Vtex Reports Resilient Profit Growth Amid Market Challenges

Vtex (VTEX) reported a 15.2% increase in gross profit on an FX-neutral basis and a 3.5 percentage points margin increase year-over-year. The company expanded globally and invested in B2B commerce and retail media, but faced challenges in Argentina and Brazil, leading to revised guidance for the year. VTEX raised its full-year non-GAAP operating income and free cash flow margin outlook by over 10%.

VTEX (VTEX) reported a robust second quarter (Q2) 2025, showcasing significant growth in gross profit and margin expansion, while also facing challenges in certain markets. The company reported a 15.2% increase in gross profit on an FX-neutral basis, driven by a 3.5 percentage point margin increase year-over-year [1].

Gerardo Tomas Jr., Founder and Co-CEO of VTEX, highlighted the company's disciplined execution and global expansion efforts during the earnings call. The company's partnership with Whirlpool in the US for the KitchenAid launch and new enterprise customer wins in the US and Europe demonstrated strong momentum in these regions, growing twice as fast as the overall business [1].

Despite these positive developments, VTEX faced challenges in Argentina and Brazil. Subscription revenue reached $57.2 million, representing an 11% FX-neutral growth, but missed the FX-neutral guidance due to a reversal in Argentina's GMV and a mix shift in Brazil towards lower take-rate enterprise clients [1]. These factors contributed to revised guidance for the year, with the company raising its full-year non-GAAP operating income and free cash flow margin outlook by over 10% [1].

VTEX's gross profit reached $45.3 million, up 15.2% in FX-neutral terms, while non-GAAP operating income grew 46% FX-neutral to $8.5 million, representing a 14.4 margin and a 3.3 margin increase versus the same quarter of last year [1]. The company's operational profitability and stable churn levels provided confidence for strategic initiatives that will drive its next phase of growth.

The company is actively investing in B2B commerce and retail media, unlocking new revenue streams and reinforcing its position as a key partner to enterprise brands. VTEX's global expansion and these initiatives form a powerful engine for scalable value creation, reflecting a disciplined growth strategy that positions the company to capture significant upside in the years ahead.

References:
[1] https://www.marketbeat.com/earnings/reports/2025-8-7-vtex-stock/