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Transformation effects create geometric distortion of text or a vector image (shape or icon from the internal library). Transformation does not work with custom images. Using the transformation tools, you can also change the text or image size.
The transformation tools are located on the Geometry tab.

To apply a transformation, click on its thumbnail and adjust one or several transformation parameters.
To restore the default state of an object, click the Reset button.
When several objects are selected, you can use only geometric transformations.
Geometric transformations have dark shapes on thumbnails and are located at the top.
An image or text has a frame with handles. Moving the frame corner handles resizes the content proportionally. With the Shift key pressed, the proportion of sides will change.
Moving the side handles changes width or height of the content. With the Option key pressed, you will scale the frame from the middle, rather than from the side.
Frame handles of the Frame transformation allow you to change the shape of the frame itself. Unlike other geometric transformations, it allows you to move the handles separately.

Spline curves are linked to an image or text. When you change the shape of a curve, the content changes accordingly.

A spline curve is controlled by two types of handles: knot point (1) and direction line handle (2). The curve consists of one or multiple segments (3) with knot points on its ends. The Spline-Curve transformation lets you adding curve segments. Others have constant number of segments.
The shape of the curve is determined by the length and slope of the direction line (4). To control a direction line, drag its handle (2). For more significant change, move knot points (1).
Note that the Curved Text transformation does nothing with a single letter and an image except for rotation and resizing.
A transformation result can be used as a separate effect or as a part of a complex design.

The Resize button lets you choose the transformation adjusting mode or the resize mode. The resize handles are square. The transformation control handles are round.
You can change the object size by moving handles. In addition to this, there are two buttons.
The Fit to Document button resizes text or image proportionally so that its bigger size fits the documents size.
The Use Font Size button restores the original text size. After clicking the button, the size of letters corresponds to the font size set in the Fonts panel.