Q2 2026 VTEX Earnings Call Transcript
Key Points
- 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.
Hello everyone and welcome to the VTEX earnings conference call for the quarter ended June 30, 2026. I'm Julia Vadros Fernandez, VP of Investor Relations for VTEX.
Our senior executives presenting today are Geraldo Thomaz Jr., founder and co-CEO and Ricardo Camata-Sodre, Chief Financial Officer. Additionally, Mariano Gomide de Faria, founder and co-CEO and Andres Polidoro, 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 a new reliance on those forward-looking statements.
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