Vertex Raises 2026 Ebitda Outlook After Cloud Growth

The Tip Desk · November 10, 2026 · 2 min read

Third-quarter revenue reached $213.3 million as the tax-software company lifted full-year Adjusted EBITDA to as much as $219.9 million.

Vertex, Inc. (VERX), the Decision-to-Defense global indirect tax and compliance company, reported third-quarter revenue of $213.3 million, up 11.0% from a year earlier, and raised its full-year 2026 Adjusted EBITDA outlook to $217.9 million to $219.9 million from $206.0 million to $210.0 million.

The company said it was raising the full-year revenue and Adjusted EBITDA outlook based on year-to-date performance. Full-year revenue is now expected at $828.9 million to $830.9 million, up from a prior range of $825.0 million to $830.0 million. Cloud revenue growth guidance moved to 19% from 18%.

Cloud revenue was $110.8 million, up 20.4% year over year. Annual recurring revenue was $724.3 million, up 11.7% year over year. Software subscription revenue was $181.7 million. Net revenue retention was 106%. Gross revenue retention was 95%. Average annual revenue per direct customer was $145,793 at September 30, 2026. Direct customers numbered 4,968.

Adjusted EBITDA was $64.8 million, with a 30.4% margin. Non-GAAP operating income was $57.3 million. Non-GAAP net income was $42.9 million, or $0.26 a share.

GAAP results moved the other way. Income from operations was $0.3 million. Net loss was $46.6 million, or $0.29 a share, compared with net income of $4.0 million a year earlier. The quarter included $47.3 million of income tax expense, $2.8 million of a change in the fair value of acquisition contingent earn-outs, and $9.1 million of transaction and other business transformation costs in the non-GAAP operating-income reconciliation.

President and Chief Executive Officer Christopher Young said the company had stabilized the core business, strengthened its financial profile, and built a more efficient operating model, and that continued momentum in e-invoicing contributed to accelerating ARR and cloud revenue growth. Chief Financial Officer John Schwab said third-quarter results reflected continued progress against priorities established earlier in the year.

For the fourth quarter of 2026, Vertex currently expects revenue of $215.0 million to $217.0 million and Adjusted EBITDA of $58.0 million to $60.0 million. Cash and cash equivalents were $217.8 million at September 30, 2026.