VTEX (VTEX) AI Stock Analysis

• Market Cap: $754.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 111.6
• Beta (1Y): 0.87
• Revenue Growth: 3.62%
• EPS Growth: -20.45%
• Country: US
• Employees: 1,368
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 101,296,490
• 10 Day Avg. Volume: 1,389,023
• 30 Day Avg. Volume: 1,676,868
• PEG Ratio: -0.48
• Price to Book (P/B): 4.26
• Price to Sales (P/S): 4.81
• P/FCF Ratio: 43.27
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 29.71
• 1Y Price Target: $6.10
• Price Target Upside: 46.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): $242.44M

• Rating: 66 Neutral
• Price Target: $4.00 ▼(-3.61% Downside)

VTEX's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in AI-driven efficiency and global expansion. However, the high P/E ratio suggests overvaluation, and technical indicators point to a bearish trend. Challenges in Latin America also pose risks.

Positive Factors

AI-Driven Efficiency Gains

The integration of AI enhances operational efficiency, leading to higher margins and profitability, which supports long-term growth and competitiveness.

Global Expansion

Expanding globally, especially with major brands, strengthens VTEX's market position and diversifies revenue streams, ensuring sustainable growth.

Strong Free Cash Flow

Strong cash flow generation provides VTEX with financial flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Challenges in Argentina

Macroeconomic issues in Argentina may hinder VTEX's growth in the region, affecting overall revenue and expansion plans.

Slower Growth in Latin America

Economic conditions in Latin America could slow VTEX's growth, impacting sales and market penetration in a key region.

Deceleration in GMV Growth

Slowing GMV growth in Brazil may indicate market saturation or increased competition, potentially limiting future revenue expansion.

VTEX Business Overview & Revenue Model

Company Description

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

How the Company Makes Money

VTEX generates revenue through a combination of subscription fees and transaction fees. The company operates a SaaS (Software as a Service) model, where merchants pay a recurring fee for access to its platform, which varies based on usage and service tiers. Additionally, VTEX earns revenue from transaction fees applied to sales processed through its platform. Significant partnerships with major brands and retailers enhance its market presence and contribute to revenue growth. The company's focus on providing integrated solutions that cover the entire e-commerce ecosystem also helps attract new customers and retain existing ones, bolstering its earnings.

VTEX Financial Statement Overview

Summary

VTEX has demonstrated strong financial performance with consistent revenue growth, improved profitability, and efficient cash flow management. The company maintains a low leverage position, enhancing financial stability. While past challenges in profitability have been addressed, continued focus on operational efficiency and cash flow generation will be key to sustaining this positive trajectory.

Income Statement

VTEX has shown a strong improvement in its income statement metrics over the years. The TTM Gross Profit Margin is high at 76.21%, indicating efficient cost management. The Net Profit Margin has turned positive to 7.03% in TTM, reflecting improved profitability. Revenue growth has been consistent, with a notable increase of 1.57% in TTM. EBIT and EBITDA margins have also improved, suggesting better operational efficiency.

Balance Sheet

The balance sheet is stable with a low Debt-to-Equity Ratio of 0.014 in TTM, indicating low leverage and financial risk. The Return on Equity has improved to 6.63% in TTM, showing better returns on shareholders' investments. The Equity Ratio stands at 68.27%, reflecting a strong equity base relative to total assets.

Cash Flow

Cash flow metrics have shown significant improvement. The Free Cash Flow Growth Rate is robust at 118.3% in TTM, indicating strong cash generation. The Operating Cash Flow to Net Income Ratio is 0.40, and the Free Cash Flow to Net Income Ratio is 0.96, both suggesting efficient cash flow management relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	234.09M	226.71M	201.52M	157.62M	125.77M	98.68M
Gross Profit	178.41M	167.29M	140.57M	104.79M	76.18M	63.83M
EBITDA	20.50M	14.40M	-4.99M	-51.09M	-65.12M	6.86M
Net Income	16.47M	12.00M	-13.69M	-52.42M	-60.51M	-914.00K
Balance Sheet
Total Assets	354.39M	366.78M	341.14M	357.67M	414.97M	140.01M
Cash, Cash Equivalents and Short-Term Investments	202.53M	214.81M	209.41M	238.56M	298.20M	76.95M
Total Debt	3.43M	3.31M	4.10M	6.79M	9.27M	12.51M
Total Liabilities	112.43M	110.98M	100.81M	83.00M	87.78M	64.26M
Stockholders Equity	241.91M	255.75M	240.29M	274.66M	327.18M	75.62M
Cash Flow
Free Cash Flow	33.65M	25.19M	3.79M	-29.56M	-54.74M	9.52M
Operating Cash Flow	34.88M	27.26M	4.26M	-29.22M	-52.99M	11.16M
Investing Cash Flow	16.45M	-20.01M	38.42M	-43.38M	-166.78M	-6.10M
Financing Cash Flow	-53.05M	-14.03M	-38.43M	-19.58M	283.68M	24.96M

VTEX Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTEX, the sentiment is Neutral. The current price of 4.15 is above the 20-day moving average (MA) of 4.04, below the 50-day MA of 4.26, and below the 200-day MA of 5.14, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 93.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VTEX.

VTEX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	75 Outperform	$763.86M	70.40	11.58%	―	22.27%	117.93%
VTEX	66 Neutral	$754.52M	111.65	6.53%	―	3.62%	-20.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$592.09M	―	-26.69%	―	13.09%	32.34%
RSKD	51 Neutral	$796.73M	―	-10.54%	―	6.54%	-19.17%
BMBL	51 Neutral	$413.75M	―	-25.34%	―	-7.43%	61.36%
DOMO	50 Neutral	$456.84M	―	―	―	>-0.01%	9.72%

VTEX Corporate Events

VTEX Reports Strong Q3 2025 Results with AI-Driven Growth

On November 6, 2025, VTEX announced its third-quarter financial results, highlighting a 13.1% year-over-year increase in GMV to $5.0 billion and an 8.4% rise in subscription revenue to $58.4 million. The company reported a 41% increase in non-GAAP net income to $10.6 million, reflecting its strategic focus on AI-driven platform enhancements and global expansion. VTEX’s operational highlights include partnerships with major brands like H&M and Itaú Shop, and innovations such as a headless mobile commerce platform for Etihad Arena, showcasing its commitment to scaling AI-powered solutions and expanding its market footprint.

VTEX Reports Q3 2025 Financial Results with Increased Subscription Revenue

VTEX’s financial results for the third quarter of 2025 show a steady increase in subscription revenue, reaching $58.4 million, compared to $53.9 million in the same period last year. The company reported a total revenue of $59.6 million for the quarter, with a gross profit of $46.1 million, indicating a strong operational performance despite a slight decrease in service revenue.