Vtex (NYSE:VTEX) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.

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Summary

Vtex's revenue fell short of internal expectations due to challenging macroeconomic conditions in Brazil and Argentina, though profitability and cash flow showed strong performance, with non-GAAP operating income growing 62% year-over-year.

The company is focusing on four growth drivers: Global Expansion, B2B, Ads, and AI Collective, which grew 20% on an FX-neutral basis and now represent 18% of subscription revenue.

Despite a challenging consumption environment, Vtex's strategic initiatives, particularly in AI, B2B, and international markets, are positioned to drive long-term growth.

Subscription revenue reached $63.8 million, growing 11% in US dollars but only 1.3% on an FX-neutral basis, with larger accounts performing better than smaller ones.

The company maintains a strong competitive position with stable win rates and customer retention, despite longer enterprise decision cycles affecting revenue growth.

Vtex continues to invest in its AI-native platform, emphasizing its AI Workspace and CX platform as key differentiators for future growth.

Management remains cautious about the macro environment but optimistic about future growth driven by strategic initiatives and disciplined cost management.

Full Transcript

Julia Badre Fernandez, VP of Investor Relations

Hello everyone and welcome to the Vtex earnings conference call for the quarter ended June 30, 2026. I'm Julia Badre Fernandez, VP of Investor Relations for Vtex. Our senior executives presenting today are Geraldo Tomas Jr., Founder and co-CEO, and Ricardo Camata Sodre, Chief Financial Officer. Additionally, Mariano Gomida de Faria, Founder and co-CEO, and Andres Polidoro, Chief Strategy Officer, will be available during today's Q&A session. I would like to remind you that management may make forward-looking statements related to such matters as continued growth prospects for the company, industry trends, and product and technology initiatives.

These statements are based on currently available information and our current assumptions, expectations, and projections about future events. While we believe that our assumptions, expectations, and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on those forward-looking statements. Certain risks and uncertainties are described under Risk Factors and Forward-Looking Statement sections of Vtex Form 20-F and other Vtex filings with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website. Finally, I would like to remind you that during the course of this conference call we might discuss some non-GAAP measures. A reconciliation of those measures to the nearest comparable GAAP measures can be found in our second quarter 2026 earnings press release on our Investor Relations website. With that, let's start the call. Geraldo, the floor is yours.

Mariano Gomide de Faria, Founder and co-CEO

Thank you, Julia. Good afternoon, everyone, and thanks for joining us on today's call. I want to open differently today: we're far enough into our AI-native transformation to see with real clarity how large the opportunity ahead of us is. The results are not yet translating to the revenue growth trajectory we're building toward. We know that, but the direction is right, product delivery is advancing well, early customer signals are encouraging, and our financial strength gives us the runway to execute.

We look forward to demonstrating our progress quarter by quarter. The macro environment remained challenging in the second quarter. High interest rates and a promotional marketplace environment in Brazil, softer consumer demand in Argentina, and longer enterprise decision cycles all weighed on near-term growth. Ricardo will cover this in detail. With that in context, I want to focus on what matters most for the medium- and long-term trajectory of Vtex: the execution of our four growth drivers—global expansion, B2B, Ads, and AI Collective.

These initiatives grew 20% on an FX-neutral basis in Q2, meaningfully faster than the company overall. While this still represents a relatively small portion of our business today, they are becoming an increasingly important part of our growth profile. The other side of this number is worth stating directly. The remainder of our subscription revenue, concentrated in our established B2C commerce business in Brazil and in the rest of Latin America, declined modestly in FX-neutral this quarter.

We want to be precise about what is happening and what is not happening there. Churn remained stable and in line with historical levels, and win rates in competitive processes held steady. This is primarily a volume and customer mix story, not a competitiveness story. We're not seeing deterioration in retention. Our solid base is transacting less in a weak consumer environment. That distinction matters because volume pressure can ease as the volume cycle improves.

Going back to our growth drivers, let me take each in turn in order of the revenue contribution today, starting with global expansion. This remains one of the most encouraging parts of our business. In the U.S., we're seeing a clear improvement in the quality of the pipeline. Activity has expanded across a broader set of industries, while large B2B opportunities represent an increasing share of expected contract value. We have also evolved our go-to-market strategy to make it more scalable.

Rather than relying primarily on direct prospecting, we are increasingly working alongside leading global system integrators such as EY and Accenture. During the quarter, we hosted our first North America SI boot camp, bringing together implementation partners to deepen their expertise in our B2B platform, which has already generated new qualified opportunities, reinforcing our confidence that this channel can become an increasingly important source of enterprise demand.

Another important shift is how AI is influencing enterprise buying decisions. Today, AI is no longer viewed as an incremental feature. It has become a prerequisite in virtually every RFP as customers increasingly evaluate platforms based on their ability to support future AI-driven commerce. This is also shaping how we position the broader Vtex product suite. While customers typically prioritize modernizing the core commerce foundation first, the response to our CX platform during enterprise evaluations has been positive.

We are increasingly bundled into strategic enterprise proposals, creating a natural path to expand customer adoption over time while further differentiating Vtex from traditional commerce vendors. Europe is following a similar trajectory. We have become increasingly disciplined in how we deploy commercial resources. Rather than pursuing smaller opportunities across every market, we're concentrating our investments where we see stronger enterprise demand and greater long-term expansion opportunities.

The early results are encouraging. We're increasingly winning large, recognizable enterprise brands that choose to begin with a single country or region before expanding their operations across additional markets. We believe this land-and-expand motion plays directly to the strengths of our platform and creates long-term value. We are also pleased to announce the renewal of our long-term partnership with OBI, our first customers in Germany. Beyond expanding into additional countries over the years, OBI has become an important reference customer in the region, helping establish our credibility with other large enterprises and opening new commercial opportunities. It is a strong example of how our relationships continue to deepen over time as customers expand their business on the Vtex commerce platform. Taken together, our international strategy is advancing. We continue to improve the quality of our pipeline, compete successfully against global incumbents, and build a growing base of enterprise customers that can expand with us for many years to come. B2B remains one of our most durable sources of growth.

The foundation of our B2B strategy is a philosophy we have come to describe as channel-agnostic digitalization. B2B buyers are not a homogeneous group. A carpenter ordering building materials wants to send a WhatsApp audio message. A procurement manager at a large distributor wants a self-service portal. A field sales rep wants to generate a quote on a mobile device while standing in front of a client. Our platform processes all of this input natively without forcing buyers or sellers into a workflow that does not fit how they actually operate.

This is the core reason we win in complex B2B environments, and it is increasingly the first thing prospects mention when they choose Vtex over alternatives. Looking ahead, we want to be direct with investors about where we are investing and why. We have built what we believe is the strongest B2B self-service commerce platform in our market. The gap we are actively closing is on the tools that give field sales reps, managers, and account teams the real-time visibility and AI assistant intelligence they need to work more effectively.

Our objective is to offer the best solution in the market for those agents—one where a rep can see which clients are active, which have lapsed, which logged into the portal without converting, and which accounts represent the highest probability opportunity on any given day. Combined with our CX platform and our self-service capabilities, this will give Vtex a unified AI-native stack that covers the full B2B commercial workflow from the first buy interaction to the closed order.

On top of a strong demand for B2B digitalization across global markets, recent customer activity in Brazil and Latin America reflects the breadth of this opportunity. Whirlpool's B2B expansion in Brazil and Electrolux launch in Chile demonstrate how our existing enterprise relationships convert into B2B growth across geographies. Moving to the Vtex ad platform, we continued building strong momentum during the second quarter. On the product side, we continued expanding our ad platform with AI-driven campaign creation, automated budget management, improved attribution, and AI-generated creative assets, bringing Vtex's ad platform closer to the capabilities expected from the world's leading retail media platforms. Commercially, we expanded our international sales presence, established active relationships with leading global agency groups such as WPP, Publicis, and Omnicom, and strengthened our ecosystem through partnerships including Magnite, among others. Together, these initiatives expand both advertiser demand and available inventory. As we continue building a differentiated omnichannel retail media network, we're also seeing encouraging demand for new verticals.

Prescription portals and health platforms in particular are generating strong interest from pharmaceutical advertisers. This vertical creates a differentiated inventory opportunity that does not exist on generalist retail media networks. Our fourth growth driver is AI, which today runs on two fronts: the Vtex CX platform, already a revenue contributor, and the AI Workspace, which points to where the entire platform is going. Starting with our CX platform, the second quarter demonstrated not only strong product momentum but also a business model that is scaling efficiently.

Since VTEX Day, the Vtex CX platform has recorded more than 200 trial activations through our trial-led go-to-market strategy. The results have been compelling. Average sales cycles from the solution have declined by more than 50%, from approximately 90 days to roughly 40, while implementation times have been reduced from 30 days to one week. These are structural improvements that directly reflect the advantage of native integration with the core commerce platform.

On top of this, the Vtex CX platform's operational performance continues to improve. Our AI agents are sustaining conversation containment rates above 92% and problem resolution rates above 80%, while directly influencing GMV through payment recovery, abandoned cart rescue, and cross-selling. While still early, these results provide encouraging evidence of the platform's value generation for our customers. The Vtex CX platform also continues to expand beyond its initial use cases in our installed base.

During the quarter we introduced our first integrated B2B agents, increased adoption through the web channel, expanded across Mexico and the broader region, signed our first European customers, and continued winning standalone deployments. Turning to the second front, the AI Workspace. Since introduction, AI Workspace and our first Pioneer agents at VTEX Day, we have expanded the platform with new capabilities across merchandising, content, fulfillment, and commercial analytics.

These include My Assistant, our orchestration layer that coordinates multiple AI agents through a single interface, allowing teams to execute business objectives through natural language instead of manual configuration. Our vision remains clear: we're not building isolated AI features, we are building the AI-native commerce suite. We now have more than 100 enterprise customers in the AI Workspace waitlist, but we intentionally began with a small group for our Pioneer program.

Our product and engineering teams are working alongside these customers to maximize operational value and help shape the next generation of the platform. We are not yet reporting operational or financial contribution from AI Workspace, but the foundation we're building today gives us confidence that adoption will be durable and scalable over time. Our ecosystem is also embracing the AI journey. We've seen adoption of our AI Developer Kit Toolkit, which enables AI coding assistants like Claude, OpenAI Codex, and Cursor to build natively on Vtex.

The early response has been encouraging, and we believe it can help reduce implementation times, accelerate time to value, and increase partner productivity across the business. As listed in our earnings release, we continued adding new enterprise customers while deepening relationships with existing ones across each of our four growth drivers. Importantly, we're seeing encouraging swift adoption momentum. Angeloni and Fast Shop expanded their relationship with Vtex to include our CX platform, while Whirlpool and Olímpica expanded theirs to include our Ads platform.

Before I hand the call to Ricardo, I want to thank every Vtexer. Building the next generation of enterprise commerce while maintaining financial discipline requires extraordinary focus, commitment, and execution across the entire company. I also want to thank our customers, partners, and investors for their continued trust. We're building something genuinely new in enterprise commerce; the architecture is sound, the product execution is on track, and we remain confident that the compounding effect of this work will become increasingly visible as we move forward.

Ricardo, over to you.

Ricardo Camata Sodre (Chief Financial Officer)

Thank you, Geraldo. Hello, everyone. It's a pleasure to be back here with you for another quarterly update. I will now walk you through our financial performance for the second quarter of 2026. Subscription revenue came in just above the bottom of our guidance range and below our internal expectations, driven by a challenging consumption environment in Brazil and Argentina and a customer mix that continues to skew towards larger accounts. Despite that, our profitability and cash flow performance were strong, with margins continuing to expand meaningfully year over year.

Despite softer revenue, stronger margins reflect structural progress in cost discipline that we believe is durable even as we work to re-accelerate growth. In Q2 2026, GMV reached $5.7 billion, representing a year-over-year growth of 18% in US dollars and 7% on an FX-neutral basis, broadly stable versus the 6.8% FX-neutral growth we reported in Q1. Despite the softer consumer backdrop, subscription revenue reached $63.8 million, growing 11% in US dollars and 1.3% on an FX-neutral basis.

The gap between GMV and subscription revenue growth was driven by mix. GMV growth was increasingly concentrated among our largest customers, while smaller and mid-sized customers were more affected by the weaker consumption environment in Brazil, and the same shift towards larger accounts, which carry lower take rates at similar gross margins and lower churn rates, translated into a more limited contribution to subscription revenue growth. In other words, volume held up better than its conversion into revenue — a mix effect, not an erosion of unit economics.

Our non-GAAP subscription gross margin reached 81.8%, an improvement of approximately 2 percentage points year over year. We continue to benefit from structural gains in AI‑powered customer support automation and disciplined cost management. Total non-GAAP gross margin, including services, reached 80.4% compared to 77.4% in Q2 2025, representing an improvement of 3 percentage points year over year. The continued de-emphasis of lower-margin services as our global partner ecosystem assumes a greater share of complex implementations continues to be a tailwind to our overall gross margin.

Total non-GAAP operating expenses in the second quarter were $38.0 million, broadly flat sequentially and growing well below revenue year over year, with headcount declining nearly 4% sequentially. As in prior quarters, we maintained discipline across sales and marketing and G&A while continuing to direct incremental investment into R&D, where our focus remains on accelerating the AI-native transformation, expanding our agent ecosystem, and deepening the capabilities of our B2B, ads, and CX platforms.

Non-GAAP income from operations reached $13.8 million, growing 62% year over year and with a margin of 21.4%, representing approximately 7 percentage points of expansion versus the same quarter of last year. Free cash flow for the quarter was $12.7 million, growing 79% year over year and representing a free cash flow margin of 19.8%. We continue to execute against our share repurchase program. During the second quarter, we repurchased 6.2 million Class A common shares at an average price of $3.76 per share for a total cost of $23.2 million.

At this average price, the shares were repurchased at an implied double-digit free cash flow yield on enterprise value compared with the mid–single-digit after-tax interest yield earned on our cash. Following the shares’ cancellation, the repurchases are immediately accretive to free cash flow per share. Consistent with Geraldo's discussion, our four growth drivers — Global Expansion, B2B, Ads, and AI — represented approximately 18% of subscription revenue and grew 20% on an FX-neutral basis in the second quarter.

The remainder of the portfolio declined modestly in FX-neutral terms, with churn and competitive win rates remaining stable, reinforcing that this is a volume and monetization pressure, not a competitive pressure. Looking forward, our updated outlook reflects weaker consumption trends in Brazil in June and July and the continued customer shift toward larger enterprise accounts. It assumes a modest improvement in FX-neutral subscription revenue growth in the fourth quarter, supported by less demanding year-over-year comparisons and an increasing contribution from our growth drivers.

For the third quarter of 2026, we are targeting approximately flat FX-neutral subscription revenue growth, low single-digit FX-neutral gross profit growth, a non-GAAP operating margin in the low 20s, and a free cash flow margin also in the low 20s. For the full year 2026, we are now targeting low single-digit FX-neutral subscription revenue growth, mid–single-digit FX-neutral gross profit growth, a non-GAAP operating margin in the low 20s, and a free cash flow margin also in the low 20s.

Assuming FX rates remain broadly consistent with July's average rates, the FX-neutral growth guidance outlined above would translate into higher reported US dollar subscription revenue growth, adding approximately 7.0 percentage points in the third quarter and 8.1 percentage points for the full year 2026. In summary, revenue came in just above the bottom of our guidance range, driven by a challenging consumption environment and the near-term revenue impact of our deliberate shift towards larger enterprise customers.

What the quarter also tells us is that our profitability engine is working. Non-GAAP operating income grew 62% year over year, total gross margin expanded 300 basis points, and free cash flow grew 79%. Our cost structure is disciplined, our balance sheet is strong, and our growth drivers continue to outperform the consolidated business. We will remain focused on translating that foundation into revenue acceleration. With that, let's open it up for questions now.

Thank you.

OPERATOR (Moderator)

We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Marcelo Santos with JP Morgan.

Your line is open. Please go ahead.

Marcelo Santos, Analyst at JP Morgan

Hi, good evening. Thanks for taking the question. My question is about you mentioned the durability of a high margin in a re-acceleration environment. I think in your comments, Ricardo. I just wanted to go a bit deeper on that. I mean, if re-acceleration comes, what kind of costs do you think would be pressured and what kind of costs do you think would scale? I know it's not the scenario now, but just want to go a bit deeper on that potential scenario for one day.

Thank you.

Ricardo Camata Sodre (Chief Financial Officer)

Perfect. Marcelo, thanks. Thanks for the question. Happy to start here. So we see the improvements that we are having as durable, given that on the gross margin side, historically over the past three years, the first two years were driven by hosting optimizations, and for the last year or maybe five quarters it's been driven by AI-powered automation of support costs. So the roughly three percentage points in gross margin that we gained are durable, and we see this as a strong indication of the scalability of the business.

On the costs and expenses side, when we think about G&A, G&A has been stable for the past maybe five years since we IPO’d the company. So that has decreased from maybe 20% of revenue back in 2020–2021 to now roughly 10% of revenue. So that shows the scalability on that line as well. Research and development, R&D — we are increasing the level of investment right now in that line as we see it's the moment to invest in AI and the transformation and accelerating the product side.

So that's a line that we are investing more; it's increasing as a percentage of revenue but just marginally. So we see that as a very strong indication of how much we're investing for the future. From the sales and marketing perspective, we invest in that based on what we are seeing on the demand side from signing new customers and the pipeline, so we adjust over time, and we're also getting efficiencies by leveraging AI and how much we are investing in events.

So if there is a re-acceleration of revenue, we could invest a bit more if we are seeing a good return on investment. But given the way that we look at our existing customers and the margins that we are making there, the consolidated P&L is still far away from that margin. So we see the potential for the margin to continue moving in a positive way, as we have signaled from the guidance. When we look at the Q2 guidance, the non-GAAP operating income margin was guided to high teens to low 20s.

We have changed the guidance for Q3 to the low-20s range. So that's an indication of the progress that we are making there. Hopefully that gives some color on how we are thinking about the efficiencies and the durability of the margins that we are gaining.

Marcelo Santos, Analyst at JP Morgan

Yeah, very clear. Thank you very much.

OPERATOR (Moderator)

The next question comes from the line of Nadia Instantoji with Itaú. Your line is open. Please go ahead.

Nadia Instantoji, Analyst at Itaú

Hi, Geraldo. Ricardo, thanks for the opportunity. So, to what extent are the current revenue challenges related to a more difficult competitive environment? If you could please share your feedback about how you see the evolution of competition with marketplaces both in Brazil and other regions, it would be great. And looking into 2027, are AI-related discussions also delaying client decisions? Possibly extending sales cycles for new customers? Could you please share feedback on that as well?

Thank you.

Mariano Gomide de Faria, Founder and co-CEO

Yeah, happy to take this one. It's Mariano here. So, about the competition, let's break down in terms of evolution of customer behavior and the competitive landscape among commerce platforms. On the commerce-as-consumer side, we are seeing two structural dynamics. First, commerce is becoming increasingly more fragmented. Traffic fragments across social channels, WhatsApp, emerging AI interface phases. The traditional front end may become more commoditized.

However, every transaction still requires a centralized system of record for inventory, pricing, promotions, and order management—order orchestration. That orchestration layer is where Vtex is structurally advantaged. We are the backbone for connected ecommerce, and our long-haul, long story on these sub-functionality prepare us to serve this wave. Second, the current high interest rate environment continues to pressure consumer demand, and that is a global kind of characteristic.

Retailers are prioritizing profitability and efficiency over aggressive growth, while larger marketplaces remain highly promotional, using credits, coupons, and free shipping to defend and expand market share. So it's an interesting dynamic in the market. We don't see this changing in the next months. These macro headwinds for our customers will remain. We believe these dynamics reinforce the need of an AI-native unified commerce platform that really helps enterprise operate more efficiently and engage customers consistently across an increasingly fragmented commerce landscape.

We believe in retailers and brand manufacturers that are agnostic to channels on the platform side. On the competition, we haven't seen a meaningful change. While competitors are increasingly announcing AI capabilities, most appear to be incremental features layered on top of legacy architectures. We've taken a different approach, rebuilding Vtex as an AI-native commerce suite where AI orchestrates workflows across the entire platform rather than solving isolated tasks.

More importantly, we haven't seen those competitive announcements translate into changes in our commercial performance. Win rates, churn, customer engagement—all remain stable this quarter. So today we don't see competitiveness issues. We see customers taking longer to make long-term decisions. Long sales cycle—that's a fact. We believe our AI-native architecture, our comprehensive product suite, and the discipline on execution continue to strengthen our competitive positioning, and we will continue to monitor the market closely as it evolves.

Does this answer your question, or any angle of the question was not answered?

OPERATOR (Moderator)

The next question comes from the line of Luca Brendam with Bank of America. Your line is open. Please go ahead.

Luca Brendam, Analyst at Bank of America

Hi, good afternoon everyone. Thank you for taking my questions. I have two from my side here. The first one, if you could give us some more color on the revenue deceleration—if you could break it down, how much of that is due to the client you already have, they are selling less, and how much is due to churn or lower level of new customers, how would we break that down, how you think that would expand in the future? And also when we look at the other revenues that you mentioned were up 20% year over year, how much are the growth drivers, right?

How much of that, how much does that represent of overall revenues? And when you look at the core business excluding those growth drivers, do you think that this segment can re-accelerate in the short to midterm? Do you have any outlook on that? Thank you.

Andre Spolidoro, Chief Financial Officer

Luca, thanks. Thanks for the question. Happy to start here. So starting from the second question, the growth drivers. As we mentioned in the prepared remarks, the growth drivers represent roughly 18% of the subscription revenue and grew 20%. So if we look at the non-growth drivers part of the business, knowing that the overall business grew 1.3%, you have all the numbers to do the math for that portion of the business we mentioned was a modest decline, which is, you know, roughly 2% decline.

On the revenue deceleration, I think it may be helpful for us to go over how we think about the guidance because that goes into these dynamics. So for the third quarter we are guiding subscription revenue growth to approximately flat on an FX-neutral basis. And based on July's average FX rates, that will translate into higher reported US dollar subscription revenue growth, adding approximately 7 percentage points to Q3 FX-neutral growth. Looking into the revenue, two underlying dynamics impacting the existing customer base.

The first dynamic is the customer mix. FX-neutral GMV growth was broadly stable sequentially, but the mix shifted: smaller and mid-sized customers were more affected by the weaker consumption environment in Brazil, while larger customers held up better. Larger accounts carry a lower take rate but similar gross margin, lower churn, and higher lifetime value. So moving up-market is deliberate and aligned with our long-term strategy. Now the pace of this shift in Q2 was faster than expected, and we are carrying that mix into the second half.

The second dynamic is the consumption environment. Although Q2 same-store sales were broadly in line with our expectations, performance in Brazil weakened in June and July. Same-store sales are our closest operating indicator of macro consumption, and that led us to lower our GMV assumptions for the existing customers in Q3 and Q4. Together these two factors led us to guide Q3 revenue growth to approximately flat and revise our full-year FX-neutral subscription revenue guidance to low single-digit growth.

So those were the moving pieces impacting the guidance, and, Luca, to your question, they come from the existing customer base. On the new customer base, obviously there are changes up and down every quarter, but nothing substantial that would make us review the way that we are seeing the business now. Having said that, two points that are important to separate from these headwinds. The first one is on the competitive side. As Mariano mentioned, our competitive position remains healthy.

The win rates are stable, churn remains within the historical range, and the enterprise pipeline remains active. So the headwinds remain primarily macroeconomic and mix-related rather than competitive. The second one is the growth drivers that we just talked about. They continue to outperform the consolidated business. They grew 20% on an FX-neutral basis and now they represent 18% of the subscription revenue. If we move down the P&L, Q2 profitability was strong and supported by structural efficiency gains that we achieved, particularly through AI-powered automation and continued operating discipline that I mentioned through to Marcelo.

Non-GAAP operating income grew 62%. Free cash flow grew 79% in Q2. These are strong indicators that for the third quarter made us target non-GAAP operating income and free cash flow margins in the low 20s, up from the high teens to low 20s level that we had before. So let me pause here and see if there's any follow-up, or if this covers the question.

Mariano Gomide de Faria, Founder and co-CEO

So maybe I should also double-click on the qualitative matters of our acceleration drivers. We are talking about the global expansion, and it continues to gain traction as we focus on our ideal customer profile and we prioritize geographies with the largest enterprise opportunities. We continue to make progress in markets such as the US, Germany, and the Balkans. This quarter we announced Akron Aviation in the US and Gigatron in Serbia as new customers, and the expansion of our relationship with OBI from Germany.

B2B is also a very good growth driver for us, remaining one of the strongest differentiators. Demand continues to be healthy, particularly for our omnichannel approach, especially in North America and Europe. For instance, this quarter we announced Panasonic in Brazil and Grupo Naza in Mexico; both of them started B2B operations with us. ADS continues to scale well, and we expand both the product and the network. We're seeing strong adoption from existing customers, and we are excited about the long-term opportunity in retail media.

For example, this quarter we announced that Olympica and Whirlpool are expanding their relationship with Vtex, joining our ADS platform. This is a very good case of, you know, upselling and cross-selling, and that pollinizes each product, selling more. And finally, not less important, is the CX platform. This has been one of the most encouraging developments this year. Customer adoption has been encouraging, and sales and implementation times have come down significantly.

This quarter we announced that Daniellonian Fest Shop are expanding their relationship with Vtex by implementing our CX platform. I mentioned this as well in our remarks. This is also a very good case for us of inside sales, of product-led sales. We're having a lot of tryouts. We're having a lot of conversion from that with very low cost of acquisition for these customers.

Luca Brendam, Analyst at Bank of America

Very clear. Thank you for the answers.

OPERATOR (Moderator)

The next question comes from the line of Gustavo Farias with UBS. Your line is open. Please go ahead.

Gustavo Farias, Analyst at UBS

Hi everyone. Thanks for the opportunity. So my questions are the first one on B2B. If you could give us more color on the new go-to-market strategy and your expectations for B2B MACtun. And my second question, double-click on the softness you are seeing in small and medium clients. Just wondering, given the challenging interest rate environment in Brazil, do you see any higher-than-usual level of clients going bankrupt or going to any kind of financial distress?

Thank you.

Mariano Gomide de Faria, Founder and co-CEO

Okay, let's start with your second question. We are not seeing yet the Chapter 11 or RJ, right—kind of desperate new movements. But for sure it is a very tough moment for retailers and brand manufacturers in Brazil. It can happen. We are helping our customers to decrease their level of expenses, to be really efficient, to tighten their belts, because the bumpy times will remain in Brazil in macro. So there is a possibility that this scenario can get worse.

Okay, so on B2B, answering your first question, we are encouraged by the momentum we are seeing globally. We've built a comprehensive B2B commerce platform, particularly for complex and omnichannel workflows. Buyers can transact seamlessly through a self-service portal, WhatsApp, sales rep applications, punchout, and any other channel—all of these in the same commerce platform that brings efficiency for brand manufacturers. B2B continues to represent a meaningful share of our enterprise pipeline, particularly in the United States and Europe, and we are beginning to see growing interest in broader Latin America, including Brazil.

For instance, this quarter we have announced Panasonic in Brazil, and Grupo Nazan in Mexico started B2B operations with us. From a product perspective, we are now focused on the next evolution: AI-powered sales capabilities. The objective is to give field sales reps and managers real-time visibility and AI-assisted intelligence—knowing which customers are active, which have lapsed, which log in without converting, and where the highest-probability opportunities are each day.

It's agents managing humans, combined with our CX platform and our existing self-service capabilities. The goal is a unified, AI-native stack covering the entire B2B commercial workflow from the first buyer interaction in any channel through a complete order and post-purchase CX experience. We are not putting an explicit launch date, but it is a near-term product priority, not a multi-year roadmap. We believe this combination of commerce, CX, and an AI-powered sales force on a single data layer, on a unified commerce suite, can become a meaningful competitive differentiator over time, and we are focusing our execution in that direction.

OPERATOR (Moderator)

As a reminder, if you would like to ask a question, please press star-one on your telephone keypad. There are no further questions at this time. I will now turn the call back to Geraldo for closing remarks.

Geraldo Thomaz Jr., co-CEO

Before we conclude, I want to leave you with one thought. The AI workspace, the CX platform, the ADS platform, B2B, and global expansion are not independent bets. They are expressions of a single thesis: that the enterprise commerce platform of the future will be AI-native, outcome-based, and capable of operating across every channel, geography, and business model our customers need. We remain clear-eyed about the near term. The macro environment in Brazil has not resolved, and we're not projecting a quick step back.

But our growth drivers continue to outperform, and our financial disciplines allow us to continue investing. We have demonstrated the discipline. Our next task is to translate this product and commercial progress into sustained growth. To our employees, customers, partners, and investors, thank you for your continued trust. We believe the best of what we're building is still ahead, and we look forward to updating you next quarter.

OPERATOR (Moderator)

This concludes today's call. Thank you for attending. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.