Filing Flows › Vertex (VERX) › Q3 2025
Vertex (VERX) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 3, 2025
Vertex (VERX) reported revenue of $192M for the third quarter 2025 (Q3 2025), +13% from a year earlier and +4% from the quarter before. Operating margin was 2.2%, net earnings $4.0M (2.1% of revenue).
Vertex, Q3 2025: revenue $192M (+13% year over year), operating margin 2.2%, net earnings $4.0M, operating cash flow $62.5M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $192M | +4% | +13% |
| Gross profit | $121M | +0.1% | +10% |
| Operating profit | $4.3M | — | -12% |
| Net earnings | $4.0M | — | -44% |
| Operating cash flow | $62.5M | +36% | +51% |
| Free cash flow | $30.2M | — | +64% |
What changed
Revenue was $192.1M in Q3 2025, up 13% year over year and up 4% from the previous quarter. Cloud subscriptions was the largest line at 48% of revenue. Cloud subscriptions added $21.0M year over year (up 30%), 97% of the total change. Software licenses declined 3%.
Gross margin was 63.1%, down 1.7 points from a year earlier. Operating profit was $4.3M, a 2.2% margin (down 0.6 points year over year). Operating profit fell $576K even though revenue rose $21.7M versus a year earlier, so costs grew faster than sales. Operating expenses grew 11% against revenue growth of 13%. The fastest-growing cost line was Research & development (+28%). Net earnings were $4.0M, down 44% year over year. The effective tax rate was 27.3%. Non-operating items added $1.2M, 22% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $62.5M (up 51% year over year), 1544% of net earnings. Non-cash charges added back $25.1M of depreciation and amortization and $13.2M of share-based compensation. Working capital and other items added $20.1M. After property and equipment additions ($26.4M) and capitalized software additions ($5.9M), free cash flow as the company reports it was $30.2M.
Questions
What was Vertex's revenue in the third quarter 2025?
Vertex (VERX) reported revenue of $192M for the third quarter 2025 (Q3 2025), +13% from a year earlier and +4% from the quarter before.
Was Vertex profitable in the third quarter 2025?
Operating profit was $4.3M (2.2% of revenue) and net earnings $4.0M.
Source: Vertex 10-Q on SEC EDGAR.