VTEX (VTEX) Q1 2026 earnings summary

Executive summary

• Strategic focus on global expansion, B2B, retail media, and AI, with the launch of the first AI-native commerce suite and new products like VTEX AI Workspace, CX Platform, and Ads Platform, driving measurable business outcomes and operational efficiency.

• Early adoption of AI products by key clients, including Whirlpool and Decathlon, with measurable improvements in efficiency and conversion.

• Operating profit and free cash flow both doubled year-over-year, reflecting disciplined execution and a solid operating model.

• Expanded global opportunity and strengthened leadership in Latin America through AI-driven solutions across Commerce, CX, and Ads.

• New customer wins and expanded relationships in Argentina, Brazil, Canada, Colombia, and Portugal.

Financial highlights

• Q1 2026 GMV reached $5.1 billion, up 17.1% in USD and 6.8% FX neutral year-over-year.

• Subscription revenue was $60.0 million, up 14.0% in USD and 4.2% FX neutral year-over-year, representing 98.8% of total revenue.

• Non-GAAP subscription gross margin expanded to 81.5%, up 240 bps year-over-year; total gross margin reached 80.0%, up 400 bps.

• Non-GAAP income from operations doubled to $10.6 million (17.4% margin); non-GAAP net income was $8.1 million.

• Free cash flow doubled to $13.3 million (21.9% margin).

• $9.7 million spent on share repurchases in Q1 2026.

Outlook and guidance

• Q2 2026: Subscription revenue expected to grow low- to mid-single digits FX neutral year-over-year; gross profit to grow mid-single digits FX neutral; non-GAAP operating and free cash flow margins in high teens to low 20s.

• Full year 2026: Subscription revenue to grow mid-single digits FX neutral; gross profit to grow high single digits FX neutral; non-GAAP operating and free cash flow margins in low 20s.

• FX-neutral growth guidance implies higher reported USD growth, adding ~10.3pp in Q2 and ~8.6pp for FY 2026.