Tax solutions firm Vertex's Q2 revenue misses estimate, lowers 2025 guidance

Vertex

06/08/2025 12:16

Overview

Vertex Q2 revenue grows 14.6% yr/yr, slightly missing analyst expectations

Company reports net loss of $1.0 mln vs net income last year

Vertex lowers full-year 2025 guidance due to extended sales cycles

Outlook

Vertex expects Q3 2025 revenue of $190 mln to $193 mln

Company forecasts full-year 2025 revenue of $750 mln to $754 mln

Vertex anticipates Q3 2025 adjusted EBITDA of $38 mln to $40 mln

Company projects full-year 2025 adjusted EBITDA of $156 mln to $160 mln

Global e-invoicing mandates expected to fuel future growth

Result Drivers

INDIRECT TAX COMPLEXITY - Demand driven by growing complexity in indirect taxes, per CEO David DeStefano

ERP CLOUD CONVERSIONS - ERP cloud conversions cited as durable long-term growth driver

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$184.56 mln
$184.60 mln (13 Analysts)
Q2 Net Income
-$961,000
Q2 Pretax Profit
Miss
-$2.64 mln
$32 mln (10 Analysts)
Q2 Gross Profit
$121.20 mln
Q2 Income from Operations
-$3.86 mln
Q2 Operating Expenses
$125.06 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Vertex Inc is $48.00, about 31.1% above its August 5 closing price of $33.07

The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 58 three months ago

Press Release: ID:nGNX71Q6N9

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)