VTEX (VTEX) Q4 2025 Earnings Call Transcript

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DATE

Thursday, February 26, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Co-CEO and Founder — Geraldo Thomaz Jr.
• Co-CEO — Mariano Gomide
• Chief Financial Officer — Ricardo Camatta Sodre

TAKEAWAYS

• GMV -- $6.3 billion for the quarter, up 17.2% in U.S. dollars and 10% FX-neutral year over year.
• Full-Year GMV -- $20.5 billion, a 12.1% increase in U.S. dollars and 12.9% FX-neutral.
• Subscription Revenue -- $66.7 million for the quarter, a 12.2% rise in U.S. dollars and 5.4% FX-neutral growth year over year.
• Full-Year Subscription Revenue -- $234.9 million, up 7.9% in U.S. dollars and 9.5% FX-neutral.
• Net Revenue Retention -- 99.5% FX-neutral, with "broadly stable dollar churn" reported.
• Gross Margin -- Subscription gross margin rose from 78.8% to 81.8% for the quarter; total gross margin increased to 79.6% from 75% year over year, supported by AI-powered support automation.
• Operating Profit -- Operating margin for the quarter reached 23.8% (up from 19.9%), with $16.2 million income from operations; excluding $2 million one-off severance costs, margin would have been just under 27%.
• Free Cash Flow -- $11.1 million in the quarter with a 16.3% margin; adjusted margin just over 19% after severance adjustments.
• Share Repurchase -- Initiation of a new $50 million, 12-month program for Class A shares.
• Enterprise Customer Cohort -- 158 customers generating over $250,000 in ARR, with this group growing revenue 13% year over year and 14.5% FX-neutral, but customer count rising only 1.9%.
• Four Growth Levers -- Global expansion, B2B, retail media, and AI together represented about 15% of subscription revenue and delivered ~20% FX-neutral growth, making up almost half of subscription revenue growth.
• Global Markets -- Subscription revenue in global markets rose 22% (and 19.2% FX-neutral); accounted for 11.1% of total revenue; contribution margin approached breakeven.
• Regional Subscription Growth -- Brazil: 12.2% FX-neutral; Latin America ex-Brazil: 2.1% FX-neutral; region excluding Argentina: just below Brazil's pace.
• B2B Pipeline -- Approximately half of new deals in the U.S. and EMEA are now B2B-related, effectively doubling the addressable market within the enterprise segment.
• LTV/CAC -- LTV over CAC reached approximately 4x for new stores, with year-over-year decline attributed to longer sales cycles and timing, not win rates or cohort attractiveness.
• AI-Driven Margin Gains -- “Basically all” of the quarterly subscription gross margin gain attributed to AI, specifically customer support automation, and “this is sustainable going forward.”
• Guidance Q1 2026 -- FX-neutral subscription revenue expected at mid-single-digit % growth; gross profit at high-single-digit % growth; non-GAAP operating margin in mid-teens %; free cash flow margin in high-teens %; reported USD growth expected to be ~8.4 percentage points higher due to FX.
• Guidance Full-Year 2026 -- FX-neutral subscription revenue expected at mid- to high-single-digit % growth; gross profit at high-single-digit to low-teens %; non-GAAP operating margin in low-twenties %; free cash flow margin in low-twenties %; FX adds ~4.5 percentage points to reported USD growth.
• Sales Cycle Extension -- Enterprise decision cycles have lengthened due to macro pressures and uncertainty around AI adoption; "win rates remain stable" and "churn remains in the mid-single digits and is stable."
• Product Portfolio -- VTEX now offers Commerce Platform, Retail Media Platform, and Agentic CX Platform; B2B and omnichannel B2C highlighted as primary growth solutions.
• Retail Media Results -- SCT, a customer, achieved a 39% increase in conversion rate and ROAS above 17x using Vtex Ads.

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RISKS

• Continued softness in Argentina and muted consumer spending in Brazil led to lower same-store sales growth of 6.8% FX-neutral, impacting net revenue retention.
• Sales cycle lengthened market-wide due to "AI “wait and see” effect." and macro uncertainty, resulting in fewer new contracts and bookings in 2025.
• Management acknowledged "recent growth has been below our long-term ambition," attributing this slowdown to cyclical macro headwinds and enterprise decision delays.
• Guidance for Q1 2026 notes that it faces "the toughest year-over-year comparison" and is the company's lowest GMV quarter by seasonality.

SUMMARY

VTEX (NYSE:VTEX) reported that in 2025, GMV grew by 12.1% in U.S. dollars and 12.9% FX-neutral, and subscription revenue grew by 7.9% in U.S. dollars and 9.5% FX-neutral. Management announced a $50 million share repurchase program, reallocated capital from sales and marketing to R&D, and confirmed that quarterly margin gains resulted primarily from AI-driven support automation. Product innovation spans global expansion, B2B commerce, retail media, and an AI-first approach that permeates both platform and operations. Management communicated that elongated enterprise sales cycles are occurring across the industry due to AI-related uncertainty, but VTEX’s win rates and churn have remained stable.

• International revenue growth and increased contribution from high-value enterprise customers highlight ongoing business diversification and geographic expansion.
• Major operating model changes include a December reorganization to streamline management and centralize the global team for better AI leverage.
• Management cited record profitability and two consecutive years achieving the rule of 40, reinforcing balanced growth and margin discipline.
• Explicit guidance ties FX-neutral subscription revenue growth expectations to FX tailwinds, with reported growth likely exceeding guidance if January 2026 rates persist.

INDUSTRY GLOSSARY

• FX-Neutral: Growth metric that excludes currency fluctuations, measuring performance as if exchange rates remained unchanged.
• Rule of 40: A SaaS benchmark where the sum of revenue growth rate and EBITDA or operating margin exceeds 40%.
• GMV (Gross Merchandise Value): Total value of goods sold over a given period via the company's platform, regardless of ownership or fulfillment.
• ARR (Annual Recurring Revenue): The value of the recurring revenue components of subscriptions normalized to a one-year period.
• ROAS (Return on Ad Spend): Ratio measuring revenue earned for every dollar spent on advertising campaigns.
• LTV/CAC: Ratio of Lifetime Value (LTV) of a customer to Customer Acquisition Cost (CAC), used to assess customer profitability.
• Agentic CX Platform: VTEX-branded solution leveraging AI-driven “agentic” (autonomous agent-based) customer support to automate and optimize customer experiences.

Full Conference Call Transcript

Geraldo Thomaz Jr.: Thank you, Julia, and good afternoon, everyone. Thank you for joining us today. Today's call is primarily about giving shareholder transparency into how we are positioning Vtex to strengthen growth over time. Let me start by acknowledging that our recent growth has been below our long-term ambition. We believe that this is largely cyclical, not structural, driven primarily by three external factors: a more challenging macro environment in Brazil and Argentina, a more promotional marketplace environment in Brazil, and longer decision cycles as enterprises reassess priorities in a rapidly evolving AI landscape. More broadly, we recognize the market debate around AI and what it means for software.

Although the combination of rapid AI innovation with limited tangible commerce applications so far may elongate sales cycles, the consistent view from our conversations with enterprise CIOs is that AI will change how software is built and operated, but it will not eliminate the need for deeply integrated enterprise-grade platforms that run mission-critical processes. And while AI lowers the cost of writing code, it raises the bar for security, complex integrations, and reliability—precisely the attributes enterprises rely on Vtex to provide—and consistent with broadly stable dollar churn we delivered in 2025. As value shifts from seat-based to outcome-based, Vtex is certainly aligned with this shift. We are not just building AI features.

We are building the mission-critical backbone for connected commerce that global brands can rely on to deploy AI safely and effectively. We could dive deeper into each of the three external factors mentioned, but as we cannot control the environment, let us focus on what we can control: our execution and product roadmap. Starting on that, we see a clear opportunity to improve growth with a plan anchored in four levers: global expansion, B2B, retail media, and AI. While we execute this growth plan, our enterprise focus remains front and center. In 2025, customers generating over $250,000 in ARR reached 158, with revenue from this cohort up 13% year over year.

And to illustrate the relevance of our plan, in Q4, our four growth levers represented roughly 15% of subscription revenue, delivering approximately 20% FX-neutral growth and contributing to nearly half of subscription revenue growth. The addressable market for these levers is materially larger than our core Latin American opportunity, and we believe we are well positioned competitively, so our focus now is disciplined execution. With that, let me bring our four growth levers to life. First, global expansion. We are winning and scaling in markets where complexity is highest. In 2025, global markets delivered 22% subscription revenue growth.

For instance, in Europe, our partnership with Manchester City reached its first milestone with the Stadium Tour store, offering personalized fan experiences in a single high-performance flow. Second, B2B. We are modernizing large enterprises by delivering complex capabilities that are AI-ready and composable by design, such as contract pricing, curated catalogs, punchouts, and omnichannel fulfillment. Mondelez launched B2B in Brazil on Vtex, extending a multiregional footprint. While we are still early in the mix, B2B demand in the U.S. and Europe signals a durable shift—one we are now driving to digitalize across Latin America as well. Third, retail media. 2025 was a turning point. We moved from pilots to a core growth engine with clear margin-accretive outcomes.

With Vtex Ads, customers run on-site, off-site, and in-store campaigns and measure them end to end through closed-loop attribution anchored in first-party data. The retail media market evolution plays directly to our integrated model. Enterprise retailers monetize traffic they already own, brands gain performance tied to transactions, and both parties see results in a single source of truth. For example, SCT achieved a 39% increase in average conversion rate, an average ROAS above 17x, and consistent month-over-month acceleration in sales driven by retail media performance, demonstrating the power of data-driven campaigns to elevate brand performance in digital retail environments. Finally, AI. Our work here spans two dimensions. First, our product. We are redesigning Vtex with an AI-first approach.

For example, leading Brazilian retailers like Americanas and C&A are using Weni by Vtex to automate high-volume support journeys with deep enterprise integrations, such as order, invoice, and CRM, reducing manual ticketing, speeding resolution, and improving customer satisfaction. Beyond Weni by Vtex, we see AI reshaping how commerce is built, operated, and optimized. We are embedding intelligence across the platform while simultaneously rethinking how we build commerce and run the company. Our multitenant architecture and role as a mission-critical commerce data aggregator give us advantages that point solutions and legacy platforms cannot easily replicate. Second, our own operations. AI is already showing results. Automation in support has expanded gross margins by approximately three percentage points.

And in December, we implemented a reorganization in sales and marketing that impacted almost 100 headcount. This move simplified management layers and centralized our global team for greater agility and efficiency. As we embrace an AI-first operating model, we are aligning our organization to operate with increased speed, consistency, and technical depth. In summary, we chose structured transformation over incremental steps. Despite the challenging environment, disciplined execution and already-identified productivity gains support continued improvement in profitability and enable increased R&D investments that drive our AI transformation and deepen our value with top-tier customers. We are evolving Vtex from a platform that powers commerce into a multiproduct, AI-first platform that increasingly automates and orchestrates.

We will keep executing behind this plan, expanding with existing customers as they scale on Vtex, and adding more enterprises to the mix so these four growth levers translate into sustained compounding growth. With that, and moving to the 2025, we added new enterprise customers, including Atacado Vila Nova, Loft Style, Luz da Lua, and TCL in Brazil; Mirka Central in Colombia; Farmacias y Cruz Azul in Ecuador; Lanta da Vinci and Tifaw in Mexico.

We also saw expansion activity within our existing customer base, such as EssilorLuxottica, which launched two new brands in Brazil—Artika and Elans—adding to its existing portfolio of stores; launched their B2B website in Colombia, adding to its B2C operation running on Vtex; Mondelez launched a B2B operation in Brazil, expanding its Vtex footprint ranging from Latin America to Europe; OBI, who expanded to Italy, adding to its operation in Germany and Austria; and Whirlpool launched KitchenAid in Canada, building on its successful store launch in the U.S., while continuing our global relationship in over 20 countries.

Even in a softer market environment, customers continue to choose Vtex to support strategic initiatives involving new channels, new geographies, and more complex operating models. Now, before I hand over the call to Ricardo, I would like to express my sincere gratitude to our 1,139 Vtex employees, whose dedication and adaptability were critical. I also would like to thank our customers, partners, and investors for their trust and support. Ricardo, over to you.

Ricardo Camatta Sodre: Thank you, Geraldo, and hello, everyone. I will now walk you through our financial performance for the fourth quarter and the full year of 2025. Before going through the details, I would like to frame the year in context. As mentioned by Geraldo, while the external environment pressured our customers’ GMV growth and lengthened enterprise decision cycles, 2025 demonstrated the resilience of our business model and the strength of our unit economics. As evidence, we continued to drive efficiency gains and deliver record profitability even in a slower growth environment. In the quarter, our GMV reached $6,300,000,000, representing a year-over-year growth of 17.2% in U.S. dollars and 10% FX-neutral.

For the full year, GMV reached $20,500,000,000, up 12.1% in U.S. dollars and 12.9% FX-neutral. Subscription revenue reached $66,700,000 in the fourth quarter, representing a growth of 12.2% year over year in U.S. dollars and 5.4% FX-neutral. For the full year, subscription revenue reached $234,900,000, growing 7.9% in U.S. dollars and 9.5% FX-neutral. Turning to revenue retention in 2025, subscription revenue from existing stores reached $194,000,000, and our net revenue retention was 99.5% FX-neutral. Endometrio remained broadly stable year over year. However, given that roughly 60% of our revenue comes from a take rate on our customers’ GMV, the decline in net revenue retention compared to 2024 was primarily driven by lower same-store sales growth of 6.8% FX-neutral in 2025.

These lower same-store sales growth reflected continued softness in Argentina and more muted consumer spending in Brazil, which weakened over the course of the year. A key highlight for the year was the continued improvement in the profitability of our stores. Existing stores’ gross margin increased from 80% in 2024 to 82% in 2025, while operating margin reached 44%, representing a one percentage point increase year over year. This marks the second consecutive year in which this P&L hit the rule of 40, reinforcing our confidence in sustaining a rule of 40 performance as the business scales.

Moving on to subscription revenue addition, in 2025, new stores added $25,000,000 to our base, representing approximately 13% of our 2024 Vtex platform revenue. As discussed in prior quarters, elongated sales cycles throughout the year impacted revenue added from new stores and will carry over some impact in 2026. On the new stores’ P&L, our focus remains on maintaining a healthy return on the capital allocated to sales and marketing. On that front, LTV over CAC reached approximately 4x in 2025. The year-over-year decline in this metric was primarily driven by longer sales cycles and timing, rather than changes in win rates or the underlying attractiveness of the cohort.

In fact, our continued enterprise focus drove our number of customers generating over $250,000 in ARR to reach 158 customers in 2025. While this represents only a 1.9% increase in customer count, it resulted in a 14.5% FX-neutral revenue increase from this cohort. Looking forward, as mentioned by Geraldo, we adjusted our sales and marketing investments, and we are reallocating capital toward R&D investments to enhance key product offerings, such as B2B, retail media, and AI-powered after-sales support. From a geographic perspective, Brazil subscription revenue grew 12.2% FX-neutral, supported by the go-live and ramp-up of new stores despite softer same-store sales. Latin America, excluding Brazil, grew 2.1% FX-neutral, and excluding Argentina, the region grew just slightly below Brazil’s pace.

Subscription revenue from global markets, formerly reported as rest of the world, grew 19.2% FX-neutral, demonstrating continued compounding even as the base expands. Additionally, global markets represented 11.1% of our total revenue. Its contribution margin, defined as gross profit minus directly allocated sales and marketing expenses, improved significantly and approached breakeven. Moving now to the P&L, we maintained strong cost and expense discipline while continuing to prioritize investments aimed at supporting revenue reacceleration. All figures I will now reference are non-GAAP unless otherwise stated. You can find all GAAP to non-GAAP reconciliations on our investor relations website.

Subscription gross profit reached $54,600,000 in the fourth quarter, resulting in 81.8% subscription gross margin, up from 78.8% in the same period of the prior year. Total gross margin increased to 79.6% compared to 75% in 2024, driven largely by AI-powered customer support automation and, to a smaller extent, a higher mix of subscription revenue. Operating expenses totaled $38,000,000 in the fourth quarter, resulting in income from operations of $16,200,000, an operating margin of 23.8%, up from 19.9% in the same period of last year. During the quarter, we executed a reorganization in sales and marketing to simplify layers and centralize global teams to better leverage AI, as well as align investments with expected demand.

These actions resulted in approximately $2,000,000 severance expense above normalized levels. Excluding that one-off impact, operating margin would have been just under 27%. Free cash flow reached $11,100,000 in the quarter, representing a 16.3% margin. Adjusted for one-off severance payments above normalized levels, free cash flow margin would have been just over 19%. Considering this level of cash generation and our current cash position as a percentage of our market cap, we are announcing a new $50,000,000 twelve-month share repurchase program for Class A shares. Looking ahead into 2026, as Geraldo highlighted at the beginning of the call, we remain focused on our four growth levers: global expansion, B2B, retail media, and AI. We are executing with discipline.

The productivity we have unlocked across cost of revenue, sales and marketing, and G&A is expanding profitability while funding higher R&D to accelerate our AI transformation and deepen our value with top-tier customers. While macro headwinds persist, we remain encouraged by the quality of new customer additions, our competitive position among global enterprise customers, and the compelling market opportunity across our four key long-term growth initiatives.

With that, recognizing that Q1 seasonality is our lowest GMV quarter and faces the toughest year-over-year comparison, for Q1 2026, we expect subscription revenue to grow at a mid-single-digit percentage rate on an FX-neutral year-over-year basis; gross profit to grow at a high-single-digit percentage rate on an FX-neutral year-over-year basis; non-GAAP income from operations should be in the mid-teens percentage margin; and free cash flow to be in the high-teens percentage margin.

For the full year 2026, we are targeting subscription revenue to grow at a mid- to high-single-digit percentage rate on an FX-neutral year-over-year basis; gross profit to grow at a high-single-digit to low-teens percentage rate on an FX-neutral year-over-year basis; non-GAAP income from operations should be in the low-twenties percentage margin; and free cash flow to be in the low-twenties percentage margin. Assuming FX rates remain broadly consistent with January 2026 averages, the FX-neutral growth guidance outlined above would translate into higher reported USD subscription revenue growth, adding approximately 8.4 percentage points in the first quarter and 4.5 percentage points for the full year 2026.

Before we open to Q&A, I would like to reiterate we are executing with discipline, investing behind our four growth levers to drive durable growth and shareholder value, and expanding profitability while maintaining a strong balance sheet. With that, let us now pick up for questions. Thank you.

Operator: We will now begin the question-and-answer session. Our first question comes from the line of Laveya Mizravava with J.P. Morgan. Laveya, please go ahead.

Laveya Mizravava: Hi, everyone. Can you hear me? Can you hear?

Ricardo Camatta Sodre: Yes, we can. Hi. Yes, we can hear you.

Laveya Mizravava: Thank you. So hi, everyone. Thank you for the opportunity for asking questions. I would like to explore a little bit the point of the sales cycle. So what I would like to understand is mainly if you see a turning point on this elongated sales cycle. I mean, from your conversations with CTOs and the industry players, what is the feedback that you are having regarding this point? And is there any market intelligence that you could share with us to help us understand when this could normalize and what you think is necessary to happen in the market to change the scenario? Is there something that you see as a turning point?

And the second point that I would like to explore is the gross margin gains in the quarter. Is it all coming from AI? Are there other elements that are helping you to bring this margin level up? Thank you.

Ricardo Camatta Sodre: Laveya, Mariano will take the first question, and I can take the second one. Mariano?

Mariano Gomide: So make no mistake. What we are seeing is not a deterioration, but a clear elongation of sales cycles. 2024 was a record year for bookings. In 2025, we signed fewer new contracts—that is a fact—and RFP processes are taking longer to close. So enterprise customers are simply taking more time to make platform decisions due to macro scenarios and uncertainty of AI’s future. The primary driver is what we call the AI “wait and see” effect. There is an enormous amount of discussion around how AI will reshape software. When companies are making a five- to ten-year infrastructure decision with high switching costs, they want clarity. So decisions are being delayed. Sales cycles are being elongated.

Importantly to mention is that our win rates remain stable, our churn remains in the mid-single digits and is stable, and this is, in my opinion, a market-wide hesitation, not a Vtex-specific issue. In response, we streamlined our sales and marketing organization to operate more efficiently, leveraging all the new AI paradigm and capabilities. The productivity gains are being redirected into R&D, accelerating our AI roadmap and positioning Vtex as an AI-first native platform for commerce enterprises. So yes, momentum is lower and cycles are longer, but fundamentals remain strong.

Ricardo Camatta Sodre: Perfect. Thanks, Mariano. And, Laveya, on the second question on gross margin, as we mentioned in the prepared remarks, we gained roughly three percentage points in subscription gross margin this quarter, from 78.8% to 81.8%, and this is basically all AI-driven. So just to recap, over the past three years we gained a lot of subscription gross margin. Over the first two years in this three-year period, it was mostly driven by hosting optimizations and gains; over the last one year, so during 2025, it was driven on the support function of our existing customers.

And by automating the support using AI tools, we have managed to gain two percentage points in margin, and this is sustainable going forward as well.

Laveya Mizravava: Perfect. Very clear. Thank you.

Operator: And our next question comes from the line of Lucca Brendim with Bank of America. Lucca, please go ahead.

Lucca R. Brendim: Hi, everyone. Thank you for taking my question. I have two on my side here. The first one, if you could comment a little bit on what you think are the main risks and also the main opportunities of AI that you see for the company, both in the short term but also in the long term? And how do you think both sides will pan out in the long run? And also, second, if you could comment a little bit on capital allocation—you guys announced the new buyback program, which is very robust—so how can we think about what Vtex plans to do with the cash generation that will be coming in the next years? Thank you.

Mariano Gomide: So thank you very much, Lucca, for the question. I will—

Geraldo Thomaz Jr.: I will answer that. So first of all, AI is not a feature upgrade. It is a structural shift, comparable to the move to the cloud that we did a decade ago and made us viable as a company. Our role in this transition is very clear: to be the mission-critical orchestration layer of AI-driven commerce. AI is lowering the cost of writing code—everybody is talking about it—but it is raising the bar for security, integration, and reliability. Global enterprises do not buy lines of code. They buy future-driven domain knowledge packaged around security and the line of the business. They need the backbone that propels them for the future, with resilience and security.

As commerce fragments across AI agents, bots, and new interfaces, the front end becomes increasingly commoditized, but every transaction still needs a centralized system of record to validate inventory, manage price, and trigger fulfillment. That orchestration layer, the single source of truth, is where Vtex operates. We have a cloud-native multitenant architecture that gives us access to billions of real-world commerce data points across a lot of verticals. That deterministic data is a strategic asset for training proprietary models, testing, and safety on legacy platforms that they cannot replicate. In our own operations—Ricardo talked about this already—we have seen a lot of tangible impact.

So I would say, Lucca, that the risk for us and for any other software company is that we do not embrace and adopt the technological revolution. But if we do, a software company that goes toward this technological shift will be stronger, not weaker. And we are working very hard to get there, with the strength that we already got from a lot of years from now, which is the credibility to secure the customer base and the proprietary data. I think there is a lot of room for us to use and leverage this revolution.

Ricardo Camatta Sodre: Perfect. And on the capital allocation, Lucca—so capital allocation is guided by a simple principle: we prioritize long-term value creation while maintaining the flexibility to navigate the dynamic macro environment. We are operating from a position of significant financial strength. As of year-end 2025, we held roughly $200,000,000 in cash. So this robust position, combined with our consistent free cash flow generation, allowed us to announce a new $50,000,000 twelve-month share repurchase program that you just mentioned. We view buybacks as a disciplined tool to optimize our capital structure and, importantly, to mitigate dilution from our share-based compensation program.

While organic growth remains our primary focus—and we talked a lot in the prepared remarks about how we plan to reaccelerate organic growth, and we are investing more in R&D to boost our AI transformation and strengthen our main key growth pillars—we are also strategically active in the M&A market. More recently, our approach has been about acquiring capabilities that accelerate our product roadmap to enhance the platform differentiation. So you have seen this recently with the Weni acquisition, which has strengthened our agentic CX product, and Newtail, which accelerated our retail media capabilities. So our capital allocation remains anchored in discipline, ROI, and a long-term view for the shareholders.

Lucca R. Brendim: Very clear. Thank you for the answers.

Operator: And your next question comes from the line of Rafael Oliveira with UBS. Rafael, please go ahead.

Rafael Oliveira: Hi, everyone. Thanks for taking my questions. I have two questions here on my side. So first, I want to start by asking what are the main drivers that could drive revenue growth back to double digits in the next few years. If you could disclose any regional breakdown on the current macro backdrop, that would be very helpful. And the second question would be, how is the B2B pipeline evolving, both in terms of size and quality? And, again, any color on the global expansion of B2B will be very helpful. Thank you.

Geraldo Thomaz Jr.: Good. I will get that. So to address the path forward, we know—as I said in the first prepared remarks—we are not satisfied, and we think that we have a lot more bandwidth to deal with more complex problems, to reaccelerate the company, and to initiate other initiatives that will make the company accelerate and go back to the growth we are used to. So first of all, we need to distinguish between what is cyclical and what is structural. While our 2025 subscription revenue growth of 5.4% FX-neutral was a cyclical slowdown, mostly driven by macro softness in Brazil and Argentina and also an unusually promotional marketplace environment, our structural foundations have never been stronger, in my opinion.

We have deliberately evolved Vtex into a multiproduct, AI-driven commerce platform, and we are now seeing double-digit growth momentum across four levers that will power our next phase, and I will try to give some picture on these four levers. So first of all is global expansion. Our markets in the U.S. and Europe delivered 22% subscription revenue growth in 2025. These operations are now approaching breakeven contribution margins and are becoming largely self-funded. Second, capital is B2B commerce. This is a natural extension of our platform that effectively doubles our addressable market, in our opinion.

Roughly half of our new deals in the U.S. and EMEA are now B2B-related, as enterprises migrate from outdated, twenty-year-old legacy systems to a modern architecture. Third one is retail media. We moved from a pilot to a core engine this year, by enabling retailers to monetize their digital traffic, capturing ad revenue that represents 3% to 8% of GMV for marketplaces. We are creating a high-margin, attractive revenue stream for our customers and for Vtex. The fourth one—and with the AI-first approach—AI is already delivering measurable outcomes, such as the three percentage point expansion on the gross margin that we talked about.

But we also reinvest these productivity gains back into R&D to lead the transition to our AI workspace, envisioning products that can be transformational to our customers. For the full year of 2026, as comps ease throughout the year, we anticipate a trajectory of gradual acceleration, with the expectation that we will exit the year at a faster pace than we entered. While we recognize there are external factors that we do not control, such as the interest rate cycles, the consumption cadence, and the broader market volatility, we believe we have the right tools to help our customers reaccelerate their same-store sales and reinvigorate our own sales funnel.

So we are staying the course, executing with discipline, and positioning Vtex as the backbone for the next era of connected commerce—all of that while delivering record profitability, as you noticed.

Mariano Gomide: Okay. About the B2B—if I am not answering correctly, please repeat the B2B if I misunderstand—but just an overall perspective on B2B: Vtex is a company that has three products and multiple solutions. The products are Commerce Platform, Retail Media Platform, and Agentic CX Platform, and we do support with those three products multiple solutions: omnichannel B2C, B2B commerce, advertising, retail media for advertisers, and retail media for publishers. About B2B, we are seeing that B2B is getting traction—something that we call an acceleration phase—in deployments and pipeline generation. Our Commerce Platform product delivers multiple solutions, specializing in B2B and showing great momentum.

So, in fact, something that we can share is that roughly half of our deals in the U.S. and EMEA are now B2B-related. So that effectively doubles our addressable market within the enterprise tier. If I did not answer what you wanted about B2B, please let me know.

Rafael Oliveira: No, it was super clear. I was just asking about how the pipeline is evolving, but thanks for the color. If I may do just a follow-up here on the AI theme. How are you guys seeing the development of these new AI tools from the large tech or LLM providers? Are you guys seeing some competitive pressure? And if you could comment about agentic commerce and how this should be maybe beneficial for the D2C platforms?

Geraldo Thomaz Jr.: You know, I think every one of us is very impressed with the velocity of this revolution and eventually are getting to conclusions that are maybe faster than we should. I do not—I see that you have these AI companies. They are very powerful. They are doing a lot of nice work and a lot of aggregated value, but they are also enabling companies like us to deliver even better software. Just like the cloud revolution, they are enabling us to build much better software.

And if we embrace the technology, if we embrace the APIs that they provide to us, I believe that companies like us can provide to retailers and brands and manufacturers a better solution than they could do alone. Why? Because these are high-risk workflows. These are problems that are difficult to articulate. These are problems that require more than just building software. This requires credibility—as I said—security, compliance, trust, and I believe we are better positioned as a domain application to provide the solution to our customers than the generic ones. This was always true. We always believed that.

In every revolution—when open source code arrived—we believed that when everybody thought open source code would dominate the world, and we are here selling software, selling subscription. When the cloud revolution came, everybody thought that people would internalize their software because now it is so easy to deploy a server, and the software industry—and Vtex is much bigger because of the cloud revolution, not despite of that. And now I believe that the AI revolution will give us even more strength to deliver even more value to our customers.

Mariano Gomide: And just adding up on Geraldo’s comments here, if the question on other LLMs was about the kind of monopoly on traffic control that can generate, the way we see the world of traffic used to be controlled by Meta, Google, and a few marketplaces. And now, with new entrants like Chinese brands becoming huge traffic controllers, OpenAI with the LLM cracking the code becomes a huge aggregator. Actually, we are seeing more fragmentation in the traffic industry. So when the traffic layer fragments, the backbone for a multichannel operation increases in value. WhatsApp in LatAm, for example, is a huge traffic originator. So the world is evolving by creating more channels and not more consolidation of channels.

This, we see as a foundation for strengthening the positioning of anyone in the backbone for the commerce market—as we are. We talk about that in our founders’ letter in this earnings annual report.

Geraldo Thomaz Jr.: I think it is worth it to take a look at our perspective on how this revolution affects us and the market in general.

Rafael Oliveira: Yeah. This is a good call. Thank you so much. I will take a look at that. Thanks.

Operator: And our final question comes from the line of Mehdi Shroyga with KeyBanc Capital Markets. Mehdi, please go ahead.

Mehdi Shroyga: Hey, guys. Thanks for taking the question. Obviously, you called out some macro headwinds but also were emphasizing global expansion as a key growth lever. So how are you thinking about the pace and prioritization of geographic investments? And then, in particular, as you move faster internationally, what do you think is the biggest factor in terms of gaining traction? Is it brand awareness, maybe partnerships, or product localization? Is there something we should call out?

Ricardo Camatta Sodre: Perfect.

Mariano Gomide: I can give some color, and Geraldo can give as well. We cannot avoid understanding that a company that will leverage the most of the AI revolution is the company that can group competencies under org charts. So recently—precisely in December—we changed a lot of our regional approaches. By having the same competencies of people below different managers in many regions in the world, countries, and regions, we understood that we need to bring more specialization, like a function-oriented org chart. So we announced a big reorg on the growth structure where now the majority of the sales and marketing organization is oriented by functions. And with that, we can leverage the most of the AI agentic revolution.

The agents are unified by knowledge. What we are seeing—Vtex reached the level of brand by being recognized by Gartner for two consecutive years as the Customers’ Choice in the Gartner Voice. The brand of Vtex now was able to produce clients in all the regions. And now, with the global, function-oriented org chart, we can deliver through our ecosystem services and solutions among any kind of regional definition. We believe the companies that will crack the code on really using AI in favor of operational gains will be the ones with a global readiness by joining a human-plus-agents labor. And so the regional approach lost importance for us.

This does not mean that the regional localization is less—it is quite the opposite. We reduced our solution architect layer of FTEs, increasing the trust we have in our ecosystem. That is the sign of the maturity of our ecosystem in the world.

Geraldo Thomaz Jr.: We are delivering global projects in Abu Dhabi, in Asia, in EMEA, in Africa, in North America, in LatAm. And now we are doing this through the ecosystem. That is a transition coming from the last five years. So we are not seeing anymore the go-to-market of Vtex heavily or kind of exclusively based on regions. Now we are defining our scope to the world as three products—Commerce Platform, Retail Media Platform, and Agentic CX Platform—with multiple solutions. The two of the biggest solutions are B2B commerce and omnichannel B2C.

Mehdi Shroyga: Super helpful. And if I could just ask one follow-up. In your conversations with CIOs and digital leaders, how often are you talking about discoverability in the age of agentic commerce and conversion?

Mariano Gomide: The AI agentic topic is a top-notch topic in any RFP today, right? What Vtex is really focused on is delivering the value aggregation of the disruption in technology. To talk about the technology itself does not aggregate outcomes to our customers. But with the Agentic CX Platform of Vtex, we have already deployed clients that have saved 80% in the customer service costs. This is AI for us. AI is a means to deliver the outcomes that our clients need. And our clients all over the world trust us to future-proof them in terms of AI. So the AI bet of Vtex is pretty big. It is across all our products and solutions.

But the one that I would say is delivering the most results is our solution of agentic customer service based on our Agentic CX Platform product.

Mehdi Shroyga: Very helpful. Thank you very much.

Operator: There are no further questions at this time. I will now turn the call back over to Geraldo Thomaz Jr. for closing remarks. Geraldo?

Geraldo Thomaz Jr.: Before we conclude, I want to step back once more and reflect on where Vtex stands today. 2025 tested the market, our customers, and our industry, but it also reaffirmed the strength of our foundation. We navigated a challenging environment to deliver record profitability while deepening our relevance with enterprise customers. Crucially, we did this while increasing our investment in R&D to accelerate our AI transformation. As we look ahead, our focus is on execution. As discussed, we remain focused on our four growth levers: global expansion, B2B, retail media, and AI. We believe Vtex is structurally aligned with where enterprise commerce is going, and that alignment positions us to improve growth over time as these initiatives scale.

Finally, I want to thank our employees, customers, partners, and investors for their continued trust. Vtex has been built over decades by navigating moments of transition just like this. Our history shows that our willingness to adapt early and invest with discipline creates durable value over time. We enter the next chapter with clarity, resiliency, and confidence in our ability to deliver long-term growth and profitability. Thank you for joining us today, and we look forward to updating you on our progress in the quarters ahead.

Operator: That concludes today’s call. You may now disconnect.

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