Vertex, Inc. (VERX) FY2025 10-K Annual Report

Filed: Feb 24, 2026
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

Vertex, Inc. (VERX) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Vertex, Inc. FY2025 10-K Analysis

Business Overview

  • Core business: enterprise tax compliance software, data, and services automating transaction-based indirect tax obligations globally
  • New AI-powered Smart Categorization launched in 2025 to automate product SKU tax classification across jurisdictions
  • Strategic partnership with Kintsugi AI in 2025 to target SMBs with AI-driven tax compliance powered by Vertex engine
  • Customer base grew to 4,867 direct customers with ARR per customer $137,867 as of Dec 31, 2025
  • Expanded e-invoicing solution presence to 38 countries and formed partnership with NITIS SAS to boost Latin America footprint

Management Discussion & Analysis

  • Revenue $748.4M, up 12.2% YoY from $666.8M; software subscriptions $639.7M (+12.8%), services $108.8M (+9.2%)
  • Gross margin 64.3% vs 63.9%; operating margin 0.3% vs -0.3% in prior year
  • Best segment software subscriptions revenue $639.7M (+12.8%); worst segment services revenue $108.8M (+9.2%) but higher cost increase by 21.4%
  • Adjusted EBITDA $161.5M up from $151.9M; stock repurchase program authorized for $150M; investment $15M in Kintsugi AI startup; no dividend disclosed
  • Management expects continued investments for growth and scaling, cloud migration trends, and increased costs may pressure near-term profitability

Risk Factors

  • No specific or timely regulatory or legal risk detailed in the text
  • No geopolitical or macroeconomic threat with concrete exposure noted
  • Cybersecurity risk governance centralized under SVP of Information Security with 20+ years experience and quarterly reporting to Audit Committee
  • No named competitor or technology presenting competitive disruption risk disclosed
  • Key-person dependency on SVP of Information Security, Chief Technology Officer, and Chief Digital Officer for cybersecurity risk management oversight

Vertex, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$748M

+12.2% YoY

Net Income

$7M

+113.7% YoY

Gross Margin

64.3%

+44bp YoY

Operating Margin

0.3%

+65bp YoY

Net Margin

1.0%

+887bp YoY

ROE

2.8%

+3218bp YoY

Total Assets

$1.3B

+8.9% YoY

Operating Cash Flow

$166M

+0.4% YoY

Source: XBRL data from Vertex, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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