Vertex, Inc. (VERX)
NASDAQ:VERX
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Earnings Data
Report Date
Aug 12, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.19Last Year’s EPS
0.15Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely positive operational and financial start to the year: the company beat quarterly revenue and adjusted EBITDA guidance, delivered double‑digit ARR growth, improved margins, and achieved Q1 free cash flow positivity. Management announced a deliberate value-creation program (≈9% workforce reduction and third-party spend cuts) that increases near-term charges but is expected to produce $60M–$70M of annualized cash savings beginning in 2027 and has already supported an upward adjustment to full-year adjusted EBITDA guidance. Key growth drivers include cloud and e-invoicing momentum, AI product traction (smart categorization) and the Brinta acquisition for Latin America and AI capability. However, risks and headwinds include a moderated medium‑term revenue growth outlook (low double digits vs prior higher targets), the need for back‑half acceleration in cloud revenue to meet yearly targets, one-time restructuring costs and the timing lag before cost savings are fully realized. Overall, the company is trading faster profitability and cash conversion for near-term restructuring impacts while positioning to monetize e‑invoicing and AI adjacencies over time.Company Guidance
Revenue Beat and YoY Growth
Total revenue of $196.6 million in Q1, up 11.1% year-over-year and above the high end of company guidance.
Adjusted EBITDA Outperformance
Adjusted EBITDA of $44.1 million in Q1, up 18.4% year-over-year and above guidance; full-year adjusted EBITDA guide raised to $202M–$208M from $188M–$192M.
Recurring Revenue and ARR Strength
Annual recurring revenue (ARR) increased 11.2% year-over-year; software subscription revenue up 10.9% and services revenue up 12.2% in the quarter.
Cloud Momentum
Cloud revenue grew 20.7% year-over-year; cloud now approaches 60% of total subscription revenue and company reiterates full-year cloud revenue growth target of 25%.
Customer Retention and Unit Economics
Gross revenue retention at 95%; net revenue retention stable; average annual revenue per direct customer (AARPC) $140,464, up 11% year-over-year; scaled customer count growth at 12%.
Improving Margins and Cash Flow
Non-GAAP gross margins increased by 50 basis points year-over-year; free cash flow positive $7.7 million in Q1 (only the second positive Q1 since IPO).
Cost Action and Future Cash Savings
April value-creation program includes ~9% workforce reduction and third-party spend cuts; recognized $6.2M pretax severance charge and $2.6M incremental execution costs in Q1; expected fully annualized cash savings of $60M–$70M per year beginning in 2027 (net of reinvestments).
E-invoicing & Compliance Momentum
E-invoicing business showing strong ARR and revenue growth materially above corporate rate; expected revenue ramp later in year with France mandate and further ramp in 2027 with Germany mandate.
Strategic AI Investments and Early Product Traction
Acquired Brinta to add AI-first e-invoicing/compliance capabilities and Latin America coverage; first commercial AI product (smart categorization) in production shows dramatic productivity gains — categorization time down from >1.5 minutes per product to a few seconds and customers moving full catalogs through the platform.
Share Repurchase
Repurchased $20 million of shares in Q1 at an average price of $14.59 per share.
VERX Earnings History
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, 2026 | $12.66 | $14.67 | +15.88% |
Feb 11, 2026 | $14.88 | $12.83 | -13.78% |
Nov 03, 2025 | $22.90 | $20.69 | -9.65% |
Aug 06, 2025 | $33.07 | $27.10 | -18.05% |
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.
FAQ
When does Vertex, Inc. (VERX) report earnings?
Vertex, Inc. (VERX) is schdueled to report earning on Aug 12, 2026, Before Open (Confirmed).
What is Vertex, Inc. (VERX) earnings time?
Vertex, Inc. (VERX) earnings time is at Aug 12, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is VERX EPS forecast?
VERX EPS forecast for the fiscal quarter 2026 (Q2) is 0.19.
