While Vertex demonstrated strong revenue and subscription growth with notable achievements in e-invoicing and a solid customer base, the company faced significant challenges, including reduced guidance, decreased NRR, and macroeconomic factors impacting customer activity. The sentiment is balanced with both positive and negative aspects.

Company Guidance

During Vertex Inc.'s second quarter 2025 earnings call, several key metrics and guidance updates were highlighted. The company reported revenue of $184.6 million, marking a 14.6% increase year-over-year. Subscription revenue grew by 15.7%, and cloud revenue surged by 29.9%. Adjusted EBITDA reached $38.4 million, with an EBITDA margin of 20.8%. Annual recurring revenue (ARR) climbed 16.1% to $636.6 million, while gross revenue retention (GRR) stayed at 95%. However, net revenue retention (NRR) dropped to 108%, down one point from the first quarter. The company attributed this decrease to slower growth in customer entitlements and regulatory changes in Brazil. Despite these challenges, Vertex remains optimistic about its long-term growth due to global trends like increased e-invoicing mandates and cloud ERP migrations. The company adjusted its full-year revenue guidance to $750 million-$754 million and maintained its cloud revenue growth target at 28%.

Revenue and Subscription Growth

Second quarter revenue was $184.6 million, up 14.6% year-over-year. Subscription revenue grew 15.7%, and cloud revenue increased by 29.9%.

Annual Recurring Revenue Growth

Annual recurring revenue (ARR) grew 16.1% to $636.6 million.

Strong Gross Revenue Retention

Gross revenue retention (GRR) remained at 95% in the second quarter, within the targeted range of 94% to 96%.

Ecosio Performance

Ecosio's annual recurring revenue reached $10.8 million, a 33% increase from the prior quarter.

E-Invoicing Demand in Europe

Strong demand for e-invoicing in Europe, particularly due to upcoming mandates in Belgium, France, and Germany.

Successful New Business Wins

Secured key new logos in Oracle and SAP ecosystems and several e-invoicing successes despite headwinds.

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
Aug 06, 2025	$33.07	$27.10	-18.05%
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%

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.