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Sep 30, 2025
Vertex Q3 2025 Earnings Report
Vertex posted solid Q3 results with strong cloud growth and improved profitability.
Key Takeaways
Vertex delivered double-digit revenue growth and improved operating metrics in Q3 2025, driven by strong demand for cloud-based tax solutions and disciplined cost management. The company also announced a $150M share repurchase program.
Total revenue grew 12.7% year-over-year to $192.1M.
Cloud revenue surged 29.6% year-over-year to $92.0M.
Adjusted EBITDA rose to $43.5M with a 22.6% margin.
Free cash flow improved to $30.2M from $18.4M YoY.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Vertex expects continued revenue growth and improved profitability in Q4 2025 and full-year 2025, with strong momentum in cloud adoption and stable customer retention metrics.
Positive Outlook
- Q4 revenue guidance: $192M to $196M
- Q4 adjusted EBITDA guidance: $40M to $42M
- Full-year adjusted EBITDA guidance raised to $159.1M–$161.1M
- Cloud revenue expected to grow 28% YoY for FY25
- Strong free cash flow performance in Q3 2025
Challenges Ahead
- Net income declined YoY from $7.2M to $4.0M
- Slight decline in NRR from 111% to 107%
- Operating income down from prior year
- Adjusted EBITDA margin slightly down YoY
- GRR remained flat at 95%, showing no improvement
Historical Earnings Impact
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Avg. Return Before/After Earnings
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