The earnings call reflects a strong financial performance with notable revenue and ARR growth, strategic investments in AI, and new customer wins. However, there are concerns about NRR pressure, decreased services margins, and negative cash flow.

Company Guidance -

Q3 2025

During the Vertex, Inc. First Quarter 2025 Earnings Conference Call, the company provided strong financial guidance with revenue for the quarter reaching $177.1 million, a 12.9% increase year-over-year, and subscription revenue growing 14.4%. Cloud revenue growth was notably robust at 29.6%. The company reported an adjusted EBITDA of $37.8 million, yielding an EBITDA margin of 21.3%, which exceeded the high-end of their guidance range. Furthermore, annual recurring revenue (ARR) rose by 17.9% to $618.5 million, while net recurring revenue (NRR) remained strong at 109%, with expectations of it surpassing 110% by year-end. Gross recurring revenue (GRR) was stable at 95%, within the targeted range of 94% to 96%. The company anticipates continued growth in 2025, supported by strategic initiatives like e-invoicing and AI, and highlighted an equity investment in the AI-focused startup Kintsugi.

Strong Revenue Growth

Revenue for Q1 2025 was $177.1 million, up 12.9% year-over-year, with subscription revenue growing 14.4% and cloud revenue increasing by 29.6%.

Annual Recurring Revenue (ARR) Increase

ARR grew 17.9% to $618.5 million. Organic ARR growth was 15.1%, excluding contributions from acquisitions.

Successful Customer Engagements

Several notable customer wins across different ecosystems, including a 7-figure deal with a major electronic payments processor and a major real estate investment trust.

Investment in AI and Strategic Partnerships

Equity investment in Kintsugi, an AI startup, to enhance sales tax compliance solutions for SMBs and explore AI applications for enterprise markets.

E-Invoicing Solution Launch

The joint e-invoicing solution with ecosio achieved general availability, positioning Vertex well in anticipation of regulatory changes in major European markets.

Vertex (VERX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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VERX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2025	2025 (Q3)	0.15 / -	0.16	―	―	―
Aug 06, 2025	2025 (Q2)	0.14 / 0.15	0.15	0.00% (0.00)	―
May 07, 2025	2025 (Q1)	0.13 / 0.15	0.15	0.00% (0.00)	―
Feb 27, 2025	2024 (Q4)	0.14 / 0.15	0.13	15.38% (+0.02)	―
Nov 06, 2024	2024 (Q3)	0.14 / 0.16	0.1	60.00% (+0.06)
Aug 07, 2024	2024 (Q2)	0.13 / 0.15	0.08	87.50% (+0.07)
May 08, 2024	2024 (Q1)	0.13 / 0.15	0.08	87.50% (+0.07)
Feb 29, 2024	2023 (Q4)	0.11 / 0.13	0.08	62.50% (+0.05)
Nov 09, 2023	2023 (Q3)	0.09 / 0.10	0.08	25.00% (+0.02)
Aug 09, 2023	2023 (Q2)	0.08 / 0.08	0.06	33.33% (+0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

VERX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 07, 2025	$38.70	$37.44	-3.26%
Feb 27, 2025	$42.63	$34.54	-18.98%
Nov 06, 2024	$43.71	$49.76	+13.84%
Aug 07, 2024	$36.17	$34.62	-4.29%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.