Filing Flows › Vertex (VERX) › Q3 2026
Vertex (VERX) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 5, 2026
Vertex (VERX) reported revenue of $213M for the third quarter 2026 (Q3 2026), +11% from a year earlier and +5% from the quarter before. Operating margin was 0.1%, net loss $46.6M (21.9% of revenue).
Vertex, Q3 2026: revenue $213M (+11% year over year), operating margin 0.1%, net loss $46.6M, operating cash flow $53.3M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $213M | +5% | +11% |
| Operating profit | $314K | — | -93% |
| Net earnings | −$46.6M | -616% | -1253% |
| Operating cash flow | $53.3M | +72% | -15% |
| Free cash flow | $25.2M | — | -16% |
What changed
Revenue was $213.3M in Q3 2026, up 11% year over year and up 5% from the previous quarter. Cloud subscriptions was the largest line at 52% of revenue. Cloud subscriptions added $18.9M year over year (up 20%), 89% of the total change. Software licenses declined 3%.
Gross margin was 65.7%, up 2.6 points from Q3 2025. Operating profit was $314K, a 0.1% margin (down 2.1 points year over year). Operating profit fell $4.0M even though revenue rose $21.2M versus Q3 2025, so costs grew faster than sales. Operating expenses grew 20% against revenue growth of 11%. The fastest-growing cost line was Other operating costs (+174%). The quarter ended with a net loss of $46.6M, after a profit of $9.0M the previous quarter. Non-operating items added $342K, 52% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $53.3M (down 15% year over year). Non-cash charges added back $31.1M of depreciation and amortization and $15.4M of share-based compensation. Working capital and other items added $53.4M. After property and equipment additions ($22.8M) and capitalized software additions ($5.3M), free cash flow as the company reports it was $25.2M.
Questions
What was Vertex's revenue in the third quarter 2026?
Vertex (VERX) reported revenue of $213M for the third quarter 2026 (Q3 2026), +11% from a year earlier and +5% from the quarter before.
Was Vertex profitable in the third quarter 2026?
Operating profit was $314K (0.1% of revenue) and net loss $46.6M.
Source: Vertex 10-Q on SEC EDGAR.