Vertex Narrows Q4 Loss to $7M as Cloud Revenue Jumps 23%
Vertex posted a Q4 net loss of $7.0M, down from $67.8M a year earlier, and reported non-GAAP net income of $27.8M. Total revenue climbed 9.1% to $194.7M with cloud revenue up 23% to $94.6M, and full-year 2026 guidance targets $823.5M–$831.5M in revenue and 25% cloud growth.
1. Q4 Financial Results
Vertex reported a Q4 net loss of $7.0 million, a sharp improvement from a $67.8 million loss in the prior year quarter. Non-GAAP net income reached $27.8 million, translating to diluted earnings of $0.17 per share.
2. Revenue Growth Composition
Total revenues rose 9.1% year-over-year to $194.7 million, led by software subscription revenues of $166.2 million (up 8.9%). Cloud revenues surged 23% to $94.6 million, representing the fastest growth segment.
3. 2026 Guidance
For Q1 2026, guidance calls for revenue of $193.5 million to $196.5 million and adjusted EBITDA of $40.5 million to $43.5 million. Full-year 2026 targets $823.5 million–$831.5 million in revenue, 25% cloud revenue growth and adjusted EBITDA of $188.0 million–$192.0 million.
4. Market Reaction
Shares of the company rose 7.5% in pre-market trading on the Nasdaq to $16.00, reflecting investor approval of the narrower loss, robust cloud growth, and optimistic 2026 outlook.