Filing Flows › Vertex (VERX) › Q1 2026
Vertex (VERX) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 7, 2026
Vertex (VERX) reported revenue of $197M for the first quarter 2026 (Q1 2026), +11% from a year earlier and +1% from the quarter before. Operating margin was -5.4%, net loss $2.5M (1.3% of revenue).
Vertex, Q1 2026: revenue $197M (+11% year over year), operating margin -5.4%, net loss $2.5M, operating cash flow $38.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $197M | +1% | +11% |
| Operating profit | −$10.6M | — | -336% |
| Net earnings | −$2.5M | — | -123% |
| Operating cash flow | $38.0M | -10% | +157% |
| Free cash flow | $7.7M | — | — |
What changed
Revenue was $196.6M in Q1 2026, up 11% year over year and up 1% from the previous quarter. Cloud subscriptions was the largest line at 49% of revenue. Cloud subscriptions added $16.6M year over year (up 21%), 85% of the total change.
Gross margin was 63.5%, down 0.3 points from Q1 2025. Operating costs exceeded revenue by $10.6M, an operating margin of -5.4%. Operating expenses grew 25% against revenue growth of 11%. The quarter ended with a net loss of $2.5M, narrower than the previous quarter's $7.0M loss.
Operating cash flow was $38.0M (up 157% year over year). Non-cash charges added back $27.1M of depreciation and amortization and $18.5M of share-based compensation. Working capital and other items used $5.1M. After property and equipment additions ($24.7M) and capitalized software additions ($5.7M), free cash flow as the company reports it was $7.7M.
Questions
What was Vertex's revenue in the first quarter 2026?
Vertex (VERX) reported revenue of $197M for the first quarter 2026 (Q1 2026), +11% from a year earlier and +1% from the quarter before.
Was Vertex profitable in the first quarter 2026?
Operating loss was $10.6M (-5.4% of revenue) and net loss $2.5M.
Source: Vertex 10-Q on SEC EDGAR.