A.Operating Results The following discussion of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements for the three years ended December 31, 2025, 2024 and 2023, and the notes thereto, included elsewhere in this annual report, as well as the information presented under “Presentation of Financial and Other Information.” As of January 1, 2025, VTEX began to prepare its consolidated financial statements in accordance with U.S. GAAP. Prior to January 1, 2025, VTEX’s financial statements were prepared in accordance with IFRS Accounting Standards. Accordingly, the results of operations for the year ended December 31, 2025, have been prepared in accordance with U.S. GAAP and the results of operations for the years ended December 31, 2024 and 2023, which were previously prepared in accordance with IFRS Accounting Standards, are presented in accordance with U.S. GAAP. Key Metric—Gross Merchandise Value The key metric we use to measure our performance, identify trends affecting our business, formulate our business plan projections and support our strategic decisions is GMV. Due to the seasonality of ecommerce and the foreign exchange effects resulting from the volatility of the currencies of the jurisdictions where we operate (particularly Latin America countries) vis-à-vis the U.S. Dollar (which is our functional currency), our management compares GMV on a year-over-year and foreign exchange neutral basis. The foreign exchange neutral measures are calculated by using the average monthly exchange rates for each month during the previous year and applying them to the corresponding months of the current year, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. GMV is the total value of customer orders processed through our platform, including value added taxes and shipping. Our GMV does not include the value of orders processed by our SMB customers or B2B transactions. Due to our transaction-based subscription model, we believe that GMV growth is linked with our revenue growth, and we track GMV as an indicator of the success of our customers, the performance of the platform and our market share. Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 (in millions of U.S. Dollars, unless otherwise indicated) GMV 4,036.9 4,437.5 4,380.2 5,392.9 4,341.8 4,840.3 4,955.7 6,320.3 GMV Growth FX Neutral (YoY %) 20.1% 19.4% 17.1% 10.90% 17.2% 13.6% 11.8% 10.0% 68 Key Factors Affecting our Performance We believe our future performance will depend on many factors, including the following: Continued growth of ecommerce globally The ecommerce market has experienced rapid growth over the past several years. Widespread access to the internet, the introduction of digital payment methods, and the increased use of smartphones have made online shopping more convenient worldwide, catalyzing the growth of the global ecommerce market. According to EMARKETER, the global ecommerce market grew to more than US$6.5 trillion in 2025 and is estimated to grow to more than US$8.3 trillion by 2029. In Latin America specifically, the ecommerce market grew to US$191.3 billion in 2025 and, according to EMARKETER, is estimated to grow to almost US$290.8 billion by 2029. The Latin American market was the third fastest-growing regional retail ecommerce market in 2025, only after the Central & Eastern Europe and Middle East & Africa, and there remains a significant runway for penetration. EMARKETER estimates Latin America ecommerce penetration was 11.4% in 2025, lagging US penetration of 16.4% and 7 years behind global ecommerce penetration of 20.9% within the same period. The region is forecasted to reach 14.4% penetration in 2029, reflecting a 3.0 percentage points increase in penetration in ecommerce in a region with almost twice the amount of population of the United States. The size of the market, coupled with the relatively low level of penetration, presents a significant opportunity for continued growth. Our business is dependent on the continued adoption of ecommerce globally and in Latin America in particular. As more enterprises choose to introduce and grow their ecommerce businesses, we expect to attract more customers and stores to our platform. Additionally, due to our shared success transaction-based fee model, our revenue is dependent on GMV transacted on our platform, which we believe will grow as our existing and new customers grow their ecommerce businesses, driven by continued growth in consumer demand. Retention and growth of our existing customers Our current business and long-term revenue growth are directly correlated with the success and growth in GMV of our existing customers’ online stores. We strive to maintain industry-leading platform capabilities to maximize customer success and retention. As our customers’ online stores generate more GMV, we directly generate more transaction-based fees and indirectly generate more fixed subscription fees through continuing to enhance platform functionality. Our ability to help our customers increase their ecommerce revenue within their online stores is also demonstrated by our customers’ SSS, calculated on a yearly basis by dividing the GMV of active online stores in the current period by the GMV of the same active online stores in the prior period. In 2025, our SSS were 6.8% on a FX Neutral basis, on top of 2024 and 2023 SSS growth of 10.3% and 14.6% on a FX Neutral basis, respectively. We also measure the retention and growth of our revenue from existing customers and their online stores through our customer’s NRR, which we calculate on a monthly basis by dividing the subscription revenue from our platform during the current period by the subscription revenue in the same period of the previous year for the same base of online stores that were active in the same period of the previous year. Our NRR includes the effect on subscription revenue of any online stores including renewals, expansion, contraction, and churn. Our calculation of NRR excludes any revenue from our SMB platform customers. Our NRR was 99.5%, 104.3% and 107.4% on a FX Neutral basis for the years ended December 31, 2025, 2024 and 2023, respectively. Our SSS and NRR metrics for the fiscal years ended December 31, 2023, 2024, and 2025 were impacted by a persistent high-interest-rate environment and broader macroeconomic headwinds, which influenced both consumer spending patterns and our customers' strategic investment timelines. These restrictive monetary conditions, coupled with global economic uncertainty, contributed to a more cautious operating environment for many of the enterprises on our platform. As we look ahead to 2026, the continued volatility in the macroeconomic landscape and potential fluctuations in discretionary consumer sentiment make it challenging to predict our future SSS and NRR with certainty. Given our subscription-based model, we generate most of our revenues in any given year from existing customers. For the years ended December 31, 2025, 2024 and 2023, we generated 93.3%, 89.4% and 88.9% of the total revenue derived from the VTEX platform from customers who have been on our platform for over one year, respectively. For the year ended December 31, 2025, 72.2% of the total revenue derived from the VTEX platform was generated from customers who have been on our platform for over three years. 69 We believe the strength of our value proposition to enterprises is also evidenced by our customer cohorts, which show revenue retention and growth over the past eight years through 2025. For purposes of the following chart, we define net revenue retention as the percentage of the revenue, on a FX neutral basis, generated by a yearly cohort of customers in 2025, relative to the revenue generated in 2017, the reference year, or yearly vintage of such yearly cohort of customers. We define a yearly cohort of customers as the group of customers that received the first invoice of our VTEX platform in the preceding 18 months from the last day of the relevant fiscal year. Revenue by Cohort Our business is also affected by our customers’ ability to launch additional online stores to serve additional brands, geographies, or use cases. As an example, our top 100 customers have more than doubled their number of online stores per customer from 2.2 in 2017 to 5.4 in 2025. These top 100 customers have almost tripled their geographic presence with us from 13 to 37 countries over the same time period. The average ARR per customer across our top 100 customers has more than quadrupled from 2017 to 2025. We believe that our ability to continue to drive faster go-lives and expand the online store presence, regionally and globally, of our customers will drive revenue growth. As of December 31, 2025, only 13.4% of our enterprise customers had two or more stores, highlighting a significant opportunity for further expansion. Efficient acquisition of new customers Increasing our customer base is important to our continued revenue growth. We believe we are positioned to grow significantly through a combination of our own sales and marketing initiatives, customer referrals, agency and technology partner referrals, and word-of-mouth referrals from existing customers. We measure the efficiency of new customer acquisition by comparing the lifetime value, or LTV, of newly-acquired enterprise customers to the customer acquisition costs, or CAC, of the associated time period to get an “LTV/CAC ratio.” We calculate LTV as the gross profit from new sales during the four quarters of any given period divided by the subscription churn rate of the last 12 months. We calculate CAC as total sales and marketing expenses incurred during the four quarters preceding the quarter in which the calculation is made. This calculation assumes that the actual subscription churn rate for the period will remain consistent in future years. For instance, the LTV/CAC ratio for 2025 includes the LTV for the year ended December 31, 2025, and CAC for the four quarters ended September 30, 2025. On this basis, we estimate that our annual LTV/CAC ratio was of approximately 4x in 2025. Evolution of our business partner ecosystem A key part of our strategy is to build a thriving technology partner ecosystem. The ecosystem around our platform is connected to over 9,000 VTEX IO extensions created by third parties, 1,200 SIs and ISVs, 500 marketplaces, 200 payments solutions and 90 logistics companies, which use or embed our solutions into their own offerings to enable our customers to conduct commerce more 70 conveniently. These integrated business partners include providers for shipping, marketplaces, point-of-sale, omnichannel, marketing automation, search, merchandising, SIs, agencies, payments, anti-fraud and lending services. We focus on collaborating with business partners in our ecosystem, by establishing mutually beneficial relationships, rather than competing with them. For instance, by allowing our customers to seamlessly start accepting online payments through one of our payment solutions partners, we are collaborating with our ecosystem and quickly generating revenue to our payments solutions partners and us. Our customers benefit from the expertise and best-of-breed offerings of our business partners, the flexibility to choose the best offerings for their needs, and the tailored programs developed with our strategic business partners. Our ecosystem of integrated applications and technology solutions is among the largest of any ecommerce platform and helps drive the growth of our customer base, which in turn accelerates growth of the ecosystem. We believe VTEX continues to innovate in an industry where many companies are providing outdated services. Our ability to retain and grow our customers’ online stores often depends on the continuous improvement of our platform and the expansion of the capabilities of our strategic technology partners, including SIs, agencies and payment solutions to provide revenue generating services to our customers. As a result of our strong ecosystem and product capabilities, nearly a third of the revenue potential of new contracts signed in the year ended December 31, 2025, was originated organically or through the ecosystem, including referrals, customers’ requests, or through partners and resellers. Investment in innovation and growth We have invested and intend to continue to invest in our platform, including broadening our capabilities to meet the future needs of enterprise customers and their brands. Our ability to incorporate innovative tools and features that improve our platform is critical to ensuring that the enterprises we support have the necessary capabilities to adapt to the influx of disruptive technologies impacting commerce and the enterprise, to incorporate cutting edge technologies and capabilities that emerge from our partners and the broader commerce ecosystem and to meet the evolving needs of consumers. As a result, we intend to use our Composable Commerce framework to expand our features, capabilities and partner integrations, including facilitating the extension of our platform to address the evolving needs of enterprises and to accelerate their commerce transformation as our customers expand their global commerce footprint. We also intend to continue to invest in enhancing awareness of our brand as we grow our enterprise customer base throughout Latin America and global markets. We believe this strategy will provide new avenues for growth and allow us to continue to deliver differentiated, high-value outcomes to our customers, their consumers and stockholders. In 2024, VTEX continued to build on its innovation-driven strategy by launching innovative features such as VTEX Ads, VTEX Data Pipeline, and VTEX Shield, among others. These solutions further enhanced the ecosystem for our customers, strengthening their ability to drive growth and optimize operations. At the same time, we upheld our commitment to expense diligence, achieving improved margins through disciplined operational leverage. In 2025, VTEX accelerated its strategic transformation centered on four key pillars: (1) expanding our global footprint in the U.S. and Europe, leveraging our robust B2B capabilities to serve complex enterprise needs; (2) scaling our B2B offering to unlock new opportunities within our existing customer base; (3) further developing VTEX Ads to enable retailers to monetize traffic and compete effectively with marketplaces; and (4) transforming the company in the light of AI to reshape our product and boost operational efficiency. We believe our current organizational structure is able to deliver high-efficiency growth in an industry that we believe maintains attractive underlying long-term trends. We expect our total operating expenses to leverage more gradually over time. We also intend to continue to evaluate strategic acquisitions and investments in businesses and technologies to improve our platform and accelerate our market expansion. Our future success is dependent, in part, on our ability to successfully develop, market, and sell our platform to new and existing customers and to help our customers capture omnichannel commerce opportunities both regionally and globally. Successful rollout of new geographies We are investing in the expansion of our regional sales and marketing capabilities in order to grow our business within new regions in Latin America and global markets. In some cases, we are expanding with existing customers to new geographies. For instance, a global electronics brand manufacturer uses the VTEX platform to power its ecommerce direct to consumer initiatives in more than 20 countries. We started our operations in Brazil in 2000, opened our first office outside of Brazil in 2013 and expanded outside of Latin America to the United States in 2017. We have operations in seven cities in Brazil; six cities in Latin America; and nine cities in global markets with 922, 118, and 99 employees, respectively, as of December 31, 2025. For the years ended December 31, 2025, and 2024, purchases originated from customers in Brazil represented 57.7% and 56.6% of our total revenue, respectively, compared to 54.5% for the year ended December 31, 2023. For the years ended December 31, 2025, and 2024, our subscription revenues in Brazil increased year-over-year 8.5% and 17.7% in U.S. dollars and 12.2% and 27.4% on an 71 FX neutral basis, respectively. For the years ended December 31, 2025, and 2024, subscription revenues in Latin America, excluding Brazil, increased 3.2% and 6.1% in U.S. dollars and 2.1% and 6.5% on an FX neutral basis, respectively. Subscription revenues from global markets increased 21.6% and 34.0% in U.S. dollars and 19.2% and 34.8% on an FX neutral basis in the same periods, respectively. Total revenues from Latin America, excluding Brazil, and global markets represented 31.2% and 11.1% of our total revenue for the year ended December 31, 2025, from 32.5% and 10.9% for the year ended December 31, 2024. This rapid growth highlights the success of our platform’s expansion beyond Brazil. Although we believe our platform can compete successfully globally, we have historically focused on Latin America. Given our brand awareness and market position, we believe that most of our growth in the short to medium term will continue to come from Latin America where we have a leadership position and ecommerce is expected to accelerate given its current under penetration. Over the past several years we have invested, and plan to continue disciplined investing, in our operations in the United States and Europe, although only limited growth may result from these regions in the short to medium term. Latin American Macroeconomic Environment We operate across various countries, and in particular a number of emerging economies in Latin America. As a result, our revenues and profitability may be affected by political and economic developments in these countries and the effect that these factors have on the availability of credit, disposable income, employment rates, and average wages in these countries. Although we believe the ongoing secular shift to ecommerce strongly benefit our business, our operations may be impacted by changes in economic conditions in each of the countries in which we operate. As of December 31, 2025, Latin America had an estimated total GDP of US$6.7 trillion, according to Statista, over 623 million inhabitants, with an average GDP per capita of US$10,946, according to Fitch. Important industries have consolidated their presence in the region and acquired scale, the most notable being retail, manufacturing, financial services, transportation and communication, construction, agribusiness and mining. Brazil is the largest economy in Latin America, as measured by GDP, and we have historically carried out the majority of our operations in Brazil. While we have been growing our revenues outside of Brazil, our revenues and profitability may be affected by political and economic developments in Brazil and the effect that these factors have on the availability of credit, disposable income, employment rates and average wages in the country. Our operations in Brazil, and the financial services industry in general, are particularly sensitive to changes in Brazilian economic conditions. The Brazilian real/U.S. dollar exchange rate reported by the Central Bank was R$6.192 per US$1.00 on December 31, 2024, which reflected a 27.9% depreciation of the Brazilian real against the U.S. dollar during 2024 mostly due to fiscal concerns related to Brazilian local government spending and to the global strengthening of the U.S. dollar following the U.S. elections in 2024. The exchange rate reported by the Central Bank was R$5.502 per US$1.00 on December 31, 2025, which reflected a 11.1% appreciation of the Brazilian real against the U.S. dollar during 2025 primarily driven by a high interest rate differential as the Selic rate reached 15.00% and a general weakening of the U.S. dollar in global markets, and R$5.128 per US$1.00 on February 25, 2026. There can be no assurance that the Brazilian real will not appreciate or depreciate against the U.S. dollar or other currencies in the future. While adverse shifts in general economic conditions in Latin America may have a negative impact on our results of operations, the ongoing secular shift to ecommerce, as well as other industry trends, may offset most of this impact. Components of Our Results of Operations The following is a summary of the principal line items comprising consolidated statements of profit or loss. Total revenue Our total revenue consists of (1) subscription and support revenue, arising from a multichannel cloud and SaaS-based platform focused on ecommerce; and (2) revenue from professional services and other, arising substantially from consulting services. Subscription revenue Subscription revenue consists of revenue derived from (1) a mix of transaction-based fees and fixed subscription fees, in each case derived from customers using our platform; (2) our SMB business; and (3) other business units that generate recurring revenue to us. 72 Transaction-based fees comprise (a) subscription fees charged to customers based on a percentage of the GMV or a fee per order processed on our platform; and (b) subscription fees charged to marketplace partners, payment providers, and any other services provided through our app store. Fixed subscription fees comprise (a) yearly or multi-year upfront fees paid by merchants to reduce future variable fees. In case of early termination of the annual upfront fees, we refund merchants for the remaining term of the contract; and (b) fixed monthly fee for using our platform in any given month. Fixed fees are paid to us at the beginning of the applicable subscription period, regardless of the length of the subscription period. As subscription fees are received in advance of providing the related services, we record deferred revenue on our consolidated balance sheet for the unearned revenue and recognize revenue ratably over the related subscription period. Services revenue Services revenue consists primarily of revenue derived from consulting services which are recognized over time during the period that services are performed. Services revenue represented 2.3%, 4.0% and 5.6% of our revenue for the years ended December 31, 2025, 2024 and 2023, respectively. Total cost Our total cost consists of (1) subscription cost; and (2) services cost. Subscription cost Subscription cost consists mainly of costs related to hosting and customer support. The hosting related costs include third-party providers, software related platform operating costs, and compensation for our infrastructure team. Support costs are mostly driven by personnel cost, and represent expenses related to the support we provide to our customers. Services cost Services cost consist mainly of personnel costs and/or third-party expenses to provide the professional services advisory for a specific project of a customer project. Operating expenses Our operating expenses consist of general and administrative expenses, sales and marketing expenses, and research and development expenses. General and administrative expenses consist primarily of (1) personnel-related expenses (including share-based compensation) for our finance, support operation departments, legal and compliance teams; (2) corporate expenses; and (3) corporate overhead allocation. General and administrative expenses also include costs related to business acquisitions, legal and other professional services fees and depreciation and amortization. We expect administrative expenses to increase as a result of becoming a publicly traded company and compliance requirements derived from the Sarbanes-Oxley Act. Public company costs include expenses associated with annual and quarterly reporting, investor relations, register and transfer agent fees, incremental insurance costs, accounting and legal services, and other investments to strengthen corporate governance and internal controls. Sales and marketing expenses consist primarily of (1) personnel-related expenses (including share-based compensations) and commissions paid to the direct sales team, the success team, partnership sales team and sales enablement team; (2) travel-related expenses; (3) marketing and events expenses; (4) finder fee commissions; and (5) the allocation of corporate overhead. We plan to continue to incur sales and marketing expenses in the regions that we currently have a presence as well as in new regions over time in order to continue to enhance our brand to attract new customers. Research and development expenses consist primarily of (1) personnel-related expenses (including share-based compensation) for product development, product management and product design; (2) software subscription costs related to the product; and (3) the allocation of corporate overhead. We expect to increase the research and development expenses to continue investing in product innovation, and in the development of new products. 73 Other income, net Other income, net consists of interest income, gains and losses on financial instruments and foreign exchange gains and losses. Total income tax Provision for total income taxes consists primarily of income taxes, current and deferred, in certain foreign jurisdictions in which we conduct business. The current and deferred income taxes are calculated on the basis of the tax laws enacted at the end of the reporting period in the countries in which we operate and generate taxable income. Our effective tax rate is mostly impacted by permanent book-to-tax differences and valuation allowances related to deferred tax assets at the level of certain legal entities. Historical Consolidated Results of Operations Comparison of Results of Operations for the Years Ended December 31, 2025 and 2024 The following table sets forth our consolidated statements of profit or loss for the years ended December 31, 2025 and 2024. The period-to-period comparison of financial results is not necessarily indicative of future results. For the year ended December 31, 2025 2024 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Subscription revenue 234.9 217.7 7.9% Services revenue 5.6 9.0 (37.8)% Total revenue 240.5 226.7 6.1% Subscription cost (1) (46.4) (47.5) (2.3)% Services cost (1) (7.8) (12.2) (36.3)% Total cost (54.2) (59.7) (9.3)% Gross profit 186.3 167.0 11.6% Operating expenses General and administrative (1) (34.0) (34.3) (0.8)% Sales and marketing (1) (68.6) (68.6) 0.1% Research and development (1) (63.9) (55.4) 15.3% Other losses (1.7) (1.3) 33.0% Income from operation 18.1 7.4 145.2% Other income, net 4.4 5.9 (25.7)% Income before income tax 22.5 13.3 69.4% Total income tax (2.5) 2.5 (196.6)% Net income for the year 20.0 15.8 26.7% (1)Includes share-based compensation expense allocated as follows: For the year ended December 31, 2025 2024 (in millions of U.S. Dollars, unless otherwise indicated) Subscription cost (0.2) 0.0 Services cost (0.5) (1.0) General and administrative (8.9) (8.1) Sales and marketing (4.2) (4.6) Research and development (4.9) (5.5) Total share-based compensation (18.7) (19.2) 74 Total revenue The components of our total revenue during the years ended December 31, 2025, and 2024 were as follows: For the year ended December 31, 2025 2024 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Subscription revenue 234.9 217.7 7.9% Services revenue 5.6 9.0 (37.8)% Total revenue 240.5 226.7 6.1% Total revenue for the year ended December 31, 2025 was U$240.5 million, an increase of US$13.9 million, or 6.1% in US$ or 7.6% on an FX neutral basis, from US$226.7 million in 2024. The increase in total revenue was primarily driven by an increase in GMV of 12.1% in US$ or 12.9% on an FX neutral basis to US$20.5 billion in 2025, from US$18.2 billion in 2024, which also led to higher revenues from transaction-based fees. Total cost The components of our total cost during the years ended December 31, 2025, and 2024 were as follows: For the year ended December 31, 2025 2024 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Subscription cost (46.4) (47.5) (2.3)% Services cost (7.8) (12.2) (36.3)% Total cost (54.2) (59.7) (9.3)% Total cost for the year ended December 31, 2025 decreased by US$5.5 million, or 9.3%, to US$54.2 million in 2025 from US$59.7 million in 2024, mainly due to a decrease in total cost of services by US$4.4 million primarily due to the phase-out of hyper-care services for new customers in the US and Europe, as our matured ecosystem now enables more autonomous and efficient implementations. Gross profit As a result of the above, our gross profit increased by US$19.4 million, or 11.6% to US$186.3 million in 2025 from US$167.0 million in 2024. As a percentage of our total revenue, our gross profit increased to 77.5% in 2025 from 73.7% in 2024, mainly due to efficiencies from AI-powered automation in customer support and, and, to a smaller extent, a higher mix of subscription revenue. Operating expenses General and administrative General and administrative expenses during the years ended December 31, 2025, and 2024 were as follows: For the year ended December 31, 2025 2024 Variation (in millions of U.S. Dollars, unless otherwise indicated) % General and administrative (34.0) (34.3) (0.8)% Percentage of total revenue 14.1% 15.1% Our general and administrative expenses decreased by US$0.3 million in 2025, or 0.8%, to US$34.0 million in 2025, from US$34.3 million in 2024, with no significant changes in key expense categories. 75 Sales and marketing Sales and marketing expenses during the years ended December 31, 2025, and 2024 were as follows: For the year ended December 31, 2025 2024 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Sales and marketing (68.6) (68.6) 0.1% Percentage of total revenue 28.5% 30.3% Our sales and marketing expenses remained stable in 2025, reaching US$68.6 million compared to US$68.6 million in 2024, with no significant changes in key expense categories. Although headcount was reduced during the period, the reduction in personnel-related expenses was offset by severance and termination related expenses. Research and development Research and development expenses during the years ended December 31, 2025, and 2024 were as follows: For the year ended December 31, 2025 2024 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Research and development (63.9) (55.4) 15.3% Percentage of total revenue 26.6% 24.4% Our research and development expenses increased by US$8.5 million, or 15.3%, to US$63.9 million in 2025 from US$55.4 million in 2024, primarily due to (1) an increase in personnel-related expenses, including share-based compensation, and (2) an increase in IT-related expenses. Other income (expense), net Other income (expense), net amounted to an income of US$4.4 million in 2025 from US$5.9 million in 2024, mainly due to (1) a decrease in interest income to US$3.7 million in December 31, 2025 from US$14.2 million in December 31, 2024, which was mostly offset by (2) an increase in gains on financial instruments to US$11.8 million in December 31, 2025 from a gain of US$2.0 million in December 31, 2024. Total income tax Our total income tax amounted to an expense of US$2.5 million in 2025 from an income of US$2.5 million in 2024, reflecting a deferred income tax recovery. Net Income for the year As a result of the above, our net income amounted to US$20.0 million in 2025, compared to a net income of US$15.8 million in 2024. 76 Comparison of Results of Operations for the Years Ended December 31, 2024 and 2023 The following table sets forth our consolidated statements of profit or loss for the years ended December 31, 2024, and 2023. The period-to-period comparison of financial results is not necessarily indicative of future results. For the year ended December 31, 2024 2023 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Subscription revenue 217.7 189.6 14.8% Services revenue 9.0 11.2 (19.7)% Total revenue 226.7 200.8 12.9% Subscription cost (1) (47.5) (45.5) 4.4% Services cost (1) (12.2) (15.5) (21.2)% Total cost (59.7) (61.0) (2.1)% Gross profit 167.0 139.8 19.4% Operating expenses General and administrative (1) (34.3) (32.4) 5.8% Sales and marketing (1) (68.6) (59.4) 15.6% Research and development (1) (55.4) (60.2) (8.0)% Other losses (1.3) (1.9) (33.6)% Income (loss) from operation 7.4 (14.0) n/m. Other income, net 5.9 1.6 272.4% Income (loss) before income tax 13.3 (12.5) n/m. Total income tax 2.5 (3.4) n/m. Net income (loss) for the year 15.8 (15.9) n/m. (1)Includes share-based compensation expense allocated as follows: For the year ended December 31, 2024 2023 (in millions of US$) Subscription cost 0.0 (0.2) Services cost (1.0) (0.5) General and administrative (8.1) (5.9) Sales and marketing (4.6) (4.3) Research and development (5.5) (7.3) Total share-based compensation (19.2) (18.0) Total revenue The components of our total revenue during the years ended December 31, 2024, and 2023 were as follows: For the year ended December 31, 2024 2023 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Subscription revenue 217.7 189.6 14.8% Services revenue 9.0 11.2 (19.7)% Total revenue 226.7 200.8 12.9% 77 Total revenue for the year ended December 31, 2024, was U$226.7 million, an increase of US$25.8 million, or 12.9% in US$ or 18.1% on an FX neutral basis, from US$200.8 million in 2023. The increase in total revenue was primarily driven by: (1) an increase in GMV of 10.4% in US$ or 16.2% on an FX neutral basis to US$18.2 billion in 2024, from US$16.5 billion in 2023, which also resulted in higher revenues from transaction-based fees as percentage of total subscription revenues; and (2) the expansion of our operations outside of Latin America. Total cost The components of our total cost during the years ended December 31, 2024 and 2023 were as follows: For the year ended December 31, 2024 2023 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Subscription cost (47.5) (45.5) 4.4% Services cost (12.2) (15.5) (21.2)% Total cost (59.7) (61.0) (2.1)% Total cost for the year ended December 31, 2024 decreased by US$1.3 million, or 2.1%, to US$59.7 million in 2024 from US$61.0 million in 2023, mainly due to a decrease in the total cost of services by US$3.3 million primarily due to the discontinuation of hyper-care mode for new customers in the USA and Europe, as our evolved ecosystem now efficiently supports most new implementation independently, which was partly offset by the increase in the total cost of subscription by US$2.0 million given the increase in transactions and the GMV processed on our platform. Gross profit As a result of the above, our gross profit increased by US$27.1 million, or 19.4% to US$167.0 million in 2024 from US$139.8 million in 2023. As a percentage of our total revenue, our gross profit increased to 73.7% in 2024 from 69.6% in 2023. Operating expenses General and administrative General and administrative expenses during the years ended December 31, 2024, and 2023 were as follows: For the year ended December 31, 2024 2023 Variation (in millions of U.S. Dollars, unless otherwise indicated) % General and administrative (34.3) (32.4) 5.8% Percentage of total revenue 15.1% 16.1% Our general and administrative expenses increased by US$1.9 million in 2024, or 5.8%, to US$34.3 million in 2024, from US$32.4 million in 2023. Sales and marketing Sales and marketing expenses during the years ended December 31, 2024, and 2023 were as follows: For the year ended December 31, 2024 2023 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Sales and marketing (68.6) (59.4) 15.6% Percentage of total revenue 30.3% 29.6% 78 Our sales and marketing expenses increased by US$9.2 million, or 15.6%, to US$68.6 million in 2024 from US$59.4 million in 2023, primarily due to an increase in expenses related to marketing and events. Research and development Research and development expenses during the years ended December 31, 2024, and 2023 were as follows: For the year ended December 31, 2024 2023 Variation (in millions of U.S. Dollars, unless otherwise indicated) % Research and development (55.4) (60.2) (8.0)% Percentage of total revenue 24.4% 30.0% Our research and development expenses decreased by US$4.8 million, or 8.0%, to US$55.4 million in 2024 from US$60.2 million in 2023, primarily due to the decrease in expenses related to compensation, including share-based compensation. Other income (expense), net Other income (expense), net amounted to a revenue of US$5.9 million in 2024 from US$1.6 million in 2023, mainly due to a decrease in foreign exchange loss to an expense of US$10.2 million in 2024 from an expense of US$32.4 million in 2023, which was partially offset by a decrease in interest income to US$14.2 million in 2024 from an income of US$23.6 million in 2023 and a decrease in gains on financial instruments to a gain of U$2.0 million in 2024 from a gain of US$ 10.2 million in 2023. Total income tax Our total income tax amounted to an income of US$2.5 million in 2024 from an expense of US$3.4 million in 2023, primarily due to a reduction of taxable income in countries with higher tax rates, and to a higher amount of deferred tax assets booked mainly with respect to certain temporary differences. Net Income (loss) for the year As a result of the above, our net income amounted to US$15.8 million in 2024, compared to a net loss of US$15.9 million in 2023. Reconciliation of Non-GAAP Financial Measures This annual report presents certain non-GAAP financial measures, which are not recognized under U.S. GAAP, specifically Free Cash Flow and FX Neutral measures. These non-GAAP financial measures are used by our management for decision-making purposes and to assess our financial and operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. For additional information on our Non-GAAP measures see “Part I—Introduction—Special Note Regarding Non-GAAP Financial Measures.” Free Cash Flow The following table presents a reconciliation of our Free Cash Flow to Net cash provided by operating activities for the following periods: For the year ended December 31, 2025 2024 2023 (in millions of U.S. Dollars, unless otherwise indicated) Net cash provided by (used in) operating activities 33.4 26.0 5.4 Acquisitions of property and equipment (1.0) (2.1) (0.5) Free Cash Flow 32.3 23.9 4.9 79 FX Neutral measures The following tables set forth selected income statement line items on an FX Neutral basis for the years ended December 31, 2025, 2024 and 2023: For the year ended December 31, As reported On an FX Neutral basis(1) 2025 2024 % variation 2025 2024 % variation (in US$ millions except as otherwise indicated) Subscription revenue 234.9 217.7 7.9% 238.3 217.7 9.5% Services revenue 5.6 9.0 (37.8)% 5.7 9.0 (37.2)% Total revenue 240.5 226.7 6.1% 244.0 226.7 7.6% Gross profit 186.3 167.0 11.6% 189.4 167.0 13.4% Income (loss) from operation 18.1 7.4 145.2% 17.6 7.4 138.3% For the year ended December 31, As reported On an FX Neutral basis(1) 2024 2023 % variation 2024 2023 % variation (in US$ millions except as otherwise indicated) Subscription revenue 217.7 189.6 14.8% 228.6 189.6 20.5% Services revenue 9.0 11.2 (19.7)% 9.2 11.2 (18.2)% Total revenue 226.7 200.8 12.9% 237.8 200.8 18.4% Gross profit 167.0 139.8 19.4% 176.7 139.8 26.3% Income (loss) from operation 7.4 (14.0) n/m. 11.5 (14.0) n/m. (1)We calculate FX Neutral measures by using the average monthly exchange rates for each month during 2024 or 2023, as the case may be, and applying them to the corresponding months in 2025 or 2024, respectively, so as to calculate what our results would have been had exchange rates remained stable from one financial year to the next. See “Special Note Regarding Non-GAAP Financial Measures—FX Neutral Measures.” The following tables set forth the average of monthly exchange rates vis-à-vis the U.S. dollar for the years ended December 31, 2025, 2024 and 2023: For the year ended December 31, 2025 2024 2023 High(1) Low(2) Average(3) High(1) Low(2) Average(3) High(1) Low(2) Average(3) (to 1.00 US$) Argentinean peso 1,446.7 1,041.1 1,242.9 1,030.9 826.4 924.1 808.5 186.9 317.1 Brazilian reais 6.0 5.3 5.6 6.1 4.9 5.4 5.2 4.8 5.0 British pound 0.8 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 Chilean peso 1,001.4 913.9 951.3 984.4 909.5 944.2 925.6 797.8 839.7 Colombian peso 4,296.8 3,778.0 4,051.7 4,410.3 3,866.3 4,073.6 4,809.4 3,943.3 4,319.9 Euro 1.0 0.9 0.9 1.0 0.9 0.9 0.9 0.9 0.9 Mexican peso 20.6 18.1 19.2 20.3 16.8 18.3 19.0 16.9 17.7 Peruvian sol 3.7 3.4 3.6 3.8 3.7 3.8 3.8 3.6 3.7 Romanian leu 4.8 4.3 4.5 4.8 4.5 4.6 4.7 4.5 4.6 (1)High Average Monthly Exchange Rate is based on the highest average monthly exchange rate (i.e. the exchange rate on the closing of each day during any given month) of any given fiscal year. (2)Low Average Monthly Exchange Rate is based on the lowest average monthly exchange rate of any given fiscal year (i.e. the exchange rate on the closing of each day during any given month). (3)The Average of Average Monthly Exchange Rates is calculated by the sum of Average Monthly Exchange Rates of any given fiscal year divided by twelve. 80 B.Liquidity and Capital Resources The following discussion of our liquidity and capital resources is based on the financial information derived from our consolidated financial statements included elsewhere in this annual report. Liquidity Our cash and cash equivalents include cash on hand, immediate demand deposits with financial institutions and other short-term highly liquid investments, which have an immaterial risk of change in value. As of December 31, 2025, and December 31, 2024, our cash and cash equivalents amounted to US$15.7 million and US$18.7 million, respectively. We regularly evaluate opportunities to enhance our financial flexibility through a variety of methods, including, without limitation, through loans and financing. As a result of any of these actions, we may be subject to restrictions and covenants in the agreements governing these transactions that may place limitations on us, and we may be required to pledge collateral to secure such instruments. See “—Indebtedness” for additional information. We intend to slightly increase our capital expenditures to support the growth in our business and operations. We believe that our existing cash and cash equivalents and the liquidity provided from other sources of funds will be sufficient to meet our anticipated cash needs for at least the next 12 months, considering organic growth, including the working capital necessary for our present requirements. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. We may seek to raise additional funds at any time through equity, equity-linked or debt financing arrangements. Our future capital requirements and the adequacy of available funds will depend on many factors, including those described in “Item 3. Key Information—D. Risk Factors.” We may not be able to secure additional financing to meet our operating requirements on acceptable terms, or at all. As of December 31, 2025, we did not have any off-balance sheet arrangements. Consolidated Statements of Cash Flows The following table sets forth certain consolidated cash flow information for the periods indicated: For the Year Ended December 31, 2025 2024 2023 (in millions of U.S. Dollars, unless otherwise indicated) Net cash provided by operating activities 33.4 26.0 5.4 Net cash provided by (used in) investing activities 24.8 (20.7 ) 35.2 Net cash used in financing activities (61.6 ) (12.1 ) (37.9 ) Net increase (decrease) in cash and cash equivalents (3.4 ) (6.8 ) 2.6 Net cash provided by operating activities For the year ended December 31, 2025, net cash provided by operating activities amounted to US$33.4 million when compared to US$26.0 million in the year ended December 31, 2024, primarily as a result of: •an improvement in net income for the year, which amounted to US$20.0 million of net income for the year ended December 31, 2025, compared to a net income of US$15.8 million for the same period in 2024; •changes in operating assets which consisted mainly of a decrease in trade receivables of US$0.4 million for the year ended December 31, 2025, compared to an increase of US$21.7 million for the same period in 2024; partially offset by •changes in operating liabilities which consisted mainly of a decrease in deferred revenue of US$4.2 million for the year ended December 31, 2025, compared to an increase of US$20.8 million for the year ended December 31, 2024. For the year ended December 31, 2024, net cash provided by operating activities amounted to 26.0 million when compared to US$5.4 million of net cash provided by operating activities in the year ended December 31, 2023, primarily as a result of: •a net income for the year of US$15.8 million for the year ended December 31, 2024, compared to a net loss of US$15.9 million in the same period of 2023. •changes in operating liabilities which consisted mainly of US$20.8 million increase in deferred revenue for the year ended December 31, 2024, compared to an increase of US$5.5 million for the year ended December 31, 2023; partially offset by 81 •changes in operating assets which consisted mainly of an increase in trade receivables in the amount of US$21.7 million for the year ended December 31, 2024, compared to an increase of US$7.8 million for the year ended December 31, 2023. Net cash provided by (used in) investing activities For the year ended December 31, 2025, net cash provided by investing activities amounted to US$24.8 million, from a net cash used in investing activities of US$20.7 million in the year ended December 31, 2024.The change in net cash from investing activities is primarily attributable to an increase in sales and maturities of marketable securities to US$233.0 million for the year ended December 31, 2025, from US$120.9 million in the same period of 2024. This was partially offset by an increase in purchases of marketable securities to US$204.4 million for the year ended December 31, 2025, from US$133.7 million in the same period of 2024. For the year ended December 31, 2024, net cash used in investing activities increased by US$55.9 million to US$20.7 million, from a net cash provided by investing activities of US$35.2 million in the year ended December 31, 2023, primarily attributable to a decrease in sales and maturities of marketable securities to US$120.9 million for the year ended December 31, 2024, from US$171.2 million in the same period of 2023. This was partially offset by a decrease in purchase of marketable securities to US$ 133.7 million for the year ended December 31, 2024, from US$135.4 million in the same period of 2023. Net cash used in financing activities Net cash used in financing activities amounted to US$61.6 million for the year ended December 31, 2025, from a net cash used in financing activities of US$12.1 million for the year ended December 31, 2024. The increase in net cash used in financing activities is primarily attributable to the increase in the buyback of shares to US$59.1 million for the year ended December 31, 2025, from US$11.2 million in the same period of 2024. Net cash used in financing activities amounted to US$12.1 million for the year ended December 31, 2024, from a net cash used in financing activities of US$37.9 million for the year ended December 31, 2023. The decrease in net cash used in financing activities is primarily attributable to the decrease in the buyback of shares to US$11.2 million for the year ended December 31, 2024, from US$35.2 million in the same period of 2023, partially offset by an increase in the net-settlement of share-based payments to US$4.7 million for the year ended December 31, 2024, from US$2.5 million in the same period of 2023. Capital Expenditures Our capital expenditures, consisting of purchase of property and equipment, for the years ended December 31, 2025, 2024 and 2023, amounted to US$1.0 million, US$2.1 million and US$0.5 million, respectively, representing 0.4%, 0.9% and 0.2% of our total revenue for the years ended December 31, 2025, 2024 and 2023, respectively. For 2026, we expect to maintain the capital expenditures as a percentage of our total revenue at similar levels to the ratios we delivered in 2024 and 2025. We expect to meet our capital expenditure needs for at least the next 12 months from our net cash provided by operating activities and our existing cash and cash equivalents. Our future capital requirements will depend on several factors, including those described in “Item 3. Key Information—D. Risk Factors.” Indebtedness As of December 31, 2025, and December 31, 2024 we had no outstanding indebtedness (consisting of loans and financings). C.Research and Development, Patents and Licenses, etc. As of the date of this annual report, we had no issued patents. We own approximately 129 trademark registrations worldwide. As of December 31, 2025, we owned approximately 30 registered domain names in Brazil and 109 outside of Brazil. We also have approximately 5 pending trademark applications in the United States as of the date of this annual report. D.Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any other trends, uncertainties, demands, commitments or events for the year ended December 31, 2025 that are reasonably likely to have a material and adverse effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future results of operations or financial conditions. 82 Seasonality and Quarterly Unaudited Results of Operations Due to our transaction-based subscription model, similar to most retail businesses, we experience seasonal fluctuations in our net sales and operating results. Historically, we have generated higher net sales in the fourth quarter, which includes the “Black November” period in Brazil (a commercial sales season, a month-long, introduced by Brazilian ecommerce websites in 2010 and equivalent to Black Friday in the United States) and other ecommerce events in Latin American countries. The first quarter of the year is our slowest period, as the months of January, February and March correspond to vacation time in Brazil and other Latin American countries, and the first quarter is impacted by Carnival in Brazil. See “Item 3. Key Information—D. Risk Factors—Certain Risks Relating to Our Business and Industry—Our operating results are subject to seasonal fluctuations.” The following table sets forth our unaudited quarterly consolidated statement of profit or loss data for each of the last eight quarters of the period ended December 31, 2025. The unaudited consolidated statement of profit or loss data below has been prepared on the same basis as the audited consolidated financial statements included elsewhere in this annual report on Form 20-F and, in our opinion, reflects all necessary adjustments, consisting only of ordinary course recurring adjustments, necessary to fairly and accurately state this information. These historical unaudited quarterly results of operations are not necessarily indicative of the results of operations for a full year or any future period. For the Three Months ended (unaudited) March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 (in millions of U.S. Dollars, unless otherwise indicated) Subscription revenue 50.4 54.0 53.9 59.4 52.6 57.2 58.4 66.7 Services revenue 2.3 2.6 2.1 2.1 1.6 1.5 1.2 1.3 Total revenue 52.6 56.5 56.0 61.5 54.2 58.8 59.6 68.0 Subscription cost (11.6) (11.9) (11.7) (12.4) (11.1) (11.6) (11.6) (12.1) Services cost (3.2) (3.1) (2.7) (3.3) (2.1) (1.9) (2.0) (1.8) Total cost (14.8) (15.0) (14.3) (15.6) (13.2) (13.5) (13.5) (14.0) Gross profit 37.9 41.6 41.6 45.9 41.0 45.3 46.1 54.0 Operating expenses General and administrative (8.8) (9.4) (8.3) (7.7) (9.0) (9.0) (8.1) (7.8) Sales and marketing (17.2) (17.3) (16.6) (17.5) (16.8) (17.4) (16.7) (17.7) Research and development (14.0) (14.3) (13.7) (13.4) (14.9) (15.4) (16.7) (16.9) Other income (losses) (0.4) 0.3 (0.7) (0.6) (0.4) (0.5) (0.3) (0.4) Income (loss) from operation (2.5) 0.8 2.3 6.7 (0.2) 2.9 4.2 11.2 Other income (expense), net (0.7) 5.5 (0.1) 1.2 1.6 0.9 2.2 (0.4) Income (loss) before income tax (3.2) 6.3 2.2 7.9 1.4 3.8 6.4 10.9 Total income tax 2.4 0.2 1.1 (1.2) (0.6) (0.8) 0.0 (1.0) Net income (loss) (0.9) 6.6 3.4 6.8 0.9 3.0 6.4 9.8 The following table sets forth selected unaudited consolidated statements of profit or loss data for each of the periods indicated as a percentage of total revenue. For the Three Months ended (unaudited) March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Subscription cost (22.0)% (21.0)% (20.8)% (20.1)% (20.5)% (19.7)% (19.4)% (17.9)% Services cost (6.1)% (5.5)% (4.8)% (5.3)% (3.9)% (3.3)% (3.3)% (2.7)% Total cost (28.1)% (26.5)% (25.6)% (25.4)% (24.3)% (23.0)% (22.7)% (20.5)% Gross profit 71.9% 73.5% 74.4% 74.6% 75.7% 77.0% 77.3% 79.5% Operating expenses General and administrative (16.7)% (16.7)% (14.9)% (12.6)% (16.7)% (15.3)% (13.7)% (11.5)% Sales and marketing (32.7)% (30.6)% (29.7)% (28.4)% (31.1)% (29.7)% (28.0)% (26.0)% Research and development (26.5)% (25.4)% (24.5)% (21.8)% (27.4)% (26.2)% (28.1)% (24.8)% Other income (losses) (0.7)% 0.6% (1.2)% (0.9)% (0.8)% (0.8)% (0.6)% (0.6)% Income (loss) from operation (4.7)% 1.4% 4.2% 10.9% (0.4)% 5.0% 7.0% 16.5% Other income (expense), net (1.4)% 9.8% (0.2)% 1.9% 3.0% 1.5% 3.7% (0.5)% Income (loss) before income tax (6.1)% 11.2% 4.0% 12.9% 2.7% 6.5% 10.7% 16.0% Total income tax 4.5% 0.4% 2.0% (1.9)% (1.1)% (1.4)% — (1.5)% Net income (loss) (1.6)% 11.6% 6.0% 11.0% 1.6% 5.1% 10.7% 14.4% Total revenue In the year ended December 31, 2025, we have experienced resilient sales momentum by signing new enterprise customers onto the VTEX Platform while we witnessed an elongation of sales cycles, when compared to the previous year although still above long-term historical average. Although the macroeconomic scenario in certain countries impacted FX rates and consumer consumption, our GMV demonstrated its resiliency and grew above market. Finally, services revenue saw a by-design reduction due to the evolution of 83 our ecosystem, which enabled new customers in the US and Europe to rely less on VTEX’s direct services, previously sold at a loss to onboard larger customers. Our sources of revenues are denominated 25.9% in U.S. dollars or Euros and 74.1% in local currencies for the year ended December 31, 2025. We continue to monitor the progress of the macroeconomic conditions and its effects in consumption and our customers’ operations and will take additional measures to navigate any macroeconomic environment and comply with the rapidly changing regulations of the countries where we operate. In addition, the devaluation of certain local currencies in those countries against the U.S. dollar, may cause a decline in year-over-year revenues in certain countries we operate, measured in U.S. dollars. However, we may not be able to predict the negative impacts a worsening in the macroeconomic environment will have on our business in the future. Gross profit Our gross profit trends are directly affected by our total revenue and our total cost. The main components of our subscription cost are hosting costs and customer support costs. The hosting related costs include third-party providers, software related platform operating costs, and compensation for our infrastructure team. Customer support costs are mostly driven by personnel cost related to the support we provide to our customers. The main components of our services cost are personnel costs and/or third-party costs to provide the professional services advisory for specific customer projects. For the year ended December 31, 2025, and for the year ended December 31, 2024 our gross profit was US$186.3 million and US$167.0 million, respectively, representing a year-over-year increase of 11.6%. Our gross profit year-over-year growth was lower than our total revenue growth as a reflection of incremental investments in cybersecurity, privacy and compliance mostly related to our global expansion and becoming a public company, partially offset by our efforts to increase efficiencies in hosting costs. Operating expenses Our operating expenses consist of general and administrative expenses, sales and marketing expenses, and research and development expenses. We plan to continue to incur sales and marketing expenses in the regions that we currently have a presence as well as in new regions over time in order to continue to enhance our brand to attract new customers. Finally, we expect to increase the research and development expenses to continue investing in product innovation, and in the development of new products. We expect to continue driving operating leverage across gross margin, general and administrative expenses, and sales and marketing expenses, including through the increasing use of AI to enhance efficiency and scale. These efficiencies are expected to support continued investment in research and development to sustain our pace of innovation and support long-term growth. The worsening of the macroeconomic environment could also have negative impacts on our results of operations if we fail to closely monitor operating expenses on demand patterns. Our operating expenses are not adjusted in order to appropriately represent our actual rate of business development. For the year ended on December 31, 2025, our operating expenses increased by 5.4%, while we saw a 16.7% decrease in overall headcount. The reduction in our employee base primarily reflects an adjustment in our sales and marketing organization, informed by efficiency gains enabled by AI. These reductions were partially offset by an increase in headcount within research and development, in the aim to accelerate product development and strengthening its capabilities in the AI-driven product landscape. E.Critical Accounting Estimates See notes 2 and 3 to our consolidated financial statements for a description of our critical estimates and accounting judgments and significant accounting policies.