Vertex

Vertex reported second-quarter revenue of $204 million, a 10.5% increase year over year and at the high end of its guidance range. Adjusted EBITDA surged 33% to $51 million, exceeding expectations, while the adjusted EBITDA margin expanded more than 4 percentage points to 25%. The company narrowed its full-year revenue outlook to $825 million to $830 million and raised its adjusted EBITDA guidance to $206 million to $210 million, citing improved cost discipline and operational focus. Cloud revenue grew 17.9% to $101.7 million, though management lowered the full-year cloud growth forecast to 18% due to slower-than-expected customer conversions. Annual recurring revenue reached $703.4 million, up 10.5%, and net revenue retention held steady at 105% sequentially.

Vertex, Inc. reported second-quarter 2026 revenue of US$203.97 million and swung to a net income of US$9.04 million from a small loss a year earlier. The company issued third-quarter and full-year 2026 revenue guidance, narrowing its full-year outlook to a range of US$825 million to US$830 million. Vertex also announced a series of senior hires, including a new Chief Product and Technology Officer, as it deepens its AI-first tax automation and e-invoicing capabilities. The moves come as the company targets larger global mandates amid rising tax complexity.

Vertex reported second-quarter revenue of $203.97 million, a 10.5% increase from the same period last year, and earnings per share of $0.20. The revenue figure exceeded the Zacks Consensus Estimate of $202 million by 0.98%, while EPS beat the consensus of $0.19 by 5.26%. Annual Recurring Revenue reached $703.4 million, slightly above the $699.88 million analyst estimate. Software subscriptions revenue came in at $174.75 million, and services revenue was $29.22 million, both surpassing analyst projections.

Vertex reported second-quarter adjusted earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.19 per share. Revenue came in at $203.97 million, surpassing the consensus estimate by 0.98% and up from $184.56 million a year earlier. The company has now topped consensus revenue estimates in each of the last four quarters. Vertex shares have lost about 35.4% year to date, while the S&P 500 has gained 9.4%.

TD Cowen initiated coverage of Vertex with a Buy rating and a $14 price target on June 29, 2026, calling the company a leading global indirect tax and e-invoicing software vendor. The firm cited reasonable consensus expectations and a depressed valuation after the stock's year-to-date decline of over 35% as reasons sentiment could improve alongside execution, and expects Vertex to sustain double-digit revenue growth through at least fiscal 2028. The initiation followed first-quarter 2026 results in which Vertex reported total revenue of $196.6 million, up 11.1% year-over-year, and adjusted EBITDA of $44.1 million, above the high end of guidance. During the quarter, Vertex acquired Brinta, an AI-first e-invoicing startup in Latin America, and launched a Value Creation Plan expected to save $60 million to $70 million annually beginning in 2027. Vertex guided for full-year 2026 revenue of $823.5 million to $831.5 million and cloud revenue growth of 25%.