Are current revenue challenges related to competition with marketplaces, and are AI-related discussions delaying client decisions or extending sales cycles?

Mariano Gomide de Faria stated that competition hasn't meaningfully changed, with win rates, churn, and customer engagement remaining stable. He highlighted that commerce is fragmenting, and VTEX's orchestration layer is structurally advantaged. He acknowledged that customers are taking longer to make long-term decisions, but this is not due to competitive issues. “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.”

Could you break down the revenue deceleration between existing clients selling less versus churn/new customers, and what is the outlook for the core business excluding growth drivers?

Ricardo Sodre explained that deceleration is primarily due to two factors in the existing customer base: a faster-than-expected shift towards larger enterprise accounts (lower take rates) and weaker consumption in Brazil (June/July) impacting GMV assumptions for Q3/Q4. He reiterated that churn and win rates are stable, and growth drivers (18% of subscription revenue, growing 20% FX-neutral) continue to outperform, while the non-growth driver portion declined modestly (roughly 2% FX-neutral). “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.”

More color on the new B2B go-to-market strategy and expectations for LatAm B2B, and whether there's higher-than-usual financial distress among small/medium clients in Brazil.

Geraldo do Carmo Thomaz stated that they are not yet seeing Chapter 11/RJ filings but acknowledged the tough environment for Brazilian retailers, with a possibility of it worsening. For B2B, he emphasized the comprehensive platform for complex omnichannel workflows and the focus on AI-powered sales capabilities for field reps, which is a near-term product priority, expecting it to be a meaningful competitive differentiator. “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.”

VTEX

VTEX (VTEX) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 6, 2026

Source: earnings call transcript

Executive summary

VTEX Q2 FY26 — Strong Profitability Amidst Revenue Headwinds and AI Native Transformation

VTEX navigated Q2 FY26 with strong profitability and cash flow, driven by structural cost discipline and AI-powered automation, despite subscription revenue falling short of internal expectations due to macro headwinds in Brazil and a customer mix shift. The company is focused on its AI native transformation and four growth drivers, which continue to outperform the core business, aiming to translate this foundation into sustained revenue acceleration.

Highlights

Non-GAAP operating income grew 62% year-over-year to $13.8 million, with a margin of 21.4%.
Free cash flow grew 79% year-over-year to $12.7 million, representing a 19.8% margin.
Non-GAAP subscription gross margin improved by 2 percentage points year-over-year to 81.8%.
Growth drivers (global expansion, B2B, Ads, AI) grew 20% on an FX-neutral basis and represent 18% of subscription revenue.
Share repurchase program executed, repurchasing 6.2 million shares for $23.2 million at an average price of $3.76 per share.

Concerns

Subscription revenue came in just above the bottom of guidance, growing 1.3% FX-neutral, below internal expectations.
GMV FX-neutral growth was 7%, broadly stable but impacted by a challenging consumption environment in Brazil and Argentina.
Weaker consumption trends in Brazil in June and July led to a revised full-year FX-neutral subscription revenue guidance to low single-digit growth.
The remainder of the subscription revenue (established B2C commerce in Brazil/LatAm) declined modestly in FX-neutral terms.

Guidance & targets

Category	Target	Timeline	Confidence
FX-neutral subscription revenue growth	approximately flat high materiality	Q3 · FY26	Medium
Reported U.S. dollar subscription revenue growth	adding approximately 7.0 percentage points to FX-neutral growth medium materiality	Q3 · FY26	Medium
Non-GAAP operating margin	low 20s high materiality	Q3 · FY26	High
Free cash flow margin	low 20s high materiality	Q3 · FY26	High
FX-neutral subscription revenue growth	low single-digit growth high materiality	Full Year 2026 · FY26	Medium
Reported U.S. dollar subscription revenue growth	adding approximately 8.1 percentage points to FX-neutral growth medium materiality	Full Year 2026 · FY26	Medium
FX-neutral gross profit growth	mid-single-digit growth medium materiality	Full Year 2026 · FY26	Medium
Non-GAAP operating margin	low 20s high materiality	Full Year 2026 · FY26	High
Free cash flow margin	low 20s high materiality	Full Year 2026 · FY26	High

Product announcements

Product	Type	Timeline
VTEX CX platform	expansion	Q2 FY26
AI Workspace	update	since VTEX Day
AI developer key toolkit	launch	—

Deals & partnerships

OBI Renewal of long-term partnership

OBI is VTEX's first customer in Germany and has become an important reference customer, helping establish credibility and opening new commercial opportunities.

EY and Accenture Collaboration with global system integrators

VTEX is increasingly working alongside leading global system integrators to scale its go-to-market strategy, especially for B2B platform expertise.

Magnite Ecosystem partnership for ad platform

Partnership to expand both advertiser demand and available inventory for VTEX's differentiated omnichannel retail media network.

Acron Aviation New enterprise customer

New customer in the U.S. as part of global expansion efforts.

Gigatron New enterprise customer

New customer in Serbia as part of global expansion efforts.

Panasonic Started B2B operations

Expanded existing enterprise relationship to B2B in Brazil.

Grupo Nazan Started B2B operations

Expanded existing enterprise relationship to B2B in Mexico.

Whirlpool Expanded relationship to include Ads Platform

Expanded relationship to include VTEX's Ads Platform, demonstrating suite adoption momentum.

Electrolux Launch in Chile

Demonstrates how existing enterprise relationships convert into B2B growth across geographies.

Angeloni Expanded relationship to include CX platform

Expanded relationship to include VTEX's CX platform, demonstrating suite adoption momentum.

FastShop Expanded relationship to include CX platform

Expanded relationship to include VTEX's CX platform, demonstrating suite adoption momentum.

Olímpica Expanded relationship to include Ads Platform

Expanded relationship to include VTEX's Ads Platform, demonstrating suite adoption momentum.

Ripple Expanded relationship to include Ads Platform

Expanded relationship to include VTEX's Ads Platform, demonstrating suite adoption momentum.

Risks & headwinds

Challenging macroeconomic environment Near-term (Q2 FY26 and beyond)

High interest rates, promotional marketplace in Brazil, softer consumer demand in Argentina, longer enterprise decision cycles.

Mitigation:Focus on AI native transformation, growth drivers, and financial discipline; helping customers decrease expenses and be efficient.

Customer mix shift impacting revenue growth Q2 FY26 and carrying into H2 FY26

GMV growth increasingly concentrated among largest customers (lower take rates), while smaller and midsized customers were more affected by weaker consumption.

Mitigation:Moving upmarket is deliberate and aligned with long-term strategy, focusing on higher lifetime value customers.

Weaker consumption trends in Brazil Q3 FY26 and Q4 FY26

Weakened in June and July, leading to lower GMV assumptions for Q3 and Q4.

Mitigation:Adjusting guidance to reflect these trends; focusing on growth drivers that outperform the consolidated business.

Potential for worsening financial distress for retailers in Brazil Ongoing, potential to worsen

Not yet seeing Chapter 11 or RJ, but acknowledged as a very tough moment for retailers and brand manufacturers.

Mitigation:Helping customers decrease expenses and be efficient; focusing on the durability of the platform and its value generation.

What to watch in Q3 FY26

FX-neutral subscription revenue growth

next quarter

Current 1.3%

Target approximately flat

Why it matters

Key indicator of revenue reacceleration amidst macro headwinds and customer mix shift.

For the third quarter of 2026, we are targeting approximately flat FX-neutral subscription revenue growth

Find out whether VTEX delivers this. Inve re-checks your case every morning.

Q&A highlights

What costs would pressure versus scale if revenue reaccelerates, and how durable are the current margin improvements?

Ricardo Sodre explained that gross margin improvements are durable due to hosting optimizations and AI-powered automation. G&A has scaled significantly (from 20% to 10% of revenue since IPO). R&D investment is increasing for AI transformation but marginally as a percentage of revenue. Sales & Marketing is adjusted based on demand and ROI, with AI also driving efficiencies, indicating potential for continued margin expansion.

“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.”

asked by Marcelo Santos · answered by Ricardo Sodre

2 min read 6 chapters

Detailed narrative

AI Native Transformation and Growth Drivers

VTEX is undergoing an AI native transformation, focusing on four key growth drivers: global expansion, B2B, Ads, and AI. These initiatives collectively grew 20% on an FX-neutral basis in Q2, significantly faster than the overall company, and are becoming an increasingly important part of the growth profile, despite representing a relatively small portion of the business today.

Macroeconomic Headwinds and Customer Mix

The macro environment remained challenging, with high interest rates, a promotional marketplace in Brazil, softer consumer demand in Argentina, and longer enterprise decision cycles impacting near-term growth. The gap between GMV and subscription revenue growth was driven by a customer mix shift towards larger accounts, which carry lower take rates but similar gross margins and lower churn, and a weaker consumption environment affecting smaller and midsized customers.

Global Expansion Strategy

VTEX is seeing improved pipeline quality in the U.S., with activity expanding across industries and large B2B opportunities increasing. The company is evolving its go-to-market strategy by partnering with global system integrators like EY and Accenture and focusing investments in Europe on markets with stronger enterprise demand, leading to wins with large recognizable brands and a "land and expand" motion.

B2B Platform Differentiation

The B2B strategy centers on "channel-agnostic digitalization," allowing diverse B2B buyers to transact through various channels (self-service portal, WhatsApp, sales reps). VTEX aims to enhance its B2B offering by integrating AI-assisted intelligence for field sales reps, providing real-time visibility into client activity and high-probability opportunities, creating a unified AI native stack for the full B2B commercial workflow.

VTEX CX Platform Momentum

The CX platform demonstrated strong product momentum and efficient scaling, with sales cycles reduced by over 50% (from 90 to 40 days) and implementation times from 30 days to 1 week due to native integration. AI agents are achieving high conversation containment rates (above 90%) and problem resolution rates (above 80%), directly influencing GMV through payment recovery, abandoned cart rescue, and cross-selling.

AI Workspace and Ecosystem Adoption

The AI Workspace is expanding with new capabilities across merchandising, content, fulfillment, and commercial analytics, including "my Assistant" for orchestrating multiple AI agents. VTEX has over 100 enterprise customers on the waitlist for AI Workspace, and its AI developer key toolkit is seeing adoption, enabling AI coding assistants to build natively on VTEX, aiming to reduce implementation times and accelerate time to value.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.