Free cash flow generation has improved dramatically, with FCF margins expanding from 3.0% in 2024Q1 to 20.6% in 2026Q2, supported by minimal capital expenditures consistently below 1.5% of revenue.
Vtex (VTEX) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 46.2M | 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 % | 166.25% | 22.42% | 539.96% | 114.57% | 44.85% | -574.62% | 440.15% | - |
| Net Income | 30.26M | 20.01M | 11.99M | -13.69M | -52.42M | -60.51M | -825K | -4.58M |
| Depreciation & Amortization | 3.46M | 3.26M | 4.36M | 5.02M | 4.62M | 4.07M | 2.4M | 2.53M |
| Stock-Based Compensation | -14.3M | 0 | 15.55M | 19.69M | 12.2M | 9.22M | 2.8M | 744K |
| Deferred Taxes | -860.36K | 0 | -2.33M | 1.25M | -6.03M | -3.51M | -616K | -132K |
| Other Non-Cash Items | 24.98M | 8.2M | -651K | -8.34M | 7.66M | -2.75M | 126K | 1.64M |
| Working Capital Changes | 2.66M | 1.89M | -1.68M | 326K | 4.75M | 489K | 7.28M | 1.86M |
| Change in Receivables | 4.85M | 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 | -2.55M | 0 | -227K | 855K | 5.23M | 7.42M | 7.96M | 3.86M |
| Cash from Investing | 22.83M | 24.8M | -20.01M | 38.42M | -43.38M | -166.78M | -6.1M | -19.2M |
| Capital Expenditures | -1.58M | -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 | -461.49K | -3.69M | -1.89M | 0 | -1.69M | -5.71M | -3.65M | -3.1M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 9.28M | 29.53M | 691K | 3.24M | 1.26M | 588K | 1.04M | 100K |
| Cash from Financing | -74.87M | -61.59M | -14.03M | -38.43M | -19.58M | 283.68M | 24.96M | 43.51M |
| Debt Issued (Net) | 0 | -47K | -1.69M | -2.81M | -3.91M | -11.8M | -3.35M | 5.78M |
| Equity Issued (Net) | -72.99M | -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 | -73.76M | -59.11M | -11.2M | -35.24M | -12.8M | -2.42M | -129.03M | 0 |
| Other Financing | -1.87M | -2.43M | -1.15M | -375K | -2.87M | 587K | 689K | -905K |
| Net Change in Cash | -5.89M | -2.93M | -9.36M | 3.64M | -96.61M | 62.45M | 28.8M | 24.25M |
| Free Cash Flow | 45.11M | 32.33M | 25.19M | 3.79M | -29.56M | -54.74M | 9.52M | 239K |
| FCF Margin % | 17.85% | 13.44% | 11.11% | 1.88% | -18.76% | -43.52% | 9.64% | 0.39% |
| FCF Growth % | 31.04% | 28.35% | 565.09% | 112.81% | 46% | -675.2% | 3882.01% | - |
| FCF per Share | 0.26 | 0.17 | 0.13 | 0.02 | -0.16 | -0.29 | 0.05 | 0.00 |
| FCF Conversion (FCF/Net Income) | 1.49x | 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 |
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.
Key Metrics
Top Statement Risk
Aggressive share repurchases amid growth
Earnings Quality Driven by Non-Cash Items
VTEX's operating cash flow consistently exceeds net income, with the OCF/NI ratio averaging 2.1 over the last four quarters, suggesting strong cash conversion quality and minimal reliance on accrual-based earnings.
The persistent gap between operating cash flow and net income, particularly the 3.29x ratio in 2026Q1, indicates that non-cash charges like depreciation and amortization are significant contributors to cash generation. This pattern is typical for a scaling software company with high upfront R&D and SBC, but the consistency suggests the underlying business is generating real cash. Investors should monitor if this conversion strength persists as the company scales further.
FCF Margins Expanding with Profitability
Free cash flow margins have expanded from 3.0% in 2024Q1 to 20.6% in 2026Q2, demonstrating that the company's recent profitability inflection is translating directly into robust cash generation.
The FCF trajectory shows a clear inflection point starting in 2024Q4, aligning with the reported margin expansion and operating leverage. The growth in FCF from $1.6M to $13.3M over this period is a direct result of both revenue growth and improved operating efficiency. This trend suggests the business model is becoming increasingly cash-generative as it scales, a positive signal for long-term value creation.
Minimal Capital Intensity Supports FCF
Capital expenditures are negligible, consistently below 1.5% of revenue, which allows nearly all operating cash flow to convert to free cash flow and underscores the asset-light nature of the software platform.
The consistently low CapEx/Rev ratio, averaging around 0.6% over the last ten quarters, indicates that VTEX requires minimal ongoing investment in physical assets to maintain its operations. This is a structural advantage that directly supports high FCF margins. The slight uptick in 2025Q3 and 2024Q1 may reflect specific growth investments, but the overall trend confirms the business is not capital-intensive.
Share Repurchases Accelerate Despite Growth
VTEX has significantly increased share repurchases, spending $23.8M in 2026Q2 alone, which represents a substantial portion of its free cash flow and suggests a shift in capital allocation priorities.
The acceleration in buybacks from zero in early 2024 to over $20M per quarter in 2026 is a notable development. This deployment of capital, while returning value to shareholders, may indicate that management sees limited high-return organic reinvestment opportunities at the current scale. The contrast with peers like Shopify, which are not repurchasing shares, warrants further investigation into the company's growth outlook and capital efficiency.
Cumulative Cash Surplus vs. Reported Earnings
Over the last ten quarters, VTEX has generated $87.4M in operating cash flow against only $49.4M in net income, creating a cumulative cash surplus of $38.0M that highlights the strength of its cash generation relative to accounting profits.
This persistent positive divergence between cumulative operating cash flow and net income is a hallmark of a high-quality software business with significant non-cash expenses. The surplus indicates that the company's true economic earnings are higher than reported net income suggests. This trend provides a cushion and supports the company's ability to fund its share repurchase program without compromising its operational cash needs.
What Could Invalidate the Base Case
The cash flow statement may obscure the true cost of growth, as significant share-based compensation, which is a non-cash expense, is added back to operating cash flow but dilutes shareholders.
While VTEX's operating cash flow appears robust, the reported figures include the add-back of stock-based compensation (SBC), which was $14.3M in 2025Q4. This non-cash expense is a real economic cost to shareholders through dilution, and its treatment inflates the reported OCF/NI ratio. Furthermore, the aggressive share repurchase program, while using cash, may be partially offsetting the dilutive impact of SBC, creating a complex picture of true capital return to shareholders that warrants careful analysis.