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GlobeNewswire·

Vertex Announces Fourth Quarter and Full Year 2025 Financial Results

VERX
  • Vertex, Inc. reported fourth quarter 2025 total revenues of $194.7 million, a 9.1% year-over-year increase, with full-year 2025 revenues reaching $748.4 million, up 12.2%.
  • Cloud revenue grew 23.0% in the fourth quarter to $94.6 million and 27.9% for the full year to $352.9 million.
  • Annual Recurring Revenue (ARR) reached $671.0 million at the end of 2025, representing an 11.3% year-over-year growth.
  • Net Revenue Retention (NRR) was 105% in Q4 2025, while Gross Revenue Retention (GRR) stood at 94%.
  • The company achieved GAAP profitability for the full year 2025, recording an income from operations of $2.3 million compared to a loss of $2.2 million in 2024.
  • Full-year 2025 net income was $7.2 million, a significant improvement from the $52.7 million net loss in the prior year.
  • Non-GAAP net income for the full year 2025 was $105.8 million, resulting in Non-GAAP diluted EPS of $0.64.
  • Adjusted EBITDA for the full year 2025 totaled $161.5 million with a margin of 21.6%.
  • Free cash flow for 2025 was $47.6 million, down from $77.7 million in the prior year.
  • Vertex announced financial guidance for Q1 2026 expecting revenues between $193.5 million and $196.5 million and Adjusted EBITDA between $40.5 million and $43.5 million.
  • Full-year 2026 guidance projects revenues of $823.5 million to $831.5 million, cloud revenue growth of 25%, and Adjusted EBITDA of $188.0 million to $192.0 million.
  • CEO Christopher Young highlighted upcoming e-invoicing mandates in France and Germany as near-term growth tailwinds.
  • The company is integrating Artificial Intelligence through its new Smart Categorization offering, which has seen early traction with enterprise customers.
  • In Q4 2025, Vertex repurchased approximately $10 million of Class A common stock under its $150 million buyback authorization.
  • Direct customer count increased to 4,867 at the end of Q4 2025, while total customers including indirect channels reached 5,382.
  • The company reported a cash balance of $314.0 million in cash and cash equivalents as of December 31, 2025.