KING OF PRUSSIA, PA — Vertex, Inc. (Nasdaq: VERX) raised its full-year adjusted EBITDA outlook after launching a restructuring initiative aimed at improving profitability while expanding investment in artificial intelligence and global compliance software.
The company projected 2026 adjusted EBITDA of $202 million to $208 million, above prior expectations, after implementing cost reductions in April that Chief Financial Officer John Schwab estimated would lower annual cash spending by $60 million to $70 million beginning in 2027.
Vertex reported first-quarter revenue of $196.6 million, up 11.1% from a year earlier, while cloud revenue increased 20.7% to $96.8 million.
Annual recurring revenue rose 11.2% to $687.6 million as of March 31, while average annual revenue per direct customer increased to $140,464 from $126,534 a year earlier.
Despite higher revenue, the company posted an operating loss of $10.6 million, compared with operating income of $4.5 million during the same quarter last year.
Net loss totaled $2.5 million, or $0.02 per share, versus net income of $11.1 million, or $0.07 per share, a year earlier.
Adjusted EBITDA increased to $44.1 million from $37.2 million, with margin improving to 22.4% from 21%.
Chief Executive Officer Chris Young attributed the quarter’s performance to stable customer demand and retention despite broader economic uncertainty.
“In the first quarter we acquired Brinta, an AI-first e-invoicing startup in Latin America,” Young said in a statement, describing the acquisition as a way to expand the company’s regional compliance capabilities and accelerate AI-driven automation tools.
Vertex stated that the acquisition strengthens its coverage in Latin America, where electronic invoicing and real-time tax compliance requirements have become increasingly complex for multinational businesses.
The company expects second-quarter revenue between $200 million and $204 million, with adjusted EBITDA projected between $47 million and $50 million.
For the full year, Vertex forecast revenue of $823.5 million to $831.5 million and cloud revenue growth of 25%.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.