Vertex(US:VERX)2026-02-11 12:20Financial Performance - Total revenues for 2025 were $748.4 million, representing a 12.2% year-over-year increase[5] - Software subscription revenues reached $639.7 million, up 12.8% year-over-year[5] - Cloud revenues grew to $352.9 million, marking a 27.9% year-over-year increase[5] - Annual Recurring Revenue (ARR) was $671.0 million, up 11.3% year-over-year[5] - Total revenues for the year ended December 31, 2025, reached $748.4 million, a 12.2% increase from $666.8 million in 2024[30] - Total revenues for the year ended December 31, 2025, were $748,444,000, compared to $666,776,000 in 2024, indicating a 12.2% increase[39] Net Income and Earnings - Net income for Q4 2025 was $7.2 million, compared to a net loss of $(52.7) million for the prior year[5] - Non-GAAP net income for Q4 2025 was $27.8 million, with a Non-GAAP diluted EPS of $0.17[5] - Non-GAAP net income for the year ended December 31, 2025, was $7.2 million, compared to a net loss of $52.7 million in 2024[30] - Net income for the year ended December 31, 2025, was $7,211, compared to a net loss of $52,729 in 2024[32] - Non-GAAP diluted EPS for the year ended December 31, 2025, was $0.64, compared to $0.61 in 2024[34] - Non-GAAP diluted EPS for Q4 2025 was $0.17, up from $0.15 in Q4 2024, representing a 13.3% increase[39] Profitability Metrics - Adjusted EBITDA for 2025 was $161.5 million, with an adjusted EBITDA margin of 21.6%[9] - Adjusted EBITDA for Q4 2025 reached $42,459,000, an increase from $38,061,000 in Q4 2024, marking a 6.3% rise[39] - The adjusted EBITDA margin for Q4 2025 was 21.8%, slightly up from 21.3% in Q4 2024[39] - Non-GAAP operating income for the year ended December 31, 2025, was $136,728, compared to $130,989 in 2024[34] - Non-GAAP operating income for Q4 2025 was $36,086,000, up from $32,540,000 in Q4 2024, representing a 4.7% increase[37] Expenses - Research and development expenses for Q4 2025 were $22.3 million, an increase of 13.9% from $19.6 million in Q4 2024[30] - Selling and marketing expenses for the year ended December 31, 2025, totaled $196.5 million, up from $170.6 million in 2024[30] - Non-GAAP research and development expense for the year ended December 31, 2025, was $71,273, up from $56,395 in 2024[34] - Non-GAAP selling and marketing expense for the year ended December 31, 2025, was $178,595, compared to $154,892 in 2024[34] - Stock-based compensation expense for the year ended December 31, 2025, was $57,763,000, compared to $47,425,000 in 2024, a 21.8% increase[37] Cash Flow and Assets - Free cash flow for the year ended December 31, 2025, was not explicitly stated but is calculated by adjusting net cash from operating activities[30] - Free cash flow for the year ended December 31, 2025, was $47,589, down from $77,708 in 2024, resulting in a free cash flow margin of 6.4%[34] - Free cash flow for Q4 2025 was $10,100,000, down from $17,897,000 in Q4 2024, showing a decrease of 43.8%[39] - Free cash flow margin for the year ended December 31, 2025, was 6.4%, compared to 11.7% in 2024, reflecting a decline[39] - Cash, cash equivalents, and restricted cash at the end of the period increased to $338,295 from $326,066 at the end of 2024[32] - Net cash provided by operating activities for the year ended December 31, 2025, was $165,543, slightly up from $164,821 in 2024[32] Balance Sheet - Total assets as of December 31, 2025, were $1.27 billion, an increase from $1.17 billion in 2024[28] - Total liabilities as of December 31, 2025, were $1.01 billion, compared to $987.4 million in 2024[28] Future Outlook - The company expects revenues for Q1 2026 to be between $193.5 million and $196.5 million[10] - The company is well-positioned to benefit from upcoming e-invoicing mandates in France and Germany, the two largest economies in Europe[2]