KING OF PRUSSIA, Pa., Aug. 03, 2026 (GLOBE NEWSWIRE) — Ve tex, I c. (NASDAQ: VERX) (“Ve tex” o the “Compa y”), the Decisio -to-Defe se™ global i di ect tax a d complia ce compa y, today a ou ced fi a cial esults fo its seco d qua te e ded Ju e 30, 2026.
“Ve tex delive ed solid seco d-qua te esults, with eve ue at the high e d of ou guida ce a d adjusted EBITDA exceedi g ou expectatio s,” said Ch istophe You g, P eside t a d Chief Executive Office . “The qua te demo st ated the du ability of ou busi ess a d the ea i gs leve age we ca ge e ate th ough g eate ope ati g focus a d discipli e. Custome ete tio emai ed stable, a d e-i voici g mome tum imp oved as e te p ises p epa e fo expa di g global ma dates a d seek mo e comp ehe sive complia ce solutio s.”
“We a e maki g ta gible p og ess i the t a sfo matio of Ve tex. Ou “AI-Fi st” st ategy is begi i g to imp ove the speed a d efficie cy of selected e gi ee i g a d custome -delive y wo kflows, a d we have st e gthe ed ou leade ship team to accele ate p oduct i ovatio , ope atio al executio , a d g owth. While we have mo e wo k to do, we e te the seco d half with a st o ge ope ati g fou datio a d clea oppo tu ities to c eate additio al value fo custome s a d stockholde s.”
- Total eve ues of $204.0 millio , up 10.5% yea -ove -yea .
- Softwa e subsc iptio eve ues of $174.8 millio , up 10.7% yea -ove -yea .
- Cloud eve ues of $101.7 millio , up 17.9% yea -ove -yea .
- A ual Recu i g Reve ue (“ARR”) was $703.4 millio , up 10.5% yea -ove -yea .
- Ave age A ual Reve ue pe di ect custome (“AARPC”) was $142,997 at Ju e 30, 2026, compa ed to $130,934 at Ju e 30, 2025, a d $140,464 at Ma ch 31, 2026.
- Net Reve ue Rete tio (“NRR”) was 105%, compa ed to 108% at Ju e 30, 2025, a d 105% at Ma ch 31, 2026.
- G oss Reve ue Rete tio (“GRR”) was 95%, co siste t with Ju e 30, 2025 a d Ma ch 31, 2026.
- Loss f om ope atio s of $4.4 millio , compa ed to $3.9 millio fo the same pe iod i the p io yea .
- No -GAAP ope ati g i come of $44.3 millio , compa ed to $32.2 millio fo the same pe iod i the p io yea .
- Net i come (loss) of $9.0 millio , compa ed to $(1.0) millio fo the same pe iod i the p io yea .
- Net i come pe basic a d diluted Class A a d Class B sha es of $0.06, compa ed to et loss pe basic a d diluted Class A a d Class B sha es of $0.01 fo the same pe iod i the p io yea .
- No -GAAP et i come of $33.3 millio a d No -GAAP diluted ea i gs pe sha e (“EPS”) of $0.20.
- Adjusted EBITDA of $51.0 millio , compa ed to $38.4 millio fo the same pe iod i the p io yea . Adjusted EBITDA ma gi of 25.0%, compa ed to 20.8% fo the same pe iod i the p io yea .
Defi itio s of ce tai key busi ess met ics a d the o -GAAP fi a cial measu es used i this p ess elease a d eco ciliatio s of such measu es to the most di ectly compa able GAAP fi a cial measu es a e i cluded below u de the headi gs “Defi itio s of Ce tai Key Busi ess Met ics” a d “Use a d Reco ciliatio of No -GAAP Fi a cial Measu es.”
Fo the thi d qua te of 2026, the Compa y cu e tly expects:
- Reve ues of $208.0 millio to $211.0 millio ; a d
- Adjusted EBITDA of $55.0 millio to $57.0 millio .
Fo the full-yea 2026, the Compa y cu e tly expects:
- Reve ues of $825.0 millio to $830.0 millio ;
- Cloud eve ue g owth of 18%; a d
- Adjusted EBITDA of $206.0 millio to $210.0 millio .
Joh Schwab, Chief Fi a cial Office added, “Ou seco d qua te pe fo ma ce eflects solid executio agai st ou st ategic a d fi a cial objectives. The co siste cy of ou fi st-half esults a d the st e gth of ou ope ati g model i c eased ou co fide ce i the full yea , allowi g us to a ow ou eve ue guida ce a ge while aisi g ou adjusted EBITDA outlook. We co ti ue to focus o bala ci g g owth i vestme ts with ope ati g discipli e, which we expect to esult i expa di g p ofitability a d st o ge cash ge e atio i the thi d a d fou th qua te s.”
The Compa y is u able to eco cile fo wa d-looki g Adjusted EBITDA to et i come (loss), the most di ectly compa able GAAP fi a cial measu e, without u easo able effo ts because the Compa y is cu e tly u able to p edict with a easo able deg ee of ce tai ty the type a d exte t of ce tai items that would be expected to impact et i come (loss) fo these pe iods but would ot impact Adjusted EBITDA. Such items may i clude stock-based compe satio expe se, dep eciatio a d amo tizatio of capitalized softwa e costs a d acqui ed i ta gible assets, seve a ce expe se, acquisitio co ti ge t co side atio , cha ges i the fai value of acquisitio co ti ge t ea -outs, amo tizatio of cloud computi g impleme tatio costs, seve a ce expe ses, acquisitio – elated etai ed employee compe satio , t a sactio costs, a d othe items. The u available i fo matio could have a sig ifica t impact o the Compa y’s et i come (loss). The fo egoi g fo wa d-looki g stateme ts eflect the Compa y’s expectatio s as of today’s date. Give the umbe of isk facto s, u ce tai ties a d assumptio s discussed below, actual esults may diffe mate ially. The Compa y does ot i te d to update its fi a cial outlook u til its ext qua te ly esults a ou ceme t.
Impo ta t disclosu es i this ea i gs elease about a d eco ciliatio s of o -GAAP fi a cial measu es to the most di ectly compa able GAAP fi a cial measu es a e p ovided below u de “Use a d Reco ciliatio of No -GAAP Fi a cial Measu es.”
Ve tex will host a co fe e ce call at 5:00 p.m. Easte Time today, Mo day, August 3, 2026, to discuss its seco d qua te 2026 fi a cial esults.
Those wishi g to pa ticipate should egiste i adva ce fo the live eve t at https://ve tex-ea i gs-q2-2026.ope -excha ge. et/ egist atio .
A live webcast of the eve t will also be available at the Compa y’s i vesto elatio s website at https://i .ve texi c.com. A audio-o ly eplay of the co fe e ce call will be available o the i vesto elatio s website fo o e yea .
Ve tex is the Decisio -to-Defe se™ global i di ect tax a d complia ce compa y. Ve tex helps e te p ises b i g co t ol to i di ect tax a d complia ce ac oss the full t a sactio lifecycle — f om tax dete mi atio a d e-i voici g th ough epo ti g, fili g, a d audit defe se — to make outcomes easie to p ove a d imp ove ove time. T usted by mo e tha 60% of the Fo tu e 500, Ve tex combi es decades of tax expe tise, deep global tax a d complia ce k owledge, a d embedded i teg atio s to help o ga izatio s ope ate globally with co fide ce. With headqua te s i No th Ame ica a d offices i South Ame ica a d Eu ope, Ve tex’s pu pose is to e su e busi esses a d commu ities th ive th ough t usted t a sactio s.
Fo mo e i fo matio , visit www.ve texi c.com o follow us o X a d Li kedI .
A y stateme ts made i this p ess elease that a e ot stateme ts of histo ical fact, i cludi g stateme ts about ou beliefs a d expectatio s, a e fo wa d-looki g stateme ts a d should be evaluated as such. Fo wa d-looki g stateme ts i clude i fo matio co ce i g possible o assumed futu e esults of ope atio s, i cludi g desc iptio s of ou busi ess pla a d st ategies, a d ou stock epu chase p og am. Fo wa d-looki g stateme ts a e based o Ve tex ma ageme t’s beliefs, as well as assumptio s made by, a d i fo matio cu e tly available to, them. Because such stateme ts a e based o expectatio s as to futu e fi a cial a d ope ati g esults a d a e ot stateme ts of fact, actual esults may diffe mate ially f om those p ojected. Facto s which may cause actual esults to diffe mate ially f om cu e t expectatio s i clude, but a e ot limited to: ou ability to mai tai a d g ow eve ue f om existi g custome s a d ew custome s, a d expa d thei usage of ou solutio s; ou ability to mai tai a d expa d ou st ategic elatio ships with thi d pa ties; ou ability to adapt to tech ological cha ge a d successfully i t oduce ew solutio s o p ovide updates to existi g solutio s; isks elated to failu es i i fo matio tech ology o i f ast uctu e; isks elated to ou elia ce o gove me t i f ast uctu e to suppo t ou e-i voici g se vices; challe ges i usi g a d ma agi g use of A tificial I tellige ce i ou busi ess; i co ect o imp ope impleme tatio , i teg atio o use of ou solutio s; failu e to att act a d etai qualified tech ical a d tax-co te t pe so el; competitive p essu es f om othe tax softwa e a d se vice p ovide s a d challe ges of co vi ci g busi esses usi g ative e te p ise esou ce pla i g fu ctio s to switch to ou softwa e; ou ability to accu ately fo ecast ou eve ue a d othe futu e esults of ope atio s based o ece t success; ou ability to offe specific softwa e deployme t methods based o cha ges to custome s’ a d pa t e s’ softwa e systems; ou ability to co ti ue maki g sig ifica t i vestme ts i softwa e developme t a d equipme t; ou ability to sustai a d expa d eve ues, mai tai p ofitability, a d to effectively ma age ou a ticipated g owth; ou ability to successfully dive sify ou solutio s by developi g o i t oduci g ew solutio s o acqui i g a d i teg ati g additio al busi esses, p oducts, se vices, o co te t; ou ability to successfully i teg ate acqui ed busi esses a d to ealize the a ticipated be efits of such acquisitio s; isks elated to the fluctuatio s i ou esults of ope atio s; isks elated to ou expa di g i te atio al ope atio s; ou exposu e to liability f om e o s, delays, f aud o system failu es, which may ot be cove ed by i su a ce; ou ability to adapt to o ga izatio al cha ges a d effectively impleme t st ategic i itiatives; isks elated to ou dete mi atio s of custome s’ t a sactio tax a d tax payme ts; isks elated to cha ges i tax laws a d egulatio s o thei i te p etatio o e fo ceme t; ou ability to ma age cybe secu ity a d data p ivacy isks; ou i volveme t i mate ial legal p oceedi gs a d audits; isks elated to u detected e o s, bugs o defects i ou softwa e; isks elated to utilizatio of ope -sou ce softwa e, busi ess p ocesses a d i fo matio systems; ou ability to effectively p otect, mai tai , a d e ha ce ou b a d; cha ges i applicatio , scope, i te p etatio o e fo ceme t of laws a d egulatio s; global eco omic weak ess a d u ce tai ties, i cludi g the eco omic u ce tai ty c eated by the cha gi g legal, egulato y, o taxatio la dscape i the U ited States, a d dis uptio i the capital a d c edit ma kets; busi ess dis uptio s elated to atu al disaste s, epidemic outb eaks, i cludi g a global e demic o pa demic, te o ist acts, political eve ts, o othe eve ts outside of ou co t ol; ou ability to comply with a ti-co uptio , a ti-b ibe y, a d simila laws; ou ability to p otect ou i tellectual p ope ty; cha ges i i te est ates, secu ity ati gs a d ma ket pe ceptio s of the i dust y i which we ope ate, o ou ability to obtai capital o comme cially easo able te ms o at all; ou ability to mai tai a effective system of disclosu e co t ols a d i te al co t ol ove fi a cial epo ti g, o ability to emediate a y mate ial weak ess i ou i te al co t ols; isks elated to ou Class A commo stock a d co t olled compa y status; isks elated to ou stock epu chase p og am; isks elated to ou i debted ess a d adhe e ce to the cove a ts u de ou debt i st ume ts; ou expectatio s ega di g the effects of the Capped Call T a sactio s (as defi ed i ou Fo m 10-K) a d ega di g actio s of the Optio Cou te pa ties (as defi ed i ou Fo m 10-K) a d/o thei espective affiliates; isks associated with ou Value C eatio Pla ; a d the othe facto s desc ibed u de the headi g “Risk Facto s” i the Compa y’s A ual Repo t o Fo m 10-K fo the yea e ded Decembe 31, 2025 (“Fo m 10-K”), filed with the Secu ities a d Excha ge Commissio (the “SEC”) o Feb ua y 24, 2026, as may be subseque tly updated by ou othe SEC fili gs. Copies of such fili gs may be obtai ed f om the Compa y o the SEC.
All fo wa d-looki g stateme ts eflect ou beliefs a d assumptio s o ly as of the date of this p ess elease. We u de take o obligatio to update fo wa d-looki g stateme ts to eflect futu e eve ts o ci cumsta ces.
We de ive the vast majo ity of ou eve ues f om ecu i g softwa e subsc iptio s. We believe ARR p ovides us with visibility to ou p ojected softwa e subsc iptio eve ues i o de to evaluate the health of ou busi ess. Because we ecog ize subsc iptio eve ues atably, we believe i vesto s ca use ARR to measu e ou expa sio of existi g custome eve ues, ew custome activity, a d as a i dicato of futu e softwa e subsc iptio eve ues. ARR is based o mo thly ecu i g eve ues (“MRR”) f om softwa e subsc iptio s fo the most ece t mo th at pe iod e d, multiplied by twelve. MRR is calculated by dividi g the softwa e subsc iptio p ice, i clusive of discou ts, by the umbe of subsc iptio cove ed mo ths. MRR o ly i cludes di ect custome s with MRR at the e d of the last mo th of the measu eme t pe iod. AARPC ep ese ts ave age a ual eve ue pe di ect custome a d is calculated by dividi g ARR by the umbe of softwa e subsc iptio di ect custome s at the e d of the espective pe iod.
We believe that ou NRR p ovides i sight i to ou ability to etai a d g ow eve ues f om ou di ect custome s, as well as thei pote tial lo g-te m value to us. We also believe it demo st ates to i vesto s ou ability to expa d existi g custome eve ues, which is o e of ou key g owth st ategies. Ou NRR efe s to the ARR expa sio du i g the 12 mo ths of a epo ti g pe iod fo all di ect custome s who we e pa t of ou custome base at the begi i g of the epo ti g pe iod. Ou NRR calculatio takes i to accou t a y eve ues lost f om depa ti g di ect custome s o those who have dow g aded o educed usage, as well as a y eve ue expa sio f om mig atio s, ew lice ses fo additio al p oducts o co t actual a d usage-based p ice cha ges.
We believe ou GRR p ovides i sight i to a d demo st ates to i vesto s ou ability to etai eve ues f om ou existi g di ect custome s. Ou GRR efe s to how much of ou MRR we etai each mo th afte eductio fo the effects of eve ues lost f om depa ti g di ect custome s o those who have dow g aded o educed usage. GRR does ot take i to accou t eve ue expa sio f om mig atio s, ew lice ses fo additio al p oducts o co t actual a d usage-based p ice cha ges. GRR does ot i clude eve ue eductio s esulti g f om ca cellatio s of custome subsc iptio s that a e eplaced by ew subsc iptio s associated with custome mig atio s to a ewe ve sio of the elated softwa e solutio .
The followi g table shows Ve tex’s di ect custome s, as well as i di ect small busi ess custome s sold a d se viced th ough the Compa y’s o e-to-ma y cha el st ategy.
| Di ect | 4,862 | 4,856 | 4,867 | 4,895 | 4,919 | I di ect | 504 | 516 | 515 | 530 | 540 |
I additio to ou esults dete mi ed i acco da ce with accou ti g p i ciples ge e ally accepted i the U.S. (“GAAP”) a d key busi ess met ics desc ibed above, we have calculated o -GAAP cost of eve ues, o -GAAP g oss p ofit, o -GAAP g oss ma gi , o -GAAP esea ch a d developme t expe se, o -GAAP selli g a d ma keti g expe se, o -GAAP ge e al a d admi ist ative expe se, o -GAAP ope ati g i come, o -GAAP et i come, o -GAAP diluted EPS, Adjusted EBITDA, Adjusted EBITDA ma gi , f ee cash flow a d f ee cash flow ma gi , which a e each o -GAAP fi a cial measu es. We have p ovided tabula eco ciliatio s of each of these o -GAAP fi a cial measu es to its most di ectly compa able GAAP fi a cial measu e.
Ma ageme t uses these o -GAAP fi a cial measu es to u de sta d a d compa e ope ati g esults ac oss accou ti g pe iods, fo i te al budgeti g a d fo ecasti g pu poses, a d to evaluate fi a cial pe fo ma ce a d liquidity. Ou o -GAAP fi a cial measu es a e p ese ted as suppleme tal disclosu e as we believe they p ovide useful i fo matio to i vesto s a d othe s i u de sta di g a d evaluati g ou esults, p ospects, a d liquidity pe iod-ove -pe iod without the impact of ce tai items that do ot di ectly co elate to ou ope ati g pe fo ma ce a d that may va y sig ifica tly f om pe iod to pe iod fo easo s u elated to ou ope ati g pe fo ma ce, as well as compa i g ou fi a cial esults to those of othe compa ies. Ou defi itio s of these o -GAAP fi a cial measu es may diffe f om simila ly titled measu es p ese ted by othe compa ies a d the efo e compa ability may be limited. I additio , othe compa ies may ot publish these o simila met ics. Thus, ou o -GAAP fi a cial measu es should be co side ed i additio to, ot as a substitute fo , o i isolatio f om, the fi a cial i fo matio p epa ed i acco da ce with GAAP, a d should be ead i co ju ctio with the co solidated fi a cial stateme ts i cluded i ou A ual Repo t o Fo m 10-K fo the yea e ded Decembe 31, 2025, as filed with the SEC o Feb ua y 24, 2026 a d ou Qua te ly Repo t o Fo m 10-Q fo the qua te e ded Ju e 30, 2026, to be filed with the SEC.
We calculate these o -GAAP fi a cial measu es as follows:
- No -GAAP cost of eve ues, softwa e subsc iptio s is dete mi ed by addi g back to GAAP cost of eve ues, softwa e subsc iptio s, the stock-based compe satio expe se, a d dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets i cluded i cost of subsc iptio eve ues fo the espective pe iods.
- No -GAAP cost of eve ues, se vices is dete mi ed by addi g back to GAAP cost of eve ues, se vices, the stock-based compe satio expe se i cluded i cost of eve ues, se vices fo the espective pe iods.
- No -GAAP g oss p ofit is dete mi ed by addi g back to GAAP g oss p ofit the stock-based compe satio expe se, a d dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets i cluded i cost of subsc iptio eve ues fo the espective pe iods.
- No -GAAP g oss ma gi is dete mi ed by dividi g o -GAAP g oss p ofit by total eve ues fo the espective pe iods.
- No -GAAP esea ch a d developme t expe se is dete mi ed by addi g back to GAAP esea ch a d developme t expe se the stock-based compe satio expe se a d t a sactio costs elated to acqui ed tech ology i cluded i esea ch a d developme t expe se fo the espective pe iods.
- No -GAAP selli g a d ma keti g expe se is dete mi ed by addi g back to GAAP selli g a d ma keti g expe se the stock-based compe satio expe se a d the amo tizatio of acqui ed i ta gible assets i cluded i selli g a d ma keti g expe se fo the espective pe iods.
- No -GAAP ge e al a d admi ist ative expe se is dete mi ed by addi g back to GAAP ge e al a d admi ist ative expe se the stock-based compe satio expe se, amo tizatio of cloud computi g impleme tatio costs, seve a ce expe se, acquisitio – elated etai ed employee compe satio , a d t a sactio costs i cluded i ge e al a d admi ist ative expe se fo the espective pe iods.
- No -GAAP ope ati g i come is dete mi ed by addi g back to GAAP loss o i come f om ope atio s the stock-based compe satio expe se, dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets, amo tizatio of cloud computi g impleme tatio costs, seve a ce expe se, acquisitio co ti ge t co side atio , cha ges i the fai value of acquisitio co ti ge t ea -outs, acquisitio – elated etai ed employee compe satio , a d t a sactio costs i cluded i GAAP loss o i come f om ope atio s fo the espective pe iods.
- No -GAAP et i come is dete mi ed by addi g back to GAAP et i come o loss i come tax be efit o expe se, stock-based compe satio expe se, dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets, amo tizatio of cloud computi g impleme tatio costs, seve a ce expe se, acquisitio co ti ge t co side atio , cha ges i the fai value of acquisitio co ti ge t ea -outs, acquisitio – elated etai ed employee compe satio , a d t a sactio costs i cluded i GAAP i come o loss f om ope atio s fo the espective pe iods, to dete mi e o -GAAP i come o loss befo e i come taxes. No -GAAP i come o loss befo e i come taxes is the adjusted fo i come taxes calculated usi g the espective statuto y tax ates fo applicable ju isdictio s, which fo pu poses of this dete mi atio we e assumed to be 25.5%.
- No -GAAP et i come pe diluted sha e of Class A a d Class B commo stock (“No -GAAP diluted EPS”) is dete mi ed by dividi g o -GAAP et i come by the weighted ave age sha es outsta di g of all classes of commo stock, i clusive of the impact of dilutive commo stock equivale ts to pu chase such commo stock, i cludi g stock optio s, est icted stock awa ds, est icted stock u its a d employee stock pu chase pla sha es. Additio ally, the dilutive effect of sha es issuable upo co ve sio of the se io co ve tible otes is i cluded i the calculatio of No -GAAP diluted EPS by applicatio of the if-co ve ted method.
- Adjusted EBITDA is dete mi ed by addi g back to GAAP et i come o loss the et i te est i come o expe se, i come tax expe se o be efit, dep eciatio a d amo tizatio of p ope ty a d equipme t, dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets, amo tizatio of cloud computi g impleme tatio costs, seve a ce expe se, acquisitio co ti ge t co side atio , cha ges i the fai value of acquisitio co ti ge t ea -outs, acquisitio – elated etai ed employee compe satio , a d t a sactio costs i cluded i GAAP et i come o loss fo the espective pe iods.
- Adjusted EBITDA ma gi is dete mi ed by dividi g Adjusted EBITDA by total eve ues fo the espective pe iods.
- F ee cash flow is dete mi ed by adjusti g et cash p ovided by (used i ) ope ati g activities by pu chases of p ope ty a d equipme t a d capitalized softwa e additio s fo the espective pe iods.
- F ee cash flow ma gi is dete mi ed by dividi g f ee cash flow by total eve ues fo the espective pe iods.
We e cou age i vesto s a d othe s to eview ou fi a cial i fo matio i its e ti ety, ot to ely o a y si gle fi a cial measu e a d to view these o -GAAP fi a cial measu es i co ju ctio with the elated GAAP fi a cial measu es.
| Cu e t assets: | Cash a d cash equivale ts | $ | 230,489 | $ | 314,009 | Fu ds held fo custome s | 26,497 | 24,286 | Accou ts eceivable, et of allowa ce of $12,271 a d $11,466, espectively | 153,432 | 183,446 | P epaid expe ses a d othe cu e t assets | 81,527 | 38,966 | Total cu e t assets | 491,945 | 560,707 | P ope ty a d equipme t, et of accumulated dep eciatio | 220,471 | 209,727 | Capitalized softwa e, et of accumulated amo tizatio | 34,262 | 35,480 | Goodwill a d othe i ta gible assets | 402,734 | 396,006 | Defe ed commissio s | 29,166 | 31,907 | Defe ed i come tax asset | 127 | 85 | Ope ati g lease ight-of-use assets | 8,366 | 9,678 | Lo g-te m i vestme t | 15,000 | 15,000 | Othe assets | 8,076 | 12,245 | Total assets | $ | 1,210,147 | $ | 1,270,835 | Cu e t liabilities: | Accou ts payable | $ | 37,313 | $ | 37,557 | Acc ued expe ses | 34,549 | 43,642 | Custome fu ds obligatio s | 24,639 | 21,802 | Acc ued sala ies a d be efits | 20,612 | 23,992 | Acc ued va iable compe satio | 27,552 | 34,593 | Defe ed eve ue, cu e t | 382,151 | 382,839 | Cu e t po tio of ope ati g lease liabilities | 4,470 | 4,283 | Cu e t po tio of fi a ce lease liabilities | 33 | 55 | Pu chase commitme t a d co ti ge t co side atio liabilities, cu e t | 33,100 | 25,900 | Total cu e t liabilities | 564,419 | 574,663 | Defe ed eve ue, et of cu e t po tio | 4,750 | 5,209 | Debt, et of cu e t po tio | 338,605 | 337,477 | Ope ati g lease liabilities, et of cu e t po tio | 6,776 | 8,903 | Fi a ce lease liabilities, et of cu e t po tio | 38 | 54 | Pu chase commitme t a d co ti ge t co side atio liabilities, et of cu e t po tio | 40,900 | 79,600 | Defe ed i come tax liabilities | 13,172 | 5,664 | Defe ed othe liabilities | 380 | 345 | Total liabilities | 969,040 | 1,011,915 | Stockholde s’ equity: | P efe ed sha es, $0.001 pa value, 30,000 sha es autho ized; o sha es issued a d outsta di g | — | — | Class A voti g commo stock, $0.001 pa value, 300,000 sha es autho ized; 79,414 a d 77,580 sha es issued a d outsta di g, espectively | 79 | 77 | Class B voti g commo stock, $0.001 pa value, 150,000 sha es autho ized; 82,156 a d 82,156 sha es issued a d outsta di g, espectively | 82 | 82 | T easu y stock, at cost, 3,888 a d 504 sha es, espectively | (56,696 | ) | (10,094 | ) | Additio al paid i capital | 347,768 | 316,327 | Accumulated deficit | (39,571 | ) | (46,104 | ) | Accumulated othe comp ehe sive loss | (10,555 | ) | (1,368 | ) | Total stockholde s’ equity | 241,107 | 258,920 | Total liabilities a d stockholde s’ equity | $ | 1,210,147 | $ | 1,270,835 |
| Reve ues: | Softwa e subsc iptio s | $ | 174,753 | $ | 157,844 | $ | 341,899 | $ | 308,605 | Se vices | 29,217 | 26,715 | 58,717 | 53,016 | Total eve ues | 203,970 | 184,559 | 400,616 | 361,621 | Cost of eve ues: | Softwa e subsc iptio s | 52,170 | 44,459 | 103,346 | 88,704 | Se vices | 20,500 | 18,900 | 41,101 | 38,723 | Total cost of eve ues | 72,670 | 63,359 | 144,447 | 127,427 | G oss p ofit | 131,300 | 121,200 | 256,169 | 234,194 | Ope ati g expe ses: | Resea ch a d developme t | 24,805 | 20,582 | 49,355 | 41,468 | Selli g a d ma keti g | 51,899 | 48,454 | 104,534 | 96,609 | Ge e al a d admi ist ative | 51,142 | 43,392 | 105,481 | 88,420 | Dep eciatio a d amo tizatio | 6,720 | 6,187 | 13,162 | 12,067 | Cha ge i fai value of acquisitio co ti ge t ea -outs | (100 | ) | 2,300 | (5,838 | ) | (12,400 | ) | Othe ope ati g expe se, et | 1,277 | 4,149 | 4,524 | 7,408 | Total ope ati g expe ses | 135,743 | 125,064 | 271,218 | 233,572 | I come (loss) f om ope atio s | (4,443 | ) | (3,864 | ) | (15,049 | ) | 622 | I te est i come, et | (344 | ) | (1,228 | ) | (1,301 | ) | (2,767 | ) | I come (loss) befo e i come taxes | (4,099 | ) | (2,636 | ) | (13,748 | ) | 3,389 | I come tax be efit | (13,142 | ) | (1,675 | ) | (20,281 | ) | (6,780 | ) | Net i come (loss) | 9,043 | (961 | ) | 6,533 | 10,169 | Othe comp ehe sive (i come) loss: | Fo eig cu e cy t a slatio adjustme ts, et of tax | 2,737 | (29,734 | ) | 9,187 | (44,839 | ) | U ealized loss o i vestme ts, et of tax | — | — | — | 9 | Total othe comp ehe sive i come (loss), et of tax | 2,737 | (29,734 | ) | 9,187 | (44,830 | ) | Total comp ehe sive i come (loss) | $ | 6,306 | $ | 28,773 | $ | (2,654 | ) | $ | 54,999 | Net i come (loss) pe sha e of Class A a d Class B, basic | $ | 0.06 | $ | (0.01 | ) | $ | 0.04 | $ | 0.06 | Net i come (loss) pe sha e of Class A a d Class B, diluted | $ | 0.06 | $ | (0.01 | ) | $ | 0.04 | $ | 0.06 |
| Cash flows f om ope ati g activities: | Net i come | $ | 6,533 | $ | 10,169 | Adjustme ts to eco cile et i come to et cash p ovided by ope ati g activities: | Dep eciatio a d amo tizatio | 56,177 | 45,694 | Amo tizatio of cloud computi g impleme tatio costs | 2,395 | 2,024 | P ovisio fo subsc iptio ca cellatio s a d o – e ewals | 629 | (136 | ) | Amo tizatio of defe ed fi a ci g costs | 1,361 | 1,361 | Cha ge i fai value of co ti ge t co side atio liabilities | (5,838 | ) | (12,200 | ) | Stock-based compe satio expe se | 32,270 | 33,034 | Defe ed i come taxes | 6,051 | (1,641 | ) | No -cash ope ati g lease costs | 2,226 | 1,595 | Othe | 15 | (71 | ) | Cha ges i ope ati g assets a d liabilities, et of the effects of busi ess acquisitio (s): | Accou ts eceivable | 29,887 | 22,320 | P epaid expe ses a d othe cu e t assets | (44,994 | ) | (13,406 | ) | Defe ed commissio s | 2,741 | (258 | ) | Accou ts payable | (288 | ) | (5,886 | ) | Acc ued expe ses | (9,185 | ) | 6,446 | Acc ued a d defe ed compe satio | (11,333 | ) | (29,766 | ) | Defe ed eve ue | (812 | ) | 2,374 | Ope ati g lease liabilities | (2,827 | ) | (2,057 | ) | Payme ts fo pu chase commitme t a d co ti ge t co side atio liabilities i excess of i itial fai value | — | (200 | ) | Othe | 3,863 | 1,412 | Net cash p ovided by ope ati g activities | 68,871 | 60,808 | Cash flows f om i vesti g activities: | Acquisitio of busi esses a d assets, et of cash acqui ed | (21,968 | ) | — | Lo g-te m i vestme t | — | (15,000 | ) | P ope ty a d equipme t additio s | (47,831 | ) | (42,906 | ) | Capitalized softwa e additio s | (10,648 | ) | (10,565 | ) | Pu chase of i vestme t secu ities, available-fo -sale | — | (2,398 | ) | P oceeds f om sales a d matu ities of i vestme t secu ities, available-fo -sale | — | 11,607 | Net cash used i i vesti g activities | (80,447 | ) | (59,262 | ) | Cash flows f om fi a ci g activities: | Net i c ease (dec ease) i custome fu ds obligatio s | 2,838 | (3,493 | ) | Repu chases of sha es | (46,602 | ) | — | P oceeds f om pu chases of stock u de ESPP | 1,807 | 1,782 | Payme ts fo taxes elated to et sha e settleme t of stock-based awa ds | (7,936 | ) | (26,105 | ) | P oceeds f om exe cise of stock optio s | 441 | 7,687 | Payme ts fo acquisitio co ti ge t cash ea -out | (19,600 | ) | — | Payme ts of fi a ce lease liabilities | (39 | ) | (28 | ) | Net cash used i fi a ci g activities | (69,091 | ) | (20,157 | ) | Effect of excha ge ate cha ges o cash, cash equivale ts a d est icted cash | (642 | ) | 3,307 | Net dec ease i cash, cash equivale ts a d est icted cash | (81,309 | ) | (15,304 | ) | Cash, cash equivale ts a d est icted cash, begi i g of pe iod | 338,295 | 326,066 | Cash, cash equivale ts a d est icted cash, e d of pe iod | $ | 256,986 | $ | 310,762 | Reco ciliatio of cash, cash equivale ts a d est icted cash to the Co de sed Co solidated Bala ce Sheets, e d of pe iod: | Cash a d cash equivale ts | $ | 230,489 | $ | 284,386 | Rest icted cash—fu ds held fo custome s | 26,497 | 26,376 | Total cash, cash equivale ts a d est icted cash, e d of pe iod | $ | 256,986 | $ | 310,762 |
| No -GAAP cost of eve ues, softwa e subsc iptio s | $ | 29,205 | $ | 26,556 | $ | 58,550 | $ | 52,719 | No -GAAP cost of eve ues, se vices | $ | 19,566 | $ | 17,876 | $ | 38,496 | $ | 36,003 | No -GAAP g oss p ofit | $ | 155,199 | $ | 140,127 | $ | 303,570 | $ | 272,899 | No -GAAP g oss ma gi | 76.1 | % | 75.9 | % | 75.8 | % | 75.5 | % | No -GAAP esea ch a d developme t expe se | $ | 22,365 | $ | 18,070 | $ | 43,049 | $ | 34,604 | No -GAAP selli g a d ma keti g expe se | $ | 47,080 | $ | 44,648 | $ | 93,847 | $ | 86,466 | No -GAAP ge e al a d admi ist ative expe se | $ | 34,587 | $ | 38,071 | $ | 71,631 | $ | 74,673 | No -GAAP ope ati g i come | $ | 44,295 | $ | 32,182 | $ | 81,916 | $ | 63,521 | No -GAAP et i come | $ | 33,256 | $ | 24,891 | $ | 61,997 | $ | 49,385 | No -GAAP diluted EPS | $ | 0.20 | $ | 0.15 | $ | 0.37 | $ | 0.30 | Adjusted EBITDA | $ | 51,015 | $ | 38,369 | $ | 95,078 | $ | 75,588 | Adjusted EBITDA ma gi | 25.0 | % | 20.8 | % | 23.7 | % | 20.9 | % | F ee cash flow | $ | 2,733 | $ | 19,587 | $ | 10,392 | $ | 7,337 | F ee cash flow ma gi | 1.3 | % | 10.6 | % | 2.6 | % | 2.0 | % |
| $ | 52,170 | $ | 44,459 | $ | 103,346 | $ | 88,704 | Stock-based compe satio expe se | (1,083 | ) | (1,233 | ) | (2,828 | ) | (3,460 | ) | Dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets – cost of subsc iptio eve ues | (21,882 | ) | (16,670 | ) | (41,968 | ) | (32,525 | ) | $ | 29,205 | $ | 26,556 | $ | 58,550 | $ | 52,719 | $ | 20,500 | $ | 18,900 | $ | 41,101 | $ | 38,723 | Stock-based compe satio expe se | (934 | ) | (1,024 | ) | (2,605 | ) | (2,720 | ) | $ | 19,566 | $ | 17,876 | $ | 38,496 | $ | 36,003 | $ | 131,300 | $ | 121,200 | $ | 256,169 | $ | 234,194 | Stock-based compe satio expe se | 2,017 | 2,257 | 5,433 | 6,180 | Dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets – cost of subsc iptio eve ues | 21,882 | 16,670 | 41,968 | 32,525 | $ | 155,199 | $ | 140,127 | $ | 303,570 | $ | 272,899 | Total Reve ues | $ | 203,970 | $ | 184,559 | $ | 400,616 | $ | 361,621 | 76.1 | % | 75.9 | % | 75.8 | % | 75.5 | % | $ | 24,805 | $ | 20,582 | $ | 49,355 | $ | 41,468 | Stock-based compe satio expe se | (2,440 | ) | (2,512 | ) | (6,306 | ) | (6,864 | ) | $ | 22,365 | $ | 18,070 | $ | 43,049 | $ | 34,604 | $ | 51,899 | $ | 48,454 | $ | 104,534 | $ | 96,609 | Stock-based compe satio expe se | (4,297 | ) | (3,235 | ) | (9,640 | ) | (9,041 | ) | Amo tizatio of acqui ed i ta gible assets – selli g a d ma keti g expe se | (522 | ) | (571 | ) | (1,047 | ) | (1,102 | ) | $ | 47,080 | $ | 44,648 | $ | 93,847 | $ | 86,466 | $ | 51,142 | $ | 43,392 | $ | 105,481 | $ | 88,420 | Stock-based compe satio expe se | (5,008 | ) | (3,986 | ) | (10,891 | ) | (10,949 | ) | Seve a ce expe se(1) | (2,689 | ) | (317 | ) | (10,097 | ) | (774 | ) | Acquisitio – elated etai ed employee compe satio (2) | (1,250 | ) | — | (1,667 | ) | — | T a sactio costs(3) | (6,250 | ) | — | (8,800 | ) | — | Amo tizatio of cloud computi g impleme tatio costs – ge e al a d admi ist ative expe se | (1,358 | ) | (1,018 | ) | (2,395 | ) | (2,024 | ) | $ | 34,587 | $ | 38,071 | $ | 71,631 | $ | 74,673 |
| $ | (4,443 | ) | $ | (3,864 | ) | $ | (15,049 | ) | $ | 622 | Stock-based compe satio expe se | 13,762 | 11,990 | 32,270 | 33,034 | Dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets – cost of subsc iptio eve ues | 21,882 | 16,670 | 41,968 | 32,525 | Amo tizatio of acqui ed i ta gible assets – selli g a d ma keti g expe se | 522 | 571 | 1,047 | 1,102 | Amo tizatio of cloud computi g impleme tatio costs – ge e al a d admi ist ative expe se | 1,358 | 1,018 | 2,395 | 2,024 | Seve a ce expe se(1) | 2,689 | 317 | 10,097 | 774 | Acquisitio co ti ge t co side atio | — | 200 | — | 200 | Cha ge i fai value of acquisitio co ti ge t ea -outs | (100 | ) | 2,300 | (5,838 | ) | (12,400 | ) | Acquisitio – elated etai ed employee compe satio (2) | 1,250 | — | 1,667 | — | T a sactio costs(3) | 7,375 | 2,980 | 13,359 | 5,640 | $ | 44,295 | $ | 32,182 | $ | 81,916 | $ | 63,521 | $ | 9,043 | $ | (961 | ) | $ | 6,533 | $ | 10,169 | I come tax be efit | (13,142 | ) | (1,675 | ) | (20,281 | ) | (6,780 | ) | Stock-based compe satio expe se | 13,762 | 11,990 | 32,270 | 33,034 | Dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets – cost of subsc iptio eve ues | 21,882 | 16,670 | 41,968 | 32,525 | Amo tizatio of acqui ed i ta gible assets – selli g a d ma keti g expe se | 522 | 571 | 1,047 | 1,102 | Amo tizatio of cloud computi g impleme tatio costs – ge e al a d admi ist ative expe se | 1,358 | 1,018 | 2,395 | 2,024 | Seve a ce expe se(1) | 2,689 | 317 | 10,097 | 774 | Acquisitio co ti ge t co side atio | — | 200 | — | 200 | Cha ge i fai value of acquisitio co ti ge t ea -outs | (100 | ) | 2,300 | (5,838 | ) | (12,400 | ) | Acquisitio – elated etai ed employee compe satio (2) | 1,250 | — | 1,667 | — | T a sactio costs(3) | 7,375 | 2,980 | 13,359 | 5,640 | No -GAAP i come befo e i come taxes | 44,639 | 33,410 | 83,217 | 66,288 | I come tax adjustme t at statuto y ate(4) | (11,383 | ) | (8,519 | ) | (21,220 | ) | (16,903 | ) | $ | 33,256 | $ | 24,891 | $ | 61,997 | $ | 49,385 | No -GAAP et i come | $ | 33,256 | $ | 24,891 | $ | 61,997 | $ | 49,385 | I te est expe se ( et of tax), co ve tible se io otes(5) | 903 | 903 | 1,806 | 1,806 | No -GAAP et i come used i dilutive pe sha e computatio | $ | 34,159 | $ | 25,794 | $ | 63,803 | $ | 51,191 | Weighted ave age Class A a d B commo stock, diluted | 161,392 | 162,589 | 161,337 | 162,656 | Dilutive effect of co ve tible se io otes(5) | 9,498 | 9,498 | 9,498 | 9,498 | Total ave age Class A a d B sha es used i dilutive pe sha e computatio | 170,890 | 172,087 | 170,835 | 172,154 | $ | 0.20 | $ | 0.15 | $ | 0.37 | $ | 0.30 | (1) The th ee a d six mo ths e ded Ju e 30, 2026 pe iods i clude $1,713 a d $7,883, espectively, i seve a ce costs elated to the Value C eatio Pla . | (2) The acquisitio – elated compe satio expe ses eco ded fo the th ee a d six mo ths e ded Ju e 30, 2026 a e elated to the additio al cash co side atio payme ts of $10,000 to the selle s (the “Additio al Cash Co side atio ”) i co ectio with the acquisitio of Fi ta I c. a d its subsidia ies (“B i ta”). | (3) The th ee a d six mo ths e ded Ju e 30, 2026 pe iods i clude $6,250 a d $8,800, espectively, i costs i cu ed to suppo t the executio of ou Value C eatio Pla , eco ded i ge e al a d admi ist ative expe se. Amou ts also i clude legal expe ses associated with pe di g litigatio elated to claims the Compa y has made agai st a competito . | (4) No -GAAP i come befo e i come taxes is adjusted fo i come taxes usi g the espective statuto y tax ates fo applicable ju isdictio s, which fo pu poses of this dete mi atio we e assumed to be 25.5%. | (5) We use the if-co ve ted method to compute diluted ea i gs pe sha e with espect to ou co ve tible se io otes. I te est expe se a d additio al dilutive sha es elated to the otes a e added back to the calculatio whe thei impact is dilutive. I pe iods whe the impact is a ti-dilutive, the e is o add-back of i te est expe se o additio al dilutive sha es elated to the otes. |
| $ | 9,043 | $ | (961 | ) | $ | 6,533 | $ | 10,169 | I te est i come, et | (344 | ) | (1,228 | ) | (1,301 | ) | (2,767 | ) | I come tax be efit | (13,142 | ) | (1,675 | ) | (20,281 | ) | (6,780 | ) | Dep eciatio a d amo tizatio – p ope ty a d equipme t | 6,720 | 6,187 | 13,162 | 12,067 | Dep eciatio a d amo tizatio of capitalized softwa e a d acqui ed i ta gible assets – cost of subsc iptio eve ues | 21,882 | 16,670 | 41,968 | 32,525 | Amo tizatio of acqui ed i ta gible assets – selli g a d ma keti g expe se | 522 | 571 | 1,047 | 1,102 | Amo tizatio of cloud computi g impleme tatio costs – ge e al a d admi ist ative expe se | 1,358 | 1,018 | 2,395 | 2,024 | Stock-based compe satio expe se | 13,762 | 11,990 | 32,270 | 33,034 | Seve a ce expe se(1) | 2,689 | 317 | 10,097 | 774 | Acquisitio co ti ge t co side atio | — | 200 | — | 200 | Cha ge i fai value of acquisitio co ti ge t ea -outs | (100 | ) | 2,300 | (5,838 | ) | (12,400 | ) | Acquisitio – elated etai ed employee compe satio (2) | 1,250 | — | 1,667 | — | T a sactio costs(3) | 7,375 | 2,980 | 13,359 | 5,640 | $ | 51,015 | $ | 38,369 | $ | 95,078 | $ | 75,588 | Total eve ues | $ | 203,970 | $ | 184,559 | $ | 400,616 | $ | 361,621 | 25.0 | % | 20.8 | % | 23.7 | % | 20.9 | % | (1)The th ee a d six mo ths e ded Ju e 30, 2026 pe iods i clude $1,713 a d $7,883, espectively, i seve a ce costs elated to the Value C eatio Pla . | (2)The acquisitio – elated compe satio expe ses eco ded fo the th ee a d six mo ths e ded Ju e 30, 2026 a e elated to the Additio al Cash Co side atio obligatio associated with the acquisitio of B i ta. | (3)The th ee a d six mo ths e ded Ju e 30, 2026 pe iods i clude $6,250 a d $8,800, espectively, i costs i cu ed to suppo t the executio of ou Value C eatio Pla . Amou ts also i clude legal expe ses associated with pe di g litigatio elated to claims the Compa y has made agai st a competito . |
| $ | 30,896 | $ | 46,003 | $ | 68,871 | $ | 60,808 | P ope ty a d equipme t additio s | (23,171 | ) | (21,512 | ) | (47,831 | ) | (42,906 | ) | Capitalized softwa e additio s | (4,992 | ) | (4,904 | ) | (10,648 | ) | (10,565 | ) | $ | 2,733 | $ | 19,587 | $ | 10,392 | $ | 7,337 | Total eve ues | $ | 203,970 | $ | 184,559 | $ | 400,616 | $ | 361,621 | 1.3 | % | 10.6 | % | 2.6 | % | 2.0 | % |
