Free cash flow generation has improved to a 21.9% margin in 2026Q1, yet the company's decision to deploy $9.7M toward buybacks against a $16.8M cash balance suggests a potentially aggressive capital return policy.
| Cash from Operations | 40.03M | 33.37M | 27.26M | 4.26M | -29.22M | -52.99M | 11.16M | 2.07M |
| Operating CF Margin % | - | 13.87% | 12.02% | 2.11% | -18.54% | -42.13% | 11.31% | 3.37% |
| Operating CF Growth % | 190.01% | 22.42% | 539.96% | 114.57% | 44.85% | -574.62% | 440.15% | - |
| Net Income | 23.21M | 20.01M | 11.99M | -13.69M | -52.42M | -60.51M | -825K | -4.58M |
| Depreciation & Amortization | 3.41M | 3.26M | 4.36M | 5.02M | 4.62M | 4.07M | 2.4M | 2.53M |
| Stock-Based Compensation | -9.74M | 0 | 15.55M | 19.69M | 12.2M | 9.22M | 2.8M | 744K |
| Deferred Taxes | -65K | 0 | -2.33M | 1.25M | -6.03M | -3.51M | -616K | -132K |
| Other Non-Cash Items | 20.6M | 8.2M | -651K | -8.34M | 7.66M | -2.75M | 126K | 1.64M |
| Working Capital Changes | 2.62M | 1.89M | -1.68M | 326K | 4.75M | 489K | 7.28M | 1.86M |
| Change in Receivables | 8.16M | 446K | -26.16M | -13.14M | -3.58M | -16.75M | -10.1M | -6.68M |
| Change in Inventory | 0 | 0 | 0 | 5.66M | 0 | -2.51M | -181K | -57K |
| Change in Payables | -2.04M | 0 | -227K | 855K | 5.23M | 7.42M | 7.96M | 3.86M |
| Cash from Investing | 11.05M | 24.8M | -20.01M | 38.42M | -43.38M | -166.78M | -6.1M | -19.2M |
| Capital Expenditures | -1.54M | -1.04M | -2.07M | -472K | -340K | -1.75M | -1.65M | -1.83M |
| CapEx % of Revenue | 0.62% | 0.43% | 0.91% | 0.23% | 0.22% | 1.39% | 1.67% | 2.98% |
| Acquisitions | -15K | -3.69M | -1.89M | 0 | -1.69M | -5.71M | -3.65M | -3.1M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 15.85M | 29.53M | 691K | 3.24M | 1.26M | 588K | 1.04M | 100K |
| Cash from Financing | -55.92M | -61.59M | -14.03M | -38.43M | -19.58M | 283.68M | 24.96M | 43.51M |
| Debt Issued (Net) | -744 | -47K | -1.69M | -2.81M | -3.91M | -11.8M | -3.35M | 5.78M |
| Equity Issued (Net) | -53.76M | -59.11M | -11.2M | -35.24M | -12.8M | 294.89M | 27.62M | 40M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.37M |
| Share Repurchases | -53.77M | -59.11M | -11.2M | -35.24M | -12.8M | -2.42M | -129.03M | 0 |
| Other Financing | -2.16M | -2.43M | -1.15M | -375K | -2.87M | 587K | 689K | -905K |
| Net Change in Cash | -4.3M | -2.93M | -9.36M | 3.64M | -96.61M | 62.45M | 28.8M | 24.25M |
| Free Cash Flow | 38.97M | 32.33M | 25.19M | 3.79M | -29.56M | -54.74M | 9.52M | 239K |
| FCF Margin % | 15.78% | 13.44% | 11.11% | 1.88% | -18.76% | -43.52% | 9.64% | 0.39% |
| FCF Growth % | 28.8% | 28.35% | 565.09% | 112.81% | 46% | -675.2% | 3882.01% | - |
| FCF per Share | 0.23 | 0.17 | 0.13 | 0.02 | -0.16 | -0.29 | 0.05 | 0.00 |
| FCF Conversion (FCF/Net Income) | 1.68x | 1.67x | 2.27x | -0.31x | 0.56x | 0.88x | -12.22x | -0.45x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Thin Liquidity and Macro Sensitivity
According to the provided cash flow statements, VTEX frequently reports operating cash flow significantly exceeding net income, with an OCF/NI ratio peaking at 7.81 in 2025Q1, which suggests that non-cash adjustments and working capital shifts are currently the primary drivers of reported cash generation.
The persistent gap between net income and operating cash flow indicates that GAAP earnings may not fully capture the underlying cash-generating capacity of the business. Investors should monitor whether this divergence is sustainable or if it reflects aggressive revenue recognition practices that may eventually normalize.
As reported in recent financial statements, VTEX has demonstrated a positive free cash flow trajectory, reaching a 21.9% FCF margin in 2026Q1, which highlights a successful pivot toward self-funding operations despite the broader deceleration in top-line revenue growth observed across the enterprise segment.
The improvement in FCF margins appears to be a direct result of management's shift away from aggressive growth-at-all-costs strategies. However, the sustainability of these margins remains contingent on the company's ability to maintain pricing power in its variable GMV-linked revenue streams.
Based on the company's reported figures, VTEX maintains a remarkably low capital intensity, with CapEx as a percentage of revenue consistently remaining below 1.5% over the last ten quarters, suggesting that the platform's cloud-native architecture requires minimal ongoing investment to support its existing enterprise client base.
This low capital requirement is a structural advantage that allows the company to convert a high proportion of operating cash flow into free cash flow. While this suggests efficient asset utilization, it also warrants investigation into whether sufficient investment is being made to keep the platform competitive against global peers.
As evidenced by the cash flow data, VTEX has prioritized share repurchases, including a $9.7M outflow in 2026Q1, which appears aggressive given the reported cash and equivalents of only $15.7M, potentially signaling a management preference for capital return over building a robust liquidity buffer.
The decision to allocate significant capital to buybacks while maintaining a thin cash position may limit the company's strategic flexibility in the event of regional macroeconomic volatility. Investors should consider whether this capital allocation strategy is appropriate given the company's current growth profile and liquidity risks.
Quick answers to the most common questions about buying VTEX stock.
Vtex (VTEX) generated $33.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Vtex (VTEX) generated $32.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Vtex (VTEX) spent $1.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Vtex (VTEX) spent $59.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.