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Vertex Announces First Quarter 2026 Financial Results

VERX
  • Vertex, Inc. reported Q1 2026 total revenues of $196.6 million, an 11.1% year-over-year increase.
  • Software subscription revenue reached $167.1 million (up 10.9% YoY) while cloud revenue grew to $96.8 million (up 20.7% YoY).
  • Annual Recurring Revenue (ARR) rose 11.2% year-over-year to $687.6 million.
  • Average Annual Revenue per direct customer (AARPC) increased to $140,464 at March 31, 2026, from $126,534 in the prior year period.
  • Net Revenue Retention (NRR) stood at 105%, matching the previous quarter but down from 109% in Q1 2025.
  • Gross Revenue Retention (GRR) was 95%, consistent with Q1 2025 but up from 94% in Q4 2025.
  • GAAP income from operations was a loss of $10.6 million, compared to a profit of $4.5 million in the prior year.
  • Non-GAAP operating income was $37.6 million, up from $31.3 million in the prior year.
  • GAAP net loss was $2.5 million ($0.02 per share), compared to net income of $11.1 million ($0.07 per share) in the prior year.
  • Non-GAAP net income was $28.7 million ($0.17 per share), with Adjusted EBITDA reaching $44.1 million and a margin of 22.4%.
  • The company acquired Brinta, an AI-first e-invoicing startup in Latin America, to expand country coverage & introduce an AI-native architecture.
  • In April 2026, Vertex announced a Value Creation Plan aimed at accelerating profitability & increasing free cash flow through cost actions expected to save $60 to $70 million annually starting in 2027.
  • Q2 2026 revenue guidance is set between $200.0 million & $204.0 million, with Adjusted EBITDA guidance between $47.0 million & $50.0 million.
  • Full-year 2026 revenue guidance is $823.5 million to $831.5 million, with cloud revenue growth expected at 25% & Adjusted EBITDA guidance between $202.0 million & $208.0 million.
  • Direct customer count increased to 4,895 in Q1 2026, while indirect customers rose to 530.
  • Vertex will host a conference call at 8:30 a.m. Eastern Time on May 7, 2026, to discuss these results.