Yext (YEXT) Q1 2026 earnings summary

Executive summary

• Revenue reached $109.5 million for Q1 FY26, up 14% year-over-year, driven by Hearsay integration and product innovation.

• Annual recurring revenue (ARR) totaled $446.5 million, up 15% year-over-year.

• Adjusted EBITDA was $25 million (23% margin), and non-GAAP net income was $17 million, with non-GAAP EPS of $0.13.

• Gross and net retention rates improved to 87% and 95%, respectively.

• Strong balance sheet and cash flow support reinvestment in organic growth, M&A, and share repurchases.

Financial highlights

• Revenue: $109.5 million, up 14% year-over-year; direct customer ARR grew 19% to $372 million; total ARR up 15%.

• Adjusted EBITDA: $24.7 million, up from $9.6 million year-over-year; margin at 23%.

• Free cash flow for Q1 FY26 was $37.2 million, with a margin of 34%.

• Non-GAAP gross margin was 79%; operating margin was 20%.

• Cash and cash equivalents at quarter-end were $115.0 million.

Outlook and guidance

• Q2 FY26 revenue projected at $111.0–$111.5 million; FY26 revenue guidance at $445–$447 million.

• Adjusted EBITDA guidance for FY26 is $103–$105 million.

• Management remains cautious due to macroeconomic uncertainty but raised full-year Adjusted EBITDA guidance.

• Focus on integrating recent acquisitions and driving profitability.