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