Overview

* Vertex Q2 revenue grows 14.6% yr/yr, slightly missing analyst expectations

* Company reports net loss of $1.0 mln vs net income last year

* Vertex lowers full-year 2025 guidance due to extended sales cycles

Outlook

* Vertex expects Q3 2025 revenue of $190 mln to $193 mln

* Company forecasts full-year 2025 revenue of $750 mln to $754 mln

* Vertex anticipates Q3 2025 adjusted EBITDA of $38 mln to $40 mln

* Company projects full-year 2025 adjusted EBITDA of $156 mln to $160 mln

* Global e-invoicing mandates expected to fuel future growth

Result Drivers

* INDIRECT TAX COMPLEXITY - Demand driven by growing complexity in indirect taxes, per CEO David DeStefano

* ERP CLOUD CONVERSIONS - ERP cloud conversions cited as durable long-term growth driver

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $184.56 $184.60

Revenue mln mln (13

Analysts

)

Q2 Net -$961,00

Income 0

Q2 Miss -$2.64 $32 mln

Pretax mln (10

Profit Analysts

)

Q2 Gross $121.20

Profit mln

Q2 -$3.86

Income mln

from

Operatio

ns

Q2 $125.06

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Vertex Inc ( VERX ) is $48.00, about 31.1% above its August 5 closing price of $33.07

* The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 58 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)