VTEX (NYSE:VTEX) announced second-quarter results that fell short of subscription revenue expectations, leading the company to lower its growth projections for the rest of 2025 amid difficulties in Brazil and Argentina.

The e-commerce platform provider’s subscription revenue increased 11.2% on a constant currency basis, missing the previously guided range of 12.5% to 15.5% and coming in 2.8 percentage points below analyst consensus.

While total Gross Merchandise Value (GMV) rose 13.6% to $4.8 billion, aligning with guidance, VTEX’s take-rate declined by 5.9 basis points year-over-year to 1.21%.

As a result, overall revenue growth came in at 9.0% in constant currency, falling 5.0 percentage points short of analyst forecasts.

VTEX lowered its third-quarter subscription revenue growth outlook to a 6%-9% range, down from the earlier 12.5%-15.5%. Similarly, full-year 2025 subscription revenue growth guidance was trimmed to 9%-12% from 14%-17%.

The company cited slower momentum in Brazil and negative trends in Argentina as key factors behind the downward revision, despite solid gains in its U.S. and European markets.

Given that roughly 90% of VTEX’s revenue stems from Brazil and Latin America, challenges in these regions have a pronounced effect on the company’s overall performance.

On a positive note, subscription gross margin improved to 79.9%, surpassing consensus estimates by 0.9 percentage points and increasing 1.8 percentage points compared to the previous year.

Additionally, VTEX reported a non-GAAP EBIT margin of 14.5%, exceeding analyst expectations by 2.5 percentage points.

These margin gains were strong enough for VTEX to raise its full-year 2025 EBIT guidance by 10%, even as it lowered its revenue growth forecast.

VTEX shares closed at $5.92 on Thursday, with analysts maintaining a $7.30 price target, implying about 23% upside potential.

VYEX stock price

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