KING OF PRUSSIA, PA — Vertex, Inc. (NASDAQ: VERX) posted double-digit revenue growth in the third quarter of 2025 and announced its first-ever stock repurchase program, signaling confidence in its long-term market outlook.
For the quarter ending September 30, Vertex reported total revenues of $192.1 million, up 12.7% year-over-year, driven by strong performance in its cloud business. Cloud revenue climbed nearly 30% to $92 million, while annual recurring revenue reached $648.2 million, reflecting the company’s continued expansion in software subscription and cloud-based tax compliance services.
CEO and Chairperson David DeStefano described the quarter as “solid,” highlighting both growth and profitability. “We believe cloud migrations as well as ever-increasing complexity in tax regimes worldwide will continue to drive strong demand for our solutions, especially with companies that are currently using home-grown solutions for indirect tax compliance,” DeStefano said.
Vertex’s profitability also strengthened. Adjusted EBITDA rose to $43.5 million from $38.6 million a year earlier, with an adjusted EBITDA margin holding steady at 22.6%. Non-GAAP net income increased to $28.6 million, or $0.17 per diluted share, compared to $33.4 million last year.
The company also announced a major leadership transition. DeStefano will move into the role of non-executive chairperson later this month, as Christopher Young — formerly of Microsoft — steps in as the new president and CEO. Vertex cited Young’s experience in scaling major technology companies and his work in artificial intelligence as key assets for the company’s next growth phase.
Looking ahead, Vertex projects fourth-quarter revenues between $192 million and $196 million and full-year 2025 revenues up to $749.7 million, including a 28% increase in cloud revenue. CFO John Schwab noted that the company raised its full-year adjusted EBITDA guidance to reflect improved profitability trends.
In a major move to boost shareholder value, Vertex’s board authorized a $150 million stock repurchase program, its first in company history. The buyback allows the company to repurchase shares through open-market or privately negotiated transactions, with no set expiration date.
The initiative, according to the company, reflects its confidence in future growth and the continued expansion of its cloud-based tax compliance platform — a cornerstone of its evolving digital strategy.
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