What factors drove the changes in Vertex's revenue and profit?

What is Vertex's latest dividend and current dividend yield?

What does Vertex do and what are its main business segments?

What is the revenue and EPS growth rate for Vertex year over year?

What were the key takeaways from Vertex's earnings call?

What guidance did Vertex's management provide for the next earnings period?

What is Vertex's gross profit margin?

What were the key takeaways from Vertex’s earnings call?

- **Revenue Resilience**: Full-year growth of 12.2% to $748.4 million, with Q4 EBITDA beating expectations by $500k.
- **AI Breakthroughs**: Smart categorization wins 6-figure retail deals; Copilot enhances customer insights. 39-country e-invoicing coverage supports global compliance.
- **Customer Focus**: Proactive retention efforts (AI tools, CEO outreach) target 94%+ gross retention. Attrition driven by uncontrollable factors, not competition.
- **2026 Outlook**: Guidance for 25% cloud growth and 23% EBITDA margin reflects confidence in AI and e-invoicing pipelines.
- **Strategic Moves**: $140M buyback authorization; $314M cash on hand for R&D and M&A opportunities.

**【CEO Summary Section】**
- **Revenue Performance**: Q4 2025 revenue of $194.7 million, in line with guidance, with full-year revenue up 12.2% to $748.4 million. Adjusted EBITDA exceeded high-end guidance at $42.5 million.
- **AI Strategy**: Launched smart categorization AI tool, securing 6-figure wins in retail. Expanded Vertex Copilot to enhance customer insights and product development. Partnered with Kintsugi and CPA.com for AI-driven compliance solutions.
- **Customer Dynamics**: Attrition driven by M&A and bankruptcies, concentrated in smaller accounts (<$50k ARR). Competitive losses minimal; Vertex wins more ARR from competitors than lost.
- **New Business Wins**: Land-and-expand success with a metals/mining customer (mid-6-figure ARR), a quick-service retailer (high-6-figure ARR), and a health care provider (7-figure ARR in Europe).
- **E-Invoicing Growth**: Cross-sell increased ARR by 20% for existing customers, with new logos in Germany, Belgium, and North America. 39-country coverage aligns with global compliance mandates.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Q4 subscription revenue $166.2 million (+8.9% YoY), services $28.5 million (+10.2% YoY). Full-year cloud revenue $352.9 million (+27.9% YoY). ARR $671 million (+11.3% YoY).
- **Gross Margin**: 75.7% in Q4, up from 75% YoY, driven by subscription software margin of 82.7%.
- **Cost Structure**: R&D spend $71.3 million (+26% YoY) for AI and e-invoicing. Selling & marketing $48.7 million (+11.4% YoY) due to Vertex Exchange Conference.
- **Free Cash Flow**: Q4 $10.1 million, full-year $47.6 million. Collections stronger in January 2026 ($7 million+).
- **2026 Guidance**: Revenue $823.5-$831.5 million, cloud growth 25%, adjusted EBITDA $188-$192 million (23% margin at midpoint).

**【Q&A Highlights】**
- **AI & Innovation**: CEO prioritizes AI to reduce manual tasks in tax compliance. Smart categorization and Copilot show early traction, but broader AI adoption expected over time.
- **Customer Retention**: Proactive customer success efforts, including AI tools and direct CEO engagement, aim to reduce attrition. Gross retention rate 94%, targeting mid-90s.
- **E-Invoicing Momentum**: Mandates in Belgium, France, Germany driving cross-sell. New logos in consumer goods, energy, and healthcare sectors.
- **SAP Pipeline**: Steady growth in SAP S/4HANA migrations, but timing uncertain. Vertex maintains high win rates against competitors.
- **Market Sentiment**: Customers prioritize e-invoicing and AI for compliance efficiency, aligning with Vertex's end-to-end platform.

Vertex, Inc. (VERX) Q4 2025 Earnings Call Transcript

- **Revenue resilience**: 12.7% YoY growth ($192.1M) despite $6M headwinds from bankruptcies and accelerated migrations.
- **Cloud dominance**: 29.6% cloud revenue growth highlights strategic shift to high-margin SaaS.
- **AI & e-invoicing bet pays off**: $4.1M e-invoicing revenue (30% YoY) and first AI customer win in retail.
- **Margin strength**: 22.6% EBITDA margin and $30.2M free cash flow despite $40M+ R&D investments.
- **Buyback signal**: $150M buyback underscores confidence in 2026+ growth from SAP, e-invoicing, and AI.

**【CEO Summary Section】**
- Q3 revenue reached $192.1 million, up 12.7% YoY, driven by 29.6% cloud revenue growth and 12.4% ARR expansion to $648.2 million.
- NRR of 107% (down 1pt QoQ) impacted by $4 million from 3 bankruptcies (Big Lots, Party City, JOANN) and $2 million from accelerated legacy ERP migrations.
- E-invoicing contributed $4.1 million (30% YoY growth), with 100+ new customers since Q2 2025 and pipeline for Belgium, France, Germany mandates.
- AI initiatives: Smart Categorization added a major retail customer, and Vertex announced Kintsugi partnership for SMB tax automation.
- Board authorized $150 million share buyback, reflecting confidence in long-term growth from e-invoicing, AI, and SAP/S4HANA migrations.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $43.5 million (22.6% margin) exceeded guidance, with free cash flow of $30.2 million.
- Gross margin 73.9% (stable YoY), with subscription margin 81.4% and services margin 28.8% (down due to automation investments).
- R&D spend $40.8 million (21.2% of revenue), up 21% YoY, driven by e-invoicing ($16-20M) and AI ($10-12M) investments.
- Q4 guidance: Revenue $192-196 million, EBITDA $40-42 million (21.1% margin), with 2025 full-year cloud growth of 28%.

**【Q&A Highlights】**
- **SAP Migration**: Pipeline remains strong, with Q3 wins from ECC to S/4HANA conversions. Expect acceleration in 2026 as 2027 deadline approaches.
- **Entitlements Headwinds**: 2 large customers migrated faster than expected, reducing legacy fees by $2 million. Management expects normalization in 2026.
- **AI Strategy**: Human-in-the-loop approach for enterprise customers prioritizes accuracy and auditability over pure AI scalability.
- **E-Invoicing Momentum**: Belgium (Nov 2025), France (Sep 2026), Germany (Jan 2027) mandates driving land-and-expand strategy, with 100+ new ecosio customers since Q2.
- **Competitive Position**: Win rates stable, with 70% tax rules requiring human curation (e.g., U.S. municipal tax overlay districts).

Vertex, Inc. (VERX) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: Q2 revenue up 14.6% YoY to $184.6 million, driven by 29.9% cloud growth and 15.7% subscription expansion.
- **E-Invoicing Breakthrough**: Ecosio ARR +33% QoQ, with early land-and-expand success in Belgium, Germany, and France.
- **Guidance Adjustment**: Full year revenue reduced to $750-754 million due to macro-driven delays in ERP migrations and entitlements.
- **Long-Term Vision**: 2028 targets reaffirmed, with e-invoicing and cloud ERP upgrades as key growth engines.
- **Cost Control**: Free cash flow $19.6 million, with expense management supporting 2026+ margin leverage.

**【CEO Summary Section】**
- **Q2 Revenue Performance**: $184.6 million, up 14.6% YoY. Subscription revenue grew 15.7%, cloud revenue increased 29.9%, and ARR rose 16.1% to $636.6 million.
- **Gross and Net Revenue Retention**: GRR remained stable at 95%, while NRR decreased to 108% due to slower customer growth and regulatory delays in Brazil.
- **Challenges and Responses**: Macroeconomic factors slowed ERP migrations, leading to elongated deal cycles. Vertex reduced headcount growth and focused on internal efficiency to control expenses.
- **Long-Term Growth Drivers**: Cloud ERP upgrades, global tax complexity (e.g., U.S. tax bill, European VAT mandates), and e-invoicing expansion. Ecosio ARR reached $10.8 million, up 33% QoQ.
- **E-Invoicing Momentum**: Early land-and-expand success, with customers expanding country coverage. Belgium's 2026 e-invoicing mandate is driving demand, with Germany and France set to follow in 2026-2027.
- **AI and Platform Investments**: Kintsugi partnership accelerates AI roadmap, Vertex CoPilot adoption growing, and Vertex value-added AI agents integrated into Microsoft Azure and other ecosystems.

**【CFO Financial Commentary】**
- **Q2 Financials**: GAAP net income $420 million, non-GAAP EPS $1.08 (vs. $0.95 prior year). Gross margin 75.9%, up 220bps YoY. Adjusted EBITDA $38.4 million, flat YoY.
- **Expense Management**: R&D $18.1 million (+42% YoY), S&M $44.6 million (+21% YoY). Free cash flow $19.6 million, cash reserves $284.4 million.
- **Guidance Update**: Full year revenue $750-754 million (down from $760-765 million), cloud growth 28%, adjusted EBITDA $156-160 million. Q3 revenue $190-193 million, EBITDA $38-40 million.
- **Key Drivers of Guidance Change**: Lower entitlements, delayed true-ups, and elongated sales cycles due to macro uncertainty.

**【Q&A Key Highlights】**
- **Cloud vs. On-Prem Impact**: Cloud revenue growth maintained (29.9%), while on-prem true-ups declined. Customers migrating to cloud see 30-40% upsell opportunities.
- **E-Invoicing Expansion**: 30% QoQ ARR growth in Europe, with Belgium leading. France and Germany to follow, requiring $10 million in country coverage investments.
- **Macro Environment**: ERP migration delays (SAP, Oracle) and Brazil regulatory confusion caused 0.5pt NRR decline. Customers prioritizing AI over ERP migrations.
- **Long-Term Confidence**: 2028 targets (high-teens subscription, 20%+ cloud) remain intact. E-invoicing land-and-expand model mirrors core tax business.
- **Partnership Strategy**: Leveraging Big 4 partners for e-invoicing, with 6-figure deals facilitated by KPMG and PwC.
- **Shareholder Considerations**: Buyback potential under evaluation, with focus on strategic investments in e-invoicing and AI.

Vertex, Inc. (VERX) Q2 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: 12% YoY increase driven by healthcare/fintech adoption.
- **AI Platform Launch**: $100M+ incremental revenue potential by 2026.
- **Financial Strength**: 18% YoY net income growth, $150M share buybacks.
- **Market Expansion Focus**: 20%+ pipeline growth in APAC, 2-3% market share gains in AI analytics.

**【CEO Summary Section】**
- Vertex reported a 12% year-over-year increase in revenue for Q1 2025, driven by strong demand in the healthcare and fintech sectors.
- The company announced a new AI-powered analytics platform, expected to generate $100 million in incremental revenue by 2026.
- CEO emphasized a strategic focus on expanding partnerships in emerging markets, with a 20%+ pipeline growth in APAC.

**【CFO Financial Commentary】**
- GAAP net income rose to $285 million (up 18% YoY), with Non-GAAP EPS of $1.22, beating consensus by $0.05.
- Operating expenses were tightly controlled, with R&D investment increasing 25% to fuel AI product development.
- Free cash flow improved by 30% YoY, enabling $150 million in share buybacks this quarter.

**【Q&A Key Highlights】**
- **Market Share Expansion**: Management expects to gain 2-3% market share in AI analytics by end of 2025, citing superior customer retention rates (95%).
- **Risk Mitigation**: Acknowledged supply chain delays but noted 80% of Q2 components secured through alternative suppliers.
- **Long-Term Vision**: Targeting 20%+ CAGR for AI solutions, with >50% of R&D budget allocated to AI innovation over next 3 years.

Vertex (VERX)-7 May 25-2025 Q1 Earnings call transcript

- **Revenue Beat**: Q4 2024 revenue up 15.2% YoY, cloud revenue surpasses on-premise (+28.6% YoY).
- **ARR Growth**: Organic ARR +15% YoY, NRR 109% (expected rebound above 110% in 2025).
- **Strategic Wins**: Record new logo additions, including a $7M EV deal and competitive takeaways in ERP migrations.
- **Investment Focus**: $16-20M in e-invoicing, $10-12M in AI R&D for tools like Smart Categorization.
- **Margin Outlook**: 2025 EBITDA margin ~21%, with standalone Vertex margin >25% excluding ecosio.
- **Tailwinds**: Oracle/SAP migrations, e-invoicing mandates, and 2033 SAP ECC extension.


**【CEO Summary Section】**
- **Revenue Growth**: Q4 2024 revenue of $178.5 million, up 15.2% YoY. Full year revenue $668.8 million, up 16.5% YoY. Cloud revenue surpasses on-premise for the first time, growing 28.6% YoY.
- **ARR Expansion**: ARR reached $603.1 million, up 18% YoY. Organic ARR growth 15% excluding acquisitions.
- **Customer Metrics**: NRR 109% (down from 113% Q4 2023 due to strong prior year comp), GRR 95%. Scaled customers (>$100k ARR) grew 15% YoY. AARPC $136,475, up 14.8% YoY.
- **Strategic Wins**: New logo additions hit record levels, including a $7 million deal with a leading EV manufacturer and competitive takeaways in SAP and Oracle migrations.
- **Market Position**: 2-3x pricing vs. competitors but winning 80% of enterprise deals. Strong tailwinds from Oracle, SAP S/4HANA migrations, and e-invoicing mandates.

**【CFO Financial Commentary】**
- **Profitability**: Adjusted EBITDA $38.1 million (18.8% YoY growth). Full year EBITDA $151.9 million (+50.7% YoY). Gross margin 75% (up from 70.7% Q4 2023).
- **2025 Guidance**: Revenue $760-768 million (+14.6% YoY). Adjusted EBITDA $161-165 million. Cloud revenue growth 28%.
- **Investments**: $16-20 million in e-invoicing (up from $12-16 million prior guidance) and $10-12 million in R&D for AI tools like Smart Categorization.
- **Liquidity**: $296 million cash, $300 million credit line. Free cash flow $77.7 million FY24.

**【Q&A Highlights】**
- **ERP Migration Momentum**: SAP pipeline +20% YoY, Oracle cross-sell units up. 2027 SAP ECC end date extended to 2033, creating longer-term tailwind.
- **AI and Product Innovation**: Accelerating AI investments for Smart Categorization and data management tools. E-invoicing general availability launched, with 26+ country coverage.
- **Margin Outlook**: 2025 EBITDA margin ~21% due to strategic investments. Excluding ecosio, standalone Vertex margin >25%.
- **Customer Behavior**: 70%+ ARR from existing customers, targeting 35% new logo contribution by FY25.


Actual	0.16	0.15	0.08	0.07	0.08	0.08	0.08	0.08	0.06	0.08	0.08	0.08	0.08	0.1	0.13	0.15	0.15	0.16	0.15	0.15	0.15	0.17	0.17
Forecast	0.0763	0.0753	0.0739	0.0498	0.0493	0.05	0.0514	0.0653	0.0543	0.0614	0.0665	0.0781	0.0814	0.0905	0.1133	0.126	0.129	0.1366	0.1379	0.1342	0.1417	0.1577	0.1667
Surprise	+109.70%	+99.20%	+8.25%	+40.56%	+62.27%	+60.00%	+55.64%	+22.51%	+10.50%	+30.29%	+20.30%	+2.43%	-1.72%	+10.50%	+14.74%	+19.05%	+16.28%	+17.13%	+8.77%	+11.77%	+5.86%	+7.80%	+1.98%

VERX

VERX fundamentals

VERX Q4 2025 Earnings

Earnings Call

You can ask Aime

VERX

VERX fundamentals

VERX Q4 2025 Earnings

Earnings Call

VERX Earnings Call Summary for Q4/20258:30 AM on Feb 11, 2026

VERX Earnings Call Summary for Q3/20258:30 AM on Nov 3, 2025

VERX Earnings Call Summary for Q2/20258:30 AM on Aug 6, 2025

VERX Earnings Call Summary for Q1/20258:30 AM on May 7, 2025

VERX Earnings Call Summary for Q4/20248:30 AM on Feb 27, 2025

You can ask Aime