VTEX (VTEX) Q2 2026 earnings summary

Executive summary

• Growth drivers—global expansion, B2B, ads, and AI—grew 20% FX-neutral in Q2, now representing 18% of subscription revenue, outpacing the overall business and reflecting early benefits of AI-native transformation.

• Core B2C commerce business in Brazil and Latin America declined modestly FX-neutral, with stable churn and win rates.

• Maintained a diversified, enterprise-focused customer base with high retention and expansion rates, focusing on larger enterprise customers and product suite diversification.

• Macro headwinds, including high interest rates and weak consumer demand in Brazil and Argentina, pressured near-term growth.

• Product innovation and AI-native transformation are progressing, with early customer adoption and operational improvements.

Financial highlights

• Q2 2026 GMV reached $5.7B, up 18% YoY in USD and 7% FX-neutral.

• Subscription revenue was $63.8M, up 11.4% YoY in USD and 1.3% FX-neutral, accounting for 99.1% of total revenue.

• Non-GAAP subscription gross margin improved to 81.8%, up ~2pp YoY.

• Non-GAAP operating income was $13.8M (21.4% margin), up 62.4% YoY; free cash flow was $12.7M (19.8% margin), up 79.1% YoY.

• Headcount declined nearly 4% sequentially and 14.1% YoY, supporting cost discipline.

Outlook and guidance

• Q3 2026: Targeting flat FX-neutral subscription revenue growth, low single-digit FX-neutral gross profit growth, non-GAAP operating and free cash flow margins in the low 20s.

• Full year 2026: Low single-digit FX-neutral subscription revenue growth, mid-single digit FX-neutral gross profit growth, non-GAAP operating and free cash flow margins in the low 20s.

• FX-neutral growth guidance translates to higher reported USD growth: +7pp in Q3, +8.1pp for FY 2026.