Overview

• US tax technology provider's Q1 revenue grew 11% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q1 met analyst expectations

• Company acquired Brinta, an AI-first e-invoicing startup in Latin America

Outlook

• Vertex expects Q2 revenue of $200 mln to $204 mln

• Company sees full-year 2026 revenue of $823.5 mln to $831.5 mln

• Vertex raises full-year adjusted EBITDA guidance to $202 mln to $208 mln

Result Drivers

• CUSTOMER STABILITY - Co said Q1 results benefited from stable customer demand and retention despite a mixed macro environment

• SOLID EXECUTION - Management cited solid execution across the business as supporting Q1 performance

• STRATEGIC ACQUISITION - Acquisition of Brinta expected to expedite country coverage in Latin America and enhance AI capabilities

Company press release: ID:nGNX37SP91

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$196.65 mln	$194.83 mln (13 Analysts)
Q1 Adjusted EPS	Meet	$0.17	$0.17 (14 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Vertex Inc is $18.50, about 46.1% above its May 6 closing price of $12.66

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 25 three months ago

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