Transcript: Vtex Q2 2026 Earnings Conference Call

Vtex (NYSE: VTEX ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

Access the full call at Summary Vtex's revenue fell short of internal expectations due to challenging macroeconomic conditions in Brazil and Argentina, though profitability and cash flow showed strong performance, with non-GAAP operating income growing 62% year-over-year. The company is focusing on four growth drivers: Global Expansion, B2B, Ads, and AI Collective, which grew 20% on an FX-neutral basis and now represent 18% of subscription revenue. Despite a challenging consumption environment, Vtex's strategic initiatives, particularly in AI, B2B, and international markets, are positioned to drive long-term growth.

3% on an FX-neutral basis, with larger accounts performing better than smaller ones. The company maintains a strong competitive position with stable win rates and customer retention, despite longer enterprise decision cycles affecting revenue growth. Vtex continues to invest in its AI-native platform, emphasizing its AI Workspace and CX platform as key differentiators for future growth. Management remains cautious about the macro environment but optimistic about future growth driven by strategic initiatives and disciplined cost management.

Full Transcript Julia Badre Fernandez, VP of Investor Relations Hello everyone and welcome to the Vtex earnings conference call for the quarter ended June 30, 2026. I'm Julia Badre Fernandez, VP of Investor Relations for Vtex. , Founder and co-CEO, and Ricardo Camata Sodre, Chief Financial Officer. Additionally, Mariano Gomida 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 undue reliance on those forward-looking statements. 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 on our Investor Relations website. With that, let's start the call.

Geraldo, the floor is yours. Mariano Gomide de Faria, Founder and co-CEO Thank you, Julia. Good afternoon, everyone, and thanks for joining us on today's call. I want to open differently today: we're far enough into our AI-native transformation to see with real clarity how large the opportunity ahead of us is.

The results are not yet translating to the revenue growth trajectory we're building toward. We know that, but the direction is right, product delivery is advancing well, early customer signals are encouraging, and our financial strength gives 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 weighed 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 four 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 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 solid 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. , we're seeing a clear improvement in the quality of the pipeline.

Activity has expanded across a broader set of industries, 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 the core commerce foundation first, the response to our CX platform during enterprise evaluations has been positive. We are increasingly bundled 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're 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 strengths 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 of how our relationships 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 this 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 prospects 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 market.

The gap we are actively closing is on the tools that give 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 continued building strong momentum during the second quarter.

On the product side, we continued expanding our ad platform with AI-driven campaign creation, automated budget management, improved attribution, and AI-generated creative assets, bringing Vtex's ad platform closer to the capabilities 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 strengthened 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 two 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 trial activations through our trial-led go-to-market strategy. The results have been compelling. Average sales cycles from the solution have declined by more than 50%, from approximately 90 days to roughly 40, while implementation times have been reduced from 30 days to one 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's operational performance continues to improve. Our AI agents are sustaining conversation containment rates above 92% 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's 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 continued winning standalone 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 waitlist, 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 gives 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 Kit Toolkit, which enables AI coding assistants 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 four growth drivers. Importantly, we're seeing encouraging swift adoption momentum. Angeloni and Fast Shop 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 commerce; 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 Camata Sodre (Chief Financial Officer) 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 continues to skew towards larger accounts. Despite that, our profitability and cash flow performance were strong, with margins continuing to expand meaningfully year over year. Despite softer revenue, stronger margins reflect structural progress in cost discipline that we believe is durable even as we work to re-accelerate growth. 8% FX-neutral growth we reported in Q1.

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 mid-sized 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.

8%, an improvement of approximately 2 percentage points year over year. We continue to benefit from structural gains in AI—powered customer support automation and disciplined cost management. 4% in Q2 2025, representing an improvement of 3 percentage points year over year. The continued de-emphasis of lower-margin services as our global partner ecosystem assumes a greater share of complex implementations continues to be a tailwind to our overall gross margin.

0 million, broadly flat sequentially and growing well below revenue year over year, with headcount declining nearly 4% sequentially.