Vertex(US:VERX) Globenewswire·2026-02-11 12:05Core Insights - Vertex, Inc. reported double-digit revenue growth and significant profitability improvements in 2025, while also investing in future growth opportunities [2] - The company maintained its position as a leading provider of indirect tax solutions and experienced strong growth in its e-invoicing business [2] - Upcoming e-invoicing mandates in France and Germany are expected to provide growth tailwinds for Vertex [2] Financial Performance - Total revenues for Q4 2025 were $194.7 million, representing a 9.1% increase year-over-year [5] - Software subscription revenues reached $166.2 million, up 8.9% year-over-year, while cloud revenues grew by 23.0% to $94.6 million [5] - Annual Recurring Revenue (ARR) was $671.0 million, an increase of 11.3% year-over-year [5] - The company reported a net loss of $7.0 million for Q4 2025, a significant improvement from a net loss of $67.8 million in the same period the previous year [5] Profitability Metrics - Non-GAAP operating income for Q4 2025 was $36.1 million, compared to $32.5 million for the same period in the prior year [5] - Adjusted EBITDA for Q4 2025 was $42.5 million, with an adjusted EBITDA margin of 21.8%, slightly up from 21.3% year-over-year [5] - For the full year 2025, Vertex reported a net income of $7.2 million, a turnaround from a net loss of $52.7 million in 2024 [5] Customer Metrics - The average annual revenue per direct customer (AARPC) increased to $137,867 as of December 31, 2025, compared to $122,706 a year earlier [5] - Net Revenue Retention (NRR) was 105%, down from 109% at the end of 2024, while Gross Revenue Retention (GRR) was 94% [5] Cash Flow and Shareholder Returns - Cash provided by operating activities was $165.5 million, slightly up from $164.8 million in the previous year [5] - Free cash flow for 2025 was $47.6 million, down from $77.7 million in 2024 [5] - The company repurchased approximately $10 million of shares in Q4 2025 under its $150 million buyback authorization [6]