Yext (YEXT) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter ended October 31, 2025, was $112.0 million, down 2% year-over-year, while net income was $6.1 million, a turnaround from a net loss of $12.8 million in the prior year period.

• Adjusted EBITDA for the quarter was $27.2 million, up from $23.1 million a year ago, with a margin of 24%.

• The nine-month period saw revenue rise 9% to $334.6 million, with net income of $33.7 million compared to a net loss of $20.7 million a year earlier, driven by the Hearsay acquisition.

• The board is reviewing a non-binding acquisition proposal from the CEO at $9.00 per share and other strategic alternatives.

• Gross margin declined to 73.9% for the quarter and 74.8% for the nine months, reflecting higher costs and asset impairments.

Financial highlights

• Quarterly revenue decreased by $2.0 million year-over-year, mainly due to direct customer attrition, while third-party reseller revenue remained stable.

• Cost of revenue increased 11% year-over-year, primarily from higher personnel costs, data center expenses, and $1.1 million in asset impairment charges.

• Operating expenses fell 24% year-over-year for the quarter, with significant reductions in sales and marketing and general and administrative costs, partly offset by asset impairments.

• Non-GAAP gross profit was $86.9 million, down 4% year-over-year; non-GAAP gross margin was 77.6%.

• Free cash flow for the nine months was $24.7 million, with a margin of 7%.

Outlook and guidance

• Management expects macroeconomic uncertainty and customer attrition to continue impacting growth, with future revenue growth dependent on successful integration of acquisitions and customer retention.

• Forward-looking statements highlight risks related to the potential acquisition, regulatory approvals, and possible business disruptions.

• The company believes existing cash and cash equivalents of $139.9 million are sufficient to meet operating requirements for at least the next 12 months.