in key regions, including the Central, Northeast and Mid-Atlantic markets.

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