Loading...
•
Dec 31, 2025
Vertex Q4 2025 Earnings Report
Vertex, Inc. announced its financial results for the fourth quarter and full year ended December 31, 2025, reporting double-digit revenue growth and significant profitability improvements.
Key Takeaways
Vertex, Inc. reported a strong close to 2025 with total revenues of $194.7 million in Q4, an increase of 9.1% year-over-year. The company achieved a net loss of $7.0 million, a significant improvement from the $67.8 million net loss in the prior year. Adjusted EBITDA reached $42.5 million, up from $38.1 million, demonstrating enhanced profitability.
Total revenues for Q4 2025 increased by 9.1% year-over-year to $194.7 million.
Software subscription revenues grew by 8.9% to $166.2 million in Q4 2025.
Cloud revenues saw a substantial increase of 23.0% year-over-year, reaching $94.6 million in Q4 2025.
Net loss significantly improved to $7.0 million in Q4 2025, compared to a $67.8 million net loss in Q4 2024.
Revenue by Segment
Forward Guidance
For the first quarter of 2026, Vertex expects revenues between $193.5 million and $196.5 million, with Adjusted EBITDA projected to be between $40.5 million and $43.5 million. For the full year 2026, the company anticipates revenues of $823.5 million to $831.5 million, cloud revenue growth of 25 percent, and Adjusted EBITDA of $188.0 million to $192.0 million.
Positive Outlook
- Continued double-digit revenue growth is expected for 2026.
- Improving profit margins are anticipated for 2026.
- Near-term growth tailwinds from upcoming e-invoicing mandates in France and Germany.
- Well-positioned to leverage Artificial Intelligence for tax department workflows, with early traction for Smart Categorization.
- Confidence in the business reflected by a $10 million share repurchase in Q4 2025.
Challenges Ahead
- Inability to reconcile forward-looking Adjusted EBITDA to net income (loss) without unreasonable efforts due to unpredictable items.
- Potential impact of stock-based compensation expense on net income (loss).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...