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NASDAQ: VERX Second Quarter 2026 Earnings Conference Call August 3, 2026
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2 Safe Harbor Forward Looking Statements Any statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. Forward-looking statements are based on Vertex management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: our ability to attract new customers on a cost-effective basis and the extent to which existing customers renew and upgrade their subscriptions; our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth; our ability to maintain and expand our strategic relationships with third parties; and the other factors described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the Securities Exchange Commission (“SEC”) and the Company’s subsequent filings with the SEC. Copies of each filing may be obtained from the Company or the SEC. All forward-looking statements reflect our beliefs and assumptions only as of the date of this presentation. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Definitions of Certain Key Business Metrics Annual Recurring Revenue (“ARR”) – We derive the vast majority of our revenues from recurring software subscriptions. We believe ARR provides us with visibility to our projected software subscription revenues in order to evaluate the health of our business. Because we recognize subscription revenues ratably, we believe investors can use ARR to measure our expansion of existing customer revenues, new customer activity, and as an indicator of future software subscription revenues. ARR is based on monthly recurring revenues (“MRR”) from software subscriptions for the most recent month at period end, multiplied by twelve. MRR is calculated by dividing the software subscription price, inclusive of discounts, by the number of subscription covered months. MRR only includes customers with MRR at the end of the last month of the measurement period. Net Revenue Retention Rate (“NRR”) – We believe that our NRR provides insight into our ability to retain and grow revenues from our customers, as well as their potential long-term value to us. We also believe it demonstrates to investors our ability to expand existing customer revenues, which is one of our key growth strategies. Our NRR refers to the ARR expansion during the 12 months of a reporting period for all customers who were part of our customer base at the beginning of the reporting period. Our NRR calculation takes into account any revenues lost from departing customers or customers who have downgraded or reduced usage, as well as any revenue expansion from migrations, new licenses for additional products or contractual and usage-based price changes. Use and Reconciliation of Non-GAAP Financial Measures In addition to our results determined in accordance with accounting principles generally accepted in the U.S. (“GAAP”), we have calculated non-GAAP cost of revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non- GAAP selling and marketing expense, non-GAAP general and administrative expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, Adjusted EBITDA, Adjusted EBITDA margin, free cash flow and free cash flow margin, which are each non- GAAP financial measures. We have provided tabular reconciliations of each of these non-GAAP financial measures used in this presentation to its most directly comparable GAAP financial measure. Management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate financial performance and liquidity. Our non-GAAP financial measures are presented as supplemental disclosure as we believe they provide useful information to investors and others in understanding and evaluating our results, prospects, and liquidity period-over-period without the impact of certain items that do not directly correlate to our operating performance and that may vary significantly from period to period for reasons unrelated to our operating performance, as well as comparing our financial results to those of other companies. Our definitions of these non-GAAP financial measures may differ from similarly titled measures presented by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, the financial information prepared in accordance with GAAP financial measures, and should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other reports periodically filed with the SEC. Market & Industry Data Market data and industry information used throughout this presentation are based on management’s knowledge of the industry and the good faith estimates of management. The Company also relied, to the extent available, upon management’s review of independent industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such assumptions and resulting estimates. Although the Company believes that these sources are reliable, the Company cannot guarantee the accuracy or completeness of this information, and the Company has not independently verified this information. While the Company believes the estimated market position, market opportunity and market size information included in this presentation are generally reliable, such information, which is derived in part from management’s estimates and beliefs, is inherently uncertain and imprecise. No representations or warranties are made by the Company, any of its affiliates or underwriters as to the accuracy of any such statements or projections. Projections, assumptions and estimates of the Company’s future performance and the future performance of the industry in which the Company operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the Company’s estimates and beliefs and in the estimates prepared by independent parties. 2
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3 Christopher Young President and Chief Executive Officer
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Second Quarter 2026 Highlights 4 Revenue of $204 million up 10.5% compared to second quarter 2025 Second quarter guidance: $200 to $204 million Adjusted EBITDA of $51 million up 33.0% compared to second quarter 2025 Adjusted EBIDTA margin of 25.0 percent Second quarter guidance: $47 to $50 million Continued stable customer metrics GRR 95% NRR 105% Notes: 1. Based on information as of June 30, 2026. 2. Adjusted EBITDA is a non-GAAP measure, for a reconciliation of this non -GAAP measure to the nearest GAAP measure, see Appendix.
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E-invoicing Update • Strong growth in ARR and revenue across the Compliance business • June was the highest month ever for new e-invoicing ARR • Clear momentum and acceleration ahead of key upcoming mandates in Europe ▪ France – September 2026 ▪ Germany – January 2027 • ecosio and Brinta both performing well, winning new deals (including large enterprise deals) and ahead of acquisition assumptions. 5
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6 Artificial Intelligence Update
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7 “AI-First” is becoming an operating rhythm Adoption is broad, measurable and translating into faster engineering, delivery and workforce enablement. AI is now embedded across Vertex’s operating model — improving productivity, accelerating release velocity and expanding the innovation pipeline while building enterprise-wide AI literacy. ENGINEERING Faster innovation loops Nearly all software engineers are using AI tools; merge rates are up 30%, AI- generated code is scaling, and more than half of merges now have AI review. DELIVERY Compressed customer outcomes AI is reducing onboarding and validation cycle times — including 50% faster E-Invoicing onboarding and accelerated regulatory expansion across rules and formats. WORKFORCE Adoption with governance AI adoption is broadening through a managed tool catalog, self-service and approval-based access, and structured learning for employees.
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8 Q2 2026 New Business Wins
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9 Select Existing Customer New Business Wins Industry New Revenue Ecosystem Catalyst Solution Mobility and Delivery Mid six figures Oracle Business expansion North American Sales Tax, Value-Added Tax EMEA & APAC, SAP Accelerator, Vertex Consulting Consumer Packaged Goods High six figures SAP SAP cloud transformation North America Sales Tax, Value Added Tax, Edge Quick Serve Restaurants Mid six figures Oracle Competitive Displacement North American Sales Tax, Edge, Oracle Accelerator, Address Cleansing, Vertex Consulting
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10 Select New Logos Industry New ACV Ecosystem Catalyst Solution Telecommunications Low six figures Microsoft D365 Automation Adoption North American Sales Tax, Certificate Center, Address Cleansing, Azure Hosting Management Consulting Low six figures SAP Cloud migration North America Sales Tax, Consumers’ Use Tax, SAP Accelerator, Vertex Consulting Building Products High six figures Oracle Transaction volume growth North America Sales Tax, Certificate Center, Edge, Address Cleansing, Tax Returns
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11 World Class Executive Leadership Chris Young President and CEO John Schwab Chief Financial Officer Bala Chandran Chief Product and Technology Officer Chris Jones Chief Commercial Officer Chirag Patel Chief Strategy Officer Chatelle Lynch Chief People Officer Allison Cerra Chief Marketing Officer Aneel Jaeel Chief Operating Officer
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12 Financial Overview & Outlook Quarter Ended – June 30, 2026
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Q2 2026 Results – Revenue 16 13 SOFTWARE SUBSCRIPTION REVENUE $174.8M +10.7% Year-Over-Year Change TOTAL REVENUE $204M +10.5% Year-Over-Year Change SERVICES REVENUE $29.2M +9.4% Year-Over-Year Change CLOUD REVENUE $101.7M +17.9% Year-Over-Year Change ANNUAL RECURRING REVENUE (ARR) $703.4M +10.5% Year-Over-Year Change Notes: 1. Based on information as of June 30, 2026.
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Q2 2026 Results – Customer Metrics 16 14 Net Revenue Retention 105% Gross Revenue Retention 95% Stable Q/Q Average Annual Revenue Per Direct Customer (AARPC) $142,997 Scaled Customer Growth (Count) +8% Stable Q/Q +9.2% YoY -4 points Q/Q Notes: 1. Based on information as of June 30, 2026.
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Q2 2026 Results – Profitability (Non-GAAP Metrics) 16 15 Overall Gross Margin 76.1% +15 bps YoY Software Subscription Gross Margin 83.3% +12 bps YoY Services Gross Margin 32.9% -21 bps YoY Adjusted EBITDA $51.0M +33.0% YoY AEBITDA Margin 25.0% +421 bps YoY Free Cash Flow* $2.7M *Cash Flow impacted in 2Q26 by $10.5 million of VCP and other cash reorganization costs Proforma Free Cash Flow* $13.2M Notes: 1. Based on information as of June 30, 2026. 2. Adjusted EBITDA is a non-GAAP measure, for a reconciliation of this non -GAAP measure to the nearest GAAP measure, see Appendix. Proforma FCF Margin* 6.5%
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16 2025-2026 Adjusted EBITDA less CAPEX • The 2026 Value Creation Program is driving operating efficiency while freeing up capital to invest in growth opportunities. Quarter Adjusted EBITDA CAPEX AEBITDA less CAPEX $37.2 $10.1$27.1Q1 2025 $38.4 $12.0$26.4Q2 2025 $43.5 $11.2$32.3Q3 2025 $42.5 $8.3$34.2Q4 2025 $44.1 $13.8$30.3Q1 2026 $51.0 $22.8$28.2Q2 2026 $ millions $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 AEBITDA less CAPEX ($Mil)
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Financial Outlook 17 Q3 2026 FY 2026 Revenue expected to be $208 to $211 million Adjusted EBITDA expected to be $55 to $57 million Revenue expected to be $825 to $830 million 18% Cloud Revenue Growth Adjusted EBITDA expected to be $206 to $210 million
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Appendix 22
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Adjusted EBITDA Reconciliation (1) 23 ($ in Thousands) Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Adjusted EBITDA Net Income (Loss) (18,132) (6,896) (3,399) 15,334 2,684 5,164 7,221 (67,798) 11,130 (961) 4,045 (7,003) (2,510) 9,043 Interest expense (income), net (350) (105) 597 4,022 286 181 (2,938) (1,666) (1,539) (1,228) (1,245) (1,236) (957) (344) Income tax expense (benefit) 9,553 2,929 784 (21,847) (4,535) 2,200 613 56,360 (5,105) (1,675) 1,520 5,628 (7,139) (13,142) Depreciation and amortization – property and equipment 3,741 3,878 3,782 3,801 5,006 5,212 5,214 5,521 5,880 6,187 6,372 6,373 6,442 6,720 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 12,435 12,686 14,029 14,898 15,347 14,578 14,198 15,179 15,855 16,670 18,143 19,174 20,086 21,882 Amortization of acquired intangible assets - selling and marketing expense 766 684 596 595 595 592 706 585 531 571 588 587 525 522 Amortization of cloud computing implementation costs – general and administrative - 631 919 1,020 994 995 1,005 1,013 1,006 1,018 871 843 1,037 1,358 Stock-based compensation expense 11,434 7,022 7,772 7,691 16,324 10,001 10,134 10,966 21,044 11,990 13,215 11,514 18,508 13,762 Severance expense 555 905 643 1,473 842 619 927 660 457 317 1,199 4,850 7,408 2,689 Acquisition contingent consideration 200 249 900 200 (800) (1,575) 100 (300) - 200 - - - - Change in fair value of acquisition contingent earn-outs - - - - - - - 17,500 (14,700) 2,300 (4,000) (600) (5,738) (100) Acquisition-related retained employee compensation - - - - - - - - - - - - 417 1,250 Transaction costs - - - 4,853 - 548 1,443 41 2,660 2,980 2,785 2,329 5,984 7,375 Adjusted EBITDA ($) 20,202 21,983 26,623 32,040 36,743 38,515 38,623 38,061 37,219 38,369 43,493 42,459 44,063 51,015 Notes: 1. Adjusted EBITDA is a non-GAAP financial measure. The above table reconciles this non-GAAP financial measure to the most directly comparable GAAP financial measure. Refer to Form 10Q for the six months ended June 30, 2026 for additional information regarding the Company’s use of this non-GAAP financial measure