Vertex(NASDAQ) VERX

Vertex, Inc. helps large companies calculate and pay indirect taxes, which are taxes collected by businesses from their customers. Its tools automate complex rules for sales tax and value-added tax during global transactions. These services help businesses stay compliant with local laws in every country where they operate.

Tax Tools for Global Trade

• Software Subscriptions: Cloud and on-premise tools for tax calculation, compliance, and reporting; accounted for 85.7% of total revenues in the three months ended June 30, 2026.
• Services: Support for software configuration, data migration, and outsourced tax return preparation; accounted for 14.3% of total revenues in the three months ended June 30, 2026.

New Regions and Smarter Tech

• Acquired Brinta on March 2, 2026, to strengthen its electronic billing and tax calculation capabilities in Latin America.
• Approved a global Value Creation Plan in April 2026 to focus on artificial intelligence and operational efficiency.
• Invested $15.0 million in Kintsugi AI, Inc. during 2025 to expand its network of technology partners.
• Expanded its global reach through the acquisition of ecosio GmbH in 2024 to support electronic data exchange.

Built Into Every Transaction

Vertex integrates its tools with major software systems like SAP and Oracle to automate taxes directly within existing business workflows. The company maintains a global presence and supports 4,919 direct customers as of June 30, 2026.

Key Numbers for the Quarter

• Total revenues reached $204.0 million for the three months ended June 30, 2026, up 10.5% year over year.
• Net income was $9.0 million for the quarter ended June 30, 2026, compared to a net loss of $1.0 million in the same period of 2025.
• Adjusted EBITDA reached $51.0 million for the three-month period ended June 30, 2026, up from $38.4 million in the previous year.
• Annual Recurring Revenue totaled $703.4 million as of June 30, 2026, a 10.5% increase year over year.
• Unrestricted cash and cash equivalents were $230.5 million as of June 30, 2026.

Vertex in a Nutshell

Vertex has transitioned from a traditional software provider to a cloud-focused leader in global tax automation. By integrating artificial intelligence and expanding into new regions, it remains a central partner for large enterprises managing complex regulatory requirements.