Vertex, Inc. Earnings Recaps
Q2 2026
Aug 5, 2026
Vertex shares declined 4.0% post-earnings as investors reacted to slower-than-expected cloud conversions and tepid expansion within the installed base, signaling concerns over growth execution despite stable retention and margin expansion.
Key takeaways
- Revenue grew 10.5% year-over-year to $204 million, hitting the high end of guidance but driven by mixed customer expansion results.
- Adjusted EBITDA rose 33% to $51 million, with margin expansion of 4+ percentage points to 25%, reflecting improved cost discipline.
- Gross revenue retention held steady at 95% and net revenue retention at 105%, indicating a durable customer base.
- Expansion within existing customers and new logo wins underperformed expectations, partly due to sluggish cloud migration activity.
- E-invoicing demonstrated strong momentum, notably driven by mandates in France and upcoming German requirements, with several six-figure enterprise deals closed.
Q3 2025
Nov 5, 2025
Vertex Inc. reported a strong third quarter, with revenue growth driven by cloud and subscription services, despite challenges from customer turnover and bankruptcies. Adjusted EBITDA reached a record high, demonstrating effective cost management and operational leverage.
Key takeaways
- Revenue of $192.1 million, up 12.7% year-over-year, with cloud revenue growing 29.6%.
- Adjusted EBITDA of $43.5 million, exceeding guidance by $2.5 million, resulting in a margin of 22.6%.
- Annual recurring revenue increased 12.4% to $648.2 million; customer count grew 14%.
- Significant share repurchase program announced, authorizing up to $150 million, indicating confidence in long-term growth.
- Strong momentum in e-invoicing and ongoing improvements in cost management enhance future growth prospects.