Filing Flows › Vertex (VERX) › Q2 2025
Vertex (VERX) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 6, 2025
Vertex (VERX) reported revenue of $185M for the second quarter 2025 (Q2 2025), +15% from a year earlier and +4% from the quarter before. Operating margin was -2.1%, net loss $961K (0.5% of revenue).
Vertex, Q2 2025: revenue $185M (+15% year over year), operating margin -2.1%, net loss $961K, operating cash flow $46.0M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $185M | +4% | +15% |
| Operating profit | −$3.9M | -186% | — |
| Net earnings | −$961K | -109% | — |
| Operating cash flow | $46.0M | +211% | -20% |
| Free cash flow | $19.6M | — | -47% |
What changed
Revenue was $184.6M in Q2 2025, up 15% year over year and up 4% from the previous quarter. Cloud subscriptions was the largest line at 47% of revenue. Cloud subscriptions added $19.9M year over year (up 30%), 85% of the total change.
Gross margin was 65.7%, up 1.9 points from a year earlier. Operating costs exceeded revenue by $3.9M, an operating margin of -2.1%. Operating expenses grew 31% against revenue growth of 15%. The fastest-growing cost line was Other operating costs (+207%). The quarter ended with a net loss of $1.0M, after a profit of $11.1M the previous quarter. Non-operating items added $1.2M, -47% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $46.0M (down 20% year over year). Non-cash charges added back $23.4M of depreciation and amortization and $12.0M of share-based compensation. Working capital and other items added $11.5M. After property and equipment additions ($21.5M) and capitalized software additions ($4.9M), free cash flow as the company reports it was $19.6M.
Questions
What was Vertex's revenue in the second quarter 2025?
Vertex (VERX) reported revenue of $185M for the second quarter 2025 (Q2 2025), +15% from a year earlier and +4% from the quarter before.
Was Vertex profitable in the second quarter 2025?
Operating loss was $3.9M (-2.1% of revenue) and net loss $961K.
Source: Vertex 10-Q on SEC EDGAR.