Vertex launches AI-powered tax solution for small businesses

KING OF PRUSSIA, Pa. - Vertex Inc. (NASDAQ:VERX), a $3.95 billion tax technology company showing 15% revenue growth over the last twelve months, announced Wednesday the launch of Kintsugi powered by Vertex, a new AI-native tax automation solution developed in partnership with startup Kintsugi to serve small and mid-sized businesses. According to InvestingPro data, while the company is currently operating at a loss, analysts expect it to turn profitable this year.

The new offering automates key tax compliance functions including nexus monitoring, registration, product-level tax categorization, calculation, filing, and remittance, while providing real-time dashboards for tracking jurisdictional liability and exposure. This strategic move comes as Vertex maintains a moderate debt level and operates with a healthy gross profit margin of 65%.

"Kintsugi powered by Vertex reflects our commitment to reimagining tax compliance through AI, extending our reach outside enterprise in an innovative manner," said Chirag Patel, Chief Strategy Officer at Vertex, according to the company’s press release.

The solution is designed to integrate with supported financial systems, allowing businesses to implement AI-powered tax automation regardless of their existing platform environment.

Pujun Bhatnagar, CEO of Kintsugi, stated that the partnership "brings together deep tax expertise and AI-native automation to deliver clarity and control, helping teams stay focused on growth while simplifying compliance."

The launch is part of Vertex’s broader strategy to incorporate artificial intelligence across tax processes. According to the company, the solution delivers the same tax engine and global content that enterprises rely on, now available in an AI-native experience built for smaller organizations.

Vertex claims the new offering can help businesses track their nexus in real time, providing greater visibility and control over tax obligations.

The company indicated that its roadmap includes expanded AI capabilities for global compliance, e-invoicing, exemption certificate management, and cross-border tax logic. Despite the stock’s recent 29% decline over the past six months, InvestingPro analysis reveals 10+ additional investment insights and a comprehensive Pro Research Report, available to subscribers looking to make informed investment decisions in the tax technology sector.

In other recent news, Vertex Inc. reported its second-quarter 2025 earnings, revealing non-GAAP earnings per share of $0.15, which slightly surpassed the consensus estimate of $0.14. The company’s revenue stood at $184.6 million, aligning with analyst expectations and marking a 15% year-over-year growth, with 12% of that growth being organic. Despite these results, several analysts adjusted their price targets for the company. BMO Capital lowered its target to $30 from $38, citing lower usage growth and a slowdown in the SAP ecosystem as reasons for the adjustment. Stifel also reduced its price target to $25 from $31, maintaining a Hold rating due to macroeconomic challenges and delayed ERP migration activity. Meanwhile, Citizens JMP set a price target of $50, maintaining a Market Outperform rating after investor meetings with Vertex executives. Additionally, DA Davidson assumed coverage of Vertex with a Neutral rating and a price target of $29. These developments reflect the mixed reactions from analysts following Vertex’s recent earnings report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.