---
title: "Vertex | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 203.97 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294733532.md"
datetime: "2026-08-03T20:17:22.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294733532.md)
  - [en](https://longbridge.com/en/news/294733532.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294733532.md)
---

# Vertex | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 203.97 M

Revenue: As of FY2026 Q2, the actual value is USD 203.97 M, beating the estimate of USD 202.22 M.

EPS: As of FY2026 Q2, the actual value is USD 0.06.

EBIT: As of FY2026 Q2, the actual value is USD -4.099 M.

### Second Quarter 2026 Financial Highlights

#### Revenue

Total revenues for the second quarter were $204.0 million, an increase of 10.5% year-over-year. Software subscription revenues reached $174.8 million, up 10.7% year-over-year. Cloud revenues grew to $101.7 million, marking a 17.9% increase year-over-year. For the six months ended June 30, 2026, total revenues were $400,616 thousand, compared to $361,621 thousand in the prior year.

#### Operational Metrics

Loss from operations for the quarter was - $4.4 million, compared to - $3.9 million in the prior year period. Non-GAAP operating income for the quarter was $44.3 million, up from $32.2 million in the prior year period. Net income for the quarter was $9.0 million, compared to a net loss of - $1.0 million in the prior year period. Adjusted EBITDA for the quarter was $51.0 million, an increase from $38.4 million in the prior year period. Adjusted EBITDA margin for the quarter was 25.0%, up from 20.8% in the prior year period. Non-GAAP gross profit for the quarter was $155,199 thousand, with a Non-GAAP gross margin of 76.1%. For the six months ended June 30, 2026, Non-GAAP operating income was $81,916 thousand, compared to $63,521 thousand in the prior year period. Non-GAAP net income for the six months ended June 30, 2026, was $61,997 thousand, compared to $49,385 thousand in the prior year period.

#### Cash Flow

Net cash provided by operating activities for the six months ended June 30, 2026, was $68,871 thousand, compared to $60,808 thousand in the prior year period. Free cash flow for the quarter was $2,733 thousand, compared to $19,587 thousand in the prior year period. Free cash flow margin for the quarter was 1.3%, compared to 10.6% in the prior year period. Free cash flow for the six months ended June 30, 2026, was $10,392 thousand, compared to $7,337 thousand in the prior year period. Free cash flow margin for the six months ended June 30, 2026, was 2.6%, compared to 2.0% in the prior year period.

#### Unique Metrics

Annual Recurring Revenue (ARR) was $703.4 million, representing a 10.5% year-over-year increase. Average Annual Revenue per direct customer (AARPC) was $142,997 at June 30, 2026, up from $130,934 at June 30, 2025. Net Revenue Retention (NRR) was 105% at June 30, 2026, consistent with March 31, 2026, but down from 108% at June 30, 2025. Gross Revenue Retention (GRR) remained stable at 95%, consistent with both June 30, 2025, and March 31, 2026. Vertex, Inc. had 4,919 direct customers and 540 indirect customers, totaling 5,459 customers at June 30, 2026.

#### Financial Outlook

For the third quarter of 2026, Vertex, Inc. expects revenues between $208.0 million and $211.0 million, with Adjusted EBITDA projected to be between $55.0 million and $57.0 million. For the full-year 2026, the Company anticipates revenues of $825.0 million to $830.0 million and Adjusted EBITDA of $206.0 million to $210.0 million. Cloud revenue growth for the full year 2026 is expected to be 18%.

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- [VERX.US](https://longbridge.com/en/quote/VERX.US.md)

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