Vertex, Inc. reported a total revenue of $204.0 million for the second quarter of 2026, marking a 10.5% increase from $184.6 million in the same period of 2025. The growth was primarily driven by a 10.7% rise in software subscription revenue, which reached $174.8 million, and a 9.4% increase in service revenue, totaling $29.2 million. For the first half of 2026, Vertex generated $400.6 million in revenue, up 10.8% from $361.6 million in the prior year. Despite these revenue gains, the company reported a net income of $9.0 million for the second quarter, a significant turnaround from a net loss of $1.0 million in the same quarter of 2025.
In terms of operational changes, Vertex completed the acquisition of Brinta on March 2, 2026, for a total consideration of $22.1 million. This acquisition is expected to enhance Vertex's capabilities in indirect tax calculation and e-invoicing, particularly in the Latin American market. Additionally, the company announced a global Value Creation Plan aimed at becoming more AI-enabled, which includes a workforce reduction of approximately 170 employees and a focus on operational efficiency. This restructuring effort resulted in pre-tax charges of $1.7 million and $7.9 million for the second quarter and first half of 2026, respectively.
Vertex's customer base grew to 4,919 direct customers by the end of June 2026, compared to 4,862 a year earlier. The company reported an Annual Recurring Revenue (ARR) of $703.4 million, reflecting a 10.5% increase year-over-year. The Average Annual Revenue Per Customer (AARPC) also rose to approximately $142,997, up from $130,934 in the previous year. However, the Net Revenue Retention Rate (NRR) decreased to 105% from 108%, attributed to slower growth in additional entitlements and delayed deal activity among large multinational customers.
Looking ahead, Vertex maintains a positive outlook, supported by its strong liquidity position with $230.5 million in cash and cash equivalents as of June 30, 2026. The company has no outstanding borrowings under its $300 million credit facility and plans to continue investing in its infrastructure and product offerings. Vertex expects to leverage its recent acquisitions and strategic initiatives to drive future growth, despite potential challenges in the macroeconomic environment.
About Vertex, Inc.
Vertex, Inc. provides enterprise tax technology solutions focused on automating and managing indirect tax compliance worldwide. Its software addresses complex tax determination, reporting, data management, and analytics across numerous jurisdictions. Serving primarily large enterprises and digital marketplaces, Vertex leverages proprietary content, integrations, and cloud infrastructure to reduce compliance risks, enhance transparency, and support global growth in a highly competitive industry.
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