Research Reports

Q2 2025 revenue $184.6M, +14.6% YoY; organic revenue $181.2M, +12.4% YoY (CFO)
Subscription revenue $157.8M, +15.7% YoY; cloud revenue $86.2M, +29.9% YoY (Ecosio added ~4ppts to cloud growth) (CFO)
Adjusted EBITDA $38.4M, margin 20.8%; operating cash flow $46.0M; free cash flow $19.6M (CFO)
ARR $636.6M, +16.1% YoY; organic ARR +14.1% YoY; Ecosio ARR $10.8M, +33% QoQ (CEO, CFO)
Gross revenue retention (GRR) 95%; net revenue retention (NRR) 108%, down from 109% in Q1 (CEO, CFO)
Vertex stand-alone AARPC $142,584, +12.7% YoY; scaled customers (>$100K) +16% YoY (CEO)
Gross margin 75.9% (vs 73.7% YoY); subscription gross margin 83.2% (vs 80.4% YoY); services gross margin 33.1% (vs 36.8% YoY) (CFO)
R&D expense $18.1M; capitalized software spend included R&D $38.9M (21.1% of revenue); S&M $44.6M (24.2% of revenue); G&A $38.1M (CFO)
Cash & equivalents $284.4M; $300M unused credit line (CFO)
Key headwinds: macro slowdown in ERP migrations, lower additional entitlements, Brazil regulatory confusion (CEO); NRR decline driven by lower deal activity from large multinationals and tariff/regulatory uncertainty (CFO)
E-invoicing momentum: Belgium mandate Jan 2026; France Sep 2026; Germany Jan 2027; early land-and-expand proof point with customer expanding from 4 to several countries (~$100K new ARR) (CEO)

Q3 2025: Revenue $190M–$193M; adjusted EBITDA $38M–$40M (CFO)
Full-year 2025: Revenue $750M–$754M (revised down); cloud revenue growth 28%; adjusted EBITDA $156M–$160M (CFO)

"We saw macroeconomic factors that have been noted in the software industry in 2025 impact our customers and begin to affect their activity with us." (CEO)
"The short-term environment does not impact our confidence in the long-term growth expectations we shared at Investor Day." (CEO)
"The tailwinds that fuel our demand opportunity... remain in place. But with continued uncertainty in the macro environment, I believe we have taken prudent steps." (CEO)
"We took into consideration what we saw develop in the second quarter... we're just reevaluating based on what we're seeing and trying to be very thoughtful." (CFO)
"Our win rates in the enterprise market remained consistently strong, and several of these delayed deals have now already closed in the third quarter." (CEO)