Vtex Q4 FY2025 Earnings Call

Hello, everyone, and welcome to the VTEX Earnings Conference Call for the quarter ended December 31, 2025. I'm Julia Vater Fernandez, VP of Investor Relations for VTEX. Our senior executives presenting today are Geraldo Thomaz Jr., Founder and Co-CEO; and Ricardo Camatta Sodre, Chief Financial Officer. Additionally, Mariano Gomide de Faria, Founder and Co-CEO; and Andre 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 relating 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 are cautioned not to place undue reliance on these forward-looking statements. Certain risks and uncertainties are described under Risk Factors and Forward-Looking Statements sections of VTEX's Form 20-F for the year ended December 31, 2025, 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. A reconciliation of those measures to the nearest comparable GAAP measures can be found in our fourth quarter 2025 earnings press release available on our Investor Relations website. With that, I hand the call over to Geraldo. Geraldo, the floor is yours.

Thank you, Julia, and good afternoon, everyone. Thank you for joining us today. Today's call is primarily about giving shareholder transparency into how we're positioning VTEX to strengthen growth over time. Let me start by acknowledging that our recent growth has been below our long-term ambition. We believe that this is largely cyclical, not structural, driven primarily by three external factors: a more challenging macro environment in Brazil and Argentina; a more promotional marketplace environment in Brazil; and longer decision cycles as enterprises reassess their priorities in a rapidly evolving AI landscape. More broadly, we recognize the market debate around AI and what it means for software. Although the combination of rapid AI innovation with limited tangible commerce applications so far may elongate sales cycles, the consistent view from our conversations with enterprise CIOs is that AI will change how software is built and operated, but it won't eliminate the need for deeply integrated enterprise-grade platforms that run mission-critical processes. And while AI lowers the cost of writing code, it raises the bar for security, complex integrations, and reliability, precisely the attributes enterprises rely on VTEX to provide, consistent with broadly stable dollar churn we delivered in 2025. As value shifts from seat-based to outcome-based, VTEX is certainly aligned with this shift. We're not just building AI features. We're building the mission-critical backbone for connected commerce that global brands can rely on to deploy AI safely and effectively. We could dive deeper into each of the three external factors mentioned. But as we cannot control the environment, let's focus on what we can control: our execution and product roadmap. Starting on that, we see a clear opportunity to improve growth with a plan anchored in four levers: global expansion, B2B, retail media, and AI. While we execute this growth plan, our enterprise focus remains front and center. In 2025, customers generating over $250,000 in ARR reached 158, with revenue from this cohort up 13% year-over-year. And to illustrate the relevance of our plan, in Q4, our four growth levers represented roughly 15% of subscription revenue, delivering approximately 20% FX-neutral growth and contributing to nearly half of subscription revenue growth. The addressable market for these levers is materially larger than our core Latin American opportunity, and we believe we are well-positioned competitively. So our focus now is disciplined execution. With that, let me bring our four growth levers to life. First, global expansion. We're winning and scaling in markets where complexity is highest. In 2025, global markets delivered 22% subscription revenue growth. For instance, in Europe, our partnership with Manchester City reached its first milestone with the stadium tour store, offering personalized fan experiences and a single high-performance flow. Second, B2B. We're modernizing large enterprises by delivering complex capability that are AI-ready and composable by design, such as contract pricing, curated catalogs, punch-out, and omnichannel fulfillment. Mondelez launched B2B in Brazil on VTEX, extending a multi-region footprint. While we're still early in the mix, B2B demand in the U.S. and Europe signals a durable shift, one we are now driving to digitalize across Latin America as well. Third, retail media. 2025 was a turning point. We moved from pilots to a core growth engine with clear margin-accretive outcomes. With VTEX ads, customers run on-site, off-site and in-store campaigns and measure them end-to-end through closed-loop attribution anchored in first-party data. The retail media market evolution plays directly to our integrated model. Enterprise retailers monetize traffic they already own, brands gain performance media tied to transactions, and both parties see results in a single source of truth. For example, Essity achieved a 39% increase in average conversion rate on average enrollers of above 17x and consistent month-over-month acceleration in sales driven by retail media performance, demonstrating the power of data-driven campaigns to elevate brand performance in digital retail environments. Finally, AI. Our work here spans two dimensions. First, our product. We're redesigning VTEX with an AI-first approach. For example, leading Brazilian retailers like Americanas and C&A are using Weni by VTEX to automate high-volume support journeys with deep enterprise integrations such as orders, invoice and CRM, reducing manual ticketing, speeding resolution, and improving customer satisfaction. Beyond Weni by VTEX, we see AI reshaping how commerce is built, operated, and optimized. We're embedding intelligence across the platform while simultaneously rethinking how we build commerce and run the company. Our multi-tenant architecture and role as a mission-critical commerce data aggregator give us advantages that point solutions and legacy platforms can't easily replicate. Second, our own operations. AI is already showing up results. Automation and support has expanded gross margins by approximately 3 percentage points. And in December, we implemented a reorganization in sales and marketing that impacted almost 100 headcounts. This move simplified management layers and centralized our global team for greater agility and efficiency. As we embrace an AI-first operating model, we are aligning our organizations to operate with increased speed, consistency, and technical depth. In summary, we chose structural transformation over incremental steps. Despite a challenging environment, disciplined execution and already identified productivity gains support continued improvement in profitability and enable increased R&D investments that drive our AI transformation and deepen our value with top-tier customers. We're evolving VTEX from a platform that powers commerce to a multiproduct company, an AI-first platform that increasingly automates and orchestrates. We will keep executing behind this plan, expanding with existing customers as they scale on VTEX and adding more enterprises to the mix. So, these four growth levers translate into sustained compounding growth. With that, and moving to the fourth quarter of 2025, we added new enterprise customers, including Atacado Vila Nova, Lofty Style, Luz da Lua, and TCL in Brazil, Mercacentro in Colombia, Pharmacy's and Cruz Azul in Ecuador, Llantas Avante and T-fal in Mexico. We also saw expansion activity within our existing customer base, such as EssilorLuxottica, which launched two new brands in Brazil, eOtica and E-Lens, adding to its existing portfolio of stores. Impresistem launched their B2B website in Colombia, adding to its B2C operation running on VTEX. Mondelez launched a B2B operation in Brazil, expanding its VTEX footprint ranging from Latin America to Europe. OBI, who expanded to Italy, added to its operation in Germany and Austria. And Whirlpool launched KitchenAid in Canada, building on its successful store launch in the U.S., while continuing our global relationship in over 20 countries. Even in a softer macro environment, customers continue to choose VTEX to support strategic initiatives involving new channels, new geographies, and more complex operating models. Now, before I hand over the call to Ricardo, I would like to express my sincere gratitude to our 1,139 VTEX employees whose dedication and adaptability were critical. I also would like to thank you, customers, partners, and investors for their trust and support. Ricardo, over to you.

Thank you, Geraldo, and hello, everyone. I will now walk you through our financial performance for the fourth quarter and the full year of 2025. Before going into the details, I'd like to frame the year in context. As mentioned by Geraldo, while the external environment pressured our customers' GMV growth and lengthened enterprise decision cycles, 2025 demonstrated the resilience of our business model and the strength of our unit economics. As evidenced, we continue to drive efficiency gains and deliver record profitability even in a slower growth environment. In the fourth quarter of 2025, our GMV reached $6.3 billion, representing a year-over-year growth of 17.2% in U.S. dollars and 10.0% in FX-neutral. For the full year, GMV reached $20.5 billion, up 12.1% in U.S. dollars and 12.9% in FX-neutral. Subscription revenue reached $66.7 million in the fourth quarter, representing a growth of 12.2% year-over-year in U.S. dollars and 5.4% in FX-neutral. For the full year, subscription revenue reached $234.9 million, growing 7.9% in U.S. dollars and 9.5% in FX-neutral. Turning to revenue retention. In 2025, subscription revenue from existing stores reached $194 million, and our net revenue retention was 99.5% in FX-neutral. Annual dollar churn remained broadly stable year-over-year. However, given that roughly 60% of our revenue comes from a take rate on our customers' GMV, the decline in net revenue retention compared to 2024 was primarily driven by lower same-store sales growth of 6.8% in FX-neutral in 2025. This lower same-store sales growth reflected continued softness in Argentina and more muted consumer spending in Brazil, which weakened over the course of the year. A key highlight for the year was the continued improvement in the profitability of our existing stores. Existing stores' gross margin increased from 80% in 2024 to 82% in 2025, while operating margin reached 44%, representing a 1 percentage point increase year-over-year. This marks the second consecutive year in which this P&L exceeded the Rule of 40, reinforcing our confidence in sustaining a Rule of 40 performance as the business scales. Moving on to subscription revenue addition. In 2025, new stores added $25 million to our base, representing approximately 13% of our 2024 VTEX platform revenue. As discussed in prior quarters, elongated sales cycles throughout the year impacted revenue added from new stores and will carry over some impact in 2026. On the new stores P&L, our focus remains on maintaining a healthy return on the capital allocated to sales and marketing. On that front, LTV over CAC reached approximately 4x in 2025. The year-over-year decline in this metric was primarily driven by longer sales cycles and timing rather than changes in win rates or the underlying attractiveness of the cohort. In fact, our continued enterprise focus drove our number of customers generating over $250,000 in ARR to reach 158 customers in 2025. While this represents only a 1.9% increase in customer count, it resulted in a 14.5% FX-neutral revenue increase from this cohort. Looking forward, as mentioned by Geraldo, we adjusted our sales and marketing investments, and we are reallocating capital towards R&D investments to enhance key product offerings such as B2B, retail media, and AI-powered aftersales support. From a geographic perspective, Brazil's subscription revenue grew 12.2% in FX-neutral, supported by the go-live and ramp-up of new stores despite softer same-store sales. Latin America, excluding Brazil, grew 2.1% in FX-neutral. And excluding Argentina, the region grew just slightly below Brazil's pace. Subscription revenue from global markets, formerly reported as Rest of the World, grew 19.2% in FX-neutral, demonstrating continued compounding even as the base expands. Additionally, global markets represented 11.1% of our total revenue. Its contribution margin, defined as gross profit minus directly allocated sales and marketing expenses, improved significantly and approached breakeven. Moving down the P&L. We maintained strong cost and expense discipline while continuing to prioritize investments aimed at supporting revenue reacceleration. All figures I will now reference are non-GAAP unless otherwise stated. You can find all GAAP to non-GAAP reconciliations on our Investor Relations website. Subscription gross profit reached $54.6 million in the fourth quarter, resulting in 81.8% subscription gross margin, up from 78.8% in the same period of the prior year. Total gross margin increased to 79.6% compared to 75.0% in the fourth quarter of 2024, driven largely by AI-powered customer support automation and to a smaller extent, a higher mix of subscription revenue. Operating expenses totaled $38 million in the fourth quarter, resulting in income from operations of $16.2 million and an operating margin of 23.8%, up from 19.9% in the same period of last year. During the quarter, we executed a reorganization in sales and marketing to simplify layers, centralized global teams to better leverage AI as well as align investments with the expected demand. These actions resulted in approximately $2 million severance expense above normalized level. Excluding that one-off impact, operating margin would have been just under 27%. Free cash flow reached $11.1 million in the quarter, representing a 16.3% margin. Adjusted for one-off severance payments above normalized levels, free cash flow margin would have been just over 19%. Considering this level of cash generation and our current cash position as a percentage of our market cap, we are announcing a new $50 million 12-month share repurchase program for Class A shares. Looking ahead into 2026, as Geraldo highlighted at the beginning of the call, we remain focused on our four growth levers, global expansion, B2B, retail media, and AI. We are executing with discipline. The productivity we have unlocked across cost of revenue, sales and marketing and G&A are expanding profitability while funding higher R&D to accelerate our AI transformation and deepen our value with top-tier customers. While macro headwinds persist, we remain encouraged by the quality of new customer additions, our competitive position among global enterprise customers, and the compelling market opportunity across our four key long-term growth initiatives. With that, and recognizing that Q1 seasonality is our lowest GMV quarter and faces the toughest year-over-year comparison for Q1 2026, we expect subscription revenue to grow at mid-single-digit percentage rate on an FX-neutral year-over-year basis. Gross profit to grow at a high single-digit percentage rate on an FX-neutral year-over-year basis. Non-GAAP income from operations to be in the mid-teens' percentage margin, and free cash flow to be in the high teens percentage margin. For the full year 2026, we are targeting subscription revenue to grow at mid- to high single-digit percentage rate on an FX-neutral year-over-year basis, with gross profit to grow at a high single-digit to low teens percentage rate on an FX-neutral year-over-year basis. Non-GAAP income from operations to be in the low 20s percentage margin and free cash flow to be in the low 20s percentage margin. Assuming FX rates remain broadly consistent with January 2026 averages, the FX-neutral growth guidance outlined above would translate into higher reported USD subscription revenue growth, adding approximately 8.4 percentage points in the first quarter and 4.5 percentage points in the full year 2026. Before we open to Q&A, I would like to reiterate that we are executing with discipline, investing behind our four growth levers to drive durable growth and shareholder value, and expanding profitability while maintaining a strong balance sheet. With that, let's open it up for questions now. Thank you.

Our first question comes from the line of an analyst with JPMorgan.

I would like to explore a little bit the point of the sales cycle. So what I would like to understand is mainly if you see a turning point on this elongated sales cycle. I mean, from your conversations with CTOs and the industry players, what is the feedback that you are having regarding this point? And is there any market intelligence that you could share with us to help us understand when this could normalize? And what do you think is necessary to happen in the market to change the scenario? Is there something that you see as a turning point? And the second point that I would like to explore is the gross margin gains in the fourth quarter. Is it all coming from AI? Is there other elements that are helping you to bring this margin level up?

Mariano will take the first question, and I can take the second one. Mariano?

Yes, I can take. So, make no mistake, what we were seeing is not a deterioration in competitiveness, but a clear elongation of the sales cycle. 2024 was a record year for bookings. In 2025, we signed fewer new contracts. That's a fact. And RFP processes are taking longer to close. So, enterprise customers are simply taking more time to make platform decisions due to macro scenarios and uncertainty of the AI future. The primary driver is what we call the AI wait-and-see effect. There is an enormous amount of discussions around how AI will reshape software. When companies are making a 5 to 10 years infrastructure decision with high switching costs, they want clarity. So, decisions are being delayed, sales cycles are being elongated. Importantly to mention is that our win rates remain stable, our churns remain in the mid-single digits and is stable. And this is, in my opinion, a market-wide excitation, not a VTEX-specific issue. In response, we streamlined our sales and marketing organization to operate more efficiently, leveraging all the new AI paradigm and capabilities. The productivity gains are being redirected into R&D, accelerating our AI roadmap and positioning VTEX as an AI-first native platform for commerce enterprise companies. So yes, momentum is slower, and cycles are longer, but fundamentals remain strong. Sodre?

Thanks, Mariano. On the second question on gross margin. As we mentioned in the prepared remarks, we gained roughly 3 percentage points in subscription gross margin this quarter, from 78.8% to 81.8%. And this is basically all AI-driven. So, just to recap over the past three years, we gained a lot of subscription gross margin. Over the first two years in this three-year period, it was mostly driven by hosting optimizations and gains. Over the last one year, so during 2025, it was driven on the support function of our existing customers. And by automating the support using AI tools, we have managed to gain 3 percentage points in margin, and this is sustainable going forward as well.

And our next question comes from the line of Lucca Brendim with Bank of America.

I have two on my side here. The first one, if you could comment a little bit on what you think are the main risks and also the main opportunities of AI that you see for the company, both in the short term, but also in the long term? And how do you think both sides will pan out in the long run? And also, second, if you could comment a little bit on capital allocation. You guys announced the new buyback program, which is very robust. So, how can we think about what VTEX plans to do with the cash generation that will be coming in the next years?

So, thank you very much, Lucca, for the question. I am Geraldo, I'll answer that. So, first of all, AI is not a feature that we create. It's a structural shift comparable to the move to the cloud that we did a decade ago and make us viable as a company. Our role in this transition is very clear: to be the mission-critical orchestration layer of AI-driven commerce. AI is lowering the cost of writing code. Everybody is talking about it, but it's raising the bar for security, integration, and reliability. Global enterprises don't buy lines of code. They buy future-driven domain knowledge packaged around security and reliability. They need a backbone that propels them for the future with resilience and security. As commerce fragments across AI agents, bots, and new interfaces, the front end becomes increasingly commoditized. But every transaction still needs a centralized system of records to validate inventory, manage price, and trigger fulfillment. That orchestration layer, the single source of truth, is where VTEX operates. We have a cloud-native multi-tenant architecture that gives us access to billions of real-world commerce data points across a lot of verticals. That deterministic data is a strategic asset for training proprietary models, something similar that legacy platforms cannot replicate. In our own operations, Sodre and Mariano talked about this already, we're seeing a lot of tangible impact. So, I would say, Lucca, that the risk for us and for any other software company is that we don't embrace and adopt the revolution, the technological revolution. But if we do, a software company that goes through this technological shift will be stronger, not weaker. And we are working very hard to get there with the strength that we already possess from many years of experience, which is the credibility, the security, the customer base, and the proprietary data. I think there's a lot of room for us to use and leverage the AI revolution.

And on the capital allocation, Lucca, our capital allocation is guided by a simple principle. We prioritize long-term value creation while maintaining the flexibility to navigate a dynamic macro environment. We are operating from a position of significant financial strength. As of year-end 2025, we held roughly $200 million in cash. This robust position, combined with our consistent free cash flow generation, allows us to announce a new $50 million 12-month share repurchase program that you just mentioned. We view buybacks as a disciplined tool to optimize our capital structure and importantly, to mitigate dilution from our share-based compensation program. While organic growth remains our primary focus, and we talked a lot in the prepared remarks about how we plan to reaccelerate organic growth, we are also strategically active in the M&A market. More recently, our approach has been about acquiring capabilities that accelerate our product roadmap to enhance the platform differentiation. So, you've seen this recently with the Weni acquisition, which strengthened our Agentic CX product, and Newtail, which accelerated our retail media capabilities. So, our capital allocation remains anchored in disciplined ROI and a long-term view for our shareholders.

And your next question comes from the line of Rafael Oliveira with UBS.

I got two questions here on my side. So first, I want to start here by asking what are the main drivers that could drive revenue growth back to double digits in the next few years? If you could disclose any regional breakdown on the current macro backdrop, that would be very helpful. And the second question would be, how is the B2B pipeline evolving, both in terms of size and quality? And again, any color on the global expansion of B2B will be very helpful.

Good. I'll address the path forward. As I mentioned earlier, we are not satisfied and believe there is significant potential for tackling more complex challenges to revive our growth and initiate new initiatives. Firstly, we need to differentiate between cyclical and structural factors. Our Q4 2025 subscription revenue growth of 5.4% on a FX-neutral basis indicates a cyclical slowdown primarily due to macroeconomic challenges in Brazil and Argentina, as well as a highly promotional market environment. Nevertheless, I believe our structural foundations are stronger than ever. We have intentionally transformed VTEX into a multiproduct company, now an AI-driven commerce platform, and we are experiencing double-digit growth momentum across four key areas. The first area is global expansion. Our markets in the U.S. and Europe achieved 22% subscription revenue growth in 2025, with these operations nearing breakeven contribution margins and largely self-funded. Second is B2B commerce, which doubles our addressable market, as approximately half of our new deals in the U.S. and EMEA involve enterprises transitioning from outdated legacy systems to a modern platform. The third area is retail media, where we shifted from a pilot phase to a core offering this year, allowing retailers to monetize their digital traffic, generating ad revenue that constitutes 3% to 8% of GMV for marketplaces. This creates a high-margin revenue stream for both our customers and VTEX. The fourth area is our AI-first approach, which is already yielding measurable results, including a 3 percentage point improvement in gross margin. We plan to reinvest these productivity gains into R&D to advance our AI workspace and vision products, which can be transformative for our customers. Looking ahead to 2026, as comparatives ease over the year, we expect a gradual acceleration in our trajectory, aiming to exit the year at a quicker pace than we started. While we acknowledge external factors beyond our control, such as interest rate trends and broader market volatility, we are confident in our ability to equip our customers to boost their same-store sales and revitalize our own sales pipeline. We remain committed to executing steadily and positioning VTEX as the backbone for the next phase of connected commerce, all while achieving record profitability.

Regarding B2B, if I'm not answering correctly, please feel free to repeat the question. From a broader perspective, VTEX offers three main products: the commerce platform, Retail Media platform, and Agentic CX platform. These products support various solutions, including omnichannel B2C and B2B commerce, as well as advertising services for both advertisers and publishers. We're observing an increase in B2B activity and are currently in an acceleration phase focused on deploying and generating pipeline opportunities. Our commerce platform is particularly effective in B2B, and we are seeing significant growth in this area. Notably, about half of our deals in the U.S. and EMEA are now related to B2B, effectively doubling our addressable market within the enterprise tier. If there's anything more specific you wanted to know about B2B, please let me know.

If I may do just a follow-up here on the AI team. How are you guys seeing the development of these new AI tools from the large tech or LLM providers? Are you guys seeing some competitive pressure? And if you guys could comment about agentic e-commerce and how this should be maybe beneficial for the B2C platforms?

I believe we are all quite impressed with the speed of this evolution, and we may be reaching conclusions faster than we should. I see that these AI companies are very powerful and are doing a lot of valuable work, but they also enable companies like ours to deliver even better software. Much like the cloud revolution, they allow us to create significantly improved software. If we embrace this technology and the APIs they offer, I believe we can provide retailers, brands, and manufacturers with better solutions than they could achieve on their own. The reason is that these involve high-risk workflows and complex problems that need more than just software development; they require credibility, security, compliance, and trust. I think we are better positioned as a specialized application to offer solutions to our customers compared to generic ones. We've always believed this. Historically, during the rise of open-source code, there was a belief it would take over the world, yet we continue to sell software and subscriptions. When the cloud revolution emerged, many thought everyone would just manage their software internally, but VTEX has actually grown because of the cloud revolution, not in spite of it. Now, I believe the AI revolution will strengthen our ability to deliver even more value to our customers.

And just adding on Geraldo's comments here. If the question on LLMs were about the kind of monopoly on traffic control that can be generated, the way we see the world of traffic, we used to be controlled by Meta, Google, and a few marketplaces. And now with new entrants like Chinese brands, it becomes a huge traffic controller, OpenAI, with the LLM cracking the code of becoming a huge aggregator. Actually, we are seeing more fragmentation in the traffic industry. So, when the traffic layers fragment, the backbone for a multichannel operation increases in value. WhatsApp in LatAm, for example, is a huge traffic originator. So, the world is evolving in creating more channels and not more consolidation of channels. We see this as a foundation for strengthening the position of anyone in the backbone for the commerce market as we are.

We talk about that in our founder's letter on this annual earnings report. I think it's worth taking a look at our perspective on how this revolution affects us and the market in general.

And our final question comes from the line of Maddie Schrage with KeyBanc Capital Markets.

Obviously, you guys called out some macro headwinds, but also we're emphasizing global expansion as a key growth lever. So, how are you thinking about the pace and prioritization of geographic investments? And then, in particular, as you guys move faster internationally, what do you think is the biggest factor in terms of gaining traction? Was it brand awareness, maybe partnerships, or product localization? Is there something we should call out?

Perfect. I can give some color, and Geraldo can give as well. We cannot avoid understanding that a company that will leverage the most of the AI revolution is the company that can group competencies under org charts. So recently, precisely in December, we changed a lot of our regional approaches by having the same competencies of people below different managers in many regions of the world, countries, and regions. We understood that we need to bring them more in specialization, like a functional-oriented org chart. So we announced a big reorganization on the growth structure, where now a majority of the sales and marketing organizations are oriented by functions. And with that, we can leverage most of the AI agentic revolution. The agents are unified by knowledge. What we are seeing, VTEX has reached the level of a brand by being recognized on Gartner for two consecutive years as the customer choice in the Gartner voice. The brand of VTEX was able to produce clients in all regions. And now with the globally oriented by function org chart, we can deliver through our ecosystem services and solutions among any kind of regional definition. We believe the company that will crack the code on really using AI for operational gains will be the one with a global readiness by joining human plus agentic labor. So, the regional approach lost importance for us. This doesn't mean that the regional localization is less. It's quite the opposite. We reduced our solution architect layer of FTEs, increasing the trust we have in our ecosystem. That's a sign of the maturity of our ecosystem in the world. We are delivering global projects in Abu Dhabi, in Asia, in EMEA, in Africa, in North America, in LatAm. And now we are doing this through the ecosystem. That is a transition coming from the last five years. So, we are not seeing the go-to-market of VTEX heavily or kind of exclusively based on regions. Now we are defining our scope to the world with three products: commerce platform, a Retail Media platform, and an Agentic CX platform with multiple solutions. The two biggest solutions are B2B commerce and omnichannel B2C.

Super helpful. And if I could just ask one follow-up. In your conversations with CIOs and digital leaders, how often are you guys talking about discoverability in the age of agentic commerce and conversion?

The AI, agentic, is a top-notch topic in any RFP today, right? What VTEX is really focused on is to deliver the value aggregation of the disruption in technology. Talking about the technology itself doesn't aggregate outcomes to our customers. But with the Agentic CX platform of VTEX, we have already deployed clients that have saved 80% in customer service costs. This is AI for us. AI is a means to deliver the outcome that our clients need. And our clients all over the world trust us to future-proof them in terms of AI. So, the AI bet of VTEX is pretty big. It's all across all our products and solutions. But the one that I would say is delivering the most results is our solution of agentic customer service based on our product of Agentic CX platform.

There are no further questions at this time. I will now turn the call back over to Geraldo Thomaz for closing remarks. Geraldo?

Before we conclude, I want to step back once more and reflect on where VTEX stands today. 2025 tested the market, our customers, and our industry, but it also reaffirmed the strength of our foundation. We navigated a challenging environment to deliver record profitability while deepening our relevance with enterprise customers. Crucially, we did this while increasing our investment in R&D to accelerate our AI transformation. As we look ahead, our focus is on execution. As discussed, we remain focused on our four growth levers: global expansion, B2B, retail media, and AI. We believe VTEX is structurally aligned with where enterprise commerce is going, and that alignment positioned us to improve growth over time as these initiatives scale. Finally, I want to thank our employees, customers, partners, and investors for their continued trust. VTEX has been built over decades by navigating moments of transition. Our history shows that our willingness to adapt early and invest with discipline creates durable value over time. We entered the next chapter with clarity, resiliency, and confidence in our ability to deliver long-term growth and profitability. Thank you for joining us today, and we look forward to updating you on our progress in the quarters ahead.

That concludes today's call. You may now disconnect.