VERX
Vertex, Inc.20.62
+1.16+5.96%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A reaffirms script, adds churn details
Q&A largely reaffirmed prepared remarks, with no walk-backs but added color on 2025 challenges. Chris clarified competitive losses concentrated in sub-$50k ARR customers—not price- or AI-driven—yet Vertex nets more ARR wins from rivals. SAP S/4HANA pipeline holds steady win rates, but timing stretches longer than expected. AI efficiencies will expand customer success without proportional hires; e-invoicing mandates offer back-half upside. Management stayed confident on guidance. Churn hit small accounts hardest. Watch AI traction and NRR rebound.
Key Stats
Market Cap
3.29BP/E (TTM)
-Basic EPS (TTM)
-0.35Dividend Yield
0%Recent Filings
10-K
FY2025 results
Vertex delivered FY2025 revenue of $748.4M, up 12.2% y/y, with software subscriptions hitting $639.7M (12.8% y/y growth) fueled by existing customer expansions while new logos added 7.1% of subs revenue. Q4 saw accelerated deal signings per seasonal patterns, lifting ARR to $671M (11.3% y/y) despite NRR dipping to 105% from softer tier-ups. Cloud subs now claim 55% of mix, boosting long-term ARR potential yet pressuring margins. Free cash flow held at $47.6M amid $96M capex; $140M remains in repurchase authorization after Q4's $10M buyback. Ongoing litigation with a competitor risks quarterly distractions.
8-K
Vertex beats with 12.2% growth
Vertex reported Q4 revenues of $194.7M, up 9.1% year-over-year, with full-year revenues hitting $748.4M, up 12.2%. Cloud revenues surged 23.0% in Q4 and 27.9% annually, while ARR grew 11.3% to $671.0M. Profitability improved sharply: non-GAAP operating income rose to $36.1M from $32.5M. Guidance signals 2026 revenue growth to $823.5M-$831.5M. NRR dipped to 105%.
8-K
Credit amendment enables repurchases
Vertex amended its credit agreement on November 14, 2025, with PNC Bank and lenders to allow additional dividends and share repurchases. Permitted if no default exists and pro forma secured debt net leverage stays below 2.50 to 1.00. Flexibility unlocked. Lenders reaffirmed all liens and guarantees.
8-K
Q3 growth, buyback, CEO change
Vertex reported Q3 2025 revenues of $192.1 million, up 12.7% year-over-year, with cloud revenues surging 29.6% to $92.0 million amid robust cash flow. The board authorized a $150 million stock repurchase program on October 30, 2025, to boost shareholder value, while David DeStefano transitions to non-executive chair and Christopher Young joins as CEO later this month. Leadership shift brings AI expertise. Yet, NRR dipped to 107%.
10-Q
Q3 FY2025 results
Vertex posted solid Q3 FY2025 results, with total revenues climbing 12.7% year-over-year to $192.1M, fueled by 12.7% growth in software subscriptions to $164.8M from existing customer expansions and modest new wins, while services rose 12.8% to $27.3M on higher returns processing volumes. Gross profit hit $121.3M, up 9.8%, but operating income dipped 11.8% to $4.3M amid steeper R&D and services costs; diluted EPS fell to $0.02 from $0.04, reconciling neatly with 159.2M weighted shares and no anti-dilution flags. Cash swelled to $313.5M, with free cash flow (derived) at $30.2M versus $18.4M last year, and $300M revolver fully available against $337M net debt due 2029 at 0.75%. The August 2024 ecosio buy closed for undisclosed cash, adding $35.9M goodwill and $4.1M intangibles amortized over 1.9 years on average, with earn-outs now valued at $106.1M. Yet competition from tax software rivals keeps pressure on retention.
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