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%.