VTEX (VTEX) Q4 2025 earnings summary

Executive summary

• 2025 growth was below long-term ambition due to macro headwinds in Brazil and Argentina, a more promotional marketplace, and elongated enterprise sales cycles amid AI-driven uncertainty.

• Achieved record profitability in 2025, driven by disciplined execution and a strategic shift to a multi-product, AI-driven commerce platform.

• Focus remains on disciplined execution of four growth levers: global expansion, B2B, retail media, and AI, which together contributed nearly half of subscription revenue growth in Q4.

• Expanded customer base, especially among those with ARR above $250k, validating the enterprise strategy.

• Major organizational restructuring in December centralized global teams and simplified management, enhancing agility and efficiency.

Financial highlights

• FY 2025 total revenue grew 6.1% YoY in USD to $240.5M, with $234.9M from subscriptions and $5.6M from services; Q4 2025 GMV reached $6.3B, up 17.2% YoY in USD.

• Q4 subscription revenue was $66.7M, up 12.2% YoY in USD; full-year subscription revenue was $234.9M, up 7.9% in USD and 9.5% FX-neutral.

• Subscription gross margin rose to 81.8% in Q4 from 78.8% YoY; FY 2025 non-GAAP subscription gross margin was 80.3%.

• Non-GAAP income from operations was $39.4M for FY 2025 (16.4% margin), up from $29.0M YoY; Q4 non-GAAP income from operations was $16.2M (23.8% margin).

• Free cash flow for FY 2025 was $32.3M, with Q4 at $11.1M (16.3% margin); ended 2025 with $15.7M in cash and cash equivalents.

Outlook and guidance

• Q1 2026: Subscription revenue expected to grow at mid-single digit % FX-neutral YoY; gross profit at high single digit %; non-GAAP operating margin in mid-teens %; free cash flow in high teens %.

• Full-year 2026: Subscription revenue to grow at mid to high single digit % FX-neutral; gross profit at high single to low-teens %; non-GAAP operating and free cash flow margins in low twenties %.

• FX-neutral growth guidance implies higher reported USD growth due to currency effects.