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VTEX
(NYSE:VTEX)
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Rating:71Outperform
Price Target:
$4.00
▲(11.11% Upside)
Action:Reiterated
Date:08/10/26
VTEX scores well primarily due to a materially improved financial profile—strong margins, solid free cash flow generation, and very low leverage. The score is held back by a mixed near-term growth outlook from the latest earnings call (flat-to-low growth guidance and macro/mix pressures), plus only neutral technical momentum and a valuation (P/E ~23.9) that offers limited cushion without re-acceleration in growth.
Positive Factors
High-margin profitability and cash generation
VTEX’s SaaS model is producing high gross margins, improving operating leverage and strong free cash flow conversion. This combination supports reinvestment in product development and sales while providing financial capacity to manage volatility and sustain profitability over the next several quarters.
Negative Factors
Subdued subscription growth outlook
The revised outlook indicates that recent profitability gains are not yet accompanied by sustained underlying revenue acceleration. Low growth can limit operating leverage upside, reduce the pace of customer and product expansion, and leave results more exposed to macroeconomic conditions and execution against newer initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin profitability and cash generation
VTEX’s SaaS model is producing high gross margins, improving operating leverage and strong free cash flow conversion. This combination supports reinvestment in product development and sales while providing financial capacity to manage volatility and sustain profitability over the next several quarters.
Read all positive factors
VTEX (VTEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$667.66M
Dividend YieldN/A
Average Volume (3M)686.94K
Price to Earnings (P/E)23.1
Beta (1Y)0.66
Revenue Growth9.62%
EPS Growth140.62%
CountryUS
Employees1,139
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.17
Shares Outstanding90,129,390
10 Day Avg. Volume691,162
30 Day Avg. Volume686,941
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 Cap0.77
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit2.58
Enterprise Value/Ebitda14.94
Forecast
1Y Price Target
$4.43Price Target Upside23.15% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.21
Revenue Forecast (FY)$263.20M
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 subscription fees for access to its cloud commerce platform (SaaS). These recurring fees are generally tied to the customer’s contracted plan and may scale with factors such as the custome...
VTEX Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational execution and financial discipline drove significant margin expansion, free cash flow growth, product traction (notably VTEX CX and AI initiatives) and accelerating international and B2B momentum. However, near-term revenue growth was constrained by macro softness in Brazil/Argentina, a rapid shift in customer mix toward larger accounts with lower take rates, and longer enterprise sales cycles. Growth drivers are encouraging but not yet large enough to offset softness in the core B2C portfolio, and AI Workspace is not yet monetized.Positive Updates
Strong GMV Growth
GMV reached $5.7 billion in Q2 2026, up 18% year-over-year in U.S. dollars and 7% on an FX-neutral basis, broadly stable versus Q1 FX-neutral growth.
Negative Updates
Revenue Below Internal Expectations and Guidance Pressure
Subscription revenue came in just above the bottom of guidance and below internal expectations; management revised full-year FX-neutral subscription revenue guidance to low single-digit growth and Q3 FX-neutral guidance to approximately flat.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong GMV Growth
GMV reached $5.7 billion in Q2 2026, up 18% year-over-year in U.S. dollars and 7% on an FX-neutral basis, broadly stable versus Q1 FX-neutral growth.
Read all positive updates
Company Guidance
Management guided Q3 2026 to approximately flat FX‑neutral subscription revenue growth, low‑single‑digit FX‑neutral gross profit growth and non‑GAAP operating and free cash flow margins in the low‑20s, and for full‑year 2026 now targets low‑single‑digit FX‑neutral subscription revenue growth, mid‑single‑digit FX‑neutral gross profit growth and non‑GAAP operating and free cash flow margins in the low‑20s (assuming July FX rates this adds ~7.0 percentage points to Q3 reported USD revenue growth and ~8.1 points for the full year); this outlook reflects that Q2 subscription revenue came in just above the bottom of guidance and follows Q2 results of GMV $5.7B (+18% YoY USD, +7% FX‑neutral), subscription revenue $63.8M (+11% USD, +1.3% FX‑neutral), non‑GAAP subscription gross margin 81.8% (≈+2pp YoY), total non‑GAAP gross margin 80.4% (+300bps YoY), non‑GAAP operating income $13.8M (+62% YoY) at a 21.4% margin, free cash flow $12.7M (+79% YoY) at a 19.8% margin, total non‑GAAP operating expenses $38.0M with headcount down ~4% sequentially, and the company highlighting that its four growth drivers (global expansion, B2B, Ads and AI) now represent ~18% of subscription revenue and grew ~20% FX‑neutral.VTEX Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 252.65M | 240.52M | 226.71M | 201.52M | 157.62M | 125.77M |
| Gross Profit | 199.64M | 186.34M | 167.29M | 140.57M | 104.79M | 76.18M |
| EBITDA | 34.44M | 25.75M | 14.40M | -4.99M | -51.09M | -65.12M |
| Net Income | 30.26M | 20.01M | 12.00M | -13.69M | -52.42M | -60.51M |
Balance Sheet | ||||||
| Total Assets | 340.46M | 346.63M | 366.78M | 341.14M | 357.67M | 414.97M |
| Cash, Cash Equivalents and Short-Term Investments | 185.96M | 192.10M | 214.81M | 209.41M | 238.56M | 298.20M |
| Total Debt | 7.09M | 2.88M | 3.31M | 4.10M | 6.79M | 9.27M |
| Total Liabilities | 116.51M | 113.07M | 110.98M | 100.81M | 83.00M | 87.78M |
| Stockholders Equity | 223.88M | 233.50M | 255.75M | 240.29M | 274.66M | 327.18M |
Cash Flow | ||||||
| Free Cash Flow | 45.11M | 32.33M | 25.19M | 3.79M | -29.56M | -54.74M |
| Operating Cash Flow | 46.20M | 33.37M | 27.26M | 4.26M | -29.22M | -52.99M |
| Investing Cash Flow | 22.83M | 24.80M | -20.01M | 38.42M | -43.38M | -166.78M |
| Financing Cash Flow | -74.87M | -61.59M | -14.03M | -38.43M | -19.58M | 283.68M |
VTEX Technical Analysis
Positive
3.60
Price Trends
3.75
Positive
3.81
Positive
3.73
Positive
Market Momentum
0.05
Negative
70.67
Negative
92.12
Negative
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 3.6 is below the 20-day moving average (MA) of 3.69, below the 50-day MA of 3.75, and below the 200-day MA of 3.73, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 70.67 is Negative, neither overbought nor oversold. The STOCH value of 92.12 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $667.66M | 23.12 | 12.98% | ― | 9.62% | 140.62% | |
71 Outperform | $1.13B | -79.42 | -5.70% | ― | 9.63% | 55.51% | |
64 Neutral | $792.78M | -36.04 | -94.75% | ― | 10.16% | 28.29% | |
64 Neutral | $1.28B | 57.68 | 4.29% | ― | 6.35% | -79.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $288.35M | -50.36 | -12.79% | ― | 2.77% | 68.74% | |
48 Neutral | $796.22M | -3.98 | -56.40% | ― | ― | ― |
* Technology Sector Average
VTEX
VTEX
3.97
-0.25
-5.92%
CMRC
Commerce.com
3.48
-1.08
-23.68%
SMWB
Similarweb
9.05
0.50
5.85%
CXM
Sprinklr
5.52
-2.00
-26.60%
RSKD
Riskified
8.53
3.89
83.84%
RZLV
Rezolve AI
1.91
-3.55
-65.02%
VTEX Corporate Events
VTEX Posts Strong Q2 2026 Profit and Cash Gains Amid AI-Led Commerce Push
Aug 6, 2026
VTEX reported second-quarter 2026 results on August 6, 2026, showing solid operating leverage despite currency headwinds, as subscription revenue rose 11.4% in U.S. dollars to $63.8 million and gross merchandise value climbed 17.8% to $5.7 billion...
VTEX Posts Strong Subscription Growth and Stable Liquidity in First-Half 2026 Results
Aug 6, 2026
For the six months ended June 30, 2026, VTEX reported total assets of $340.5 million, slightly down from $346.6 million at year-end 2025, with cash and marketable securities remaining stable and a modest rise in non-current assets such as goodwill...
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.