Filing Flows › Vertex (VERX) › Q1 2025
Vertex (VERX) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Vertex (VERX) reported revenue of $177M for the first quarter 2025 (Q1 2025), +13% from a year earlier and -0.8% from the quarter before. Operating margin was 2.5%, net earnings $11.1M (6.3% of revenue).
Vertex, Q1 2025: revenue $177M (+13% year over year), operating margin 2.5%, net earnings $11.1M, operating cash flow $14.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $177M | -0.8% | +13% |
| Gross profit | $113M | -4% | +18% |
| Operating profit | $4.5M | — | — |
| Net earnings | $11.1M | — | +315% |
| Operating cash flow | $14.8M | -64% | -40% |
What changed
Revenue was $177.1M in Q1 2025, up 13% year over year and down 1% from the previous quarter. Cloud subscriptions was the largest line at 45% of revenue. Cloud subscriptions added $18.3M year over year (up 30%), 90% of the total change.
Gross margin was 63.8%, up 2.7 points from a year earlier. Operating profit was $4.5M, a 2.5% margin (up 3.5 points year over year). Operating expenses grew 11% against revenue growth of 13%. Net earnings were $11.1M, up 315% year over year. The effective tax rate was -84.7%. Non-operating items added $1.5M, 26% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $14.8M (down 40% year over year), 133% of net earnings. Non-cash charges added back $22.3M of depreciation and amortization and $21.0M of share-based compensation. Working capital and other items used $39.6M.
Questions
What was Vertex's revenue in the first quarter 2025?
Vertex (VERX) reported revenue of $177M for the first quarter 2025 (Q1 2025), +13% from a year earlier and -0.8% from the quarter before.
Was Vertex profitable in the first quarter 2025?
Operating profit was $4.5M (2.5% of revenue) and net earnings $11.1M.
Source: Vertex 10-Q on SEC EDGAR.