Vertex, Q3 2026 Earnings Call Transcript

Vertex reported Q3 revenue growth of 11%, accelerating cloud revenue growth above 20% and adjusted EBITDA growth of nearly 50%, prompting higher full-year revenue and EBITDA guidance. Management said retention has stabilized and the core business’s growth trajectory is improving, while the Value Creation Plan is boosting profitability and cash generation; it expects adjusted EBITDA margins of about 30% in 2027, with further expansion possible. E-invoicing ARR more than doubled year over year, supported by the French mandate launch and acquisitions. Vertex expects the business to grow significantly faster than the company overall, though not at the same pace every quarter, with upcoming mandates through 2029 providing further opportunities. A discrete payroll-tax OEM loss is expected to weigh on Q4 retention metrics, but management said it does not signal broader customer deterioration. AI-enabled productivity, cloud migration and the broader tax-compliance platform are key areas of investment and growth.