VTEX reported second-quarter results on August 6 that showed sharply higher profitability alongside a near-stall in its core growth. Non-GAAP income from operations climbed 62.4% year over year to $13.8 million, lifting the operating margin to 21.4%, while non-GAAP net income rose to $13.6 million from $7.9 million a year earlier and free cash flow jumped 79.1% to $12.7 million. Subscription gross margin widened to 81.8% from 79.9%, and total headcount fell 14.1% year over year to 1,102 employees, even as the company repurchased 6.2 million shares for $23.2 million during the quarter. Total revenue rose 9.5% in reported dollars to $64.4 million but fell 0.4% on an FX-neutral basis, with subscription revenue, which is 99.1% of the business, growing just 1.3% FX-neutral versus 11.2% a year earlier. Management is targeting roughly flat FX-neutral subscription revenue growth for the third quarter and only low-single-digit growth for full-year 2026, and said currency alone would add about 7.0 percentage points to third-quarter reported subscription revenue growth and 8.1 points for the full year if exchange rates hold at July's levels.
VTEXQ2 profit jumped 62.4% with margin expansion, buyback, and strong FCF, but FX-neutral subscription growth stalled to 1.3% and guidance is flat/low-single-digit.
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