Vertex (VERX) Fell Due to Lowered Guidance

Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their upward trajectory in the quarter, with the S&P 500 Index surging 8.12%. Class A shares of the fund underperformed the Russell 2500 Growth Index during the third quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alger Weatherbie Specialized Growth Fund highlighted stocks such as Vertex, Inc. (NASDAQ:VERX). Vertex, Inc. (NASDAQ:VERX) offers enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries. The one-month return of Vertex, Inc. (NASDAQ:VERX) was 3.51%, and its shares lost 40.05% of their value over the last 52 weeks. On October 27, 2025, Vertex, Inc. (NASDAQ:VERX) stock closed at $25.66 per share, with a market capitalization of $4.092 billion.

Alger Weatherbie Specialized Growth Fund stated the following regarding Vertex, Inc. (NASDAQ:VERX) in its third quarter 2025 investor letter:

“Vertex, Inc. (NASDAQ:VERX) provides tax compliance software through both cloud and on-premises deployments, integrating with enterprise resource planning (ERP) systems primarily for large enterprises (companies with over 250 employees). The company offers comprehensive solutions that automate the full scope of indirect tax processes, including tax determination, data management, compliance, reporting, and document management. Shares detracted from performance during the quarter after Vertex reported strong second-quarter results but lowered its full-year revenue guidance. Management cited a more uncertain demand environment, as customers are expected to delay ERP and software implementations, which overshadowed otherwise solid quarterly execution.”

Vertex, Inc. (NASDAQ:VERX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 25 hedge fund portfolios held Vertex, Inc. (NASDAQ:VERX) at the end of the second quarter, compared to 27 at the end of the previous quarter. For Q2 2025, Vertex, Inc. (NASDAQ:VERX) revenue was $184.6 million, up 14.6% year-over-year. While we acknowledge the risk and potential of Vertex, Inc. (NASDAQ:VERX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Vertex, Inc. (NASDAQ:VERX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Vertex, Inc. (NASDAQ:VERX) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.