Core 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]

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].

Core Insights - Vertex Inc. has been recognized as a finalist for the 2025 SAP Pinnacle Award in the SAP Store category, highlighting its strong partnership with SAP and commitment to customer success [1][2] - The SAP Pinnacle Awards celebrate partners that excel in delivering innovative solutions and value to customers, with evaluation criteria including solution visibility and pipeline impact [2][3] Company Overview - Vertex, Inc. is a leading global provider of indirect tax solutions, focusing on enabling businesses to transact, comply, and grow confidently [4] - The company offers tailored solutions for various industries, covering major lines of indirect tax such as sales and consumer use, value-added tax, and payroll [4] - Vertex has over 25 years of collaboration with SAP, delivering integrated tax solutions that enhance business performance [2][4]