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Get filing alertsVertex reports Q2 revenue up 10.5% to $204M, raises full-year adjusted EBITDA guidance
Filed August 3, 2026 · Period ending August 3, 2026 · ~1 min read
Key Changes
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Q2 2026 revenue of $204.0M (up 10.5% YoY) with software subscription revenue of $174.8M (up 10.7%) and cloud revenue of $101.7M (up 17.9%); swung to net income of $9.0M from $1.0M loss in Q2 2025.
Exhibit 99.1 view on EDGAR → -
high
Raised full-year 2026 adjusted EBITDA guidance to $206.0M–$210.0M; narrowed revenue guidance to $825.0M–$830.0M with 18% cloud revenue growth expected.
Exhibit 99.1 view on EDGAR → -
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Q3 2026 guidance: revenue of $208.0M–$211.0M and adjusted EBITDA of $55.0M–$57.0M, reflecting continued margin expansion.
Exhibit 99.1 view on EDGAR → -
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Incurred $16.7M in Value Creation Plan costs during H1 2026 ($7.9M severance, $8.8M other), excluded from non-GAAP measures; plan targets operational efficiency and AI-First strategy.
Exhibit 99.1 view on EDGAR → -
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Recorded $1.7M in acquisition-related compensation tied to $10.0M additional cash consideration payments to Brinta sellers, excluded from non-GAAP results.
Exhibit 99.1 view on EDGAR →
Summary
Vertex reported solid second-quarter 2026 results with total revenue of $204.0 million, up 10.5% year-over-year, driven by software subscription revenue growth of 10.7% and cloud revenue growth of 17.9%. The company swung to net income of $9.0 million from a $1.0 million loss in the prior-year quarter, while adjusted EBITDA reached $51.0 million with a 25.0% margin, up from 20.8% a year earlier.
Management raised full-year adjusted EBITDA guidance to $206.0 million–$210.0 million, citing strong first-half execution and confidence in the operating model, while narrowing revenue guidance to $825.0 million–$830.0 million.
The company incurred $16.7 million in Value Creation Plan costs during the first half of 2026, reflecting its ongoing transformation initiative focused on operational efficiency and an AI-First strategy. These costs were excluded from non-GAAP measures. Third-quarter guidance calls for revenue of $208.0 million–$211.0 million and adjusted EBITDA of $55.0 million–$57.0 million, indicating continued margin expansion. For retail holders, the raised profitability outlook and improving operating leverage suggest the company is successfully executing its strategic plan while maintaining revenue growth momentum.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Total revenues of $204.0 million, up 10.5% year-over-year. ... Software subscription revenues of $174.8 million, up 10.7% year-over-year. ... Cloud revenues of $101.7 million, up 17.9% year-over-year. ... Net income (loss) of $9.0 million, compared to $(1.0) million for the same period in the prior year. ... Adjusted EBITDA of $51.0 million, compared to $38.4 million for the same period in the prior year. Adjusted EBITDA margin of 25.0%, compared to 20.8% for the same period in the prior year.
Vertex reported second quarter 2026 total revenues of $204.0 million, a 10.5% increase year-over-year, with software subscription revenues of $174.8 million (up 10.7%) and cloud revenues of $101.7 million (up 17.9%). The company swung to net income of $9.0 million from a net loss of $1.0 million in Q2 2025. Adjusted EBITDA reached $51.0 million with a 25.0% margin, up from $38.4 million and 20.8% margin in the prior-year quarter, reflecting improved operating leverage and discipline.
Added in current filing · view on EDGAR →
The three and six months ended June 30, 2026 periods include $1,713 and $7,883, respectively, in severance costs related to the Value Creation Plan. ... The three and six months ended June 30, 2026 periods include $6,250 and $8,800, respectively, in costs incurred to support the execution of our Value Creation Plan, recorded in general and administrative expense.
Vertex incurred $7,883 in severance costs and $8,800 in other costs (totaling $16,683) during the first half of 2026 related to its Value Creation Plan, a transformation initiative aimed at improving operational efficiency and focus. These costs were excluded from non-GAAP measures. The company is making progress on this plan, which includes an AI-First strategy and leadership strengthening.
Show 1 minor / wording change
Added in current filing · view on EDGAR →
The acquisition-related compensation expenses recorded for the three and six months ended June 30, 2026 are related to the additional cash consideration payments of $10,000 to the sellers (the “Additional Cash Consideration”) in connection with the acquisition of Finta Inc. and its subsidiaries (“Brinta”).
Vertex recorded acquisition-related compensation expenses of $1,667 in the first half of 2026 tied to $10,000 in additional cash consideration payments to the sellers of Brinta (Finta Inc. and subsidiaries). These payments represent retention-based earn-outs following the acquisition and were excluded from non-GAAP operating results.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 4, 2026 · How we verify