Vertex, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with total revenues reaching $748.4 million, a 12.2% increase from $666.8 million in 2024. The growth was primarily driven by a 12.8% rise in software subscription revenues, which amounted to $639.7 million, and a 9.2% increase in services revenue, totaling $108.8 million. The company also achieved a net income of $7.2 million, a substantial recovery from a net loss of $52.7 million in the previous year.
In terms of operational metrics, Vertex served 4,867 direct customers as of December 31, 2025, with an annual recurring revenue (ARR) per customer of approximately $137,867, up from $122,706 in 2024. The company’s net revenue retention rate (NRR) was 105%, down from 109% the previous year, indicating a slight decline in revenue growth from existing customers. The gross revenue retention rate (GRR) also decreased to 94% from 95%, reflecting higher customer attrition, particularly among smaller accounts.
Strategically, Vertex made notable advancements, including a $15 million investment in Kintsugi, an AI startup focused on automating sales tax compliance for small and mid-sized businesses. This investment is expected to enhance Vertex's capabilities in the compliance technology space. Additionally, the company launched a stock repurchase program, authorizing up to $150 million for the repurchase of its Class A common stock, with $139.9 million remaining as of the end of 2025.
The company’s workforce grew to over 2,100 employees, with 73% based in the U.S. and the remainder in Europe and other regions. Vertex continues to expand its geographic footprint, particularly in Latin America and Europe, where it has tailored its go-to-market strategies and enhanced its content database to meet local compliance needs. The company’s investments in research and development increased by 25.6% to $83.7 million, reflecting its commitment to innovation and the development of new solutions.
Looking ahead, Vertex anticipates continued growth driven by the increasing complexity of global commerce and compliance requirements. The company plans to focus on retaining and expanding revenues from existing customers, acquiring new customers, and deepening its partner ecosystem. However, it also acknowledges potential challenges, including economic conditions and competitive pressures that could impact its performance.
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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