Vertex, Inc.
vertexinc.comWhat Do They Do?
Sells software for calculating transaction taxes, automating tax filings, and handling electronic invoices to enterprises, marketplaces, and service providers.
10-K for FY2025, filed Feb 24, 2026Vertex’s solutions help enterprises automate and govern transaction-based compliance across global commerce. Our platform supports the full…View ↗
Tax Calculation. The increasing complexity of global regulations, cross-border trade, and jurisdictional differences has made accurate tax…View ↗
Returns and Filings. Our global compliance and reporting solutions enable the automation of signature-ready returns and remittance of…View ↗
E-invoicing. As governments accelerate digitization, compliance is increasingly shifting from periodic reporting toward structured…View ↗
A distinct and growing subset of our customer base includes digital marketplaces and various professional service providers, including…View ↗
How Do They Make Money?
Most revenue comes from software subscriptions: customers sign one- to three-year contracts, usually billed annually in advance, and subscription revenue is earned over the contract term. Service revenue is earned as work is performed or delivered.
10-K for FY2025, filed Feb 24, 2026We derive the majority of our revenue from software subscriptions. These subscriptions include use of our software and ongoing monthly…View ↗
Licenses for on-premise software subscriptions provide the customer with a right to use the software as it exists when made available to…View ↗
Cloud-based subscriptions allow customers to use Company-hosted software over the contract period without taking possession of the…View ↗
Revenue from deliverable-based services is recognized as services are delivered. Revenue from fixed fee services is recognized as services…View ↗
The Company has elected the “right to invoice” practical expedient for revenue related to services that are billed on an hourly basis…View ↗
Timing of revenue recognition may differ from the timing of invoicing customers. A receivable is recorded in the consolidated balance…View ↗
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10-K for FY2025, filed Feb 24, 2026
FY2025 revenue by product or service ↗
$748.4M
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10-K for FY2025, filed Feb 24, 2026
$748.4M ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Software licenses
Recurring
10-K for FY2025, filed Feb 24, 2026 |
38%
FY2022: 50%
|
Software licenses, FY2025
$286.7M Sources
|
Recurring |
|
Cloud subscriptions
Recurring
10-K for FY2025, filed Feb 24, 2026 |
47%
FY2022: 34%
|
Cloud subscriptions, FY2025
$352.9M Sources
|
Recurring |
|
Services
|
15%
FY2022: 15%
|
Services, FY2025
$108.8M Sources
|
Who Are Their Customers?
Enterprises and midmarket companies with complex tax operations buy through Vertex's direct team and referral partners; system integrators and resellers extend sales, while marketplaces and service providers use its tools for their end customers.
10-K for FY2025, filed Feb 24, 2026A distinct and growing subset of our customer base includes digital marketplaces and various professional service providers, including…View ↗
We license our software and solutions primarily through our direct and indirect sales organization, with a focus on enterprise and…View ↗
Our direct sales force leverages our partnerships with technology providers such as Oracle, SAP, Microsoft, and Salesforce, and a growing…View ↗
We also utilize indirect sales to efficiently grow and scale our revenues. Our indirect sales team focuses on building relationships with…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 1 cent of every revenue dollar as net income in FY2025.
10-K for FY2025, filed Feb 24, 2026
How Are They Changing?
- Net income
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Sources
10-Q for Q2 FY2026, filed Aug 4, 2026
$9MView ↗
- ▲ Now profitable
- vs −$961K in Q2 FY2025
10-Q for Q2 FY2026, filed Aug 4, 2026
Open tableView ↗
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Aug 3, 2026
Issued third-quarter and full-year financial guidance
Forecasts 2026 revenue of $825.0 million to $830.0 million and cloud revenue growth of 18%.
Sources
8-K, filed Aug 3, 2026
Revenues of $825.0 million to $830.0 million;View ↗
Growing. Revenue grew 76% in 4 years, from $425.5M in FY2021 to $748.4M in FY2025, about 15% a year.
Electronic invoicing
The latest report includes a global electronic-invoicing and digital-compliance solution alongside tax calculation and return-filing tools described in the older report.
10-K for FY2022, filed Mar 10, 2023 10-K for FY2025, filed Feb 24, 2026E-invoicing. As governments accelerate digitization, compliance is increasingly shifting from periodic reporting toward structured…View ↗
Artificial intelligence tools
The latest report describes a tool launched to map product items to tax categories using artificial intelligence, alongside the older report's tax-calculation software.
10-K for FY2022, filed Mar 10, 2023 10-K for FY2025, filed Feb 24, 2026Tax Determination. Our tax determination solutions enable real-time calculation of indirect taxes and applicable fees for sale and purchase…View ↗
In addition to platform-embedded AI capabilities, in 2025, Vertex launched Smart Categorization, an AI-powered solution designed to reduce…View ↗
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