VTEX

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 4:30 p.m. ET VP of Investor Relations - Julia Vater Fernandez Founder and Co-CEO - Geraldo do Thomaz Jr. Chief Financial Officer - Ricardo Camatta Sodre Founder and Co-CEO - Mariano Gomide de Faria Chief Strategy Officer - Andre Spolidoro Julia Fernandez: Hello, everyone, and welcome to the VTEX Earnings Conference Call for the quarter ended June 30, 2026. I'm Julia Vater Fernandez, VP of Investor Relations for VTEX. Our senior executives presenting today are Geraldo do Thomaz Jr., Founder and Co-CEO; and Ricardo Camatta Sodre, Chief Financial Officer. Additionally, Mariano Gomide de Faria, Founder and Co-CEO; and Andre Spolidoro, Chief Strategy Officer, will be available during today's Q&A session. I would like to remind you that management may make forward-looking statements related to such matters as continued growth prospects for the company, industry trends and product and technology initiatives. These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on those forward-looking statements. Certain risks and uncertainties are described under Risk Factors and -- forward-looking Statements sections of VTEX's Form 20-F and other VTEX filings with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website. Finally, I would like to remind you that during the course of this conference call, we might discuss some non-GAAP measures. A reconciliation of those measures to the nearest comparable GAAP measures can be found in our second quarter 2026 earnings press release available on our Investor Relations website. With that, let's start the call. Geraldo, the floor is yours. Geraldo do Carmo Thomaz: Thank you, Julia. Good afternoon, everyone, and thanks for joining us on today's call. I want to open different today. We're far enough into our AI native transformation to see with real clarity how large the opportunity ahead of us. The results are not yet translating into revenue growth trajectory we're building towards. We know that. But the direction is right. Product delivery is advancing well. Early customer signals are encouraging, and our financial strength give us the runway to execute. We look forward to demonstrating our progress quarter-by-quarter. The macro environment remained challenging in the second quarter, high interest rates and a promotional marketplace environment in Brazil, softer consumer demand in Argentina and longer enterprise decision cycles, all weighted on near-term growth. Ricardo will cover this in detail. With that in context, I want to focus on what matters most for the medium- and long-term trajectory of VTEX, the execution of our 4 growth drivers. global expansion, B2B, Ads and AI. Collective, these initiatives grew 20% on an FX-neutral basis in Q2, meaningfully faster than the company overall. While this still represents a relatively small portion of our business today, they are becoming an increasingly important part of our growth profile. The other side of this number is worth stating directly. The remainder of our subscription revenue concentrated in our established B2C commerce business is in Brazil and in the rest of Latin America declined modestly in FX neutral this quarter. We want to be precise about what is happening and what is not happening there. Churn remained stable and in line with historical levels and win rates in competitive processes held steady. This is primarily a volume and customer mix story, not a competitiveness story. We're not seeing deterioration in retention. Our installed base is transacting less in a weak consumer environment. That distinction matters because volume pressure can ease as the volume cycle improves. Going back to our growth drivers, let me take each in turn in order of the revenue contribution today. Starting with global expansion. This remains one of the most encouraging parts of our business. In the U.S., we're seeing a clear improvement in the quality of the pipeline. Activity has expanded across a broader set of industry, while large B2B opportunities represent an increasing share of expected contract value. We have also evolved our go-to-market strategy to make it more scalable. Rather than relying primarily on direct prospecting, we are increasingly working alongside leading global system integrators such as EY and Accenture. During the quarter, we hosted our first North America SI boot camp, bringing together implementation partners to deepen their expertise in our B2B platform, which has already generated new qualified opportunities, reinforcing our confidence that this channel can become an increasingly important source of enterprise demand. Another important shift is how AI is influencing enterprise buying decisions. Today, AI is no longer viewed as an incremental feature. It has become a prerequisite in virtually every RFP as customers increasingly evaluate platforms based on their ability to support future AI-driven commerce. This is also shaping how we position the broader VTEX product suite. While customers typically prioritize modernizing their core commerce foundation first, the response to our CX platform during enterprise evaluations has been positive. We are increasingly bundling into strategic enterprise proposals, creating a natural path to expand customer adoption over time while further differentiating VTEX from traditional commerce vendors. Europe is following a similar trajectory. We have become increasingly disciplined in how we deploy commercial resources rather than pursuing smaller opportunities across every market, we are concentrating our investments where we see stronger enterprise demand and greater long-term expansion opportunities. The early results are encouraging. We're increasingly winning large recognizable enterprise brands that choose to begin with a single country or region before expanding their operations across additional markets. We believe this land and expand motion plays directly to the strength of our platform and creates long-term value. We are also pleased to announce the renewal of our long-term partnership with OBI, our first customers in Germany. Beyond expanding into additional countries over the years, OBI has become an important reference customer in the region, helping establish our credibility with other large enterprises and opening new commercial opportunities. It is a strong example on how our relationship continue to deepen over time as customers expand their business on the VTEX Commerce platform. Taken together, our international strategy is advancing. We continue to improve the quality of our pipeline, compete successfully against global incumbents and build a growing base of enterprise customers that can expand with us for many years to come. B2B remains one of our most durable sources of growth. The foundation of our B2B strategy is a philosophy we have come to describe as channel-agnostic digitalization. B2B buyers are not a homogeneous group. A carpenter ordering building materials wants to send a WhatsApp audio message, a procurement manager at a large distributor wants a self-service portal. A field sales rep wants to generate a quote on a mobile device while standing in front of a client. Our platform processes all of the input natively without forcing buyers or sellers into a workflow that does not fit how they actually operate. This is the core reason we win in complex B2B environments, and it is increasingly the first thing prospect mention when they choose VTEX over alternatives. Looking ahead, we want to be direct with investors about where we are investing and why. We have built what we believe is the strongest B2B self-service commerce platform in our markets. The gap we are actively closing is on the tools that gives field sales reps, managers and account teams the real-time visibility and AI assistant intelligence they need to work more effectively. Our objective is to offer the best solution in the market for those agents, one where a rep can see which clients are active, which have lapsed, which logged into the portal without converting and which accounts represent the highest probability opportunity on any given day. Combined with our CX platform and our self-service capabilities, this will give VTEX a unified AI native stack that covers the full B2B commercial workflow from the first buy interaction to the closed order. On top of a strong demand for B2B digitalization across global markets, recent customer activity in Brazil and Latin America reflects the breadth of this opportunity. Whirlpool's B2B expansion in Brazil and Electrolux launch in Chile demonstrate how our existing enterprise relationships convert into B2B growth across geographies. Moving to the VTEX ad platform. We continue building strong momentum during the second quarter. On the product side, we continue expanding our ad platforms with AI-driven campaign creation, automated budget management, improved attribution and AI-generated creative assets, bringing VTEX's ad platform closer to the capability expected from the world's leading retail media platforms. Commercially, we expanded our international sales presence, established active relationships with leading global agency groups such as WPP, Publicis and Omnicom and our ecosystem through partnerships, including Magnite, among others. Together, these initiatives expand both advertiser demand and available inventory as we continue building a differentiated omnichannel retail media network. We're also seeing encouraging demand for new verticals. Prescription portals and health platforms, in particular, are generating strong interest from pharmaceutical advertisers. This vertical creates a differentiated inventory opportunity that does not exist on generalist retail media networks. Our fourth growth driver is AI, which today runs on 2 fronts: the VTEX CX platform already a revenue contributor and the AI Workspace, which points to where the entire platform is going. Starting with our CX platform. The second quarter demonstrated not only strong product momentum, but also a business model that is scaling efficiently. Since VTEX Day, the VTEX CX platform has recorded more than 200 trials activations through our trial-led go-to-market strategy. The results have been compelling. Average sales cycle from the solution have declined by more than 50% from approximately 90 days to roughly 40, while implementation times has been reduced from 30 days to 1 week. These are structural improvements that directly reflect the advantage of native integration with the core commerce platform. On top of this, the VTEX CX platform operational performance continues to improve. Our AI agents are sustaining conversations containment rate above 90% and problem resolution rates above 80%, while directly influencing GMV through payment recovery, abandoned cart rescue and cross-selling. While still early, these results provide encouraging evidence of the platform value generation for our customers. The VTEX CX platform also continues to expand beyond its initial use cases in our installed base. During the quarter, we introduced our first integrated B2B agents, increased adoption through the web channel, expanded across Mexico and the broader region, signed our first European customers and continue winning stand-alone deployments. Turning to the second front, the AI Workspace. Since introduction, AI Workspace and our first Pioneer Agents at VTEX Day, we have expanded the platform with new capabilities across merchandising, content, fulfillment and commercial analytics. These include -- my Assistant, our orchestration layer that coordinates multiple AI agents through a single interface, allowing teams to execute business objectives through natural language instead of manual configuration. Our vision remains clear. We're not building isolated AI features. We are building the AI native commerce suite. We now have more than 100 enterprise customers in the AI Workspace wait list, but we intentionally began with a small group for our Pioneer Program. Our product and engineering teams are working alongside these customers to maximize operational value and help shape the next generation of the platform. We are not yet reporting operational or financial contribution from AI Workspace, but the foundation we're building today give us confidence that adoption will be durable and scalable over time. Our ecosystem is also embracing the AI journey. We've seen adoption of our AI developer key toolkit, which enables AI coding assistant like Claude, OpenAI Codex and Cursor to build natively on VTEX. The early response has been encouraging, and we believe it can help reduce implementation times, accelerate time to value and increase partner productivity. Across the business, as listed in our earnings release, we continued adding new enterprise customers while deepening relationships with existing ones across each of our 4 growth drivers. Importantly, we're seeing encouraging suite adoption momentum. Angeloni and FastShop expanded their relationship with VTEX to include our CX platform, while Whirlpool and Olímpica expanded theirs to include our Ads Platform. Before I hand the call to Ricardo, I want to thank every VTEXer. Building the next generation of enterprise commerce while maintaining financial discipline requires extraordinary focus, commitment and execution across the entire company. I also want to thank our customers, partners and investors for their continued trust. We're building something genuinely new in enterprise customer. The architecture is sound, the product execution is on track, and we remain confident that the compounding effect of this work will become increasingly visible as we move forward. Ricardo, over to you. Ricardo Sodre: Thank you, Geraldo. Hello, everyone. It's a pleasure to be back here with you for another quarterly update. I will now walk you through our financial performance for the second quarter of 2026. Subscription revenue came in just above the bottom of our guidance range and below our internal expectations, driven by a challenging consumption environment in Brazil and Argentina and a customer mix that continue to skew towards larger accounts. Against that, our profitability and cash flow performance were strong with margins continuing to expand meaningfully year-over-year. That separation, softer revenue, stronger margins reflects structural progress in cost discipline that we believe is durable even as we work to reaccelerate growth. In Q2 2026, GMV reached $5.7 billion, representing a year-over-year growth of 18% in U.S. dollars and 7% on an FX-neutral basis, broadly stable versus the 6.8% FX-neutral growth we reported in Q1 despite the softer consumer backdrop. Subscription revenue reached $63.8 million, growing 11% in U.S. dollars and 1.3% on an FX-neutral basis. The gap between GMV and subscription revenue growth was driven by mix. GMV growth was increasingly concentrated among our largest customers, while smaller and midsized customers were more affected by the weaker consumption environment in Brazil. And the same shift towards larger accounts, which carry lower take rates at similar gross margins and lower churn rates translated into a more limited contribution to subscription revenue growth. In other words, volume held up better than its conversion into revenue, a mix effect, not an erosion of unit economics. Our non-GAAP subscription gross margin reached 81.8%, an improvement of approximately 2 percentage points year-over-year, continue to benefit from structural gains in AI-powered customer support automation and disciplined cost management. Total non-GAAP gross margin, including services, reached 80.4% compared to 77.4% in Q2 2025, representing an improvement of 3 percentage points year-over-year. The continued deemphasis of lower-margin services as our global partner ecosystem assumes a greater share of complex implementations continue to be a tailwind to our overall gross margin. Total non-GAAP operating expenses in the second quarter were $38.0 million, broadly flat sequentially and growing well below revenue year-over-year, with headcount declining nearly 4% sequentially. As in prior quarters, we maintained discipline across sales and marketing and G&A while continuing to direct incremental investment into R&D, where our focus remains on accelerating the AI native transformation, expanding our agent ecosystem and deepening the capabilities of our B2B, Ads and CX platforms. Non-GAAP income from operations reached $13.8 million, growing 62% year-over-year and with a margin of 21.4%, representing approximately 7 percentage points of expansion versus the same quarter of last year. Free cash flow for the quarter was $12.7 million, growing 79% year-over-year and representing a free cash flow margin of 19.8%. We continue to execute against our share repurchase program. During the second quarter, we repurchased 6.2 million Class A common shares at an average price of $3.76 per share for a total cost of $23.2 million. At the average price, the shares were repurchased at an implied double-digit free cash flow yield on enterprise value compared with the mid-single-digit after-tax interest yield earned on our cash flow. Following the shares cancellation, the repurchases are immediately accretive to free cash flow per share. Consistent with Geraldo's discussion, our 4 growth drivers, global expansion, B2B, Ads and AI represented approximately 18% of subscription revenue and grew 20% on an FX-neutral basis in the second quarter. The remainder of the portfolio declined modestly in FX neutral with churn and competitive win rates remaining stable, reinforcing that this is a volume and monetization pressure, not a competitive pressure. Looking forward, our updated outlook reflects weaker consumption trends in Brazil in June and July and the continued customer shift toward larger enterprise accounts. It assumes a modest improvement in FX-neutral subscription revenue growth in the fourth quarter, supported by less demanding year-over-year comparisons and an increasing contribution from our growth drivers. For the third quarter of 2026, we are targeting approximately flat FX-neutral subscription revenue growth, low single-digit FX-neutral gross profit growth, a non-GAAP operating margin in the low 20s and a free cash flow margin also in the low 20s. For the full year 2026, we are now targeting low single-digit FX-neutral subscription revenue growth, mid-single-digit FX-neutral gross profit growth, a non-GAAP operating margin in the low 20s and a free cash flow margin also in the low 20s. Assuming FX rates remain broadly consistent with July's average rates, the FX-neutral growth guidance outlined above will translate into higher reported U.S. dollar subscription revenue growth, adding approximately 7.0 percentage points in the third quarter and 8.1 percentage points for the full year 2026. In summary, revenue came in just above the bottom of our guidance range, driven by a challenging consumption environment and the near-term revenue impact of our deliberate shift towards larger enterprise customers. What the quarter also tells us is that our profitability engine is working. Non-GAAP operating income grew 62% year-over-year. Total gross margin expanded 300 basis points and free cash flow grew 79%. Our cost structure is disciplined. Our balance sheet is strong, and our growth drivers continue to outperform the consolidated business. We will remain focused on translating that foundation into revenue acceleration. With that, let's open it up for questions now. Thank you. Operator: [Operator Instructions] Your first question comes from the line of Marcelo Santos with JPMorgan. Marcelo Santos: My question is about -- you mentioned the durability of a high margin in a reacceleration environment, I think, in your comments, Ricardo. I just wanted to go a bit deeper on that. I mean if reacceleration comes, what kind of cost do you think would be a pressure? And what kind of cost do you think would scale? Just want to -- I know it's not the scenario now, but I just want to go a bit deeper on that potential scenario for one day? Ricardo Sodre: Perfect, Marcelo, thanks for the question. Happy to start here. So we see the improvement that we are having as durable given that on the gross margin side, it's historically, over the past 3 years, right, the first 2 years was driven by hosting optimizations. And for the last year or maybe 5 quarters, it's been driven by AI power automation and support costs. So the roughly 3 percentage points in gross margin that we gained, it's durable, and we see this as a strong indication of the scalability of the business. On the cost and expenses side, when we think about G&A, G&A has been stable for the past maybe 5 years since we IPO-ed the company. So that has decreased maybe for 20% of revenue back in 2020, 2021. It's now roughly 10% of the revenue. So that shows the scalability on that line as well. Research and development, R&D, we are increasing the level of investment right now in that line as we see it's the moment to invest on AI and the transformation and accelerating the product side. So that's a line that we are investing more. It's increasing as a percentage of revenue, but just marginally. So we see that's very strong indication of how much we're investing for the future. From the sales and marketing perspective, we invest on that based on what we are seeing on the demand side from signing new customers and the pipeline. So that we adjust over time. And we are also getting efficiencies on leveraging AI on how much we are investing on events. So -- if there is a reacceleration of revenue, we could invest a bit more if we are seeing a good return on investment. But given the way that we look at our existing customers and the margins that we are making, the consolidated P&L is still far away from that margin. So we see the potential for the margin to continue moving in a positive way as we have signaled from the guidance, right? When we look at the Q2 guidance, the non-GAAP operating income margin was a guidance of high teens to low 20s. We have changed the guidance for Q3 in the low 20s range. So that's an indication of the progress that we are making there. So hopefully, that gives some color on how we are thinking about the efficiencies and the durability of the margins that we are gaining. Operator: The next question comes from the line of Nadia [ Instantogi ] with Itaú. Unknown Analyst: So to what extent are the current revenue challenges related to a more difficult competitive environment? If you could please share your feedback about how you see the evolution of competition with marketplaces, both in Brazil and other regions, it would be great. And looking into 2027, are AI-related discussions also delaying client decisions, possibly extending sales cycles for new customers? Could you please share feedback on that as well? Mariano Gomide de Faria: Yes, I have to take this one. This is Mariano here. So about the competition, let's break down in terms of evolution of customer behavior and the competitive landscape among commerce platforms. On the consumer side, we are seeing 2 structural dynamics. First, commerce is becoming increasingly more fragmented. Traffic fragment across social channels, WhatsApp, emerging AI interfaces. The traditional front end may become more commoditized. However, every transaction still requires a centralized system of records for inventory, pricing, promotions and order management, order orchestration. That orchestration layer is where VTEX is structurally advantaged. We are the backbone for connected commerce and our long story on this sub functionality prepare us to serve this wave. Second, the current high interest rate environment continues to pressure consumers' demands, and that is a global kind of characteristics. Retailers are prioritizing profitability and efficiency over aggressive growth, while large marketplaces remain highly promotional using credits, coupons and free shipping to defend and expand market share. So it's interest dynamic in the market. We don't see this changing in the next months. This macro kind of headwind for our customers will remain. We believe these dynamics reinforce the need of an AI-native unified commerce platform that really helps enterprise operate more efficiently and engage customers consistently across an increasing fragmented commerce landscape. We believe in retailers and brand manufacturers that are agnostic to channels. On the platform side, on the competition, we haven't seen a meaningful change. While competitors are increasingly announcing AI capabilities, more -- most appear to be incremental features layered out of legacy architectures. We've taken a different approach, rebuilding VTEX as an AI-native commerce suite where AI orchestrate workflows across the entire platform rather than solving isolated tasks. More importantly, we haven't seen those competitive announcements translated into changes in our commercial performance. Win rates, churn, customer engagement all remained stable this quarter. So today, we don't see competitiveness issue. We see customers taking longer to make long-term decisions, long sales cycle. That's a fact. We believe our AI native architecture, our comprehensive product suite and the discipline on execution continue to strengthen our competitive positioning, and we will continue to monitor the market closely as it evolves. Does this answer your question or any angle of the question was not answered? Operator: The next question comes from the line of Lucca Brendim with Bank of America. Lucca Brendim: I have 2 from my side here. The first one, if you could give us some more color on the revenue deceleration. If you could break it down, how much of that is due to the clients you already have, they are selling less? And how much is due to churn or lower level of new customers, how you would break that down and how you think that would expand in the future? And also, when we look at the other revenues that you mentioned were up 20% year-over-year. How much for the growth drivers, right? How much of that -- how much does that represent of overall revenues? And when you look at the core business, excluding those growth drivers, do you think that this segment can reaccelerate in the short to midterm? Do you have any outlook on that? Ricardo Sodre: Happy to start here. So starting from the second question, the growth drivers. So as we mentioned in the prepared remarks, the growth drivers represent roughly 18% of the subscription revenue and grew 20%. So if we look at the nongrowth drivers part of the business, knowing that the overall business grew 1.3% have all the numbers to do the math for that portion of the business. We mentioned was a modest decline, which is roughly 2% decline. On the revenue deceleration, I think it may be helpful for us to go over how we think about the guidance because that goes into these dynamics. So if we look at the -- for the third quarter, we are guiding subscription revenue growth to approximately flat on an FX-neutral basis. And based on July's average FX rates, that will translate into higher reported U.S. dollar subscription revenue growth, adding approximately 7 percentage points to Q3 FX-neutral growth. So looking into the revenue, 2 underlying dynamics impacting the existing customer base. The first dynamic is the customer mix. So FX-neutral GMV growth was broadly stable sequentially, but the mix shifted. The smaller and midsized customers were more affected by the weaker consumption environment in Brazil, while larger customers held up better. So larger accounts, they carry a lower take rate, but similar gross margin, lower churn and higher lifetime value. So moving upmarket is deliberate and aligned with our long-term strategy. Now the pace of this shift in Q2 was faster than expected, and we are carrying that mix into the second half. The second dynamic is the consumption environment. Although Q2 same-store sales were broadly in line with our expectations, performance in Brazil weakened in June and July. So same-store sales are our closest operating indicator of macro consumption, and that led us to lower our GMV assumptions for the existing customers in Q3 and Q4. So together, these 2 factors led us to guide Q3 revenue growth to approximately flat and revised our full year FX-neutral subscription revenue guidance to low single-digit growth. So those were the moving pieces impacting the guidance. And Lucca, to your question, they come from the existing customer base. On the new customer base, obviously, there are changes up and down every quarter, but nothing substantial that would make us review the way that we are seeing the business. Now having said that, 2 points that are important to separate from these headwinds. The first one is on the competitive side, as Mariano mentioned, our competitive position remains healthy. The win rates are stable. Churn remains within the historical range and the enterprise pipeline remains active. So the headwinds remain primarily macroeconomic and mix related rather than competitive. The second one is the growth drivers that we just talked about. They continue to outperform the consolidated business. They grew 20% on an FX-neutral basis, and now they represent 18% of the subscription revenue. If we move down the P&L, Q2 profitability was strong and supported by structural efficiency gains that we achieved, particularly through the AI-powered automation and continued operating discipline that I mentioned through to Marcelo. And the non-GAAP operating income grew 62%. Free cash flow grew 79% in Q2. So these are strong indicators that for the third quarter made us target non-GAAP operating income and free cash flow margins in the low 20s, up from the high teens to low 20s level that we had before. So let me pause here and see if there's any follow-ups or if this covers the question, Lucca. Mariano Gomide de Faria: So, maybe you should also double-click on the qualitative matters of the -- of our acceleration drivers. And we are talking about the global expansion, and it continues to gain traction as we focus on our ideal customer profile, and we prioritize geographies with the largest enterprise opportunities. We continue to make progress in markets such as U.S., Germany and Balkans. This quarter, we announced that Acron Aviation in the U.S. and Gigatron in Serbia as new customers and the expansion of our relationship with OBI from Germany. B2B is also a very good growth driver for us, remain one of our strongest differentiator. Demand continues to be healthy, particularly for our omnichannel approach, especially in North America and Europe. For instance, like this quarter, we announced that Panasonic in Brazil and Grupo Nazan in Mexico. They -- both of them started B2B operations with us. Ads continues to scale well, and we expand both the product and the network. We've seen strong adoption from existing customers and remain excited about the long-term opportunity in retail media. For example, this quarter, we announced that Olímpica and Ripple, they are expanding their relationship with the VTEX joining our Ads Platform. This is a very good case of upselling and cross-selling and that pollinize each product, selling more. And finally, not less important is CX platform. This has been one of the most encouraging developments this year. Customer adoption has been encouraging and sales and implementation times have come down significantly. This quarter, we announced Angeloni and FastShop are expanding their relationship with VTEX by implementing our CX platform. We -- I mentioned this as well in our remarks, but we are -- this is also a very good case for us of inside sales or product-led sales. We're having a lot of tryouts. We have a lot of conversion from that with very low cost of acquisition for these customers. Operator: The next question comes from the line of Gustavo Farias with UBS. Gustavo Farias: So my questions are the first one on B2B. If you could give us more color on the new go-to-market strategy and your expectations for B2B in LatAm? And my second question, double-click on the softness you're seeing in small and medium clients. Just wondering, given the challenging interest rate environment, in Brazil, do you see any higher-than-usual level of clients going bankrupt or going to any kind of financial distress? Geraldo do Carmo Thomaz: Okay. Let's start by your second question. We are not seeing yet the Chapter 11 or RJ, right, kind of desperate new movements. But for sure, it is a very tough moment for retailers and brand manufacturers in Brazil. It can happen. We are helping our customers to decrease their level of expenses to be really efficient to tight their belts because the bumpy times will remain in Brazil in macro. So there is a possibility that this scenario can get worse, okay? So on a B2B, answering your first question, we are encouraged by the momentum we are seeing globally. We built a comprehensive B2B commerce platform, particularly for complex and omnichannel workflows. Buyers can transact seamlessly through a self-service portal, WhatsApp, sales rep, applications, on charge and any other channel, all of these in the same commerce platform. That brings efficiency for brand manufacturers. B2B continues to represent a meaningful share of our enterprise pipeline, particularly in the United States and Europe. And we are beginning to see growing interest in broader Latin America, including Brazil. For instance, this quarter, we have announced Panasonic in Brazil and Grupo Nazan in Mexico started B2B operations with us. From a product perspective, we are now focused on the next evolution, AI-powered sales capabilities. The objective is to give field sales reps and managers real-time visibility and AI-assisted intelligence, knowing which customers are active, which has laps, which logging without converting and where the highest probability opportunity are each day. it's agents managing humans. Combined with our CX platform and our existing self-service capabilities, the goal is a unified AI native stack covering the entire B2B commercial workflow from the first buy interaction in any channel through a complete order and post-purchase CX experience. We are not putting a specific launch date, but it is a near-term product priority, not a multiyear road map. We believe this combination of commerce, CX and AI-powered sales force on a single data layer on a unified commerce suite can become a meaningful competitive differentiator over time, and we are focusing our execution in that direction. Operator: [Operator Instructions] There are no further questions at this time. I will now turn the call back to Geraldo for closing remarks. Geraldo do Carmo Thomaz: Before we conclude, I want to leave you with one thought. The AI Workspace, the CX platform, the Ads Platform, B2B and global expansion are not independent that's -- they are expressions of a single thesis that the enterprise commerce platform of the future will be AI native, outcome-based and capable of operating across every channel, geography and business model our customers need. We remain clear-eyed about the near term. The macro environment in Brazil has not resolved, and we're not projecting a quick snapback, but our growth drivers continue to outperform and our financial disciplines allow us to continue investing. We have demonstrated the discipline. Our next task is to translate this product and commercial progress into sustained growth. To our employees, customers, partners and investors, thank you for your continued trust. We believe the best of what we're building is still ahead, and we look forward to updating you next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Vtex, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vtex wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. VTEX (VTEX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in VTEX? Here are five stocks we like better. Q2 growth slowed amid weaker demand: GMV increased 18% year over year to $5.7 billion, but subscription revenue rose only 1.3% on an FX-neutral basis as Brazil and Argentina faced softer consumption, promotional pressure and longer enterprise sales cycles. Profitability and cash flow improved sharply: Non-GAAP operating income rose 62% to $13.8 million, while free cash flow increased 79% to $12.7 million. Gross margins benefited from AI-powered support automation, cost discipline and greater partner involvement in implementations. VTEX lowered its growth outlook while investing in future drivers: The company expects low-single-digit FX-neutral subscription growth for 2026, but said global expansion, B2B, advertising and AI grew 20% and now represent about 18% of subscription revenue. VTEX (NYSE:VTEX) reported second-quarter results marked by modest subscription revenue growth amid weaker consumer demand in Brazil and Argentina, while profitability and free cash flow increased sharply as the company continued to invest in artificial intelligence, B2B commerce, advertising and international expansion. For the quarter ended June 30, 2026, gross merchandise value reached $5.7 billion, up 18% year over year in U.S. dollars and 7% on an FX-neutral basis. Subscription revenue was $63.8 million, increasing 11% in U.S. dollars but just 1.3% on an FX-neutral basis. → No Hangover: Revisiting Microsoft One Week After Earnings Founder and co-CEO Geraldo Thomaz Jr. said high interest rates, a promotional marketplace environment in Brazil, softer consumer demand in Argentina and longer enterprise decision cycles weighed on near-term growth. He said the company’s established B2C commerce business in Brazil and the rest of Latin America declined modestly on an FX-neutral basis, while churn and competitive win rates remained stable. “This is primarily a volume and customer mix story, not a competitiveness story,” Thomaz said, adding that VTEX’s installed base was transacting less in a weak consumer environment. → MarketBeat Week in Review – 08/03 - 08/07 Chief Financial Officer Ricardo Camatta Sodré said the gap between GMV growth and subscription revenue growth reflected a customer mix shift toward larger accounts. Larger customers have lower take rates but similar gross margins, lower churn and higher lifetime value, according to the company. Smaller and mid-sized customers were more affected by weaker consumption conditions in Brazil, while larger accounts held up better. Sodré said the shift toward larger enterprise accounts is deliberate, although its pace during the second quarter was faster than anticipated. → Why the Landlord of the AI Boom Could Outlast the Chipmakers VTEX said it expects approximately flat FX-neutral subscription revenue growth in the third quarter, with low-single-digit FX-neutral gross profit growth. The company is targeting a non-GAAP operating margin and free cash flow margin in the low 20% range for the quarter. For the full year, VTEX now expects low-single-digit FX-neutral subscription revenue growth and mid-single-digit FX-neutral gross profit growth, while maintaining targets for non-GAAP operating and free cash flow margins in the low 20% range. The outlook reflects weaker consumption trends in Brazil during June and July as well as the continuing customer mix shift toward larger enterprises. Assuming foreign-exchange rates remain near July average levels, the company said FX effects would add about 7 percentage points to reported U.S.-dollar subscription revenue growth in the third quarter and 8.1 percentage points for the full year. Despite slower revenue growth, VTEX reported improved margins. Non-GAAP subscription gross margin rose about two percentage points year over year to 81.8%, while total non-GAAP gross margin, including services, increased three percentage points to 80.4%. Sodré attributed the improvement to AI-powered customer-support automation, disciplined cost management and a lower emphasis on services as the company’s partner ecosystem takes on a greater portion of complex implementations. Total non-GAAP operating expenses were $38 million, broadly flat sequentially, while headcount declined nearly 4% from the prior quarter. Non-GAAP operating income increased 62% year over year to $13.8 million, representing a 21.4% margin. Free cash flow rose 79% to $12.7 million, for a 19.8% margin. The company also repurchased 6.2 million Class A common shares during the quarter at an average price of $3.76 per share, spending $23.2 million under its share repurchase program. VTEX said its four growth drivers—global expansion, B2B, ads and AI—represented approximately 18% of subscription revenue and grew 20% on an FX-neutral basis in the second quarter. The remaining portion of subscription revenue declined by roughly 2% on an FX-neutral basis, according to management’s discussion during the call. In North America, Thomaz said VTEX is increasingly working with global system integrators including EY and Accenture rather than relying primarily on direct prospecting. The company held its first North American system-integrator bootcamp during the quarter and said it generated qualified B2B opportunities. In Europe, VTEX said it is concentrating commercial resources on markets with stronger enterprise demand. The company also renewed its long-term partnership with German customer OBI, which management described as a key reference customer in the region. B2B remains a central focus, with VTEX emphasizing its ability to support commerce through self-service portals, WhatsApp, field sales applications and other channels on a single platform. Management cited Whirlpool’s B2B expansion in Brazil, Electrolux’s launch in Chile, Panasonic in Brazil and Grupo Nazan in Mexico as examples of B2B activity. Mariano Gomide de Faria, founder and co-CEO, said VTEX is prioritizing AI-powered tools for field sales representatives and managers, including capabilities to identify active and lapsed customers, monitor portal activity and highlight high-probability sales opportunities. He said the initiative is a near-term product priority, though the company did not provide a specific launch date. The company said its VTEX CX Platform, which is already contributing revenue, recorded more than 200 trial activations since VTEX DAY. Management said implementation time has been reduced from 30 days to one week, while its AI agents have maintained conversation containment rates above 92% and problem-resolution rates above 80%. VTEX also said it has more than 100 enterprise customers on the wait list for its AI Workspace, which includes AI capabilities across merchandising, content, fulfillment and commercial analytics. The company said it is not yet reporting operational or financial contributions from AI Workspace. Meanwhile, VTEX continued to expand its Ads Platform with AI-driven campaign creation, automated budget management, attribution tools and AI-generated creative assets. It also established relationships with agency groups including WPP, Publicis and Omnicom and cited a partnership with Magnite. Management said the company remains focused on converting its product and commercial investments into sustained revenue growth while acknowledging that the macroeconomic environment in Brazil has not yet improved. VTEX is a global commerce platform provider that offers a full suite of software-as-a-service (SaaS) solutions designed to power online retail and marketplace operations. Its cloud-native platform combines e-commerce, order management and marketplace capabilities in a single environment, enabling brands and retailers to launch and scale digital commerce initiatives without the need for extensive in-house infrastructure. The company's API-first architecture and microservices design support headless implementations, allowing businesses to integrate front-end experiences, third-party applications and custom modules with minimal development overhead. Founded in 1999 and headquartered in São Paulo, Brazil, VTEX has expanded its reach to serve customers across Latin America, North America, Europe and Asia-Pacific. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "VTEX Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. GMV: Reached $5.7 billion in Q2 2026, representing 18% year-over-year growth in US dollars and 7% on an FX-neutral basis. Subscription Revenue: Reached $63.8 million, growing 11% in US dollars and 1.3% on an FX-neutral basis. Non-GAAP Subscription Gross Margin: Reached 81.8%, an improvement of approximately 2 percentage points year-over-year. Total Non-GAAP Gross Margin: Reached 80.4%, compared to 77.4% in Q2 2025, an improvement of 3 percentage points year-over-year. Non-GAAP Operating Expenses: Totaled $38.0 million in Q2, broadly flat sequentially and growing well below revenue year-over-year. Non-GAAP Income from Operations: Reached $13.8 million, growing 62% year-over-year, with a margin of 21.4%. Free Cash Flow: Reached $12.7 million for the quarter, growing 79% year-over-year and representing a free cash flow margin of 19.8%. Share Repurchases: Repurchased 6.2 million Class A common shares at an average price of $3.76 per share, for a total cost of $23.2 million. Growth Drivers Performance: Global expansion, B2B, ads, and AI initiatives grew 20% on an FX-neutral basis in Q2 and represented approximately 18% of subscription revenue. Warning! GuruFocus has detected 8 Warning Signs with OPTU. Is VTEX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Growth drivers (global expansion, B2B, ads, AI) grew 20% on an FX-neutral basis in Q2, outperforming the overall business. Non-GAAP operating income grew 62% year-over-year, with margin expansion of approximately 7 percentage points to 21.4%. Free cash flow grew 79% year-over-year, reaching a margin of 19.8%. Non-GAAP subscription gross margin improved to 81.8%, up 2 percentage points year-over-year, driven by AI-powered automation and cost discipline. The VTEX CX platform showed strong adoption, with sales cycles down over 50% and implementation time reduced from 30 days to one week. Subscription revenue growth was weak, with FX-neutral growth of only 1.3% in Q2, below internal expectations. The macro environment in Brazil and Argentina remains challenging, with high interest rates and softer consumer demand pressuring near-term growth. The core B2C commerce business in Brazil and Latin America declined modestly on an FX-neutral basis, impacted by volume and customer mix shifts. The company lowered its full-year 2026 guidance to low single-digit FX-neutral subscription revenue growth, reflecting weaker consumption trends. Sales cycles for enterprise customers are lengthening, as AI-related discussions and decision-making processes delay commitments. Q: Can you break down the revenue deceleration between existing clients selling less versus churn or lower new customer acquisition, and how much do the growth drivers represent of overall revenues? Can the core business excluding growth drivers re-accelerate in the short to mid-term?A: Ricardo Sodre (CFO) explained that growth drivers represent roughly 18% of subscription revenue and grew 20% on an FX-neutral basis, while the non-growth driver portion declined modestly by roughly 2%. The revenue deceleration is driven by two dynamics in the existing customer base: a faster-than-expected shift in customer mix toward larger accounts (which carry lower take rates but similar gross margins and lower churn) and a weaker consumption environment in Brazil, particularly in June and July. Competitive win rates and churn remain stable, indicating the headwinds are macroeconomic and mix-related rather than competitive. Q: To what extent are the current revenue challenges related to a more difficult competitive environment, and are AI-related discussions delaying client decisions and extending sales cycles?A: Mariano de Faria (Co-CEO) stated that competition has not meaningfully changed, with competitors' AI capabilities appearing as incremental features layered onto legacy architectures rather than transformative. Win rates, churn, and customer engagement all remain stable, indicating no competitiveness issue. However, customers are taking longer to make long-term decisions, extending sales cycles. The high interest rate environment continues to pressure consumer demand, with large marketplaces remaining highly promotional, reinforcing the need for an AI-native unified commerce platform. Q: If reacceleration comes, what kind of costs would be pressured and what kind of costs would scale?A: Ricardo Sodre (CFO) detailed that gross margin improvements are durable, driven by hosting optimizations and AI-powered automation over the past three years. G&A has scaled down from roughly 20% of revenue in 2020-2021 to roughly 10% now. R&D is the line receiving incremental investment to accelerate the AI-native transformation. Sales and marketing investments are adjusted based on demand signals and ROI, with efficiencies gained through AI. The consolidated P&L is far from margin limits, suggesting potential for continued margin expansion, as evidenced by the Q3 guidance for non-GAAP operating margins in the low 20s. Q: Can you provide more color on the new go-to-market strategy for B2B and your expectations, and are you seeing higher-than-usual levels of client bankruptcies or financial distress in Brazil?A: Mariano de Faria (Co-CEO) noted that while not yet seeing Chapter 11 or bankruptcy movements, it is a very tough moment for retailers in Brazil, and the scenario could worsen. On B2B, the company is encouraged by global momentum, having built a comprehensive platform for complex omnichannel workflows. B2B represents a meaningful share of the enterprise pipeline, particularly in the US and Europe, with growing interest in Latin America. The next evolution focuses on AI-powered sales capabilities for field reps, with a unified AI-native stack covering the entire B2B commercial workflow as a near-term priority. Q: How should we think about the durability of high margins in a reacceleration environment, and what cost lines would be pressured versus those that would scale?A: Ricardo Sodre (CFO) reiterated that the roughly 3-percentage-point gross margin gain is durable, driven by AI-powered automation and support cost reductions. G&A has been stable for five years, decreasing from 20% to roughly 10% of revenue. R&D is the primary investment area for the AI transformation, increasing marginally as a percentage of revenue. Sales and marketing is adjusted based on demand and ROI, with AI-driven efficiencies. If revenue reaccelerates, the company could invest more where returns are visible, but the consolidated P&L is far from margin limits, indicating continued positive margin trajectory. Q: What is driving the revenue deceleration, and how much is due to existing clients selling less versus churn or lower new customer acquisition?A: Ricardo Sodre (CFO) clarified that the deceleration stems from the existing customer base, with two underlying dynamics: customer mix shifting toward larger accounts (which carry lower take rates) and a weaker consumption environment in Brazil. FX-neutral GMV growth was broadly stable sequentially, but smaller and mid-sized customers were more affected. Same-store sales weakened in June and July, leading to lower GMV assumptions for Q3 and Q4. New customer acquisition remained stable with no substantial changes. Q: Can you provide more color on the revenue deceleration breakdown and the outlook for the core business excluding growth drivers?A: Ricardo Sodre (CFO) explained that growth drivers represent 18% of subscription revenue and grew 20% FX-neutral, while the remainder declined modestly by roughly 2%. The deceleration is driven by customer mix shifts toward larger accounts and weaker consumption in Brazil. The company guided Q3 subscription revenue growth to approximately flat FX-neutral, with full-year guidance revised to low single-digit FX-neutral growth. Competitive position remains healthy with stable win rates and churn, reinforcing that headwinds are macroeconomic and mix-related. Q: How is the competitive environment evolving with marketplaces in Brazil and other regions, and are AI discussions delaying client decisions?A: Mariano de Faria (Co-CEO) described two structural dynamics: commerce fragmentation across social channels, WhatsApp, and AI interfaces, where VTEX's orchestration layer is structurally advantaged, and the high interest rate environment pressuring consumer demand with promotional marketplaces. Competitors' AI announcements have not translated into changes in commercial performance, with win rates and churn stable. Customers are taking longer to make decisions, extending sales cycles, but the AI-native architecture and comprehensive product suite continue to strengthen competitive positioning. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the current revenue trajectory to a challenging macro environment, specifically high interest rates and promotional pressure in Brazil alongside softer consumer demand in Argentina. The company is undergoing a deliberate shift toward larger enterprise accounts; while these carry lower take rates, they offer higher lifetime value and lower churn, contributing to a temporary gap between GMV and subscription revenue growth. Subscription revenue decline in established B2C markets is characterized as a volume and customer mix issue rather than a loss of competitiveness, as win rates and churn remain stable. The 'growth drivers'—Global Expansion, B2B, Ads, and AI—now represent 18% of subscription revenue and grew 20% on an FX-neutral basis, significantly outperforming the core business. Management is repositioning VTEX as an 'AI-native commerce suite' rather than a collection of features, aiming to orchestrate workflows across the entire platform to differentiate from legacy competitors. Global expansion is shifting toward a scalable partner-led model, leveraging system integrators like EY and Accenture to improve pipeline quality and enterprise reach in North America and Europe. Updated guidance assumes a modest improvement in FX-neutral subscription revenue growth in Q4, supported by easier year-over-year comparisons and increasing contributions from new growth drivers. The company expects to maintain non-GAAP operating margins and free cash flow margins in the low 20s, reflecting structural gains from AI-powered automation and cost discipline. Product development is focused on closing the gap in B2B tools for field sales reps, integrating real-time visibility and AI-assisted intelligence into the unified commerce stack. Management anticipates that AI will become a prerequisite in virtually every enterprise RFP, shaping their strategy to bundle the CX platform into core commerce proposals. The AI Workspace rollout remains in a controlled Pioneer Program phase to maximize operational value before broader commercialization and financial reporting. Non-GAAP subscription gross margin improved to 81.8%, driven by structural gains in AI-powered customer support automation and hosting optimizations. The company executed a significant share repurchase program, buying 6.2 million shares at an average price of $3.76, which management views as accretive given the double-digit free cash flow yield. Headcount declined nearly 4% sequentially as the company maintains strict discipline in G&A and sales and marketing while reallocating resources toward R&D. A 300 basis point expansion in total gross margin was partially driven by the strategic deemphasis of lower-margin services in favor of the partner ecosystem. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes margin improvements are durable because they stem from structural AI automation and hosting optimizations rather than temporary cuts. G&A has scaled from 20% of revenue at IPO to roughly 10% today, and while R&D investment is increasing, it is only doing so marginally as a percentage of revenue. Management notes that while marketplaces are using aggressive credits and coupons to defend share, VTEX remains the 'backbone' for inventory and order orchestration across fragmented channels. Win rates and churn remain stable, suggesting that competitors' AI announcements have not yet translated into commercial shifts or loss of market position. Deceleration is primarily driven by existing customers selling less in a weak macro environment, particularly in Brazil during June and July. The shift toward larger enterprise accounts is happening faster than expected, which pressures near-term revenue due to lower take rates despite better long-term unit economics. B2B demand is healthy in North America and Europe, with growing interest in Latin America from brands like Panasonic and Grupo Nazan. The strategic focus is moving toward 'AI-powered sales capabilities' to manage human sales reps, aiming for a unified stack that covers the entire commercial workflow.

Subscription revenue grew 11.4% (+1.3% FXN), with GMV up 17.8% (+7.0% FXN) Non-GAAP income from operations increased 62.4% to US$13.8 million, reaching a 21.4% margin Free cash flow increased 79.1% to US$12.7 million, reaching a 19.8% margin NEW YORK, August 06, 2026--(BUSINESS WIRE)--VTEX (NYSE: VTEX), the backbone for connected commerce, today announced results for the second quarter of 2026 ended June 30, 2026. VTEX results have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as well as the rules and regulations of the Securities and Exchange Commission ("SEC") regarding financial reporting. Geraldo Thomaz Jr., founder and co-CEO of VTEX, commented, "We are now far enough into our AI-native transformation to see the scale of the opportunity ahead. We are still in the early stages of this journey, and the full impact is not yet reflected in our overall growth. But we are increasingly confident in the direction we are taking: our growth drivers — Global Expansion, B2B, Ads, and AI — grew 20% on an FX-neutral basis this quarter. Our financial discipline gives us the flexibility to invest for the long term while expanding profitability and delivering strong cash generation." Mariano Gomide de Faria, founder and co-CEO of VTEX, added, "We continue to see encouraging progress beneath the headline numbers. Across the US and Europe, we are improving the quality of our pipeline, winning larger enterprise opportunities, and strengthening our position with global customers. While macro conditions continue to influence near-term growth, we are building a broader, more diversified product suite that we believe will drive sustainable growth over the long term." Second Quarter 2026 Financial Highlights GMV reached US$5.7 billion in the second quarter of 2026, representing a YoY increase of 17.8% in USD and 7.0% on an FX neutral basis. Total revenue increased to US$64.4 million in the second quarter of 2026 from US$58.8 million in the second quarter of 2025, representing a YoY increase of 9.5% in USD and a decrease of 0.4% on an FX neutral basis. Subscription revenue represented 99.1% of total revenues, reaching US$63.8 million in the second quarter of 2026, from US$57.2 million in the second quarter of 2025. This represents a YoY increase of 11.4% in USD and 1.3% on an FX neutral basis. Non-GAAP subscription gross profit was US$52.2 million in the second quarter of 2026, compared to US$45.7 million in the second quarter of 2025, representing a YoY increase of 14.1% in USD and 2.0% on an FX neutral basis. Non-GAAP income from operations was US$13.8 million during the second quarter of 2026, compared to US$8.5 million in the same quarter of 2025. Non-GAAP net income was US$13.6 million during the second quarter of 2026, compared to US$7.9 million in the same quarter of 2025. Non-GAAP free cash flow was US$12.7 million during the second quarter of 2026, compared to US$7.1 million in the same quarter of 2025. As of June 30, 2026, our total headcount was 1,102, decreasing 3.9% QoQ and 14.1% YoY. During the second quarter of 2026, 6.2 million Class A common shares had been repurchased pursuant to the share buyback program at an average price of US$3.76 per share for a total cost of US$23.2 million. Second Quarter 2026 Commercial Highlights: New customers who initiated their operations with us, among others: Di Santinni and Dolce & Gabbana in Brazil; Grupo Ramos in the Dominican Republic; Indurama in Ecuador; Gigatron in Serbia; Iberdrola in Spain; and Acron Aviation in the US. Existing customers expanding their operations with us by opening new online stores, among others: C&A launched the ACE operations in Brazil, its first independent brand with standalone stores. Grupo Nazan migrated its B2B operations in Mexico to VTEX, building on its B2C success; OBI expanded into Poland, adding to its operations in Austria, Germany and Italy; Panasonic launched a B2B operation in Brazil, adding to its B2C operation with VTEX; and STIHL expanded into Argentina, adding to its operations in Brazil and Mexico. Customers adopting or expanding their use of the VTEX product suite included, among others: Angeloni expanded its relationship with VTEX by implementing the VTEX CX Platform in Brazil; Fast Shop expanded its relationship with VTEX by implementing the VTEX CX Platform in Brazil; Olímpica expanded its relationship with VTEX by becoming a VTEX Ads Platform publisher in Colombia; and Whirlpool expanded its relationship with VTEX by becoming a VTEX Ads Platform advertiser in Brazil. Second Quarter 2026 Operational Highlights: We innovate aligned with our guiding principles. We express our brand through the success of our customers. VTEX key operational highlights this quarter are: Acron Aviation, a specialized provider in the US aviation industry, partnered with VTEX to digitalize two distinct and highly specialized commercial operations, launching separate, purpose-built storefronts on a unified platform. The primary goal was to create dedicated digital channels for its complex service and parts offerings. For its data intelligence division, Acron launched "Avionics Hub," a portal where clients can order and manage "Express Readout" services, a sophisticated offering that analyzes flight recorder data to speed up maintenance diagnostics. Simultaneously, for its Avionics aftermarket division, it launched "Skyparts," a B2B ecommerce store providing direct access to a catalog of re-certified, out-of-production aircraft components. By leveraging VTEX's flexible architecture, Acron Aviation successfully deployed two unique commerce experiences tailored to different customer needs, one focused on selling specialized technical services and the other on transacting complex, used parts. This strategy established a scalable and efficient digital foundation to serve the diverse needs of the aviation maintenance and repair industry. Angeloni, a leading Brazilian retail group, implemented the VTEX CX Platform to elevate the customer experience across its diverse brands, including Angeloni Eletro, Super, and Divvino. By centralizing its customer service on WhatsApp with a suite of AI Agents, the company now automates approximately 65% of inquiries, achieving an exceptional customer satisfaction score of 4.89 out of 5. The most significant financial impact was driven by automated abandoned cart campaigns, which generated a consolidated 10.7x ROI in the first five months of 2026 and represented 3% of the site's total sales. Additionally, the AI-powered Concierge tool contributed a further 2% to total site sales. With VTEX, Angeloni has transformed its customer service into a scalable and profitable engine, delivering a consistent, high-quality experience across its distinct business units. Dolce&Gabbana do Brasil, the Brazilian subsidiary of the global luxury leader, partnered with VTEX to launch the brand's first-ever official ecommerce channel in the country, creating a digital flagship that mirrors its premium in-store experience. The primary goal was to establish a direct-to-consumer channel with full control over the customer journey, moving beyond third-party marketplaces. Leveraging VTEX's composable architecture and FastStore front-end framework, Dolce&Gabbana do Brasil implemented a sophisticated ship-from-store model, transforming 15 of its physical boutiques into local fulfillment hubs. The platform seamlessly integrates with DG's existing POS system to ensure real-time inventory synchronization across its Brazilian store network, a critical component for preventing stockouts and ensuring a reliable luxury experience. With VTEX, Dolce&Gabbana do Brasil successfully translated its renowned physical retail excellence into a powerful and scalable digital channel, establishing a new benchmark for luxury ecommerce operations in Brazil. Farmacity, one of Argentina's leading health, beauty, and wellness retail chains, partnered with VTEX Ads to build and scale its retail media program from the ground up, successfully monetizing its high-intent digital audience. In its first year, Farmacity transitioned the program from a launch phase to a mature, highly efficient operation, scaling its on-site ad investment by 2.4 times. This growth was driven by improved performance, not just increased traffic, as the platform's conversion rate grew by over 70% while the number of active advertisers doubled. Leveraging the VTEX Ads platform, Farmacity expanded its monetized catalog from two to five complete verticals, and is now extending its strategy into an omnichannel model by piloting in-store media. With VTEX Ads, Farmacity has successfully established a scalable, high-margin retail media business and is creating a unified advertising experience across its physical and digital channels. Grupo Nazan, one of Mexico's leading footwear distributors, expanded its partnership with VTEX to migrate its extensive B2B operation from a legacy platform, unifying its entire digital ecosystem on a single, agile foundation. The primary goal was to overcome the technical limitations of their previous system and establish a scalable platform for their unified commerce strategy. Leveraging VTEX's composable architecture, Grupo Nazan implemented a sophisticated solution that integrates seamlessly with its complex network of enterprise systems — handling order orchestration, catalog and pricing, and custom loyalty and discount programs — and unifying omnichannel inventory across its entire operation to ensure real-time product availability. Through the power and efficiency of the VTEX checkout, the company has streamlined the wholesale purchasing journey, significantly reducing friction at the most critical stage of the transaction. This strategic migration empowers Grupo Nazan to manage its 200,000 active B2B clients through a modern, high-performance portal while also enabling new channels like in-store kiosks and social selling, creating a robust and future-proof foundation for its continued market leadership. Grupo Ramos, one of the largest retail groups in the Dominican Republic, partnered with VTEX to transform its flagship supermarket brand, La Sirena, into a full-fledged omnichannel operation. The goal was to replace a limited legacy ecommerce site with a scalable, modern platform capable of supporting a complex, multi-store fulfillment strategy. Leveraging VTEX's composable architecture, Grupo Ramos implemented a sophisticated marketplace model where each physical La Sirena store operates as an individual white-label seller, managing its own inventory and delivery zones. This structure enabled the launch of multiple delivery options, including express delivery, scheduled delivery, and in-store pickup, all orchestrated through VTEX's native Pick and Pack solution and integrated with last-mile provider SimpliRoute. With VTEX, Grupo Ramos successfully built a robust digital foundation that unifies its physical store network into a cohesive and efficient ecommerce operation, providing customers with a seamless, omnichannel grocery shopping experience. Gigatron, a leading Serbian electronics retailer, migrated its full digital catalog to VTEX to modernize its commerce core without disrupting its existing headless enterprise architecture. The primary goal was to replace its legacy backend with a more robust, scalable engine while preserving its flexible frontend and internal operational orchestration. By establishing VTEX as its new commerce backbone for catalog, search, checkout, and OMS, Gigatron achieved a pragmatic modernization that seamlessly integrated with its surrounding enterprise systems. The platform's strong extensibility empowered Gigatron's internal engineering team to build and maintain custom applications, successfully supporting a complex, localized launch featuring dynamic pricing, localized payment methods, and sophisticated promotional structures. With VTEX, Gigatron has successfully upgraded its headless commerce foundation, securing the agility and scalability needed for future growth without the operational cost of a full systemic rebuild. Sanofi, a global pharmaceutical leader, leveraged VTEX Ads to execute a continuous, data-driven retail media strategy across multiple pharmacy channels, connecting with high-intent consumers at critical moments in their purchase journey. Through consistent monitoring and weekly optimizations, the platform successfully balanced brand visibility with performance, generating sales across 96 campaigns and achieving a strong return on ad spend (ROAS) above 7x. With VTEX Ads, Sanofi transformed its retail media investment into a powerful, measurable engine for sales growth and enhanced its portfolio's presence in strategic digital environments. Business Outlook We continue to advance our AI-native commerce vision through tangible product innovation and remain focused on our growth drivers — Global Expansion, B2B, Ads, and AI — while deploying technology to reaccelerate performance for both VTEX and our customers. Despite a volatile macro environment, our disciplined execution supports improving profitability and sustained investment in R&D. We are encouraged by the quality of new customer additions, continued expansion within our base, and our strong positioning with global enterprises, reinforcing our confidence in long-term growth and value creation. Our updated outlook reflects weaker consumption trends in Brazil in June and July and the continued customer-mix shift toward larger enterprise accounts. It assumes a modest improvement in FX-neutral subscription revenue growth in the fourth quarter, supported by less demanding year-over-year comparisons and an increasing contribution from our growth drivers. For the third quarter of 2026, we are targeting: Subscription revenue to grow at an approximately flat percentage rate on an FX-neutral year-over-year basis; Gross profit to grow at a low-single digit percentage rate on an FX-neutral year-over-year basis; Non-GAAP income from operations to be in the low-twenties percentage margin; and Free cash flow to be in the low-twenties percentage margin. For the full year 2026, we are now targeting: Subscription revenue to grow at a low-single digit percentage rate on an FX-neutral year-over-year basis; Gross profit to grow at a mid-single digit percentage rate on an FX-neutral year-over-year basis; Non-GAAP income from operations to be in the low-twenties percentage margin; and Free cash flow to be in the low-twenties percentage margin. Assuming FX rates remain broadly consistent with July's average rates, the FX-neutral growth guidance outlined above would translate into higher reported USD subscription revenue growth, adding approximately 7.0 percentage points in the third quarter and 8.1 percentage points for the full year 2026. The business outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond VTEX’s control. See the cautionary note regarding "Forward-Looking Statements" below. Fluctuations in VTEX’s operating results may be particularly pronounced in the current economic environment. There can not be an assurance that VTEX will achieve these results. The following table summarizes certain key financial and operating metrics for the six months ended June 30, 2026 and 2025. Conference Call and Webcast The conference call may be accessed by dialing +1-833-461-5787 (Conference ID –210398135–) and requesting inclusion in the call for VTEX. The live conference call can be accessed via audio webcast at the investor relations section of the Company's website, at https://www.investors.vtex.com/. An archive of the webcast will be available for one week following the conclusion of the conference call. Definition of Selected Operational Metrics "Customers" means companies ranging from small and medium-sized businesses to larger enterprises that pay to use VTEX’s platform. "GMV" means the total value of customer orders processed through our platform, including value-added taxes and shipping. Our GMV does not include the value of orders processed by our SMB customers or B2B transactions. "FX Neutral" or "FXN" means a way of using the average monthly exchange rates for each month during the previous year, adjusted by inflation in countries with hyper-inflation, and applying them to the corresponding months of the current year, so as to calculate what results would have been had exchange rates remained stable from one year to the next. "Stores" or "Active Stores" means the number of unique domains generating gross merchandise value. Each customer might have multiple stores. Special Note Regarding non-GAAP financial metrics For investor convenience, this document presents certain non-GAAP financial measures. We regularly assess other metrics that are not in accordance with U.S. generally accepted accounting principles ("GAAP") and are defined as non-GAAP financial measures by the SEC. These measures help us evaluate our business, track performance, prepare financial forecasts, and make strategic decisions. The key metrics we consider include non-GAAP subscription gross profit, non-GAAP income from operations, non-GAAP net income, free cash flow, and FX Neutral measures. These non-GAAP financial measures, which may differ from similarly titled non-GAAP measures used by other companies, provide supplemental insights into our operating performance. They exclude certain gains, losses, and non-cash charges that occur infrequently or that management considers unrelated to our core operations. Reconciliation of non-GAAP measures The following table presents a reconciliation of our non-GAAP subscription gross profit to subscription gross profit for the following periods: The following table presents a reconciliation of our non-GAAP S&M expenses to S&M expenses for the following periods: The following table presents a reconciliation of our non-GAAP R&D expenses to R&D expenses for the following periods: The following table presents a reconciliation of our non-GAAP G&A expenses to G&A expenses for the following periods: The following table presents a reconciliation of our non-GAAP income from operations to income (loss) from operations for the following periods: The following table presents a reconciliation of our non-GAAP net income to our net income provided for the following periods: The following table presents a reconciliation of our free cash flow to net cash provided by operating activities for the following periods: The following table sets forth the FX neutral measures related to our reported results of the operations for the three months ended June 30, 2026: The financial information in this press release has not been audited. Numbers have been calculated using whole amounts rather than rounded amounts. This might cause some figures not to total due to rounding. About VTEX VTEX (NYSE: VTEX) is the AI-native commerce suite designed for CIOs and CEOs, focused on driving operational efficiency. Evolving from software into a connected platform, VTEX unifies a multi-product ecosystem—comprising a Commerce platform (VTEX Commerce Platform), an Ads platform (VTEX Ads Platform), and an AI conversational platform (VTEX CX Platform)—to deliver solutions such as B2C Omnichannel, B2B commerce, agent-assisted customer service, WhatsApp Store, distributed OMS, marketplace enablement, and advertising solutions. This architecture enables brands and retailers to eliminate friction, orchestrate operations, and accelerate profitable growth. Trusted by approximately 2,200 customers—including Carrefour, Colgate, OBI, Stanley Black & Decker, KitchenAid, Whirlpool, and Electrolux—across 44 countries, VTEX brings the best of Brazilian engineering to the global market. For more information, visit www.vtex.com. Forward-looking Statements This announcement contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange of 1934, as amended. Statements contained herein that are not clearly historical in nature, including statements about the VTEX strategies and business plans, are forward-looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "strategy," "project," "target" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may," or similar expressions are generally intended to identify forward-looking statements. VTEX may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission, or the SEC, in press releases and other written materials and in oral statements made by its officers and directors. These forward-looking statements speak only as of the date they are made and are based on the VTEX’s current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond VTEX’s control. A number of factors and risks could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in VTEX filings with the SEC. As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this announcement. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented as there is no guarantee that expected events, trends or results will actually occur. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. This announcement may also contain estimates and other information concerning our industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806207440/en/ Contacts Julia Vater FernándezVP of Investor [email protected]

VTEX (VTEX) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this company that helps retailers build e-commerce businesses would post earnings of $0.03 per share when it actually produced earnings of $0.02, delivering a surprise of -33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. VTEX, which belongs to the Zacks Internet - Software industry, posted revenues of $64.39 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.1%. This compares to year-ago revenues of $58.79 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. VTEX shares have added about 17% since the beginning of the year versus the S&P 500's gain of 12.8%. While VTEX has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for VTEX was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $66.54 million in revenues for the coming quarter and $0.19 on $264.82 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Samsara Inc. (IOT), is yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +41.7%. The consensus EPS estimate for the quarter has been revised 12.9% higher over the last 30 days to the current level. Samsara Inc.'s revenues are expected to be $483.18 million, up 23.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VTEX (VTEX) : Free Stock Analysis Report Samsara Inc. (IOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

VERRA MOBILITY CORP (VRRM) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.15%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.25, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Verra Mobility, which belongs to the Zacks Internet - Software industry, posted revenues of $263.59 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.93%. This compares to year-ago revenues of $236.02 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Verra Mobility shares have lost about 75.1% since the beginning of the year versus the S&P 500's gain of 13%. While Verra Mobility has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Verra Mobility was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $262.03 million in revenues for the coming quarter and $1.21 on $986.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. VTEX (VTEX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company that helps retailers build e-commerce businesses is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VTEX's revenues are expected to be $64.46 million, up 9.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VERRA MOBILITY CORP (VRRM) : Free Stock Analysis Report VTEX (VTEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Compass, Inc. (COMP) came out with quarterly earnings of $0.11 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced earnings of $0.03, delivering a surprise of +117.65%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Compass, which belongs to the Zacks Internet - Software industry, posted revenues of $4.31 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.89%. This compares to year-ago revenues of $2.06 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Compass shares have added about 11.2% since the beginning of the year versus the S&P 500's gain of 11%. While Compass has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Compass was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $3.72 billion in revenues for the coming quarter and $0.22 on $13.9 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, VTEX (VTEX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company that helps retailers build e-commerce businesses is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VTEX's revenues are expected to be $64.46 million, up 9.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Compass, Inc. (COMP) : Free Stock Analysis Report VTEX (VTEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research