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VTEX
(NYSE:VTEX)
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Rating:75Outperform
Price Target:
$4.50
▲(6.89% Upside)
Action:Reiterated
Date:06/27/26
VTEX scores well on financial performance, driven by a clear profitability and cash-flow turnaround alongside an exceptionally low-leverage balance sheet. The earnings call supports the quality of margin expansion and free cash flow, but also flags near-term growth moderation and sales-cycle elongation. Technically, the stock is trading above key moving averages with moderately positive momentum, while valuation (P/E ~30.8) looks less forgiving given the guided mid-single-digit growth pace.
Positive Factors
Margin Expansion & Profitability
Sustained margin expansion reflects improved unit economics from a subscription-heavy SaaS model and tighter cost control. Higher gross and operating margins enhance cash generation and allow reinvestment in R&D or marketing while providing a durable buffer against revenue volatility.
Negative Factors
Slowing Revenue Growth
A marked slowdown in top-line growth reduces the runway for operating leverage and limits the ability to scale fixed-cost investments. If sub‑5% organic growth persists, faster margin improvement may be necessary to sustain returns, and re-acceleration depends on successful product monetization or market expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Sustained margin expansion reflects improved unit economics from a subscription-heavy SaaS model and tighter cost control. Higher gross and operating margins enhance cash generation and allow reinvestment in R&D or marketing while providing a durable buffer against revenue volatility.
Read all positive factors
VTEX (VTEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$705.81M
Dividend YieldN/A
Average Volume (3M)1.46M
Price to Earnings (P/E)31.6
Beta (1Y)0.79
Revenue Growth8.25%
EPS Growth-99.84%
CountryUS
Employees1,368
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.13
Shares Outstanding90,129,390
10 Day Avg. Volume1,212,382
30 Day Avg. Volume1,455,209
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)2.98
Price to Sales (P/S)2.90
P/FCF Ratio21.55
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit3.21
Enterprise Value/Ebitda21.70
Forecast
1Y Price Target
$5.05Price Target Upside19.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.19
Revenue Forecast (FY)$269.34M
VTEX Business Overview & Revenue Model
Company Description
VTEX delivers a cloud-based digital commerce platform specifically designed for major brands and retailers. This robust solution empowers its clients to achieve their e-commerce goals, enabling them to construct online storefronts, manage and inte...
How the Company Makes Money
VTEX primarily makes money by charging customers recurring fees for access to and use of its cloud commerce platform (subscription/SaaS revenue). Pricing is typically tied to contracted terms and the scale of a customer’s commerce operations (e.g....
VTEX Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call balanced strong operational and financial improvements—particularly margin expansion, doubling of operating income and free cash flow, and meaningful AI product launches—with clear near-term growth headwinds concentrated in Brazil, elongating sales cycles, and early-stage AI monetization. Management emphasized disciplined execution, profitability focus, and confidence in long-term structural opportunities (AI, B2B, global expansion and ads), while lowering near-term revenue guidance to reflect current macro and market conditions.Positive Updates
GMV and Subscription Revenue Growth
Gross Merchandise Volume (GMV) reached $5.1 billion, up 17% in U.S. dollars and 7% FX-neutral. Subscription revenue was $60.0 million versus $52.6 million in Q1 2025, an increase of 14% in U.S. dollars and 4% FX-neutral.
Negative Updates
Near-Term Growth Moderation and Guidance Reduction
Company lowered near-term growth outlook: Q2 subscription revenue growth guided to low- to mid-single-digit FX-neutral and full-year subscription revenue to mid-single-digit FX-neutral, reflecting weaker top-line momentum versus prior ambitions.
Read all updates
Q1-2026 Updates
Positive
Negative
GMV and Subscription Revenue Growth
Gross Merchandise Volume (GMV) reached $5.1 billion, up 17% in U.S. dollars and 7% FX-neutral. Subscription revenue was $60.0 million versus $52.6 million in Q1 2025, an increase of 14% in U.S. dollars and 4% FX-neutral.
Read all positive updates
Company Guidance
Vtex guided Q2 2026 subscription revenue to grow low‑ to mid‑single‑digit percent on an FX‑neutral basis, gross profit to grow mid‑single‑digit FX‑neutral, non‑GAAP income from operations margin to be in the high‑teens to low‑20s, and free cash flow margin to be in the high‑teens to low‑20s; for full‑year 2026 it now expects subscription revenue to grow mid‑single‑digits FX‑neutral, gross profit to grow high‑single‑digits FX‑neutral, and both non‑GAAP operating margin and free cash flow margin to be in the low‑20s. These targets follow Q1 results of GMV $5.1B (+17% USD, +7% FX‑neutral), subscription revenue $60M (+14% USD, +4% FX‑neutral), non‑GAAP subscription gross margin 81.5% (+240 bps YoY), total gross margin 80% (+400 bps YoY), non‑GAAP income from operations $10.6M (17.4% margin, doubled YoY), non‑GAAP net income $8.1M (+51% YoY), and free cash flow $13.3M (21.9% margin, doubled YoY); management noted that, assuming April FX, the FX‑neutral guidance would add ~10.3 percentage points to Q2 reported USD subscription growth and ~8.6 points to the full year.VTEX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 247.05M | 240.52M | 226.71M | 201.52M | 157.62M | 125.77M |
| Gross Profit | 193.21M | 186.34M | 167.29M | 140.57M | 104.79M | 76.18M |
| EBITDA | 28.54M | 25.75M | 14.40M | -4.99M | -51.09M | -65.12M |
| Net Income | 23.21M | 20.01M | 12.00M | -13.69M | -52.42M | -60.51M |
Balance Sheet | ||||||
| Total Assets | 340.32M | 346.63M | 366.78M | 341.14M | 357.67M | 414.97M |
| Cash, Cash Equivalents and Short-Term Investments | 193.71M | 192.10M | 214.81M | 209.41M | 238.56M | 298.20M |
| Total Debt | 2.46M | 2.88M | 3.31M | 4.10M | 6.79M | 9.27M |
| Total Liabilities | 107.29M | 113.07M | 110.98M | 100.81M | 83.00M | 87.78M |
| Stockholders Equity | 232.96M | 233.50M | 255.75M | 240.29M | 274.66M | 327.18M |
Cash Flow | ||||||
| Free Cash Flow | 38.97M | 32.33M | 25.19M | 3.79M | -29.56M | -54.74M |
| Operating Cash Flow | 40.03M | 33.37M | 27.26M | 4.26M | -29.22M | -52.99M |
| Investing Cash Flow | 11.05M | 24.80M | -20.01M | 38.42M | -43.38M | -166.78M |
| Financing Cash Flow | -55.92M | -61.59M | -14.03M | -38.43M | -19.58M | 283.68M |
VTEX Technical Analysis
Positive
4.21
Price Trends
3.75
Positive
3.73
Positive
3.85
Positive
Market Momentum
0.10
Negative
62.05
Neutral
77.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTEX, the sentiment is Positive. The current price of 4.21 is above the 20-day moving average (MA) of 3.73, above the 50-day MA of 3.75, and above the 200-day MA of 3.85, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTEX.
VTEX Risk Analysis
VTEX disclosed 1 risk factors in its most recent earnings report. VTEX reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VTEX Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $924.42M | 65.52 | 13.98% | ― | 18.07% | 60.39% | |
75 Outperform | $705.81M | 31.58 | 9.69% | ― | 8.25% | -99.84% | |
69 Neutral | $485.65M | -12.24 | -19.29% | ― | 12.27% | 37.41% | |
69 Neutral | $686.41M | -44.57 | -5.93% | ― | 5.10% | 48.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $427.81M | -0.51 | -110.37% | ― | -11.42% | -20.07% | |
46 Neutral | $159.83M | -2.66 | 29.35% | ― | 0.35% | 29.79% |
* Technology Sector Average
VTEX
VTEX
4.14
-2.36
-36.31%
RDVT
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65.52
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DOMO
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3.54
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SPT
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8.08
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BMBL
Bumble
3.28
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RSKD
Riskified
5.13
-0.02
-0.39%
VTEX Corporate Events
VTEX Shareholders Overwhelmingly Approve 2025 Accounts and PwC Reappointment at 2026 AGM
May 26, 2026
VTEX, the AI-native commerce platform that underpins connected commerce for global brands and retailers, held its 2026 Annual General Meeting of Shareholders on May 26, 2026, with 96.82% of the company’s voting power represented across its d...
VTEX Doubles Q1 2026 Operating Profit as AI-Native Commerce Strategy Gains Traction
May 7, 2026
On May 7, 2026, VTEX reported first-quarter 2026 results showing solid top-line growth and sharply higher profitability, with subscription revenue up 14.0% year over year to $60.0 million and gross merchandise value rising 17.1% to $5.1 billion. N...
VTEX Swings to Profit as Subscription Revenue Grows in Q1 2026
May 7, 2026
For the quarter ended March 31, 2026, VTEX reported total revenue of $60.7 million, up from $54.2 million a year earlier, driven by an increase in subscription revenue to $60.0 million while services revenue declined. Gross profit rose to $48.5 mi...
VTEX Sets May 26, 2026 Annual Meeting to Approve 2025 Accounts and 2026 Auditor
Apr 24, 2026
VTEX has called its 2026 annual general meeting of shareholders for May 26, 2026, in Grand Cayman, setting April 13, 2026 as the record date for holders of its Class A and Class B common shares. Shareholders will be asked to ratify the companyR...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.