VTEX has achieved significant margin expansion, with gross margins improving to 78.8% in 2026Q1 from 71.9% in 2024Q1, even as year-over-year revenue growth decelerated to 6.09%.
| Sales/Revenue | 247.05M | 240.52M | 226.71M | 201.52M | 157.62M | 125.77M | 98.68M | 61.33M |
| Revenue Growth % | 8.25% | 6.09% | 12.5% | 27.85% | 25.32% | 27.46% | 60.9% | - |
| Cost of Goods Sold | 53.84M | 54.18M | 59.42M | 60.95M | 52.83M | 49.59M | 34.85M | 20.25M |
| COGS % of Revenue | - | 22.53% | 26.21% | 30.25% | 33.52% | 39.43% | 35.32% | 33.01% |
| Gross Profit | 193.21M | 186.34M | 167.29M | 140.57M | 104.79M | 76.18M | 63.83M | 41.08M |
| Gross Margin % | 78.21% | 77.47% | 73.79% | 69.75% | 66.48% | 60.57% | 64.68% | 66.99% |
| Gross Profit Growth % | - | 11.38% | 19.01% | 34.15% | 37.55% | 19.36% | 55.37% | - |
| Operating Expenses | 168.65M | 168.23M | 157.19M | 155.17M | 154.71M | 142.11M | 57.31M | 42.89M |
| OpEx % of Revenue | - | 69.94% | 69.33% | 77% | 98.15% | 112.99% | 58.07% | 69.93% |
| Selling, General & Admin | 101.59M | 102.64M | 102.29M | 93.13M | 96.15M | 95.41M | 37.8M | 30.87M |
| SG&A % of Revenue | - | 42.67% | 45.12% | 46.22% | 61% | 75.86% | 38.31% | 50.33% |
| Research & Development | 66.07M | 63.89M | 53.62M | 60.12M | 57.2M | 45.19M | 19.04M | 12.69M |
| R&D % of Revenue | - | 26.56% | 23.65% | 29.83% | 36.29% | 35.93% | 19.29% | 20.69% |
| Other Operating Expenses | 982K | 1.7M | 1.27M | 1.92M | 1.36M | 1.51M | 462K | -665K |
| Operating Income | 24.56M | 18.11M | 10.1M | -14.6M | -49.92M | -65.93M | 6.52M | -1.81M |
| Operating Margin % | 9.94% | 7.53% | 4.46% | -7.25% | -31.67% | -52.42% | 6.61% | -2.95% |
| Operating Income Growth % | - | 79.23% | 169.19% | 70.75% | 24.28% | -1111.34% | 460.36% | - |
| EBITDA | 27.97M | 21.37M | 14.47M | -9.58M | -45.3M | -61.86M | 8.92M | 717K |
| EBITDA Margin % | 11.32% | 8.89% | 6.38% | -4.76% | -28.74% | -49.18% | 9.04% | 1.17% |
| EBITDA Growth % | 102.15% | 47.74% | 250.94% | 78.84% | 26.76% | -793.54% | 1143.93% | - |
| D&A (Non-Cash Add-back) | 3.41M | 3.26M | 4.36M | 5.02M | 4.62M | 4.07M | 2.4M | 2.53M |
| EBIT | 26.41M | 22.48M | 10.03M | -10.01M | -55.71M | -69.2M | 4.46M | -2.37M |
| Net Interest Income | -2.03M | 0 | 12.74M | 23.18M | 1.52M | -526K | -720K | -2.17M |
| Interest Income | 1.08M | 0 | 14.17M | 23.76M | 2.25M | 264K | 556K | 334K |
| Interest Expense | 0 | 0 | 1.43M | 578K | 733K | 790K | 1.28M | 2.51M |
| Other Income/Expense | 566K | 4.37M | -440K | 4.01M | -6.53M | -4.06M | -3.06M | -1.88M |
| Pretax Income | 25.12M | 22.48M | 9.66M | -10.59M | -56.44M | -69.99M | 3.46M | -3.69M |
| Pretax Margin % | 10.17% | 9.35% | 4.26% | -5.25% | -35.81% | -55.64% | 3.51% | -6.02% |
| Income Tax | 1.9M | 2.45M | -2.33M | 3.11M | -4.03M | -9.47M | 4.29M | 883K |
| Effective Tax Rate % | 7.58% | 10.91% | -24.13% | -29.35% | 7.13% | 13.53% | 123.82% | -23.91% |
| Net Income | 23.21M | 20.01M | 12M | -13.69M | -52.42M | -60.51M | -914K | -4.59M |
| Net Margin % | 9.4% | 8.32% | 5.29% | -6.79% | -33.26% | -48.11% | -0.93% | -7.49% |
| Net Income Growth % | 37.06% | 66.78% | 187.66% | 73.89% | 13.37% | -6520.46% | 80.1% | - |
| Net Income (Continuing) | 23.22M | 20.03M | 11.99M | -13.69M | -52.42M | -60.51M | -825K | -4.58M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 73K | 63K | 56K | 39K | 19K | 7K | 126K | 37K |
| EPS (Diluted) | 0.14 | 0.11 | 0.06 | -0.07 | -0.27 | -0.32 | -0.00 | -0.02 |
| EPS Growth % | 60.03% | 76.28% | 185.01% | 72.81% | 15.63% | - | 82.16% | - |
| EPS (Basic) | - | 0.11 | 0.06 | -0.07 | -0.27 | -0.32 | -0.00 | -0.02 |
| Diluted Shares Outstanding | 170.81M | 185.28M | 192.33M | 186.37M | 190.69M | 191.03M | 190.11M | 190.11M |
| Basic Shares Outstanding | 170.81M | 185.28M | 185.04M | 186.37M | 190.69M | 191.03M | 190.11M | 190.11M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Regional Macroeconomic Concentration
As reported in recent financial filings, VTEX's year-over-year revenue growth has decelerated significantly to 6.09%, suggesting that the company's core enterprise market in Latin America may be approaching a saturation point or experiencing reduced velocity in its variable GMV-linked revenue streams during the current period.
The transition from double-digit growth in early 2024 to mid-single digits indicates that the company's reliance on GMV-linked variable fees leaves it highly exposed to regional retail cycles. Investors should monitor whether this slowdown reflects a broader shift in e-commerce penetration or if the company is struggling to replicate its regional success in more competitive North American and European markets.
Based on the provided income statement data, VTEX has successfully expanded its gross margin to 78.8% in 2026Q1, demonstrating strong pricing power and efficient utilization of its multi-tenant cloud infrastructure compared to the 71.9% levels observed in early 2024.
This consistent improvement in gross profitability suggests that the company is effectively scaling its platform without incurring proportional increases in infrastructure costs. The ability to maintain such high margins while pivoting toward positive operating income implies that the underlying software architecture is becoming increasingly efficient as it matures.
According to the latest quarterly results, VTEX has achieved a positive operating margin of 10.3%, marking a significant departure from the negative operating margins seen in early 2024 and indicating that management has successfully prioritized operational discipline over aggressive, loss-leading customer acquisition strategies.
The scaling of operating income relative to gross profit suggests that the company is beginning to realize the benefits of its fixed-cost structure. However, the sustainability of this leverage warrants further investigation, as it remains unclear if the current expense discipline will stifle future R&D initiatives necessary to maintain a competitive edge against global peers.
As evidenced by the historical income statement data, stock-based compensation remains a volatile component of the company's expense profile, with quarterly fluctuations reaching as high as $4.6M, which complicates the assessment of true GAAP profitability and long-term earnings sustainability for shareholders.
While the company has reached a point of consistent net income, the reliance on SBC as a bridge to non-GAAP metrics suggests that investors should be cautious about the dilution risk. The variability in these non-cash charges makes it difficult to determine the underlying operational health without adjusting for these recurring equity-based incentives.
Based on reported figures, the company's cash and equivalents of $15.7M appear thin relative to its quarterly revenue scale, potentially limiting management's strategic flexibility and increasing the risk profile should the company face a prolonged downturn in its core Latin American retail markets.
Short-sellers may focus on this liquidity profile as a primary vulnerability, especially given the decelerating revenue growth and the company's sensitivity to regional macroeconomic shocks. The lack of a substantial cash buffer may force management to prioritize short-term survival over the long-term investments required to compete effectively in global markets.
Quick answers to the most common questions about buying VTEX stock.
For fiscal year 2025, Vtex (VTEX) reported total revenue of $240.5M. This represents a 292.2% increase compared to $61.3M in 2019.
Vtex (VTEX) is profitable, generating $20.0M in net income for the fiscal year ending 2025 with a net profit margin of 8.3%.
Vtex (VTEX) reported an operating income of $18.1M, resulting in an operating profit margin of 7.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Vtex (VTEX) generated $186.3M in gross profit for the year, representing a gross profit margin of 77.5%. This demonstrates the company's core pricing power and production efficiency.