Yext Announces Second Quarter Fiscal 2026 Results

  • Revenue of $113.1 million, up 16% year-over-year, driven by the integration of Hearsay Systems
  • EPS, basic, of $0.22 or non-GAAP EPS of $0.13
  • Adjusted EBITDA of $26.4 million, resulting in an Adjusted EBITDA margin of 23%
  • ARR of $444.4 million

NEW YORK--(BUSINESS WIRE)-- Yext, Inc. (NYSE: YEXT), the leading brand visibility platform, today announced its results for the three months ended July 31, 2025, or Yext's second quarter of fiscal year 2026. Yext exceeded its prior quarterly guidance for both revenue and Adjusted EBITDA, and was within the high end of its range for non-GAAP EPS.

On August 18, 2025, Yext announced that Michael Walrath, its Chief Executive Officer and Chairman of the Board of Directors, had submitted a non-binding proposal to acquire all outstanding shares of Yext not already owned by him at a price of $9.00 per share in cash. In light of that pending proposal, Yext will not hold a corresponding conference call.

Second Quarter Fiscal 2026 Results

Results of the three months ended July 31, 2025 included the results of Hearsay Social, Inc. (“Hearsay”) and KabanaSoft, LLC, doing business as Places Scout (“Places Scout”), which had not been acquired and are thus not included in the comparative period of the three months ended July 31, 2024.

Revenue of $113.1 million, compared to $97.9 million reported in the second quarter fiscal 2025, a 16% increase on an as-reported basis and a 14% increase on a constant currency basis.

Gross Profit and Non-GAAP Gross Profit:

  • Gross profit was $85.0 million, an increase of 12%, compared to $75.6 million reported in the second quarter fiscal 2025. Gross margin of 75.2%, compared to 77.2% in the second quarter fiscal 2025.
  • Non-GAAP Gross profit was $88.3 million, an increase of 16%, compared to $76.3 million in the second quarter fiscal 2025. Non-GAAP Gross margin of 78.1%, compared to 77.9% in the second quarter fiscal 2025.

Net Income (Loss) and Non-GAAP Net Income:

  • Net income of $26.8 million, compared to a net loss of $4.1 million in the second quarter fiscal 2025.
  • Non-GAAP net income of $16.3 million, compared to $6.8 million in the second quarter fiscal 2025.

Operating Expenses and Non-GAAP Operating Expenses:

  • Operating expenses were $55.4 million, or 49% of revenue, compared to $83.2 million, or 85% of revenue reported in the second quarter fiscal 2025. Sales and marketing costs were 28% of revenue compared to 43% of revenue reported in the second quarter fiscal 2025.
  • Non-GAAP Operating expenses were $64.7 million, or 57% of revenue, compared to $69.4 million, or 71% of revenue reported in the second quarter fiscal 2025. Sales and marketing costs were 26% of revenue compared to 40% of revenue reported in the second quarter fiscal 2025.

Net Income (Loss) Per Share and Non-GAAP Net Income Per Share ("Non-GAAP EPS"):

  • Net income per share attributable to common stockholders, basic, was $0.22 based on 122.9 million weighted average basic shares outstanding. Net income per share attributable to common stockholders, diluted, was $0.03 based on 130.8 million weighted average diluted shares outstanding. This compares to net loss per share, basic and diluted, of $0.03 based on 126.5 million weighted average basic and diluted shares outstanding in the second quarter fiscal 2025.
  • Non-GAAP EPS attributable to common stockholders, basic was $0.13 based on 122.9 million weighted average basic shares outstanding. Non-GAAP EPS attributable to common stockholders, diluted was $0.12 based on 130.8 million weighted average diluted shares outstanding. This compares to Non-GAAP EPS, basic and diluted shares outstanding of $0.05 based on 126.5 million weighted average basic shares outstanding and 127.4 million weighted average diluted shares outstanding, respectively, in the second quarter fiscal 2025.

Adjusted EBITDA of $26.4 million, compared to $9.8 million in the second quarter fiscal 2025.

Annual Recurring Revenue ("ARR") was $444.4 million as of July 31, 2025, an increase of 15% year-over-year, compared to $387.3 million as of July 31, 2024. ARR is inclusive of Hearsay and Places Scout results and as of July 31, 2025, ARR included an approximate $3.2 million positive impact from foreign currency exchange rates, on a constant currency basis.

  • Direct customers represented 83% of total ARR, totaling $369.5 million, an 18% year-over-year increase on an as-reported basis and an 17% increase on a constant currency basis.
  • Third-party Reseller customers, represented 17% of total ARR, totaling $74.8 million, a 1% increase on an as-reported basis and relatively consistent on a constant currency basis.

Dollar-Based Net Retention Rate ("NRR") for Total and Direct customers was 95%. NRR for our Third-party Reseller customers was 98%.

Remaining Performance Obligations ("RPO") were $445.0 million as of July 31, 2025, of which $407.2 million is expected to recognized as revenue over the next twenty-four months, with the remaining balance expected to be recognized thereafter. RPO does not include amounts under contract subject to certain accounting exclusions.

Cash, cash equivalents and restricted cash were $209.5 million as of July 31, 2025, compared to $234.8 million as of July 31, 2024.

Unearned revenue was $185.6 million as of July 31, 2025, compared to $156.2 million as of July 31, 2024.

Share Repurchase Program: Year to date repurchases totaled $45.2 million and as of July 31, 2025, approximately $36.7 million remained available for future purchases.

Readers are encouraged to review the tables labeled "Reconciliation of GAAP to Non-GAAP Financial Measures" at the end of this release.

About Yext
Yext (NYSE: YEXT) is the leading brand visibility platform, built for a world where discovery and engagement happen everywhere — across AI search, traditional search, social media, websites, and direct communications. Powered by over 2 billion trusted data points and a suite of integrated products, Yext provides brands the clarity, control, and confidence to perform across digital channels. From real-time insights to AI-driven recommendations and execution at scale, Yext turns a brand's digital presence into a competitive advantage. Thousands of leading brands rely on Yext to stay visible, stay ahead, and grow. To learn more about Yext, visit Yext.com or follow us on LinkedIn and X.

Statement Regarding Forward-Looking Statements
This release includes "forward-looking statements" including, without limitation, statements regarding Yext's expectations, beliefs, intentions, or strategies regarding the future, including the effects, benefits, and challenges of a potential acquisition of Yext and its expected financial performance. You can identify forward-looking statements by the use of terminology such as "believe", "expect", "will", "should," "could", "estimate", "anticipate" or similar forward-looking terms. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the possibility that any acquisition transaction occurs, the possibility that the conditions to any transaction are not satisfied, including the risk that required approvals from Yext’s Board of Directors or stockholders for a transaction or required regulatory approvals to consummate a transaction are not obtained; potential litigation relating to a transaction; uncertainties as to the timing of the consummation of a transaction; the ability of any party to consummate a transaction; possible disruption related to a transaction process to Yext’s current plans and operations, including through the loss of customers and employees; and other risks and uncertainties detailed in the periodic reports that Yext files with the SEC, including Yext’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. All forward-looking statements are based on information available to Yext on the date hereof, and Yext assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Measurements
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this release and the accompanying tables include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative), non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and non-GAAP net income (loss) as a percentage of revenue, which are referred to as non-GAAP financial measures.

These non-GAAP financial measures are not calculated in accordance with GAAP as they have been adjusted to exclude the effects of stock-based compensation expenses, acquisition-related costs, and amortization of acquired intangibles. Acquisition-related costs include transaction and related costs, subsequent fair value movements in contingent consideration, and compensation arrangements. Non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP operating margin, and non-GAAP net income (loss) as a percentage of revenue are calculated by dividing the applicable non-GAAP financial measure by revenue. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) on a per share basis. We define non-GAAP net income (loss) per share, basic, as non-GAAP net income (loss) divided by weighted average shares outstanding and non-GAAP net income (loss) per share, diluted, as non-GAAP net income (loss) divided by weighted average diluted shares outstanding, which includes the potentially dilutive effect of shares using the treasury stock method or the if-converted method depending on the arrangement.

Beginning in fiscal year 2026, we utilized a projected tax rate of 23.5% in our computation of the non-GAAP income tax provision, which was subsequently updated to 25.5% in the second quarter of fiscal 2026. This compares to a projected tax rate of 25% in fiscal year 2025. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events. Our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

We believe these non-GAAP financial measures provide investors and other users of our financial information consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our results of operations. With respect to non-GAAP gross margin, non-GAAP operating expenses (sales and marketing, research and development, general and administrative) as a percentage of revenue, non-GAAP operating margin and non-GAAP net income (loss) as a percentage of revenue, we believe these non-GAAP financial measures are useful in evaluating our profitability relative to the amount of revenue generated, excluding the impact of stock-based compensation expense, acquisition-related costs, and amortization of acquired intangibles. We also believe non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics eliminate the effects of stock-based compensation and certain acquisition-related costs, which may vary for reasons unrelated to overall operating performance.

We also discuss Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures that we believe offer a useful view of overall operations used to assess the performance of core business operations and for planning purposes. We define Adjusted EBITDA as GAAP net income (loss) before (1) interest income (expense), net, (2) benefit from (provision for) income taxes, (3) depreciation and amortization, (4) other income (expense), net, (5) stock-based compensation expense, and (6) acquisition-related costs. The most directly comparable GAAP financial measure to Adjusted EBITDA is GAAP net income (loss). Users should consider the limitations of using Adjusted EBITDA, including the fact that this measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to purport to be an alternate to GAAP net income (loss) as a measure of operating performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue.

In addition, we present non-GAAP constant currency measures of revenue. Constant currency as it relates to revenue provides a framework for assessing Company performance which excludes the effect of foreign currency rate fluctuations. Current period results for entities reporting in currencies other than U.S. Dollars (“USD”) are converted into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period.

We also present free cash flow, which is a non-GAAP measure defined as net cash provided by (used in) operating activities, less cash used for purchases of capital expenditures, inclusive of capitalized software development costs. Free cash flow margin is calculated as free cash flow divided by total revenue. We believe this is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. We also discuss future free cash flow conversion rates, which we calculate as free cash flow divided by Adjusted EBITDA.

We use these non-GAAP financial measures in conjunction with traditional GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, and to evaluate the effectiveness of our business strategies. Our definition may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, nor superior to or in isolation from, measures prepared in accordance with GAAP.

These non-GAAP financial measures may be limited in their usefulness because they do not present the full economic effect of our use of stock-based compensation and certain acquisition-related costs. We compensate for these limitations by providing investors and other users of our financial information a reconciliation of the non-GAAP financial measure to the most closely related GAAP financial measures. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view non-GAAP net income (loss) and non-GAAP net income (loss) per share in conjunction with GAAP net income (loss) and net income (loss) per share.

Operating Metrics
This release also includes certain operating metrics that we believe are useful in providing additional information in assessing the overall performance of our business.

Annual recurring revenue, or ARR, for Direct customers is defined as the annualized recurring amount of all contracts in our enterprise, mid-size and small business customer base as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription. Contracts include portions of professional services contracts that are recurring in nature.

ARR for Third-party Reseller customers is defined as the annualized recurring amount of all contracts with Third-party Reseller customers as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription. The calculation includes the annualized contractual minimum commitment and amounts related to usage above the contractual minimum commitment. Contracts include portions of professional services contracts that are recurring in nature.

Total ARR is defined as the annualized recurring amount of all contracts executed as of the last day of the reporting period. The recurring amount of a contract is determined based upon the terms of a contract and is calculated by dividing the amount of a contract by the term of the contract and then annualizing such amount. The calculation assumes no subsequent changes to the existing subscription, and where relevant, includes the annualized contractual minimum commitment and amounts related to usage above the contractual minimum commitment. Contracts include portions of professional services contracts that are recurring in nature.

We calculate usage by annualizing monthly amounts in excess of contractual minimum commitments in the current month.

ARR is independent of historical revenue, unearned revenue, remaining performance obligations or any other GAAP financial measure over any period. It should be considered in addition to, not as a substitute for, nor superior to or in isolation from, these measures and other measures prepared in accordance with GAAP. We believe ARR-based metrics provides insight into the performance of our recurring revenue business model while mitigating fluctuations in billing and contract terms.

In addition, we present ARR on a constant currency basis. Constant currency as it relates to ARR provides a framework for assessing Company performance which excludes the effect of foreign currency rate fluctuations. Contracts included in the determination of ARR in the current period are converted into USD at the exchange rates in effect at the end of the comparative period, as opposed to the exchange rates in effect at the end of the current period.

Dollar-based net retention rate is a metric we use to assess our ability to retain our customers and expand the ARR they generate for us. We calculate dollar-based net retention rate by first determining the ARR generated 12 months prior to the end of the current period for a cohort of customers who had active contracts at that time. We then calculate ARR from the same cohort of customers at the end of the current period, which includes customer expansion, contraction and churn. The current period ARR is then divided by the prior period ARR to arrive at our dollar-based net retention rate. Any ARR obtained through merger and acquisition transactions does not affect the dollar-based net retention rate until one year from the date on which the transaction closed. The cohorts of customers that we present dollar-based net retention rate for include direct, third-party reseller, and total customers. Direct customers include enterprise, mid-size and small business customers.

We also present dollar-based gross retention rate, which is a metric we use to assess our ability to retain our customers. We calculate dollar-based gross retention rate by first determining the ARR generated 12 months prior to the end of the current period for a cohort of customers who had active contracts at that time. We then calculate ARR from the same cohort of customers at the end of the current period, which includes customer contraction and churn, and excludes customer expansion. The current period ARR is then divided by the prior period ARR to arrive at our dollar-based gross retention rate. Any ARR obtained through merger and acquisition transactions does not affect the dollar-based gross retention rate until one year from the date on which the transaction closed.

YEXT, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

 

 

 

July 31,

2025

 

January 31,

2025

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

178,761

 

 

$

123,133

 

Restricted cash, current

 

17,021

 

 

 

9,671

 

Accounts receivable, net of allowances of $1,740 and $2,014, respectively

 

66,404

 

 

 

112,942

 

Prepaid expenses and other current assets

 

20,125

 

 

 

18,094

 

Costs to obtain revenue contracts, current

 

18,042

 

 

 

21,961

 

Total current assets

 

300,353

 

 

 

285,801

 

Property and equipment, net

 

35,722

 

 

 

39,689

 

Operating lease right-of-use assets

 

61,188

 

 

 

67,452

 

Restricted cash, non-current

 

13,756

 

 

 

5,850

 

Costs to obtain revenue contracts, non-current

 

8,742

 

 

 

11,145

 

Goodwill

 

110,686

 

 

 

96,782

 

Intangible assets, net

 

93,211

 

 

 

94,247

 

Other long term assets

 

2,508

 

 

 

9,112

 

Total assets

$

626,166

 

 

$

610,078

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable, accrued expenses and other current liabilities

$

72,514

 

 

$

70,022

 

Unearned revenue, current

 

185,592

 

 

 

229,144

 

Operating lease liabilities, current

 

18,337

 

 

 

18,604

 

Contingent consideration, current

 

9,654

 

 

 

26,944

 

Total current liabilities

 

286,097

 

 

 

344,714

 

Operating lease liabilities, non-current

 

68,557

 

 

 

76,809

 

Contingent consideration, non-current

 

14,046

 

 

 

18,056

 

Long term debt, net

 

98,281

 

 

 

 

Other long term liabilities

 

6,656

 

 

 

17,306

 

Total liabilities

 

473,637

 

 

 

456,885

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.001 par value per share; 50,000,000 shares authorized at July 31, 2025 and January 31, 2025; zero shares issued and outstanding at July 31, 2025 and January 31, 2025

 

 

 

 

 

Common stock, $0.001 par value per share; 500,000,000 shares authorized at July 31, 2025 and January 31, 2025; 155,983,811 and 153,017,243 shares issued at July 31, 2025 and January 31, 2025, respectively; 123,125,709 and 126,999,461 shares outstanding at July 31, 2025 and January 31, 2025, respectively

 

156

 

 

 

153

 

Additional paid-in capital

 

1,010,599

 

 

 

996,477

 

Accumulated other comprehensive loss

 

(2,674

)

 

 

(5,969

)

Accumulated deficit

 

(679,599

)

 

 

(707,120

)

Treasury stock, at cost

 

(175,953

)

 

 

(130,348

)

Total stockholders’ equity

 

152,529

 

 

 

153,193

 

Total liabilities and stockholders’ equity

$

626,166

 

 

$

610,078

 

YEXT, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

 

 

 

Three months ended July 31,

 

Six months ended July 31,

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Revenue

$

113,094

 

 

$

97,887

 

 

$

222,577

 

 

$

193,877

 

Cost of revenue

 

28,060

 

 

 

22,293

 

 

 

55,165

 

 

 

43,839

 

Gross profit

 

85,034

 

 

 

75,594

 

 

 

167,412

 

 

 

150,038

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

32,069

 

 

 

41,957

 

 

 

68,278

 

 

 

85,211

 

Research and development

 

23,352

 

 

 

18,580

 

 

 

45,248

 

 

 

35,639

 

General and administrative

 

(61

)

 

 

22,623

 

 

 

23,094

 

 

 

42,180

 

Total operating expenses

 

55,360

 

 

 

83,160

 

 

 

136,620

 

 

 

163,030

 

Income (loss) from operations

 

29,674

 

 

 

(7,566

)

 

 

30,792

 

 

 

(12,992

)

Interest income

 

1,179

 

 

 

2,395

 

 

 

1,811

 

 

 

4,755

 

Interest expense

 

(2,277

)

 

 

(124

)

 

 

(2,919

)

 

 

(516

)

Other expense, net

 

(45

)

 

 

(204

)

 

 

(400

)

 

 

(342

)

Income (loss) from operations before income taxes

 

28,531

 

 

 

(5,499

)

 

 

29,284

 

 

 

(9,095

)

(Provision for) benefit from income taxes

 

(1,780

)

 

 

1,442

 

 

 

(1,763

)

 

 

1,221

 

Net income (loss)

$

26,751

 

 

$

(4,057

)

 

$

27,521

 

 

$

(7,874

)

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders, basic

$

0.22

 

 

$

(0.03

)

 

$

0.22

 

 

$

(0.06

)

Net income (loss) per share attributable to common stockholders, diluted

$

0.03

 

 

$

(0.03

)

 

$

0.05

 

 

$

(0.06

)

Weighted-average number of shares used in computing net income (loss) per share attributable to common stockholders, basic

 

122,854,629

 

 

 

126,535,481

 

 

 

124,229,932

 

 

 

125,967,631

 

Weighted-average number of shares used in computing net income (loss) per share attributable to common stockholders, diluted

 

130,800,808

 

 

 

126,535,481

 

 

 

131,013,284

 

 

 

125,967,631

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) :

 

 

 

 

 

 

 

Foreign currency translation adjustment

$

21

 

 

$

237

 

 

$

3,304

 

 

$

(180

)

Unrealized (loss) gain on marketable securities, net

 

(9

)

 

 

12

 

 

 

(9

)

 

 

4

 

Total comprehensive income (loss)

$

26,763

 

 

$

(3,808

)

 

$

30,816

 

 

$

(8,050

)

YEXT, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

Six months ended July 31,

 

 

 

2025

 

 

 

2024

 

Operating activities:

 

 

Net income (loss)

$

27,521

 

$

(7,874

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

Depreciation and amortization expense

 

13,643

 

 

5,814

 

Bad debt expense

 

953

 

 

363

 

Stock-based compensation expense

 

25,621

 

 

24,398

 

Amortization of operating lease right-of-use assets

 

4,683

 

 

4,265

 

Adjustments to contingent consideration

 

(21,600

)

 

 

Other, net

 

664

 

 

481

 

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:

 

 

Accounts receivable

 

47,282

 

 

62,021

 

Prepaid expenses and other current assets

 

(2,017

)

 

(3,231

)

Costs to obtain revenue contracts

 

7,004

 

 

7,619

 

Other long term assets

 

6,847

 

 

215

 

Accounts payable, accrued expenses and other current liabilities

 

65

 

 

(4,649

)

Unearned revenue

 

(46,452

)

 

(56,370

)

Operating lease liabilities

 

(7,022

)

 

(5,742

)

Other long term liabilities

 

(11,060

)

 

350

 

Net cash provided by operating activities

 

46,132

 

 

27,660

 

Investing activities:

 

 

Capital expenditures

 

(1,135

)

 

(1,192

)

Cash paid in acquisitions, net of cash acquired

 

(18,801

)

 

 

Net cash used in investing activities

 

(19,936

)

 

(1,192

)

Financing activities:

 

 

Proceeds from exercise of stock options

 

439

 

 

791

 

Proceeds from debt issuance

 

99,000

 

 

 

Repurchase of common stock

 

(45,380

)

 

(201

)

Payments for taxes related to net share settlement of stock-based compensation awards

 

(14,002

)

 

(3,781

)

Payments of deferred financing costs

 

(877

)

 

(659

)

Proceeds, net from employee stock purchase plan withholdings

 

1,568

 

 

1,842

 

Net cash provided by (used in) financing activities

 

40,748

 

 

(2,008

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

3,940

 

 

179

 

Net increase in cash, cash equivalents and restricted cash

 

70,884

 

 

24,639

 

Cash, cash equivalents and restricted cash at beginning of period

 

138,654

 

 

210,184

 

Cash, cash equivalents and restricted cash at end of period

$

209,538

 

$

234,823

 

Supplemental reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:

 

Six months ended July 31,

(in thousands)

 

2025

 

 

 

2024

 

Cash and cash equivalents

$

178,761

 

$

234,823

 

Restricted cash, current and non-current

 

30,777

 

 

 

Total cash, cash equivalents and restricted cash

$

209,538

 

$

234,823

 

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

Three months ended July 31,

 

Six months ended July 31,

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

GAAP net income (loss) to Adjusted EBITDA:

 

 

 

 

 

 

 

GAAP net income (loss)

$

26,751

 

 

$

(4,057

)

 

$

27,521

 

 

$

(7,874

)

Interest expense (income), net

 

1,098

 

 

 

(2,271

)

 

 

1,108

 

 

 

(4,239

)

Provision for (benefit from) income taxes

 

1,780

 

 

 

(1,442

)

 

 

1,763

 

 

 

(1,221

)

Depreciation and amortization

 

6,788

 

 

 

2,851

 

 

 

13,643

 

 

 

5,814

 

Other expense, net

 

45

 

 

 

204

 

 

 

400

 

 

 

342

 

Stock-based compensation expense

 

12,962

 

 

 

12,333

 

 

 

25,621

 

 

 

24,398

 

Acquisition-related costs

 

(23,055

)

 

 

2,169

 

 

 

(19,007

)

 

 

2,169

 

Adjusted EBITDA

$

26,369

 

 

$

9,787

 

 

$

51,049

 

 

$

19,389

 

 

 

 

 

 

 

 

 

GAAP net income (loss) as a percentage of revenue

 

23.7

%

 

 

(4.1

)%

 

 

12.4

%

 

 

(4.1

)%

Adjusted EBITDA margin

 

23.3

%

 

 

10.0

%

 

 

22.9

%

 

 

10.0

%

 

Note: Numbers rounded for presentation purposes and may not sum.

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

Three months ended July 31,

 

Six months ended July 31,

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Cost of revenue

 

 

 

 

 

 

 

GAAP cost of revenue

$

28,060

 

 

$

22,293

 

 

$

55,165

 

 

$

43,839

 

Less: Stock-based compensation expense

 

(729

)

 

 

(698

)

 

 

(1,400

)

 

 

(1,386

)

Less: Acquisition-related costs

 

(194

)

 

 

 

 

 

(720

)

 

 

 

Less: Amortization of acquired intangibles

 

(2,347

)

 

 

 

 

 

(4,793

)

 

 

 

Non-GAAP cost of revenue

$

24,790

 

 

$

21,595

 

 

$

48,252

 

 

$

42,453

 

GAAP cost of revenue as a % of revenue

 

25

%

 

 

23

%

 

 

25

%

 

 

23

%

Non-GAAP cost of revenue as a % of revenue

 

22

%

 

 

22

%

 

 

22

%

 

 

22

%

 

 

 

 

 

 

 

 

Sales and marketing

 

 

 

 

 

 

 

GAAP sales and marketing

$

32,069

 

 

$

41,957

 

 

$

68,278

 

 

$

85,211

 

Less: Stock-based compensation expense

 

(704

)

 

 

(3,155

)

 

 

(3,115

)

 

 

(5,906

)

Plus (Less): Acquisition-related costs

 

280

 

 

 

 

 

 

(216

)

 

 

 

Less: Amortization of acquired intangibles

 

(1,686

)

 

 

 

 

 

(3,381

)

 

 

 

Non-GAAP sales and marketing

$

29,959

 

 

$

38,802

 

 

$

61,566

 

 

$

79,305

 

GAAP sales and marketing as a % of revenue

 

28

%

 

 

43

%

 

 

31

%

 

 

44

%

Non-GAAP sales and marketing as a % of revenue

 

26

%

 

 

40

%

 

 

28

%

 

 

41

%

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

GAAP research and development

$

23,352

 

 

$

18,580

 

 

$

45,248

 

 

$

35,639

 

Less: Stock-based compensation expense

 

(3,818

)

 

 

(2,607

)

 

 

(6,952

)

 

 

(5,390

)

Less: Acquisition-related costs

 

(385

)

 

 

 

 

 

(1,074

)

 

 

 

Non-GAAP research and development

$

19,149

 

 

$

15,973

 

 

$

37,222

 

 

$

30,249

 

GAAP research and development as a % of revenue

 

21

%

 

 

19

%

 

 

20

%

 

 

18

%

Non-GAAP research and development as a % of revenue

 

17

%

 

 

16

%

 

 

17

%

 

 

16

%

 

 

 

 

 

 

 

 

General and administrative

 

 

 

 

 

 

 

GAAP general and administrative

$

(61

)

 

$

22,623

 

 

$

23,094

 

 

$

42,180

 

Less: Stock-based compensation expense

 

(7,711

)

 

 

(5,873

)

 

 

(14,154

)

 

 

(11,716

)

Plus (Less): Acquisition-related costs

 

23,354

 

 

 

(2,169

)

 

 

21,018

 

 

 

(2,169

)

Non-GAAP general and administrative

$

15,582

 

 

$

14,581

 

 

$

29,958

 

 

$

28,295

 

GAAP general and administrative as a % of revenue

 

%

 

 

23

%

 

 

10

%

 

 

22

%

Non-GAAP general and administrative as a % of revenue

 

14

%

 

 

15

%

 

 

13

%

 

 

15

%

 

Note: Numbers rounded for presentation purposes and may not sum.

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

Three months ended July 31,

 

Six Months Ended July 31,

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Gross profit

 

 

 

 

 

 

 

GAAP gross profit

$

85,034

 

 

$

75,594

 

 

$

167,412

 

 

$

150,038

 

Plus: Stock-based compensation expense

 

729

 

 

 

698

 

 

 

1,400

 

 

 

1,386

 

Plus: Acquisition-related costs

 

194

 

 

 

 

 

 

720

 

 

 

 

Plus: Amortization of acquired intangibles

 

2,347

 

 

 

 

 

 

4,793

 

 

 

 

Non-GAAP gross profit

$

88,304

 

 

$

76,292

 

 

$

174,325

 

 

$

151,424

 

GAAP gross margin

 

75.2

%

 

 

77.2

%

 

 

75.2

%

 

 

77.4

%

Non-GAAP gross margin

 

78.1

%

 

 

77.9

%

 

 

78.3

%

 

 

78.1

%

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

GAAP operating expenses

$

55,360

 

 

$

83,160

 

 

$

136,620

 

 

$

163,030

 

Less: Stock-based compensation expense

 

(12,233

)

 

 

(11,635

)

 

 

(24,221

)

 

 

(23,012

)

Plus (Less): Acquisition-related costs

 

23,249

 

 

 

(2,169

)

 

 

19,728

 

 

 

(2,169

)

Less: Amortization of acquired intangibles

 

(1,686

)

 

 

 

 

 

(3,381

)

 

 

 

Non-GAAP operating expenses

$

64,690

 

 

$

69,356

 

 

$

128,746

 

 

$

137,849

 

GAAP operating expenses as a percentage of revenue

 

49

%

 

 

85

%

 

 

61

%

 

 

84

%

Non-GAAP operating expenses as a percentage of revenue

 

57

%

 

 

71

%

 

 

58

%

 

 

71

%

 

 

 

 

 

 

 

 

Income/Loss from operations

 

 

 

 

 

 

 

GAAP income (loss) from operations

$

29,674

 

 

$

(7,566

)

 

$

30,792

 

 

$

(12,992

)

Plus: Stock-based compensation expense

 

12,962

 

 

 

12,333

 

 

 

25,621

 

 

 

24,398

 

(Less) Plus: Acquisition-related costs

 

(23,055

)

 

 

2,169

 

 

 

(19,007

)

 

 

2,169

 

Plus: Amortization of acquired intangibles

 

4,033

 

 

 

 

 

 

8,174

 

 

 

 

Non-GAAP income from operations

$

23,614

 

 

$

6,936

 

 

$

45,580

 

 

$

13,575

 

GAAP operating margin

 

26

%

 

 

(8

)%

 

 

14

%

 

 

(7

)%

Non-GAAP operating margin

 

21

%

 

 

7

%

 

 

20

%

 

 

7

%

 

Note: Numbers rounded for presentation purposes and may not sum.

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

 

Three months ended July 31,

 

 

 

2025

 

 

 

2024

 

GAAP net income (loss)

$

26,751

 

 

$

(4,057

)

Plus: Stock-based compensation expense

 

12,962

 

 

 

12,333

 

(Less) Plus: Acquisition-related costs

 

(23,055

)

 

 

2,169

 

Plus: Amortization of acquired intangibles

 

4,033

 

 

 

 

Less: Tax adjustment (1)

 

(4,382

)

 

 

(3,693

)

Non-GAAP net income

$

16,309

 

 

$

6,752

 

GAAP net income (loss) as a percentage of revenue

 

23.7

%

 

 

(4.1

)%

Non-GAAP net income as a percentage of revenue

 

14.4

%

 

 

6.9

%

 

 

 

 

GAAP net income (loss) per share attributable to common stockholders, basic

$

0.22

 

 

$

(0.03

)

Non-GAAP net income per share attributable to common stockholders, basic

$

0.13

 

 

$

0.05

 

 

 

 

 

GAAP net income (loss) per share attributable to common stockholders, diluted

$

0.03

 

 

$

(0.03

)

Non-GAAP net income per share attributable to common stockholders, diluted

$

0.12

 

 

$

0.05

 

 

 

 

 

Weighted-average number of shares used in computing GAAP net income (loss) per share attributable to common stockholders

 

 

 

Basic

 

122,854,629

 

 

 

126,535,481

 

Diluted

 

130,800,808

 

 

 

126,535,481

 

Weighted-average number of shares used in computing non-GAAP net income per share attributable to common stockholders

 

 

 

Basic

 

122,854,629

 

 

 

126,535,481

 

Diluted

 

130,800,808

 

 

 

127,398,986

 

 

(1) During the second quarter of fiscal 2026 we updated our projected tax rate to 25.5% in our computation of the non-GAAP income tax provision.

 

Note: Numbers rounded for presentation purposes and may not sum.

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

 

Six months ended July 31,

 

 

 

2025

 

 

 

2024

 

GAAP net income (loss)

$

27,521

 

 

$

(7,874

)

Plus: Stock-based compensation expense

 

25,621

 

 

 

24,398

 

(Less) Plus: Acquisition-related costs

 

(19,007

)

 

 

2,169

 

Plus: Amortization of acquired intangibles

 

8,174

 

 

 

 

Less: Tax adjustment (1)

 

(9,475

)

 

 

(5,589

)

Non-GAAP net income

$

32,834

 

 

$

13,104

 

GAAP net income (loss) as a percentage of revenue

 

12.4

%

 

 

(4.1

)%

Non-GAAP net income as a percentage of revenue

 

14.8

%

 

 

6.8

%

 

 

 

 

GAAP net income (loss) per share attributable to common stockholders, basic

$

0.22

 

 

$

(0.06

)

Non-GAAP net income per share attributable to common stockholders, basic

$

0.26

 

 

$

0.10

 

 

 

 

 

GAAP net income (loss) per share attributable to common stockholders, diluted

$

0.05

 

 

$

(0.06

)

Non-GAAP net income per share attributable to common stockholders, diluted

$

0.25

 

 

$

0.10

 

 

 

 

 

Weighted-average number of shares used in computing GAAP net income (loss) per share attributable to common stockholders

 

 

 

Basic

 

124,229,932

 

 

 

125,967,631

 

Diluted

 

131,013,284

 

 

 

125,967,631

 

Weighted-average number of shares used in computing non-GAAP net income per share attributable to common stockholders

 

 

 

Basic

 

124,229,932

 

 

 

125,967,631

 

Diluted

 

132,104,280

 

 

 

127,130,771

 

 

(1) During the second quarter of fiscal 2026 we updated our projected tax rate to 25.5% in our computation of the non-GAAP income tax provision.

 

Note: Numbers rounded for presentation purposes and may not sum.

YEXT, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

Three months ended July 31,

 

 

Constant Currency Revenue

 

2025

 

 

 

2024

 

Growth Rates

Revenue (GAAP)

$

113,094

 

 

$

97,887

 

16

%

Effects of foreign currency rate fluctuations

 

(1,219

)

 

 

 

 

Revenue on a constant currency basis (Non-GAAP)

$

111,875

 

 

 

 

14

%

 

 

 

 

 

 

 

Six months ended July 31,

 

 

 

 

2025

 

 

 

2024

 

Growth Rates

Revenue (GAAP)

$

222,577

 

 

$

193,877

 

15

%

Effects of foreign currency rate fluctuations

 

(1,752

)

 

 

 

 

Revenue on a constant currency basis (Non-GAAP)

$

220,825

 

 

 

 

14

%

 

Three months ended July 31,

 

Six months ended July 31,

Free Cash Flow

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Net cash provided by (used in) operating activities

$

8,407

 

 

$

(10,649

)

 

$

46,132

 

 

$

27,660

 

Less: Capital expenditures inclusive of capitalized software development costs

 

(573

)

 

 

(545

)

 

 

(1,135

)

 

 

(1,192

)

Free cash flow

$

7,834

 

 

$

(11,194

)

 

$

44,997

 

 

$

26,468

 

Operating cash flow margin

 

7

%

 

 

(11

)%

 

 

21

%

 

 

14

%

Free cash flow margin

 

7

%

 

 

(11

)%

 

 

20

%

 

 

14

%

 

Note: Numbers rounded for presentation purposes and may not sum.

YEXT, INC.

Supplemental Information

(In thousands)

(Unaudited)

The following tables provides our ARR for the periods presented:

 

 

 

 

 

 

 

July 31,

Variance

 

 

2025

 

 

 

2024

 

Dollars

 

Percent

Annual Recurring Revenue

Direct Customers

$

369,541

 

$

313,392

 

$

56,149

 

 

18

%

Third-Party Reseller Customers

 

74,821

 

 

73,904

 

 

917

 

 

1

%

Total Annual Recurring Revenue

$

444,362

 

$

387,296

 

$

57,066

 

 

15

%

 

 

 

 

 

 

 

Jul. 31, 2025

Apr. 30, 2025

Jan. 31, 2025

Oct. 31, 2024

Jul. 31, 2024

Annual Recurring Revenue Trend

 

 

 

 

 

Direct Customers

$

369,541

 

$

371,851

 

$

368,201

 

$

374,502

 

$

313,392

 

Third-Party Reseller Customers

 

74,821

 

 

74,618

 

 

74,461

 

 

74,147

 

 

73,904

 

Total Annual Recurring Revenue

$

444,362

 

$

446,469

 

$

442,662

 

$

448,649

 

$

387,296

 

 

The following table provides our dollar-based net retention rate for the periods presented:

 

 

Jul. 31, 2025

Apr. 30, 2025

Jan. 31, 2025

Oct. 31, 2024

Jul. 31, 2024

Dollar-Based Net Retention Rate

 

 

 

 

 

Direct Customers

 

95

%

 

95

%

 

92

%

 

91

%

 

91

%

Third-Party Reseller Customers

 

98

%

 

96

%

 

95

%

 

94

%

 

93

%

Total Customers

 

95

%

 

95

%

 

93

%

 

92

%

 

91

%

 

The following table provides our dollar-based gross retention rate for the periods presented:

 

 

Jul. 31, 2025

Apr. 30, 2025

Jan. 31, 2025

Oct. 31, 2024

Jul. 31, 2024

Dollar-Based Gross Retention Rate

 

 

 

 

 

Direct Customers

 

87

%

 

87

%

 

86

%

 

83

%

 

83

%

Third-Party Reseller Customers

 

88

%

 

88

%

 

87

%

 

87

%

 

88

%

Total Customers

 

88

%

 

87

%

 

86

%

 

84

%

 

84

%

 

Note: Numbers rounded for presentation purposes and may not sum.

 

For Further Information Contact:
Investor Relations:
IR@yext.com

Public Relations:
PR@yext.com

Source: Yext, Inc.