Vertex, Inc. reported its fourth‑quarter and full‑year 2025 results, posting revenue of $194.7 million for the quarter and $748.4 million for the year—up 9.1% and 12.2% YoY, respectively. Adjusted EBITDA margins were 21.8% in Q4 and 21.1% for the year, while Non‑GAAP diluted earnings per share were $0.17 in both periods, matching consensus estimates of $0.17 and beating the revenue estimate of $194.15 million by $0.55 million.
The quarter’s revenue beat the consensus estimate by $0.55 million, a 0.28% lift, and the EPS beat was neutral, as the company’s cost‑control program and a favorable mix of high‑margin cloud and AI‑driven contracts offset the 9.1% YoY revenue growth. The adjusted EBITDA margin expansion to 21.8% from 21.3% in Q4 2024 reflects improved pricing power in the cloud‑first segment and disciplined operating expenses, even as the company invested in AI and e‑invoicing initiatives.
Full‑year results showed a $748.4 million revenue total, a 12.2% increase from $666.8 million in 2024, and a 21.1% adjusted EBITDA margin, slightly lower than the 22.8% margin in 2024. Vertex’s net income of $52.7 million in 2025 replaced the $52.7 million net loss of 2024, driven by a 12.2% revenue gain and a 1.7‑percentage‑point margin improvement. EPS of $0.17 matched the $0.17 estimate, underscoring the company’s ability to translate revenue growth into earnings while maintaining margin discipline.
Management highlighted that the growth was driven by a continued shift to cloud‑based tax solutions, accelerated e‑invoicing adoption in Europe, and the early traction of its AI‑powered Smart Categorization offering. The company’s recent acquisitions of Systax and ecosio have expanded its ARR base and added complementary capabilities, contributing to the revenue mix shift toward higher‑margin subscription services. Cost control initiatives, including a $10 million share repurchase under a $150 million authorization, helped preserve cash and support the margin expansion.
Vertex’s guidance for the next quarter and the full‑year 2026 outlook remains unchanged, with the company stating it will not update its financial outlook until the next earnings announcement. Management expressed confidence in sustaining profitability, noting that upcoming e‑invoicing mandates in France and Germany and continued AI adoption present tailwinds, while the deceleration in revenue growth and a drop in net revenue retention to 105% from 109% in Q4 2024 signal headwinds that will be monitored closely.
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