VTEX Q1 2026 Earnings Call - AI-Native Commerce Suite Drives Margin Expansion Amid Brazil Headwinds

Julia Vater Fernández, Vice President of Investor Relations, VTEX: Hello everyone, and welcome to the VTEX Earnings Conference Call for the quarter ended March 31, 2026. I’m Julia Vater Fernández, Vice President of Investor Relations for VTEX. Our senior executives presenting today are Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, and Ricardo Camatta Sodré, Chief Financial Officer. Additionally, Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, and André Spolidoro, 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 current available information, you’re cautioned not to place undue reliance on these forward-looking statements.

Certain risks and uncertainties are described in the Risk Factors and Forward-Looking Statements sections of VTEX Form 20-F and other VTEX filings within 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. Our reconciliation of those measures to the nearest comparable GAAP measures can be found in our first quarter 2026 earnings press release available on our investor relations website. With that, Geraldo, the floor is all yours.

Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, VTEX: Thank you, Julia, and good afternoon, everyone. Thank you for joining us. Last quarter, we outlined a clear strategic framework centered on 4 key growth factors: global expansion, B2B, retail media, and AI. In the first quarter, we continued to execute against this strategy. Today, we’ll update you on several recent product launches that directly reinforce our positioning across these opportunities. From a financial perspective, our top-line results were in line with our guidance, while our profitability and cash generation both doubled year-over-year and exceeded our guidance. This reinforces the resilience of our model and our disciplined execution in a dynamic macro environment. While we acknowledge that recent growth has been below our long-term ambitions, we remain committed to executing with discipline and driving long-term value creation.

Starting with our vision and product launches, we’re seeing our industry entering a new phase where artificial intelligence transitions from a conceptual layer into a structural driver of growth, efficiency, and competitive advantage. We see this as an attractive opportunity for VTEX. In the last technological revolution, the cloud, we have architected our platform to fully embrace it from inception with a multi-tenant approach, avoiding the technical debt that constrained many legacy systems. Now, our highly scalable foundation position us to capitalize on the AI technological shift, enabling us to rapidly deploy innovation and operate at scale as we navigate this new era. At the heart of this transformation is our reinvented VTEX Commerce Platform.

We are moving beyond the traditional Software as a Service model to deliver the first AI-native commerce suite, one that delivers simplicity, ease of use, and most importantly, tangible and measurable business outcomes for our customers. This is AI with real impact. The command center for this new paradigm is the VTEX AI Workspace. This is where our agents for catalog, promotions, and search can collaborate. They are engineered to do more than just flag problems. They autonomously diagnose root causes, architect strategic action plans, and execute them with minimal human oversight. For example, our catalog agent doesn’t just manage data, it hunts for revenue opportunities. It systematically analyzes an entire product assortment by leveraging real-time shopper navigation data to understand precisely where and how the catalog should change to increase conversion.

It sees where customers drop off, what search terms lead to dead ends, and how they interact with product attributes. Armed with these insights, the agent autonomously optimizes the catalog. It goes beyond simple data entry, performing tailored content improvements across millions of SKUs by enriching descriptions, standardizing attributes, and ensuring every item perfectly align with our brand’s merchandise guidelines. This allows our customers to maintain a high-quality, high-converting catalog at a scale and speed previously unimaginable, turning a traditionally labor-intensive process into a strategic advantage. This is just one of many intelligent experiences that are now possible. By laying this foundation groundwork, we’re paving the way not only to expand our own suite of agents, but to eventually enable a marketplace where customers and partners can deploy third-party agents creating a truly open and accessible commerce agentic ecosystem. This intelligence extends far beyond the back office.

It transforms the entire customer journey. For shoppers, our new storefront with AI Personal Shopper combine conversational interactions, semantic search, and hyper-personalization to guide discovery and dramatically increase conversion rates. For our B2B customers, we’re streamlining complex sales cycle with B2B commerce and AI order quotes, enabling sales teams to generate complete accurate quotes instantly from a simple file upload or even a voice command. More broadly, our B2B and global expansion strategy are being significantly enhanced as the inherent complexity of managing multi-country, multi-currency operations is precisely the challenge our AI workspace is designed to address at scale. To capture demand wherever it emerges, our integrations with Google Universal Commerce Protocol enable shoppers to discover products and check out directly within Gemini and Google AI Mode with a native cart sync back to our platform.

To empower our entire ecosystem, we introduced the VTEX AI Developer Toolkit, embedding AI assistants directly into developer workflow across tools like Cursor, Copilot, and others, while connecting them to VTEX knowledge base to accelerate development and drive innovation. We’re delivering a platform where AI enhances efficiency for operators, drives conversion for shoppers, accelerates sales for B2B teams, and empowers developers to build faster. This is a complete end-to-end vision for AI-native commerce. Today, VTEX is much more than its VTEX Commerce Platform. We have evolved into a multi-product company. Beyond our core VTEX Commerce Platform, we now offer two additional strategic solutions: our VTEX CX Platform and our VTEX Ads Platform, both enhanced with AI, where we have also introduced significant recent advancements. In our VTEX CX Platform, we are expanding beyond the traditional storefront to capture demand wherever it originates.

The VTEX CX Platform redefines customer experience through coordinated AI agents that operate seamlessly across the entire journey, making commerce more fluid and conversational. This includes a truly multi-channel approach, where AI guides discovery and transactions across website, WhatsApp, and other messaging interfaces. We have introduced a fully integrated WhatsApp store, enabling consumers to complete their entire purchase journey without leaving the conversation, as well as voice commerce for real-time interactions. Importantly, this capability extends into the post-purchase phase, where autonomous post-sales agents manage order status, exchanges, and returns with over 91% automation, allowing human teams to focus on more complex, high-value engagements. In our ads platform, we’re significantly enhancing the power of our platform by embedding AI across audience orchestration and campaign execution. This enables our customers to transform their digital environment into high-margin media assets and unlock new revenue streams.

With our AI campaign management capabilities, retailers and their brands and partners can move beyond manual workflows, simply defining an objective, such as improving return on ad spend, while AI agents autonomously build and optimize multi-channel campaigns to deliver results. This is further strengthened by AI-driven insights, offering real-time visibility into performance, attribution, and market share, all within a privacy-first framework supported by our secure data clean room. Ultimately, we are helping customers convert their traffic into a scalable and strategic growth lever. While we have just launched these updates, we are already seeing some early but encouraging results. For instance, Whirlpool have leveraged our AI capability to identify underperforming products, diagnose content gaps, and automatically generate optimized assets, compressing what once took days of manual work into minutes while improved conversion. At Decathlon, our promotions agents enable real-time competitive responses through automated campaign recommendations.

Across these use cases, the pattern is clear. AI is poised to redefine how customers drive sales, accelerate execution, and capture new levels of operational efficiency. These outcomes are particularly relevant in the context of enterprise commerce, where operations are complex, mission-critical, and increasingly global. Customers are not simply selecting a software vendor. They’re selecting a strategic backbone that can scale, adapt, and evolve with the next generation of commerce. We acknowledge that it’s early days, and our excitement around these innovations is not yet reflected in our current growth rates. To be fully transparent, we’re still evaluating the long-term transformational impact of these tools at scale. However, our commitment is to remain data-driven and grounded in reality, and we look forward to updating you on broader adoptions in the coming quarters. We have embedded AI at the core of VTEX, transforming the company into the first AI-native commerce suite.

We believe VTEX is uniquely positioned to serve this role. Our multi-tenant software-as-a-service architecture, outcome-aligned business model, and deep transactional data foundation allow us to deploy innovation at scale and align directly with our customer success. With that, let me welcome some new customers who went live this first quarter of 2026, including Centro de Jardin in Argentina, Armazém Paraíba and Lunelli in Brazil, VPCL in Canada, Homecenter in Colombia, and Omnicasa in Portugal. We also expanded our relationship with our existing customers, such as Whirlpool, that launched its Compra Direta Parceiros in Brazil, its official B2B channel for distributors, resellers, and authorized service centers, Electrolux, that launched its B2B channel in Chile, and Grupo Ikesaki, that launched EBC Atacado de Beleza in Brazil, its official B2B channel for beauty professionals and resellers.

Multilaser, that launched the official OPPO Store in Brazil, expanding the smartphone brand presence in the country. Linzet, that expanded to Chile, adding to its operation in Brazil. Now, before I hand the call over to Ricardo, I would like to express my sincere gratitude to our 1,147 VTEX employees, our customers, partners, and investors for their continued trust and support. Together, we’re building the future of commerce. Ricardo, over to you.

Ricardo Camatta Sodré, Chief Financial Officer, VTEX: Thank you, Geraldo Thomaz Jr. Hi, everyone. I’m pleased to share with you VTEX financial results. In Q1 2026, GMV reached $5.1 billion, up 17% in U.S. dollars and 7% FX neutral. Subscription revenue was $60.0 million versus $52.6 million in Q1 2025, an increase of 14% in U.S. dollars and 4% FX neutral. The moderation in GMV growth relative to last quarter was primarily driven by Brazil, where the high interest rate environment and persistent promotional marketplace behavior continued to pressure consumer demand in proprietary channels. In Q1, our non-GAAP subscription gross margin reached 81.5%, representing an expansion of 240 basis points year-over-year. This improvement is mainly driven by structural gains in AI-powered automation in customer support and, to a smaller extent, a positive FX tailwind.

Our total gross margin, including services, reached 80.0%, an expansion of 400 basis points year-over-year. This continuing improvement reflects not only steady gains in subscription gross margin, but also our deliberate de-emphasis of services as our global partner ecosystem increasingly leads complex implementations with reduced reliance on VTEX-led services. Our expense management continues to reflect our discipline in alignment with long-term growth priorities. Total non-GAAP operating expenses in the first quarter were $38 million, up 6% year-over-year. While sales and marketing and G&A remained relatively stable, we deliberately increased investment in R&D, focusing on innovation, product development, and AI capabilities that reinforce our competitive positioning. In other words, even as we expand margins, we are simultaneously strengthening the foundation for sustainable, profitable growth.

As a result, our non-GAAP income from operations reached $10.6 million, doubling from $5.3 million in Q1 2025. This also represented a non-GAAP operating margin of 17.4%, a 7.7 percentage year-over-year. In short, our operational discipline continues to translate into stronger margins and a more profitable growth trajectory while we focus on revenue re-acceleration. Non-GAAP net income was $8.1 million in Q1 2026, up 51% year-over-year. This earnings step-up reflects strong underlying operational performance driven by operating leverage and efficiency gains, reinforcing the sustainability of our model. This was partially offset by unrealized mark-to-market losses on our US dollar-denominated investment-grade cash position held in Cayman, following a significant repricing of the yield curve toward the end of the quarter, which has already recovered in April.

These continued profitability gains keep showing up in our cash generation, which remained strong once again this quarter. Free cash flow for the quarter was $13.3 million, doubling year-over-year and reaching a free cash flow margin of 21.9%. We also maintain a disciplined approach to share repurchases. During the first quarter, under the $50 million 12-month share repurchase program for Class A shares approved in February of 2026, we repurchased 2.5 million Class A common shares at an average price of $3.86 per share for a total cost of $9.7 million. As we look ahead, our focus remains on disciplined execution as we work toward growth re-acceleration, focus on our four growth levers, global expansion, B2B, Ads, and AI.

While macro headwinds persist, particularly in Brazil, where high interest rates and promotional marketplace behavior continue to weigh on GMV growth, we remain encouraged by the quality of new customer additions, our competitive positioning among global enterprise customers, and the compelling market opportunity across our four key long-term growth initiatives. Importantly, while this affects our near-term growth outlook, it does not change our conviction in the structural opportunity across our four growth levers, nor our ability to continue improving profitability. With that, for Q2 2026, we expect subscription revenue to grow at a low- to mid-single digit % rate on an FX neutral year-over-year basis. Gross profit to grow at a mid-single digit % rate on an FX neutral year-over-year basis. Non-GAAP income from operations should be in the high teens to low twenties % margin.

Free cash flow to be in the high teens to low 20s percentage margin. For the full year 2026, we now expect subscription revenue to grow at a mid-single-digit percentage rate on an FX neutral year-over-year basis, and gross profit to grow at a high single-digit FX neutral rate, while maintaining our outlook for non-GAAP income from operations in the low 20s percentage margin and free cash flow also in the low 20s percentage margin. Assuming FX rates remain broadly consistent with April’s average rates, the FX neutral growth guidance outlined above would translate into higher reported U.S. dollar subscription revenue growth, adding approximately 10.3 percentage points in the second quarter and 8.6 percentage points to the full year 2026.

We continue executing with discipline, investing behind our four growth levers to drive durable growth and shareholder value while improving profitability and maintaining a strong balance sheet. With that, let’s open up for questions now. Thank you.

Operator: Our first question comes from the line of Lucca Brendim with Bank of America. Please go ahead.

Lucca Brendim, Analyst, Bank of America: Hi, good afternoon. Thank you for taking my question. I have two from my side here. The first one, if you could comment a little bit on what were the main drivers for the reduction in the guidance for top line growth and gross profit growth for the year, if that was mainly driven by macro and competition or if there was something else. Also, if you could comment if this guidance is already incorporating something from the new AI products that you guys have been rolling out, or if those are still not incorporated into the guidance.

A second one, if you could give us an update on how you’re seeing the expansion in the United States and Europe, and also the clients that were still in the process to go live, if everything is proceeding according to expectations or if there was any changes to that. Thank you.

Ricardo Camatta Sodré, Chief Financial Officer, VTEX: Hi, Lucca. Good afternoon. Ricardo here. Let me start with the guidance. When we look at our guidance for the second quarter and for the full year, we are aligning our short-term outlook with what we are, you know, seeing in the business today, while remaining confident in the long-term opportunity. For Q2, we are guiding subscription revenue growth in the low to mid-single digit range on an FX neutral basis. This essentially reflects a continuation of the trends we’ve seen recently, particularly in Brazil, where macro conditions remain challenging and continued marketplace promotional intensity is temporarily pressuring, you know, proprietary channels. For the full year 2026, we now expect mid-single digit subscription revenue growth on an FX neutral basis.

The vast majority of these guidance adjustments reflects lower growth outlook for Brazil GMV as FX neutral GMV growth in Brazil decelerated from mid-teens level in Q4 to mid-single digit range in Q1, driven by a meaningful moderation in same-store sales. Looking beyond Q2, growth is expected to come primarily from the ramp-up of customers we signed in 2025, combined with continued execution across our 4 strategic growth levers, global expansion, B2B, ads, and AI. On the profitability side, we continue to feel confident. We are targeting non-GAAP operating margin and free cash flow margin in the low 20s for the full year, supported by structural efficiency gains across the organization. More importantly, while the current market conditions affect our near-term growth outlook, it does not change our conviction in the structural opportunity across, you know, the 4 growth levers.

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: Our ability to continue improving profitability. The message here is, you know, realism in the near term combined with, you know, continued discipline on the long term and the conviction in the long term.

Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, VTEX: On the AI revenue predictions, I would say that, you know, most of our AI, as we say a lot, our AI strategy is about transforming the way we serve our customers, the way we see the product, the way we give value to the customer through the new technology. The VTEX AI Workspace is specifically like the first product that we are offering to our customers. The idea is to retransform the text from the ground up, informed by the AI revolution. We’re seeing, like, people interested, a small group of early adopters like Whirlpool, AMOBELEZA, Decathlon, and Casa & Vídeo, they are actively using the product. And this is one interface, one sub-product that we’re offering the customers. The focus is very deliberate.

We need to find and show value creation and satisfaction for a small number of early adopters, then we will expand. I’ll tell you, there might be opportunities to monetize these products. There’s different opportunities to monetize, new opportunities to monetize. Our expectations is that the biggest value that we’ll see after the transformation of the company informed by AI is the acceleration of the sales pipeline, because people will see that this a new way of operating in commerce with VTEX.

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: Mariano here. Regarding the question on the U.S., we are seeing a good momentum in the U.S. and Europe. We continue to close relevant enterprise brands. Just as importantly, we are building a strong and healthy pipeline in both regions. The demand environment from a strategic standpoint remains encouraging. Although with a longer sales cycle compared to the past, the demand is solid for AI-native commerce suite that delivers efficiency. We are seeing a solid demand. Global markets, which is basically U.S. and Europe grew 20% in Q1. Although representing a smaller portion of our revenue base, our global markets expansion is contributing disproportionately to our overall growth, and we expect that contribution to increase over time as it scales.

As always, we’ll share more details as customer names, as they go live. Overall, we’ve encouraged by what we are seeing.

Lucca Brendim, Analyst, Bank of America: Very clear. Thank you for the answers.

Operator: Our next question will come from the line of Livier Muzibota with JPMorgan. Please go ahead.

Livier Muzibota, Analyst, JPMorgan: Hi. I would like to make two questions. Thank you for the opportunity. The first one, I would like to explore a little bit the B2B segment. Could you share a little bit more details about how your B2B strategy is advancing? The reason why I am asking is because we heard strong feedback from industry players regarding this market during your VTEX Day in Brazil. It would be interesting to hear how your commercial pipeline is evolving, when we should see some traction in revenues coming from this segment. Also, if you could explore if the new logo of Whirlpool in Brazil in the B2B and Electrolux in Chile should help unlock value in this segment. Thank you.

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: Okay. On B2B, we continue to see solid traction, particularly in the U.S. and Europe, where roughly half of our pipeline is already coming from B2B solutions opportunities. In Brazil and broader Latam, as expected, adoption has been slower. A big part of our effort there has been educating the market of the value of digitalizing B2B channels and changing very old legacy interfaces for the B2B channels. Currently, we are now starting to see increase in demand in Brazil and growing interesting across Latam region. On the product side, we’ve been focused on strengthening the offering of our B2B solutions and making it more robust and supporting multiple B2B sales channels as a self-service portal, call centers, sales teams automation, among others.

Our goal is to be the transactional backbone for our customers in all B2B and B2C channels. As a data point, B2B grew roughly in the 20 handle in Q1. Although representing a smaller portion of our revenue base, our B2B solution is contributing disproportionately again to our overall growth. We expect that contribution to increase over time as it scales. Overall, it’s still early, but we are seeing the right signals, both in terms of pipeline and market awareness. As we remain very focused on the execution and encouraged by the trajectory so far.

Livier Muzibota, Analyst, JPMorgan: May I make just one follow-up? Another feedback that we heard from the industry is that the sales cycle of B2B should take longer than the B2C ones. Can you share more details on this front, the differences between the sales cycle and the closing process with the client and your outlook for the segment? When we should see this appearing more prominently in your revenue growth?

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: Overall, the sales cycle is getting longer in the last years. Enterprise customers are still taking more time to make decisions. It’s not particularly to B2B, but also to B2C, largely driven by the macro conditions. As what we’ve described as the AI wait and see is really happening. When companies make long-term infrastructure decisions, they want clarity on how AI will reshape their stack, so naturally, decision-making process are taking longer. What we can also say is that AI is affecting the implementation cycle, so getting shorter the process of implementing the software.

Although the sales cycle is getting longer, and we expect that is not getting better soon because AI is still in a big hype, we need a little bit more time to understand where the wait and see ends. The implementation dimension is really generating a good signals for us. Importantly, we are not seeing deterioration in our win rates or churn, and that fundamentals remains intact.

Livier Muzibota, Analyst, JPMorgan: Perfect. Very clear. Thank you.

Operator: Our next question will come from the line of Maria Clara Infantozzi with Itaú. Please go ahead.

Maria Clara Infantozzi, Analyst, Itaú: Hi, everyone. Thanks for the opportunity. I would like first to ask you guys to please explain a little bit more of how you intend to monetize your new AI launches going forward. Does it make sense for us to think about increasing take rates with AI products gaining penetration within your total sales? The second question, can you please give us an update about how you feel about the competitive environment both in Brazil and in Argentina? Thank you.

Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, VTEX: Hello, Maria Clara. About the AI monetization part, I guess a little bit it’s too early to give, like, very detailed information about that because there’s so much discovery happening in the market. Everybody says that the path is to charge by outcome, and this is what AI informs actually. On the case of VTEX, we charge by outcome since always, like since 2012. We bought the Weni company that is now called the VTEX CX Platform, and they also charge very, like, high per outcome, per, like, deferred service that we don’t require humans to in the loop. I guess this is the way to go.

Like, the use of AI will increase the output of our software, and because of that, we will charge more. Also, I expect that as we transform the product into a AI-informed product, AI-based software, people will not wait and see anymore. They will go back to, you know, like modernizing their infrastructure, modernizing the software for e-commerce, and we will be there to serve them. I expect sales to grow to a normal level again.

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: And about the-

Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, VTEX: About the Yeah.

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: About the competition, we look at competition across two dimensions. One is the consumer behavior dimension. What we are seeing is increasing fragmentation on traffic beyond traditional channels like Google and Instagram and marketplaces. We now have messaging platforms like WhatsApp, LLMs, and emerging AI interfaces playing a more relevant role. I can tell that that’s gonna be a slow and suddenly move, and those new channels might take a significant portion of the traffic. Although it’s a tough macro high interest rate environment, our brands and retailers are being challenged to find efficiency and become more conservative in growth, not financing consumers the way they used to do before. On the commerce platform, technology provides a dimension, so our direct competitors, we haven’t seen a meaningful change in competitive intensity.

We’ve taken a different approach with AI.

Operator: This is the operator. I apologize, but there will be a slight delay in our call. Please hold and we will resume momentarily.

Operator: You may resume the meeting.

Ricardo Camatta Sodré, Chief Financial Officer, VTEX: Hi, everyone. Sorry, Mariano, line got disconnected. He’s reconnecting, so continue here. On the commerce technology provider dimension, as Mariano mentioned, we have not seen meaningful change in the competitive intensity. We’ve taken a different approach on AI. We are focusing on, you know, rebuilding the platform to be AI-native rather than layering incremental features on top of legacy systems as we are seeing some players do in the market that allow us to deliver better usability and more importantly, you know, real outcomes to our customers. We feel our strategic positioning has strengthened with this. We are, you know, geographic agnostic, comprehensive commerce suite. We are, you know, efficiency-based on our, you know, Brazilian engineers.

We mentioned a lot on the VTEX Day, and it’s a founder lab culture that are, you know, giving us the reputation to lead this AI commerce race. I believe Mariano may have reconnected. I’m not sure, Mariano, if you wanna add anything to the answer.

Mariano Gomide de Faria, Founder and Co-Chief Executive Officer, VTEX: No, the Sorry by dropping the call. In VTEX, we took a different approach. I was mentioning, we rebuilt the infrastructure as an AI native view. We didn’t build AI on top of what we have just for a sales momentum. That’s like the overall vision. We don’t see a significant move in competition layer.

Operator: Once again, for any questions, please press star one. Our next question will come from the line of Gustavo Farias with UBS. Please go ahead.

Gustavo Farias, Analyst, UBS: Everyone, thanks for taking the questions. I have one question actually, about the roadmap of your AI investments, if you could give us an update. We’ve seen some margin expansion, of course, you patiently raised the R&D as a percentage of revenues. Of course, R&D is an ongoing investment, never-ending investment. My question is, should we expect this increase to be transitory or to persist in the medium term? Any detail would be very helpful. Thank you.

Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, VTEX: Thank you for the question. We recently introduced our VTEX vision in 2026, where we lay out how we’re approaching AI and turn into real measurable commerce impact. At the core of the vision is the unified suite of AI-powered platform orchestrating key commerce workflows across commerce, customer experience, and ads, as you might have seen in VTEX Day. This AI-native commerce suite is now available for selected customers. I’ll walk through what the platform includes. First, we have the VTEX Commerce Platform, which is powered by the AI Workspace, which is the new front-end back office for our system, and it’s evolving to a AI-native operating system. It allows our customers to move from manually executing tasks to orchestrating outcomes with AI agents, handling workflows like search optimization, catalog management, pricing, and data insights.

Second, we have the VTEX CX Platform with this agentic CX. This extends into the customer journey. We’re using AI agents to drive discovery, improve conversion through conversational commerce, and we automate after sale as well. Essentially, we are deploying agents that are actively hunting for revenue on behalf of our customers. In some cases, we are already seeing some 91% automation level in customer interactions, for example, which naturally translate directly in both higher efficiency and better conversion for our customers. Third, we have the VTEX Ads Platform, which brings AI into retail media, enabling retailers to monetize their traffic and giving brands more effective data-driven campaign execution.

From a roadmap perspective, we continue to expand this ecosystem with new agents and capabilities across all three platforms, from search and content optimization to B2B assisted sales to more advanced campaign management in ads. I would like to say that the key focus right now is twofolded, like innovating at high speed and at the same time, drive adoption of what we’ve already launched so that it translate into tangible results for our customers. Overall, like we have an AI native suite already launched in the market. It’s already delivering early results, and we believe it position us very well for the next phase of growth. You also asked about the R&D investment.

As you can see, like there’s a lot of things that we’re changing in our product, and you’re not seeing a meaningful increase in our R&D expenditures. This is also related to AI adoption of our team and our R&D team and the entire VTEX team. We are transforming internally as well on how to leverage AI to be, well, 10 times more efficient. We’re working very hard on that, and I believe that you’re gonna see a lot of more throughput in our product results and efficiency in the company. You saw this already in the way we support our customers. There’s a lot of transformation, the way we sell to our customers, the way we develop our product.

This is like the manifestation of the revolution internally for us will be increase of throughput, more bundling, better products, delivering higher-level jobs, and also providing what was before a service and now will be served by software, like the retail media network and agents that, like, build a campaign for you on behalf of your customer. There’s a lot that we’re working on. There’s a lot to do. Early days for AI.

Gustavo Farias, Analyst, UBS: Very clear. Thank you very much.

Operator: This concludes our question and answer session, and I’ll now turn the call back over to Geraldo for any closing comments.

Geraldo Thomaz Jr., Founder and Co-Chief Executive Officer, VTEX: As we step back, what we’re building at VTEX is increasingly clear. We are redefining how commerce operates. The convergence of our cloud-native foundations with AI is enabling us to move from systems that support decisions to systems that execute them. We’re still in the early stages of this transformation, but the direction is clear. AI is already delivering measurable impacts across our customers, driving higher conversion, faster execution, and greater efficiency. As adoption expands, we believe that this can become a fundamental driver of long-term value creation for both our customers and our shareholders. At the same time, our evolution into a multi-product platform, Commerce CX and Ads, positions us to capture a broader share of the commerce value chain while reinforcing our role as strategic partner to global enterprise customers. Looking ahead, our priorities remain consistent: disciplined execution, continued innovation, and scaling this capability across our base.

We are confident in our ability to translate this strategy into sustainable growth, margin expansion, and durable competitive advantage. Thank you all for your time and continued support.