Vertex Announces Second Quarter 2026 Financial Results
Vertex, Inc. (NASDAQ: VERX) reported Q2 2026 results for the quarter ended June 30, 2026. Total revenue rose 10.5% to $204.0 million, with software subscription revenue up 10.7% to $174.8 million and cloud revenue up 17.9% to $101.7 million. Adjusted EBITDA increased to $51.0 million. Outlook: Q3 revenue $208.0-$211.0 million and adjusted EBITDA $55.0-$57.0 million; FY 2026 revenue $825.0-$830.0 million and adjusted EBITDA $206.0-$210.0 million.
How this was made
The 30-second read
Why it matters
Traders can update models using the provided Q2 metrics (revenue, ARR, NRR/GRR, adjusted EBITDA) and the explicit Q3 and FY 2026 ranges. The key debate is whether cloud and e-invoicing momentum sustain margin expansion into 3Q and 4Q.
Market read
A company-specific earnings and guidance release with explicit profitability and growth targets, likely driving near-term repricing versus prior expectations.
What to watch
Operating loss from operations remains negative (-$4.4M), and the company highlights inability to reconcile Adjusted EBITDA to GAAP net income, which can matter for investors focused on GAAP profitability and cash conversion.
Background
Vertex, an indirect tax and compliance software provider, reported Q2 2026 results and issued Q3 and full-year 2026 guidance, alongside commentary on an AI-First transformation.
Ticker impact
Vertex reported Q2 2026 revenue of $204.0M (+10.5% YoY) and raised/narrowed outlook with Q3 adjusted EBITDA of $55.0M to $57.0M.
Likely positive bias for the next session and into Q3 as traders price in higher profitability and cash-generation expectations.
The release provides multiple decision-useful datapoints: revenue at high end of guidance, adjusted EBITDA above expectations, and explicit Q3 and FY 2026 ranges. However, the article does not include consensus comparisons or prior guidance levels, limiting precision on upside surprise magnitude.
Market effects
Signals continued demand for indirect tax and compliance software, with e-invoicing momentum and cloud growth supporting the SaaS compliance peer group’s growth narrative.
Limited direct regional read-through; primarily a US-listed software earnings signal with global customer mandate tailwinds.
E-invoicing and expanding global compliance mandates are referenced as drivers, which can influence broader cross-border compliance software sentiment.
Counterpoint
NRR is flat at 105% and GRR is 95%, so growth may be more about expansion within the base than net customer quality improvement.
Key entities
- companyVertex, Inc.
NASDAQ-listed indirect tax and compliance software company reporting Q2 2026 results and guidance.
- executiveChristopher Young
CEO quoted on Q2 performance, AI-First strategy progress, and operating discipline.
- executiveJohn Schwab
CFO quoted on narrowing revenue guidance range and raising adjusted EBITDA outlook.