VTEX Revenue Reaches $63.4 Million Despite 0.4% Decline on a Constant-Currency Basis
Key Facts
VTEX announced on November 5, 2026, that revenue reached $63.4 million in the third quarter, up 6.3% in dollars from $59.6 million a year earlier, but down 0.4% on a constant-currency basis. The results showed a divergence between reported dollar revenue growth and performance on a constant-currency basis, while GAAP operating income rose to $7.2 million from $4.2 million. By contrast, non-GAAP net income fell to $7.0 million from $10.6 million. The figures come as the company updates its outlook, with management pointing to further weakness in Brazilian consumption. The company said the revised outlook reflects "further deterioration in consumption trends in Brazil, particularly in October, and heightened near-term uncertainty."
Gross merchandise value, or the total value of goods sold through VTEX platforms, reached $5.5 billion in the quarter, up 12.0% in dollars and 4.5% on a constant-currency basis year over year. Growth in this metric on a constant-currency basis was faster than revenue growth, which contracted 0.4% on the same basis. The comparison between the two metrics shows transaction volumes on the platform continuing to expand, while the pace at which that growth is reflected in revenue differs. The company did not provide a detailed explanation in the reported information for the gap between growth in merchandise value and revenue growth. These figures cover the quarter ended in the third quarter of 2026.
Subscription revenue accounted for 98.7% of total revenue, reaching $62.5 million versus $58.4 million a year earlier. Subscription revenue rose 7.1% in dollars, while its growth was 0.2% on a constant-currency basis. This shows that the reported dollar increase did not translate into a comparable pace of growth after excluding currency effects, although subscriptions remained the company's nearly complete source of revenue during the quarter. The proportion is significant in light of the next-quarter outlook, as the company is targeting a low-single-digit decline in subscription revenue on a constant-currency basis. It also forecast nearly flat gross profit growth on the same basis.
GAAP operating income improved to $7.2 million, compared with $4.2 million in the third quarter of 2025, up 72.9% in dollars and 37.7% on a constant-currency basis. Non-GAAP operating income rose to $12.1 million from $9.5 million. But net income on a non-GAAP basis moved in the opposite direction, falling to $7.0 million from $10.6 million in the year-earlier period. The results therefore show improved operating income alongside lower non-GAAP net income, without the reported figures detailing the reasons for the divergence. This difference makes it difficult to reduce the quarter's performance to a single profitability trend.
The company's operating backdrop included Avon launching its first digital operation in Saudi Arabia through the VTEX platform, according to the earnings statement. The operation uses a bilingual platform in Arabic and English to support Avon's direct-selling model. The launch was announced as part of the information accompanying the third-quarter results. In the previous quarterly comparison, VTEX subscription revenue growth was 1.3% on a constant-currency basis in the second quarter of 2026, while gross merchandise volume grew 7.0% on the same basis. The company had then pointed to weak consumption in Brazil during June and July and a shift in its customer mix toward larger enterprise accounts.
For 2026, VTEX is targeting nearly flat subscription revenue growth on a constant-currency basis and low-single-digit growth in gross profit on the same basis. It is also targeting margins in the low twenties for non-GAAP operating income and free cash flow. For the fourth quarter, it expects a low-single-digit decline in subscription revenue and nearly flat gross profit growth on a constant-currency basis, with margins in the mid-twenties for non-GAAP operating income and free cash flow. Management said weakness in Brazilian consumption, particularly in October, and heightened near-term uncertainty affected the outlook update. Growth in global expansion, business-to-business, advertising and AI drivers was 20% on a constant-currency basis in the second quarter, according to the company.