Revenue: As of FY2026 Q1, the actual value is USD 196.65 M, beating the estimate of USD 194.82 M.EPS: As of FY2026 Q1, the actual value is USD -0.02.EBIT: As of FY2026 Q1, the actual value is USD -9.649 M.<h4>Segment Revenue</h4>Vertex, Inc. reported total revenues of $196.6 million, an 11.1% increase year-over-year for the first quarter ended March 31, 2026. Software subscription revenues grew by 10.9% year-over-year to $167.1 million. Cloud revenues increased by 20.7% year-over-year, reaching $96.8 million.<h4>Operational Metrics</h4>Annual Recurring Revenue (ARR) was $687.6 million, marking an 11.2% increase year-over-year. The Average Annual Revenue per direct customer (AARPC) reached $140,464 at March 31, 2026, up from $126,534 at March 31, 2025. Net Revenue Retention (NRR) stood at 105%, consistent with December 31, 2025, but a decrease from 109% at March 31, 2025. Gross Revenue Retention (GRR) remained at 95%, matching the figure from March 31, 2025.Income from operations was -$10.6 million, a decrease from $4.5 million in the prior year period. Non-GAAP operating income increased to $37.6 million from $31.3 million year-over-year. Net income was -$2.5 million, compared to $11.1 million in the prior year period. Adjusted EBITDA reached $44.1 million, an increase from $37.2 million in the prior year, resulting in an Adjusted EBITDA margin of 22.4%, up from 21.0% in the prior year.<h4>Cash Flow</h4>Net cash provided by operating activities was $37,975 thousand for the three months ended March 31, 2026, compared to $14,805 thousand for the same period in 2025. Free cash flow was $7,659 thousand, a significant improvement from -$12,250 thousand in the prior year period. The free cash flow margin was 3.9%, an increase from -6.9% year-over-year.<h4>Unique Metrics</h4>Vertex, Inc.’s customer base included 4,895 direct customers and 530 indirect customers, totaling 5,425 customers in Q1 2026.<h4>Outlook / Guidance</h4>For the second quarter of 2026, Vertex, Inc. anticipates revenues between $200.0 million and $204.0 million, and Adjusted EBITDA of $47.0 million to $50.0 million. The company expects full-year 2026 revenues to range from $823.5 million to $831.5 million, with cloud revenue growth projected at 25 percent and Adjusted EBITDA between $202.0 million and $208.0 million. The Value Creation Plan’s cost actions are estimated to result in $60 to $70 million in annualized cash savings beginning in 2027.

Vertex | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 196.65 M