Yext (YEXT) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025 grew 13% year-over-year to $114.0 million, driven by the integration of Hearsay Systems and stable core business performance, despite the loss of a large customer.

• Net loss was $12.8 million for the quarter, while non-GAAP net income was $15.6 million and Adjusted EBITDA reached $23.1 million, reflecting margin improvements.

• The company completed the acquisition of Hearsay Systems in August 2024 for $125 million in cash plus contingent consideration and incentives, enhancing social capabilities and product offerings.

• A restructuring plan reduced workforce by 12%, incurring $5 million in costs to position for profitable growth.

• Focus remains on accelerating growth, improving margin profile, and integrating Hearsay with positive customer response.

Financial highlights

• Hearsay contributed $16.4 million in Q3 revenue and $62.8 million in ARR.

• Total ARR as of October 31, 2024, was $441.8 million, up 11% year-over-year.

• Gross profit for the quarter was $87.7 million, with a gross margin of 77.0%.

• Adjusted EBITDA for the quarter was $23.1 million, up from $13.5 million in the prior year.

• Cash and cash equivalents at quarter-end were $100.5 million.

Outlook and guidance

• Full-year revenue guidance updated to $420.3–$420.8 million, with Adjusted EBITDA guidance raised to $67.0–$67.5 million.

• Revenue guidance for Q4 reflects FX headwinds, but underlying business remains stable when FX is excluded.

• Guidance remains conservative, awaiting clearer evidence of sustained growth before revising outlook.

• Management expects macroeconomic uncertainty, customer attrition, and integration of Hearsay to impact future results.

• The company believes existing cash and cash equivalents are sufficient to meet projected operating requirements for at least the next 12 months.