KING OF PRUSSIA, PA — Vertex, Inc. (NASDAQ: VERX), a leading provider of indirect tax solutions, announced robust financial results for the first quarter ending March 31, 2025, showcasing continued growth and progress on strategic initiatives.
Total revenue for the quarter reached $177.1 million, an increase of 12.9% from the previous year. Software subscription revenue saw significant growth, rising 14.4% to $150.8 million, while cloud revenue surged 29.6% to $80.2 million. The company’s Annual Recurring Revenue (ARR) climbed to $618.5 million, up 17.9% year-over-year.
David DeStefano, President, CEO, and Chairperson of Vertex’s Board, called attention to the company’s strategic progress during the quarter, saying, “Vertex continued to perform well in the first quarter, setting us up for a strong 2025. We made solid advancements in key areas such as e-invoicing and artificial intelligence, positioning us for long-term growth in the indirect tax automation space.”
Vertex also highlighted its recent investment in Kintsugi AI, a startup focused on leveraging artificial intelligence to enhance tax compliance for small and mid-size businesses. DeStefano described the collaboration as an important accelerator for Vertex’s R&D efforts, with the potential to expedite the development of AI-driven products.
Operating income for the quarter was $4.5 million, a sharp improvement from a loss of $1.6 million during the same period last year. Net income surged to $11.1 million, compared to $2.7 million a year ago. Adjusted EBITDA came in at $37.2 million, maintaining a healthy margin of 21%.
John Schwab, Chief Financial Officer, outlined the company’s forward-looking guidance, emphasizing confidence in sustained growth. “Our guidance for the second quarter and full year 2025 reflects the strength of our business, underpinned by persistent secular trends and an underpenetrated market for indirect tax automation,” Schwab said.
For the second quarter of 2025, Vertex projects revenues between $182 million and $187 million, with adjusted EBITDA ranging from $35.5 million to $39.5 million. For the full year, the company expects revenues of $760 million to $768 million, cloud revenue growth of 28%, and adjusted EBITDA between $161 million and $165 million.
With a strong start to 2025 and continued investment in innovation, Vertex remains well-positioned to capitalize on growth opportunities in the rapidly evolving tax automation market.
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