Core Viewpoint - Vertex, Inc. reported strong financial results for Q2 2025, with double-digit revenue growth and healthy profitability, despite challenges in contract signings due to extended sales cycles and delayed customer decision-making [2][4]. Financial Performance - Total revenues reached $184.6 million, reflecting a year-over-year increase of 14.6% [5]. - Software subscription revenues amounted to $157.8 million, up 15.7% year-over-year [5]. - Cloud revenues grew significantly by 29.9% to $86.2 million [5]. - Annual Recurring Revenue (ARR) was $636.6 million, a 16.1% increase year-over-year, with a 14.1% growth excluding the impact of the ecosio acquisition [5]. - Average Annual Revenue per direct customer (AARPC) increased to $130,934 from $123,570 a year ago [5]. - Net Revenue Retention (NRR) was 108%, slightly down from 110% a year ago [5]. - Gross Revenue Retention (GRR) remained stable at 95% [5]. Profitability Metrics - The company reported a loss from operations of $3.9 million, compared to an income of $7.5 million in the same period last year [5]. - Non-GAAP operating income was $32.2 million, down from $33.3 million year-over-year [5]. - Net loss was $1.0 million, compared to a net income of $5.2 million in the prior year [5]. - Non-GAAP net income stood at $24.9 million, with diluted earnings per share (EPS) of $0.15 [5]. Financial Outlook - For Q3 2025, Vertex expects revenues between $190.0 million and $193.0 million, and Adjusted EBITDA between $38.0 million and $40.0 million [6]. - The full-year 2025 revenue guidance has been reduced due to the impact of delayed contract signings [4][6]. Customer Metrics - The total number of direct customers was 4,862 as of June 30, 2025, showing a slight decrease from the previous quarter [20]. - Indirect customers increased to 504, up from 481 in the previous quarter [20]. Cash Flow and Liquidity - Cash and cash equivalents were reported at $284.4 million as of June 30, 2025 [26]. - The company generated net cash provided by operating activities of $60.8 million [32]. Strategic Insights - The company remains optimistic about future growth driven by increasing complexity in indirect taxes and the ongoing shift to ERP cloud conversions and e-invoicing mandates [2].