Vertex Outlines Plan to Reaccelerate Growth After Slower 2025

Company reports Q4 revenue of $194.7M, up 9.1% YoY, and plans AI-driven initiatives to boost customer retention

Published on Feb. 11, 2026

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Vertex (NASDAQ:VERX) executives used the company's fourth-quarter earnings call to outline a plan to reaccelerate growth after what management described as a year of slower entitlement expansion, softer upsell activity, and higher attrition concentrated among smaller customers. The company reported fourth-quarter revenue of $194.7 million, up 9.1% year-over-year and in line with guidance, while adjusted EBITDA of $42.5 million exceeded the high end of the company's outlook.

Why it matters

Vertex is a leading provider of tax compliance software, and its ability to reaccelerate growth is crucial for maintaining its market position. The company's plans to leverage AI-driven initiatives like Smart Categorization and Vertex Copilot could help boost customer retention and drive future revenue growth.

The details

CFO John Schwab said full-year 2025 revenue was $748.4 million, up 12.2% from 2024, including subscription revenue of $639.7 million, up 12.8%. Fourth-quarter subscription revenue rose 8.9% to $166.2 million, while services revenue grew 10.2% to $28.5 million. Cloud revenue in the fourth quarter was $94.6 million, up 23% from the prior year period. Schwab reported annual recurring revenue (ARR) of $671 million at quarter end, up 11.3% year-over-year. Net revenue retention (NRR) ended the year at 105%, and gross revenue retention (GRR) was 94%, which the company said was within its targeted range of 94% to 96%. Average annual revenue per customer was $137,867, up 12.4%.

  • Vertex reported fourth-quarter revenue and earnings on February 11, 2026.

The players

Vertex (NASDAQ:VERX)

A specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States.

John Schwab

The Chief Financial Officer of Vertex.

Chris Young

The President and CEO of Vertex, on his first earnings call in the role.

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What they’re saying

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What’s next

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The takeaway

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