Vtex

Q2 2026 GMV reached $5.7 billion, up 18% year over year in U.S. dollars and 7% FX-neutral. Subscription revenue was $63.8 million, up 11% year over year in U.S. dollars and 1.3% FX-neutral. Non-GAAP subscription gross margin was 81.8%, up about 2 percentage points year over year, while total non-GAAP gross margin was 80.4% versus 77.4% in Q2 2025. Non-GAAP operating income was $13.8 million, up 62% year over year, with a 21.4% margin; free cash flow was $12.7 million, up 79% year over year, with a 19.8% margin. For Q3 2026, VTEX is targeting approximately flat FX-neutral subscription revenue growth, low single-digit FX-neutral gross profit growth, and non-GAAP operating margin and free cash flow margin in the low 20s. For full-year 2026, it now expects low single-digit FX-neutral subscription revenue growth, mid-single-digit FX-neutral gross profit growth, and both non-GAAP operating margin and free cash flow margin in the low 20s. Assuming July FX rates hold, that guidance implies about 7.0 percentage points of added reported U.S. dollar subscription revenue growth in Q3 and 8.1 percentage points for full-year 2026.

Geraldo do Thomaz said VTEX is well into an AI-native transformation and that the opportunity is becoming clearer, but he acknowledged the results are not yet showing up in revenue growth. His tone was confident but measured: he emphasized that the direction is right, product execution is advancing, early customer signals are encouraging, and financial strength provides runway. He framed global expansion, B2B, Ads and AI as the company’s main medium- and long-term growth engines and described them as different expressions of one AI-native commerce thesis.

Ricardo Sodre focused on the gap between softer revenue and stronger profitability. He said the revenue shortfall was driven by a challenging consumption environment in Brazil and Argentina plus a customer mix shift toward larger accounts, while margins benefited from AI-powered support automation and disciplined cost control. He cited 81.8% subscription gross margin, 80.4% total gross margin, $38.0 million of non-GAAP operating expenses, $13.8 million of non-GAAP operating income, and $12.7 million of free cash flow, and noted the company repurchased 6.2 million shares for $23.2 million at $3.76 each. He also said the gross margin gains and G&A scalability appear durable, while R&D spending is rising modestly as VTEX invests in AI and product development.

Analysts pressed on whether the revenue slowdown was mostly competitive or macro/mix-driven, and management repeatedly said it is not seeing a meaningful competitive deterioration. Mariano said win rates, churn and customer engagement remained stable, and Ricardo said the decline is primarily from weaker consumption and a larger-share mix of bigger customers that carry lower take rates. Questions also focused on B2B, the small- and mid-sized customer slowdown, and whether there is financial distress among clients; Geraldo said VTEX is not yet seeing Chapter 11 or RJ-type distress, though the environment is tough and could worsen. On B2B, management highlighted a near-term push into AI-powered sales tools and a go-to-market that spans self-service, WhatsApp, sales reps and other channels, especially in the U.S., Europe and increasingly Latin America.