Vertex Q2 2026 Earnings Report

Vertex EPS Results

• Actual EPS: $0.20
• Consensus EPS: $0.19
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: $0.15

Vertex Revenue Results

• Actual Revenue: $203.97 million
• Expected Revenue: $202.21 million
• Beat/Miss: Beat by +$1.76 million
• YoY Revenue Growth: +10.50%

Vertex Announcement Details

• Quarter: Q2 2026
• Date: 8/3/2026
• Time: After Market Closes
• Conference Call Date: Monday, August 3, 2026
• Conference Call Time: 5:00PM ET

Vertex (NASDAQ:VERX) Energy, Inc. (NASDAQ: VERX) is a specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States. The company collects and processes a variety of waste petroleum products, including used motor oil and industrial lubricants, which it converts into ultra-low-sulfur diesel, asphalt, and other refined products. By leveraging proprietary re-refining technologies and strategic feedstock sourcing, Vertex Energy aims to deliver cost-effective, lower-carbon fuel solutions to wholesale and retail customers across the country.

Headquartered in Houston, Texas, Vertex operates a network of refining and blending facilities in key regions, including the Central, Northeast and Mid-Atlantic markets. These sites are equipped to handle both traditional crude oil and recycled feedstocks, allowing the company to adjust product slates in response to market conditions. Vertex Energy’s distribution capabilities include terminals, pipelines and rail connections that serve independent fuel marketers, municipal fleets, and regional petroleum distributors.

Founded in 2001, Vertex Energy has grown through a combination of organic investments and targeted acquisitions of underutilized refining assets. The company’s management team brings deep experience in energy operations, environmental compliance and fuel marketing. Throughout its history, Vertex has emphasized cost discipline and sustainability initiatives, positioning itself to respond to evolving regulatory requirements and growing demand for low-carbon fuel alternatives.

Vertex Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 revenue and profitability exceeded expectations. Revenue rose 10.5% year over year to $204 million, while adjusted EBITDA increased 33% to $51 million and the margin expanded to 25%.
• Positive Sentiment: E-invoicing momentum accelerated ahead of French and German mandates, including several six-figure enterprise wins and growing cross-sell activity among existing customers. Management expects adoption and multi-country deployments to support cloud growth into late 2026 and 2027.
• Negative Sentiment: Cloud conversions and sales cycles are taking longer than expected. Vertex reduced its full-year cloud revenue growth outlook to 18%, citing delayed customer migrations, elongated procurement cycles, and slower new-logo execution, although management characterized the issue as timing rather than lost revenue.
• Neutral Sentiment: AI adoption is improving internal productivity, with 89% of employees using core AI tools and reported engineering-efficiency gains, but AI-related revenue is not yet material. Customer-facing products remain largely in the build and validation phase, with broader commercialization expected primarily in 2027.
• Positive Sentiment: Vertex raised its full-year adjusted EBITDA outlook to $206 million-$210 million while narrowing revenue guidance to $825 million-$830 million. The company also repurchased $26.5 million of stock during the quarter, with $93.4 million remaining under its authorization.

Presentation

[Operator]

Good morning, welcome to the Vertex First Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow management's prepared remarks, we ask that you please hold all questions until that time. I will provide instructions for the question and answer session. As a reminder, this conference is being recorded. If you have any objections, please disconnect at this time. I will now turn the call over to Joe Crivelli, Vice President of Investor Relations, for introductory remarks.

[Joe Crivelli, VP of Investor Relations at Vertex]

Hello, thanks for joining us to discuss Vertex's second quarter results. Chris Young, our President and CEO, John Schwab, our CFO, are with us today. As noted on slide two, during this call, we may make forward-looking statements about expected future results. Actual results may differ due to risks and uncertainties. These risks and uncertainties are described in our filings with the Securities and Exchange Commission. Our remarks today will also include references to non-GAAP metrics. A reconciliation of these metrics to GAAP is also provided in today's press release. This call is being recorded and will be available for replay on our investor relations website. I'll now turn the call over to Chris.

[Chris Young, President and CEO at Vertex]

Welcome, everyone, and thank you for joining us. Our second quarter results demonstrate two key points. First, the durability of the Vertex business. Revenue grew 10.5% year-over-year to $204 million at the high end of our guidance range. Second, we are beginning to translate greater operating focus and cost discipline into meaningful earnings leverage. Adjusted EBITDA increased 33% to $51 million above our guidance range, and adjusted EBITDA margin expanded by more than 4 percentage points year-over-year to 25%. This second quarter provides tangible evidence that the actions we are taking to sharpen our priorities, improve our execution, and operate more efficiently are producing results. That said, we still have work to do on growth. Expansion within the installed base and new logo performance are not yet at the level we expect, in part because cloud conversions have been slower than expected this year.

[Chris Young, President and CEO at Vertex]

Our customer metrics remain stable. Gross revenue retention was 95%, and net revenue retention was 105% for the second consecutive quarter. The message in those numbers is straightforward. Our customer base remains durable, and our solutions remain deeply embedded in mission-critical workflows. At the same time, we need to improve expansion, cross-sell, and the way we manage customer migrations. Those are important priorities for the second half. E-invoicing was one of the strongest areas of execution in the quarter. Momentum increased during the quarter across all geographic regions, supported by the approaching French mandate, upcoming German mandate, and by customers taking a broader view of global compliance. This matters strategically. Global compliance is moving closer to the transaction itself.

[Chris Young, President and CEO at Vertex]

Customers increasingly need to determine the right tax outcome, execute the transaction in accordance with local regulations, report it to the relevant authorities, then finally, maintain the evidence required to defend it. Vertex is well-positioned to help our customers manage that entire life cycle, from decision to defense. That is the broader opportunity we're pursuing across tax determination, e-invoicing, reporting, returns, and compliance. As I mentioned, e-invoicing was one of the strongest areas of execution in the quarter. The business continues to perform well in advance of upcoming mandates with very strong growth in both ARR and revenue that's materially above the overall corporate growth rate. Importantly, we continue to see both new e-invoicing revenue and the number of our e-invoicing wins ramping considerably as we move throughout the year and towards the implementation dates for the upcoming French and German mandates.

[Chris Young, President and CEO at Vertex]

I'm pleased that we won several six-figure enterprise e-invoicing deals in the second quarter, including a mid six-figure win for an existing customer driven by mandates in just two countries, France and Finland. France was an important catalyst in the second quarter, and Germany and other country requirements will create additional demand over time. We are aligning our country roadmap to demonstrated customer demand and working to integrate our capabilities across Vertex, ecosio, and Brinta. Q2 represented meaningful progress, we are focused on consistent execution in this business to grow it into a material contributor to our overall growth. Let me turn to AI. I've been clear that becoming AI first has two dimensions for Vertex. The first is changing how we operate. We are using AI to improve the speed, quality, and economics of work across engineering, customer support, tax research, IT, and our managed services operations.

[Chris Young, President and CEO at Vertex]

The second is changing what we deliver to customers. Over time, we believe AI can make tax and compliance more proactive, more explainable, and increasingly automated. We are making measurable progress on the first dimension, and while we are building capabilities required for the second, AI attributable revenue is not yet material to Vertex. At this stage, the most relevant evidence is whether AI is improving how quickly we build, how efficiently we onboard customers, and how effectively we are solving real customer problems. Across the company, active use of core AI tools has increased to 89%, up from 68% in January. Adoption is important, it's only the starting point. In engineering, AI is now embedded across the development life cycle. Across the majority of our teams, our internal measurements indicate a 34% improvement in engineering efficiency, with pull request merge rates increasing 30% from our January baseline.

[Chris Young, President and CEO at Vertex]

We are also applying AI to specific customer delivery bottlenecks. AI-supported generation of e-invoicing business rules has reduced onboarding time by approximately 50% in the applicable workflow. Separately, our country expansion agent has enabled the team to onboard approximately 3,500 rules across more than 50 formats, about 70% faster than the prior process. The next step is to translate these capabilities into customer-facing product value. In our product, we see a steady increase in adoption of our Vertex Intelligence embedded AI, which helps customers with everything from answering a basic question on tax treatment to translating a full set of tax updates into tax rules. More broadly, we are developing an AI-first connected tax platform that's designed to help customers move from reactive product-by-product work towards more proactive compliance workflows.

[Chris Young, President and CEO at Vertex]

Some elements of that platform are still in development and our immediate goal is to validate them with customers, move the right capabilities into production, and establish clear commercial models. Early customer adoption of Smart Categorization has been encouraging, with strong usage patterns helping validate the value proposition while providing important feedback that shaped our understanding of how customers will deploy the solution. Those learnings are informing our go-to-market efforts, and we're starting to see a pipeline of opportunities develop as additional customers evaluate the technology. Over time, we expect to measure our AI progress through customer adoption, customer outcomes, and revenue, but we are not fully there yet. The operating improvements we are seeing give us greater confidence that AI will become both a meaningful productivity driver and an important source of product differentiation for Vertex.

[Chris Young, President and CEO at Vertex]

The customer activity in the quarter reinforces the durability of our core business and the opportunity to expand it. Across both existing customers and new logos, we saw three consistent buying patterns. Customers are expanding their use of Vertex as their transaction volumes and global complexity increase. They are standardizing on Vertex as part of broader SAP, Oracle, and Microsoft cloud transformations. In competitive situations, they are choosing Vertex when they need the content, scale, integration, and control required to manage complex tax and compliance environments. Let me give you some examples. First, we expanded our footprint with a leading mobility and delivery technology company. The customer continues to grow and broaden its operations, leading to significantly higher volumes. This entitlement expansion resulted in mid-six figures of additional revenue for Vertex.

[Chris Young, President and CEO at Vertex]

Second, we secured a high six-figure expansion with a consumer packaged goods company as part of its SAP cloud transformation. This win extended our relationship across multiple geographies and tax types, while also leveraging our best-in-class SAP software and Vertex consulting. Third, we won a competitive displacement opportunity in the Oracle ecosystem with a major quick service restaurant operator. The customer was using Vertex in one area of its business while using a competitor elsewhere. The customer chose to standardize on Vertex to modernize and simplify its existing technology environment, resulting in a mid-six-figure expansion that includes multiple Vertex solutions and services. These are different customers in different industries, but the strategic pattern is the same. Business growth creates more volume and complexity, ERP modernization creates an opportunity to simplify and standardize, and increasing compliance requirements make the breadth and reliability of the underlying tax platform more important.

[Chris Young, President and CEO at Vertex]

We saw the same demand drivers in our new logo activity. During the quarter, we won new customers that were replacing internally developed processes, moving through SAP cloud migrations, and responding to increased transaction volume. Those wins crossed the Microsoft, Oracle, and SAP ecosystems and included both focused initial deployments and broader platform engagements. The first example is a low six-figure win with a telecommunications infrastructure leader. This is an example of an enterprise customer that outgrew a manual solution and needed to automate its indirect tax processes. The second example is a low six-figure win with a global management and technology consulting firm. The customer was moving through an SAP cloud migration and selected Vertex for North America sales tax, consumer use tax, SAP Accelerator, and our consulting services. The third example is a high six-figure win with a building products distributor.

[Chris Young, President and CEO at Vertex]

In this case, transaction volume growth was the catalyst, the customer selected a broad set of Vertex capabilities. We consistently demonstrate through our execution that we can enter through a specific tax or compliance requirement and then establish the foundation for a broader relationship over time. That land and expand opportunity is important. Our Q2 retention metrics demonstrate the durability of the install base, our expansion performance is not currently where we want it to be. Improving the way we convert successful initial deployments into broader customer relationships is one of our clearest growth opportunities. Before turning the call over to John, I'd like to spend a moment on a topic that's important to me. One of our top priorities since me joining Vertex has been strengthening our leadership team with executives who have successfully scaled enterprise software businesses through periods of transformation and growth.

[Chris Young, President and CEO at Vertex]

Allison Cerra joined as Chief Marketing Officer to sharpen our market positioning and brand and demand generation capabilities. Aneel Jaeel joined as our Chief Operations Officer to drive greater operational discipline, technology modernization, and AI-enabled transformation across the company. In June, Chatelle Lynch joined as Chief People Officer to strengthen talent, organizational effectiveness, and accountability as we move through this period of significant change. Today, we are pleased to announce that Bala Chandran has joined Vertex as Chief Product and Technology Officer, adding significant experience in product innovation, cloud modernization, and AI leadership at a critical point in our evolution. These leaders bring the experience and leadership capacity to improve our execution going forward. We have a durable customer base, an important position in global tax and compliance, improving operating leverage, and meaningful opportunities in e-invoicing and AI.

[Chris Young, President and CEO at Vertex]

We also have work to do to accelerate our growth, improve our expansion, and turn our product vision into measurable customer and commercial outcomes. I believe we now have a stronger leadership team and a clearer operating agenda to do that work with greater focus and urgency. I'll turn the call over to John to discuss the financials in detail.

[John Schwab, CFO at Vertex]

Thanks, Chris, and good afternoon, everyone. As Chris noted in his remarks, the second quarter results demonstrated stability in the business across revenue growth and customer metrics. In addition, we saw good results from our value creation plan announced in April, which drove significant earnings leverage in the second quarter. On slide 13, our total revenue was $204 million, up 10.5% year-over-year, at the high end of our guidance for the quarter. Our subscription software revenue was up 10.7%, services revenue was up 9.4%. Our annual recurring revenue was up 10.5%, in line with expectations. Our cloud revenue was up 17.9%, bringing the year-to-date cloud revenue growth to 19.3%. Turning to customer metrics on slide 14, our gross revenue retention was 95%, and net revenue retention remained stable at 105% compared to the prior quarter.

[John Schwab, CFO at Vertex]

Our average annual revenue per direct customer was $142,997 in the first quarter, up 9.2% year-over-year. Our scaled customer growth was 8% in the second quarter, while overall customer count was up on both a year-over-year and a sequential basis. Turning to profitability on slide 15, where you can see the impact of the value creation plan beginning to take effect. Overall, non-GAAP gross margins increased 15 basis points year-over-year. This was driven by higher margins in the software business, as you can see on the slide. Adjusted EBITDA was $51 million, up 33% from last year's second quarter, for an adjusted EBITDA margin of 25%. As noted on last quarter's call, we expect to see steady progression towards a high 20s adjusted EBITDA margin between now and the end of 2027.

[John Schwab, CFO at Vertex]

Our free cash flow was a $+2.7 million, was impacted in the second quarter by costs associated with the value creation plan, including severance and consulting fees. Free cash flow was $13.2 million on a pro forma basis for a free cash flow margin of 6.5%. In addition, the second quarter pro forma free cash flow represents a free cash flow to adjusted EBITDA conversion rate of 26%. Likewise, we expect to see a steady upward march of this number over the next six quarters as the impact of the value creation program takes root, and we expect to exit the fourth quarter of 2027 with a conversion rate of approximately 70%. To give investors another view of the earnings and cash flow potential of the business, on slide 16, you see adjusted EBITDA less capital expenditures over the past six quarters.

[John Schwab, CFO at Vertex]

Here you can clearly see the earnings leverage in the business. Quarterly adjusted EBITDA has increased 37%, or $14 million during that timeframe. Capital expenditures reflect investments we are making in the business in both our compliance business as well as in our artificial intelligence, both in our internal systems and product development. You can see on the far right column, adjusted EBITDA less capital expenditures has more than doubled during this timeframe. I noted earlier, we expect that the value creation program will unlock even more earnings and free cash flow potential over the coming quarters. Turning to guidance, given the performance of the business in the second quarter and the ongoing impact of the cost actions, we expect third quarter revenue of $208 million-$211 million, and third quarter adjusted EBITDA of $55 million-$57 million.

[John Schwab, CFO at Vertex]

For full year guidance, we are narrowing the revenue range to $825 million-$830 million, and we're increasing the full year adjusted EBITDA guide to $206 million-$210 million from $202 million-$208 million previously. We now expect cloud revenue growth to be 18% for the full year. Before I wrap up, I'll note that in the quarter, we repurchased $26.5 million worth of shares in the second quarter at an average price of $13.17. Since the $150 million buyback program was launched in November, we have bought back a total of $56.6 million of shares at an average price of $14.55 and have $93.4 million remaining under our authorization. I'll turn the call back to Chris for closing comments. Chris?

[Chris Young, President and CEO at Vertex]

Thanks, Schwab. Let me close with three points. First, Q2 demonstrated the durability and earnings potential of the Vertex business. Revenue was at the high end of our guidance, adjusted EBITDA exceeded our expectations, and customer retention remained stable. Second, we are seeing tangible progress from the actions we have taken to improve our operating model. We are executing with greater focus and discipline, expanding margins, and creating additional capacity to invest in the areas that can strengthen our growth over time. Third, AI is improving the speed and efficiency of selected engineering and customer delivery workflows, while we continue building customer-facing capabilities. Our next objective is clear: translate those operating gains and product investments into measurable customer adoption and, over time, commercial value.

[Chris Young, President and CEO at Vertex]

We enter the second half with a stronger cost structure, ramping productivity, improving momentum in compliance and e-invoicing, and a leadership team built to execute the next phase of our transformation. With that, we'll now take your questions.

[Operator]

Our first question will come from Chris Quintero with Morgan Stanley.

[Chris Quintero, Analyst at Morgan Stanley]

Hey, good afternoon, everyone. Thank you for taking the questions here. Really great to hear about all the internal AI work that you all have been doing and been working on. From the customer perspective, just curious, typically tax accountants have been a bit more risk-averse and a bit slower moving. Curious from the Vertex perspective, what are you doing to enable your customers to be more comfortable about adopting some of these AI technologies and solutions you're developing?

[Chris Young, President and CEO at Vertex]

Chris, thanks for the question. One of the most important things we've had to do, and we've learned a lot of this with Smart Categorization, is we've really had to send people in, almost in a forward deployed engineering model, which you hear a lot about in the AI world, to work with our customers to help them. One of the biggest learnings, I think I talked about this a little bit on the last call, but with Smart Categorization, is you're not only offering your customers a tool, but you're changing the way they work. They've had a series of processes built up around how they categorize products. Sometimes there's different people from different groups, different functional areas in a company involved.

[Chris Young, President and CEO at Vertex]

I think I've shared in the past an example of one of our customers was their marketing team was actually involved in some of the categorization because a lot of the upfront SKU generation for product starts there in that part of the business. Then obviously finance and accounting gets involved later when you're actually getting down to a tax determination and reporting decision around that. We've had to work with a number of our customers to help them think through not only here's the tool and how well does it actually categorize a product, what's the change in operational model around that? How do you think about that? How do you staff for that? And we're seeing that in other conversations we're having. Now, that has positives. It also just in some ways takes more time.

[Chris Young, President and CEO at Vertex]

One of the positives is I'm seeing opportunities for us to send engineers in to work with customers to solve upstream product problems that were different than ones that we've anticipated in the past. Places where they might have had frustration, for example, with our products. I think actually through AI, we can build bridges into the determination experience and actually improve our overall posture with our customer, as well as the opportunity to sell them something additional. On the downside, which is something I know you've talked about, in some cases, it takes a little bit longer to get them to make the decision. As I'm talking to customers, the message is clear. They're getting messages from their CFOs, their CIOs, obviously those come from the CEO usually. They are wanting to move in this direction. They are wanting to adopt more tools.

[Chris Young, President and CEO at Vertex]

When I look at just some of our Vertex Intelligence, our equivalent of a copilot adoption, where it's just a general AI capability in our product, we're seeing steady month-over-month, quarter-over-quarter increases in engagement with that tool. We're tracking monthly active users, daily active users. We're seeing it. Long answer to your question, lot of engagement there. Obviously we're hard at work on making sure that we're going to ship more AI capabilities to our customers as we get through the next few months and quarters of Vertex.

[Chris Quintero, Analyst at Morgan Stanley]

Got it. That's helpful, Chris. Just as a quick follow-up on the cloud revenue guide, you guys talked about slower cloud migration. Just curious maybe what you guys are seeing in terms of the drivers behind those slower cloud migrations.

[John Schwab, CFO at Vertex]

Yeah, I guess first of all, Chris, thanks for the question. When we put together the cloud guidance, we felt good about where we stood at the time. I think we did anticipate a higher level of cloud conversions taking place, both in our install base as well as in the new logo activity. In the first half, we didn't really see that happen, and that pattern continued into the second quarter. We've reassessed our view on where the guidance needed to be. That said, I think there's just an overall elongation of people making decisions to make technology moves into other areas. Wherever it's going to require capital and further deployment, et cetera, I think people are really pushing and taking a thoughtful view of exactly how fast to move. That impacted our business and the amount of conversion.

[John Schwab, CFO at Vertex]

I think when we think about it from our standpoint, this is really a conversion timing issue. It's not a revenue issue. It's taking revenue that is now currently in subscription or on-prem and moving it into the cloud. It's really a left pocket into the right pocket from an overall revenue standpoint. I want to make sure that we call that out. As you know, we continue to support our customers just in their deployments, whether they're on-prem or in the cloud, whatever meets their needs best. We're going to continue to work to improve their cloud conversion expansion as well as new logo execution.

[Chris Young, President and CEO at Vertex]

One thing I'll just add there, Chris, because I know this question is something that's come up, is that we're seeing, again, more customers that have mixed environments. They have some cloud. As I talk to more customers, I'm finding more and more examples of customers that might have some element of the Vertex estate cloud deployed. They have legacy Vertex deployments as well. Often times when I'm talking to them, one of my first questions is, "Why haven't you moved it all to the cloud?" I get a mixture of answers. There's IT, there's prioritization. I share that with you to just give you a bit more color around what we're seeing and hearing from customers. It continues to be, "Hey, we really like Vertex.

[Chris Young, President and CEO at Vertex]

We're consolidating more on Vertex, but it may take us some time to get there. We still, as you know, are to some extent, a recipient of what happens in the ERP migrations as well. We end up being impacted by that. As ERP migrations go to some extent later on in that journey, the Vertex migrations happen as well. We're managing through a mix of that. As John said, the most important point here that we want to make sure everybody understands is these are not lost customers. These are just customers who are taking longer than we initially built out and expected in our planning, than they would to get to migrating to cloud, on the Vertex deployment.

[Chris Quintero, Analyst at Morgan Stanley]

That's fine. Thanks so much, guys.

[Chris Young, President and CEO at Vertex]

Awesome. Thank you.

[John Schwab, CFO at Vertex]

Thank you.

[Operator]

Your next question will come from Jared Levine with TD Cowen.

[Jared Levine, Analyst at TD Cowen]

Thank you. I was hoping to start here in terms of the demand environment. Can you talk about how that progressed over the quarter and what you're seeing so far into three Q here?

[Chris Young, President and CEO at Vertex]

We've seen a pretty stable demand environment as I look back out over where did we see the pipeline at the beginning of the quarter, or what was it like in the first part of the year coming and going into Q3? I would tell you, we've seen a good mixture of cross-sell, up-sell opportunity in our base, which as you know, is an important part of our revenue model. We've seen new logo wins. I will point out that, and John mentioned this a moment ago, I do think it's important, we have seen some elongation in sales cycles. We've seen some situations where customers, we were expecting a deal to close in one month, and it ended up closing in the next month because they had to go through procurement cycles.

[Chris Young, President and CEO at Vertex]

We did have a new logo, seven-figure deal that we were expecting to close in June that immediately came in in July, but we didn't get it in to this past quarter, as an example. We are seeing some of that, which is different than again, as we expected. At an overall demand level, pipeline level, there's a lot of activity out there. We're seeing a tremendous amount of new activity in and around our e-invoicing mandates and that part of our business, obviously that remains off a smaller base for us, but we're very pleased with that activity. The seven-figure deal I just mentioned a minute ago, which has now come in in the month of July. That's net new business. A lot of that's around more traditional tax determination.

[Jared Levine, Analyst at TD Cowen]

Got it. Great. So far, year-to-date, you have outperformed your two quarterly revenue guidance, did affirm the annual revenue guidance here. Anything to call out in terms of guidance philosophy or visibility in terms of that approach here to affirm that guide midpoint?

[John Schwab, CFO at Vertex]

What I would say is that our first half performance was good. We felt very good about that, it gives us confidence in achieving our full year outlook, certainly. We had some good things that hit in the first half of the year. You have strong management of churn that we had talked about a lot last year and in the early part of this year. We wanted to make sure that we really balanced some of that first half upside, with more measured view of the second half, including as you can see, the growth rate in the third quarter, as well as some of the continued variability in the revenue timing that Chris was talking about in terms of the elongation that's going on, as well as mix and some of those longer deal cycles.

[John Schwab, CFO at Vertex]

I think we just wanted to be thoughtful about all the things that we're seeing in the environment and to make sure that we thoughtfully put together guidance that put us in a range that, again, that gives us good visibility into the achievement in the back half. That's the overall, I think it really has to do with the first part of your question, which just was like, what's the environment like and how are things feeling? We wanted to make sure we baked that all in, that's how it came out.

[Chris Young, President and CEO at Vertex]

That said, we raised our guidance on EBITDA, for the year, which is something we're very proud of. Obviously we're working hard to bring in as much business as we can see out there for the back half.

[Operator]

Your next question will come from Billy Fitzsimmons with Piper Sandler.

[Billy Fitzsimmons, Analyst at Piper Sandler]

Hey, guys. Thanks for taking the question. Chris and John, I think it was clear that it sounds like the delta and the full year cloud revenue growth guide was more of a near term blip than a, call it, a structural challenge. Just to double-click on this, based on what you both are saying, is it fair to say that some customers are maybe prioritizing other AI projects internally, which is maybe pushing out some of the blocking and tackling around the on-prem to cloud migrations? If so, when do you expect that to maybe fade or reverse? I know it's hard to say in real time, but I guess, what's the catalyst to that moving back to the pace you initially expected?

[Chris Young, President and CEO at Vertex]

I think there's several components of our cloud revenue, and Billy, I think a couple of things. One, we do expect cloud revenue growth to see some acceleration based on our e-invoicing business. Now as we get through actual invoices falling through, French mandate is one that we'll see in September here, at the end of this quarter. Obviously, we've got the Germany one coming up at the beginning of the year. Pre that mandate, we expect some improvement there in the number of invoices. E-invoicing will be another. We had some good activity this quarter. E-invoicing is one that will ramp. That's cloud revenue, so we expect that to be a positive in our overall cloud revenue growth rate going through the back half of this year and into 2027. That's number one.

[Chris Young, President and CEO at Vertex]

Number two, on cloud migrations, it's hard for us to get a good read on what trade-offs are being made. Why, where are they trading off timing, for example, in their overall set of IT projects? As you know, to some degree, we probably speak a little bit more to tax people than we do to IT people, generally speaking. What I can say is, it is taking customers a little longer on deals. My sense is across the IT franchise, a lot of different organizations are taking a look at where are they spending money, how are they spending money, where are they spending their resources. We do expect, everything I'm hearing and what we expect to see is a continued move to the cloud.

[Chris Young, President and CEO at Vertex]

If I harken back to some of the examples I shared a moment ago, whenever I'm talking to customers, more and more I'm discovering partial franchises in the cloud, a real desire to move more to the cloud. Part of what we need to do, this is where we still have work to do, more as we go through the back half of this year and into next year, is we're trying to give them more incentive to move to the cloud. Delivering more new features, more AI capabilities, that all creates a forward motion, a forward incentive for our customers that want to move more to the cloud. We've started, I think I may have mentioned this, when we first launched a number of our AI capabilities, many of them were really more focused on our cloud franchise.

[Chris Young, President and CEO at Vertex]

We've started to broaden the availability of that to our on-prem customer base so that they can start to use more of our AI tools. I consider that a carrot to make it more attractive to customers wanting to move to the cloud. This is something that we've got a lot of focus on. I will also point out a comment I made on the call. We've just brought in a new leader for our product and engineering team. He comes to us, most recently ran a large part of the business in the healthcare space at Oracle. Not only does he understand regulated industries, but as you know really has spent a lot of time on how they bring their customer base forward from more traditional methods to cloud-based capabilities. I feel very good about our ability to get our customers migrated.

[Chris Young, President and CEO at Vertex]

Obviously, we'll have to work through their own internal planning and budgeting cycles, but doing everything we can to give them incentive on the Vertex side to move there.

[Billy Fitzsimmons, Analyst at Piper Sandler]

Perfect. I appreciate the color. If I could sneak in a second one. It's now been a couple of months since you acquired Brinta that gave you an AI-native footprint in Latin America, arguably one of the more complex environments for real-time compliance globally. How has the integration progressed relative to your initial expectations?

[Chris Young, President and CEO at Vertex]

It's been great to have them on the team. They have some really great customer relationships. We see more opportunity even in region than I would say we saw before Brinta became part of Vertex. I would say overall, it's going really well. As you know integrating different companies that come from different places, there's always challenges. It always takes longer than you want. We're trying to make sure that we bring this along at a pace where we keep the best of what Brinta brings to Vertex. We also want to get them to integration, but we also want to make sure we don't break what they've done really well. That's going to take us a little bit of time, but we're pleased with what they've done.

[Chris Young, President and CEO at Vertex]

We're pleased with the new business opportunities that they're bringing to us. They've come in and partnered really well with different teams across other parts of Vertex. Like I said, I'm even encouraged by some of the new business opportunities we see in Latin America because of it. It's on a really small base. Primarily, we started our journey with Brinta because they helped us close some of the country-level gaps in our ability to meet a number of the mandates in Latin American countries. I think what's been really positive is we're seeing a broader market opportunity environment that we're opening up because they're now part of Vertex. I think that's a really important opportunity for us.

[Billy Fitzsimmons, Analyst at Piper Sandler]

Thanks, Chris. Appreciate it.

[Operator]

Our next question will come from Samad Samana with Jefferies.

[Samad Samana, Analyst at Jefferies]

Hi, good evening, and thanks for taking my questions. I guess first, just to follow up on the guidance. John, do we now consider the guidance to be de-risked on the cloud side? Should we extrapolate that the conversion activity you guys are seeing in the first half of 2026 is probably the new normal? Both in consideration of the 2026 guidance, would you say that you feel extremely confident, or is that de-risked? Again, should we use this as the conversion activity template as we think beyond the 2026 outlook for cloud as well, then I have one follow-up.

[John Schwab, CFO at Vertex]

Yeah. From a cloud standpoint, Samad, I think we're calling what we see, what we're seeing there is a lower conversion ratio. That conversion ratio, just that conversion activity isn't happening at the pace that we thought. This is what we're seeing, and this is what's built into the rest of the year. Again, I'm not sure I can sit here and call it, and I think we'll see it show up in the numbers, but that's how I'm thinking about it as it plays through. That's what we wanted to make sure that we took into account and made sure everybody felt good about where we ended and why we ended there. From an overall guidance perspective, I think, as we look at the back half, there's still a decent amount of pipeline, as Chris said.

[John Schwab, CFO at Vertex]

Again, we are seeing there is some activity in the back half of the year around elongation of deals and other things. I wouldn't say we didn't just set this up and say, all right, this is a risk-free plan by any stretch. There's always risk in everything that we do, and there's always a lot of deals that have to get closed to make the number. I certainly wouldn't say that. I think what we wanted to make sure is we took into consideration what we saw in the first half, as well as the pipelines of the activities that we're seeing now and rolled that through, and that's what we came out with. That's the best I can tell you. Hopefully, that was helpful, but happy to take a follow-up if you have one.

[Samad Samana, Analyst at Jefferies]

Yeah, that was helpful context. Appreciate that. Maybe just, again, to get some better context around the quarter. If I think about the scaled customer growth, it's still growing high single digits, but it did decel quarter-over-quarter. Is there anything one time in nature there that we should be aware of? Is the same thing that's impacting cloud conversions, maybe impacting new scaled logo growth? Just help us understand what drove that slowdown.

[Chris Young, President and CEO at Vertex]

Samad, I think that, one, it's one quarter. At this point, we're watching it closely. As I mentioned earlier, we did see some deals move between quarters. The one deal that I mentioned that slipped out is a seven-figure deal for us. It was a June deal. It ended up coming in July. That would factor into that percentage as an example. Certainly, one we are very happy to close. We are seeing some movement there. Scaled customers come to us in a variety of different ways. We have obviously net new logos. We have growth of existing customers. Again, we expect to see our e-invoicing customers, particularly as we start to ramp on these mandates, they are likely to move from smaller customers to more scaled.

[Chris Young, President and CEO at Vertex]

We don't see any trend here that would suggest we're going to trend down on this metric. We expect that we should continue to have good growth in this metric. We didn't see it this quarter, and we certainly want to see it better as we look forward. We'll stay on top of it. Obviously, we'll keep reporting it's certainly something that we pay attention to.

[Samad Samana, Analyst at Jefferies]

Understood. Thank you for the time.

[Chris Young, President and CEO at Vertex]

Yeah. Thanks, Samad.

[Operator]

Your next question will come from Steve Enders with Citi.

[Steve Enders, Analyst at Citi]

All right, great. Thanks for taking the questions here. I guess I want to ask on just the e-invoicing dynamics that you're seeing, and how is that maybe playing out versus how you're expecting those deals to come through for the year. How are you thinking about when the bulk of customers will start to adopt and maybe move from a single country to expand and adopt more of a full platform opportunity over the next couple of years here?

[Chris Young, President and CEO at Vertex]

We saw our first examples. I would tell you, Steve, what we saw in the first quarter was lower than we would've wanted in terms of multiple countries and that sort of thing. We saw the activity we expected to see in Q2. We saw customers that were starting to not only just do the French mandate but would add a second country as part of that. I think I mentioned one of the examples in the call. I mentioned France and Finland being the driver. We are now starting to see customers that would start in one company like Poland and then add a second. When we think about the growth potential in our e-invoicing business as we get through this quarter into the fourth quarter, and even beginning and going into 2027, that's where some more of the growth will come from.

[Chris Young, President and CEO at Vertex]

We're expecting the growth to come from is people that are going to move to do the mandate, meet the mandates that are out there, like France being the big one right now, Germany coming. There's Spain next year, which is another one. Amidst all that, the expectation is that we're going to have some of our larger customers that start to say, okay, now that I'm doing one country with you or a second country with you, as we deliver on that, let me add a third, let me add a fourth. This becomes a growth opportunity for us. We're just starting to see that behavior in our customer base, where you're seeing meaningful growth opportunities across more than one country.

[Chris Young, President and CEO at Vertex]

Ultimately, that leads us into the motion that we want to get from this, where customers start to say, "Great, I just want to consolidate everything with you. Maybe I made a decision in Mexico four years ago, five years ago. Now let's circle back." That's an expectation that we have as we get into back half, really Q4 and probably 2027 is where we expect to have more of those kinds of opportunities. That's really what this business represents for us in terms of potential.

[Steve Enders, Analyst at Citi]

Okay. No, that's great to hear. Maybe attaching that to the numbers a little bit, I think we're still talking about a revenue acceleration into Q4. It looks like ARR is still decelerating a little bit. Just how should we think about the timing between when these things start to impact ARR, we start to see the acceleration on that metric to then give us confidence on the revenue side going into Q4?

[John Schwab, CFO at Vertex]

I think you'll see that start to play out here in the third quarter, again, because ARR is going to lead the revenue. That's going to start as adoption for the French mandates gets moving. There's more activity there. Again, we started to see activity in the second quarter. We're going to see a bit more of it now as we're getting closer and closer to the date. As that occurs, we're going to start to see that show up in ARR. Naturally, that's going to turn into revenue soon thereafter. Again, it'll start kind of working itself in ratably over the year because that's typically how people are buying and how they're thinking about it from an overall usage standpoint. That's how to think about it, that's the path that we have.

[John Schwab, CFO at Vertex]

We'll start to see it this quarter, again, revenue inflex a bit more next quarter, the fourth quarter that is.

[Steve Enders, Analyst at Citi]

All right. Perfect. Thanks for taking the questions.

[Chris Young, President and CEO at Vertex]

Thanks, Steve.

[John Schwab, CFO at Vertex]

Thanks, Steve.

[Operator]

Your next question will come from Brett Huff with Stephens.

[Brett Huff, Analyst at Stephens]

Good evening, guys. Thanks for the time today. We always appreciate it. Two questions from me. First one is a little bit of a follow-up on the e-invoicing. The original thesis, if I recall correctly, was definitely a lot of cross-sale into our big customers who should be using you all for e-invoicing. Also there was some new logo stuff that you had built in. Now that we're a little further down the pipe on that, is that all coming out like you thought, new versus cross-sale, et cetera, leaving aside the adoption part?

[Chris Young, President and CEO at Vertex]

We are seeing that, Brett, which is great. Both in Q2, we saw a growth in the overall number of customers at Vertex, and a lot of that growth is largely driven by the performance in the e-invoicing business. A lot of those customers come in at a smaller ARR per customer number than our traditional tax determination customer. We saw customer growth overall, which is good, and a lot of that we can attribute to what we saw in the e-invoicing. We also saw some of our, I would say, some of our early six-figure, multi six-figure cross-sell opportunities into our install base for the e-invoicing mandate. We saw a good mixture of both of what we want to see.

[Chris Young, President and CEO at Vertex]

Now, look, from where I sit, Brett, I want to see more of those, particularly the latter example, where we're driving more multi six-figure cross-sell opportunities into our install base. The activity that we saw in Q2, and what I expect to carry into Q3 in the back half of this year, gives me good confidence that those two aspects of our thesis are happening. We're growing our overall customer base, selling to net new logos in this space, particularly in Europe. Secondly, we are also driving cross-sell, upsell into the Vertex install base, particularly for e-invoicing.

[Brett Huff, Analyst at Stephens]

That's helpful. One quick follow-up, again, still kind of a big picture one. Another angle on the AI question. Early on when you and I were talking with clients, you set up the expectation that, look, this is a build year. Next year, we'll start to see some metrics or revenue or whatever, and I think that's still obviously going to happen. As we get into the fourth quarter, we're getting a little more brass tacks on things like that. What are the metrics that we should be looking for, measurable or anecdotal, to give us a sense that you're building that muscle and getting those products getting ready to go GA?

[Chris Young, President and CEO at Vertex]

Brett, for example, we have got our Vertex Exchange event coming up in the fourth quarter this year. My expectation is that we'll be able to say a lot more about our product roadmap and strategy and even introduce some new capabilities in and around that event. That's certainly a big milestone for us. We've got to have the product. The way I like to think about it is like we have to have the product on the truck if we want our teams to be able to sell it and bring it to customers. This is a virtual truck. It's an autonomous truck, actually, is a way to think about it since it's AI related. We need our AI capabilities out there available to customers as we go into 2027. I feel really good about the progress we're making there.

[Chris Young, President and CEO at Vertex]

As I mentioned briefly on the call, really building out a connected platform that's got a tremendous amount of AI capability with it. That's all in progress. You said it well at the beginning, Brett. This is more of a build year with the expectation that we have those capabilities exiting the year, and we've got more for our teams to be able to sell to customers going into 2027. If we can pull in, if we can obviously go faster than our expected timelines, maybe we're starting to sell more in 2026, but we're really more focused on this being a 2027 event.

[Brett Huff, Analyst at Stephens]

Great. That's what I need. Thank you. I appreciate the time.

[Chris Young, President and CEO at Vertex]

Thank you.

[John Schwab, CFO at Vertex]

Thanks, Brett.

[Operator]

Your next question will come from Joshua Reilly with Needham.

[Joshua Reilly, Analyst at Needham]

Great. Thanks for taking my questions here. Wanted to get the latest update on the SAP ERP ECC transition outlook and what you're seeing in terms of capacity for these conversions in the next two years versus what's currently being done by consultants. If enterprise buyers are simply buying the 2030 extended maintenance instead of making the migration right now, did that have any impact on the lowered cloud revenue guidance?

[Chris Young, President and CEO at Vertex]

We haven't had any real change in the activity that we're seeing. We look at our ecosystem. We had a good set of wins across the board, whether it's SAP, Oracle, Microsoft wins, and across the board. I would tell you, we haven't seen a material shift in the velocity of migrations. We do continue to see migrations. We continue to see them happen. I wouldn't say the velocity, though, has shifted. That's why I think you're seeing a reasonably steady progression in our numbers as well. We're not seeing any material change in the way these migrations are happening one way or the other. They're happening. We're continuing to move along with them. Those expectations are built into how we're laying out our guidance for the quarter and for the year.

[Joshua Reilly, Analyst at Needham]

Got it. That's helpful. Just one quick follow-up. On the NRR outlook, what are the puts and takes maybe we should be considering for the second half of the year here? You've got the e-invoicing volumes kicking in as a tailwind. Is there any change that you're seeing in terms of mid-market customer churn maybe that's burning off there that could also be a bit of a tailwind? Anything else we should be considering? Thanks, guys.

[John Schwab, CFO at Vertex]

Yeah. Thanks for the question, Josh. In terms of the NRR componentry, again, I think you picked the real tailwind, again, is some of the e-invoicing opportunity that Chris talked about and the opportunity to sell that into the existing customer base. There will certainly be something there that we're excited about that's going to go on. In terms of churn and where things are, as I said earlier, I think we felt good about some of the progress we've made in those accounts, whether they're middle market or even some of the larger ones from last year. I think it was the third and fourth quarter where we had some significant changes into the churn numbers that we had seen in the past. We feel good about the types of things we've done to improve that.

[John Schwab, CFO at Vertex]

Again, we feel like we're making good progress, perhaps there could be a little bit of upside as things play out. Again, we don't guide to it. I would just say that we feel good about the work we've done through the first half, and we expect to continue that into the second half. Again, it will fall where it does, but we're pleased with what we've shown.

[Joshua Reilly, Analyst at Needham]

Awesome. Thank you, guys.

[John Schwab, CFO at Vertex]

You bet. Thanks.

[Operator]

Your next question will come from Rob Oliver with Baird.

[Rob Oliver, Analyst at Baird]

Great. Good afternoon, guys. Thanks for taking my questions. Chris, first one for you. The six-figure opportunity with one of your core customers on just two geographies has to be pretty tantalizing when you think about the kind of global opportunity around the invoicing. I'm just wondering as you've now been in the seat now for a few quarters, as you're talking to those customers, how are they thinking about the invoicing? Are they thinking about it the way you talked about it in response to an earlier question, like we expect more consolidation? Do they want to consolidate that, or is it still viewed as maybe a fragmented market by region? And then I had a quick follow-up for John. Thanks.

[Chris Young, President and CEO at Vertex]

Hey, Rob. Thanks for the question. In reality, the catalyst to buy is still based on mandate, right? That's still the number one reason customers are making decisions. That being said, as the number of mandates increase and therefore the number of countries that these customers have to cover increases, they're getting to a point where there's a lot of sprawl and complexity. Now some companies, that's fine because depending upon how a company is structured, they may actually be structured in a way where every regional or country-level finance department runs reasonably autonomously. Those are the companies that are not necessarily thinking about how do they consolidate. That being said, there's also a quite large cohort of companies that exist that operate at a global level.

[Chris Young, President and CEO at Vertex]

They're the ones that are starting to talk to us about, okay, even if where we've made decisions, we do want to be able to consolidate on Vertex. Because look, there's a tremendous amount of information for them. There's also a lot of risk, right? If they don't do this properly, if they've got some countries that don't work at the same level as other countries, they open themselves up for different regulatory risk to be audited, et cetera. There is a real driver, again, for a number of companies that we're talking to. While I don't necessarily think that we're going to have the same buying behavior driven by that as we do by the mandate where you just have to be compliant, we are seeing that as an increasing lever in the conversations that we're having.

[Chris Young, President and CEO at Vertex]

Look, we're still early, a lot of customers, they're saying, "Hey, look, show me you can deliver. Once we get through that, then we can start to talk about adding another country and adding another country." Look into places where we've got customers that have already added more than one country. Several of them have done that with us. They said, "Okay, prove it in one place." We've proved it, then they add the next one. We prove it, they add the next one. Then I think then it just opens up for us into more opportunity. We think that thesis is strong. We think it's a good opportunity for us as we look forward. Part of our planning as we look into 2027, we're going to have to really take a step back and take that into account.

[Chris Young, President and CEO at Vertex]

This year has been more about just really focusing on getting it sold, getting it delivered, making sure we can operate well. Next year, we start to turn our attention more to how do we really scale this thing beyond what we're doing today.

[Rob Oliver, Analyst at Baird]

Great. Really helpful. Thanks, Chris. John, for you, just going back to the change in the cloud growth. Obviously, pretty meaningful change, and I know in response to an earlier question, you did say that, hey, you're calling them as you see them kind of today. I guess another way to ask would be relative to the new 18% target, how should we think about the roll-in of the e-invoicing mandates and the impact on that? Because that's going to be all cloud, and clearly, that's going to be important to making that number in the back half of the year. In light of Chris's comment about, "Hey, we're trying to win those mandates," in terms of visibility, just help us get comfortable on how you were able to project some of that. Thanks.

[John Schwab, CFO at Vertex]

Yeah. Thanks. I appreciate the call, Rob, or the question, Rob. I think, as Chris talked about, we do have visibility of the activity in the back half of the year around e-invoicing, and what the mandate's going to drive. We factored that into the activity we're seeing in the back half. Again, keeping in mind that a lot of the activity that we're going to get in Q3 and Q4, as those things are just getting up and going, is not going to be at its full potential when it's fully out there and moving.

[John Schwab, CFO at Vertex]

As Chris talked about, there's obviously the land and expand that you see, but even still, as companies are just coming onto the platforms, and whether that's September or a little bit later, we're seeing a little bit of delays in terms of how customers are behaving towards bringing things up and getting that moving. The mandates are going to be effective, but I think there is a little bit of latitude there. We are seeing a big press, even still, as we sit here in August, of customers that are wanting to make sure that they're ready on time. We're going to get less of an impact in revenue from that in the third and the fourth quarter, perhaps, because of the volume that's really going to kick through. That's really more of a fourth quarter thing.

[John Schwab, CFO at Vertex]

We took that into consideration when we built out the revenue forecast. That's embedded in there, certainly. Again, offset by some of the headwinds that we saw around cloud conversion from our existing customers that are on-prem moving to cloud, and then some of the new logo activity.

[Rob Oliver, Analyst at Baird]

Great. Thanks, John. Appreciate it. Chris, we've noticed Allison's impact already in terms of your presence and the changing in the branding and stuff like that. They're creating a broader attack zone for you guys. Just wanted to call that out as well. Some great hires for you guys. Appreciate it. Thanks. Have a great day.

[Chris Young, President and CEO at Vertex]

Appreciate that, Rob. Thank you.

[Rob Oliver, Analyst at Baird]

Thanks.

[Operator]

We'll come from Andrew DeGasperi with BNP Paribas.

[Andrew DeGasperi, Analyst at BNP Paribas]

Yes, hi. Thanks for fitting me in. I just want to touch on one of the comments you made earlier in the prepared remarks, Chris, in terms of the competitive displacement with an existing customer that was using a competitor. I think it was a quick-serve restaurants example. I just wanted to maybe understand how many of those customers do you have that are potentially using multiple solutions for tax compliance? Do you see a potential move in either direction in terms of ideally to Vertex, consolidating to Vertex on that front? Should we see more of that in the next few quarters?

[Chris Young, President and CEO at Vertex]

It's hard to put a percentage on it, Andrew, because some of it happens in a dynamic way. Like M&A determines a lot of that, for example. You may have one company that's using Vertex, and then they acquire another company, now they're using Vertex plus somebody else. It could go the other direction. That's kind of constantly changing and happening. What I would say is there's always a persistent percentage of our customers that have multiple solutions. Often times they have a lead solution, but they might have a business unit or a smaller group that's using a secondary solution. I will say it's not uncommon when I'm out there talking to customers, and I have a steady cadence of these customers I'm talking to. It's not uncommon to run into customers who are Vertex customers, but they're using somebody else.

[Chris Young, President and CEO at Vertex]

I just talked to a company the other day, a customer last week. She told me they're an advertising agency. They were merged with another relatively large one, that's a consolidation opportunity for us. They were using a mixture of the ERP. They were using some other third-party tools. That's just a good example of M&A created that opportunity for us. That's where we're always going to see some mixture of Vertex-only shops, but other Vertex shops that have third-party tools there. Also where we ultimately end up in some of these places, that happens in the reverse as well. It's reasonably common, not pervasive, and usually not the desired end. It's never the desired end state with the people I talk to.

[Andrew DeGasperi, Analyst at BNP Paribas]

Got it. John, I had a question. I know in the past we talked about entitlements in terms of how you expect a certain number to ramp up over time. Just curious to know, has that changed in terms of expectations relative to last quarter?

[Andrew DeGasperi, Analyst at BNP Paribas]

I know you talked about slippages and things like that, just curious to know within your existing customer base, are we seeing any improvement there?

[John Schwab, CFO at Vertex]

Yeah, maybe slightly, Andrew. Nothing that was worthy enough to call out as a big driver of opportunity in the quarter. It's certainly something we were focused on last year. I started to see a little bit of stability in it over the last couple of quarters, and I saw the same this quarter. I'd say it feels a little bit better than it has in the past, I'm, again, not ready to stand up and say we're past that. I think there's still some time to go there. Again, our customers are going to continue to build their businesses and drive their businesses, and that presents opportunity for us. We're about a year out from when we started talking about this last year, and I think time will tell here over the next couple of quarters.

[John Schwab, CFO at Vertex]

If we start to see that change, we'll certainly call it out.

[Andrew DeGasperi, Analyst at BNP Paribas]

Great. Thank you.

[John Schwab, CFO at Vertex]

Awesome.

[Operator]

There are no more questions at this time. I'd now like to turn the call back over to Joe Crivelli for closing remarks.

[John Schwab, CFO at Vertex]

This is John Schwab. Thanks everybody for joining us today. If you have any follow-up questions or want to schedule some additional time with the team, please reach out to joeatinvestorsatvertexinc.com. Thanks a lot and have a great day

Participants

Executives

• Joe Crivelli, VP of Investor Relations
• Chris Young, President and CEO
• John Schwab, CFO

Analysts

• Chris Quintero, Analyst at Morgan Stanley
• Jared Levine, Analyst at TD Cowen
• Billy Fitzsimmons, Analyst at Piper Sandler
• Samad Samana, Analyst at Jefferies
• Steve Enders, Analyst at Citi
• Brett Huff, Analyst at Stephens
• Joshua Reilly, Analyst at Needham
• Rob Oliver, Analyst at Baird
• Andrew DeGasperi, Analyst at BNP Paribas