Yext (YEXT) Q3 2026 Financial Results Summary
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Yext, Inc. (YEXT) Q3 2026 Financial Results Summary
Released on December 8, 2025, Yext, Inc. (NYSE: YEXT) reported its financial results for the three months ending October 31, 2025, which represents the third quarter of its fiscal year 2026.
Key Financial Metrics:
- Revenue:
- $112.0 million, down 2% from $114.0 million in Q3 2025.
- Gross Profit:
- $82.8 million, a decrease of 6% from $87.7 million in Q3 2025.
- Gross margin: 73.9%, compared to 77.0% in Q3 2025.
- Non-GAAP Gross Profit:
- $86.9 million, a decrease of 4% from $90.6 million in Q3 2025.
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Non-GAAP Gross margin: 77.6%, down from 79.4% in Q3 2025.
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Net Income:
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$6.1 million, compared to a net loss of $12.8 million in Q3 2025.
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Non-GAAP Net Income:
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$17.5 million, up 12% from $15.6 million in Q3 2025.
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Adjusted EBITDA:
- $27.2 million, an increase of 18% from $23.1 million in Q3 2025.
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Adjusted EBITDA margin: 24.3%, compared to 20.3% in Q3 2025.
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Annual Recurring Revenue (ARR):
- $444.4 million, a decrease of 1% from $448.6 million year-over-year.
- Direct customers contributed 83% of total ARR, totaling $368.6 million, down 2% from the previous year.
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Third-party Reseller customers contributed 17% of total ARR, totaling $75.8 million, an increase of 2% from Q3 2025.
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Dollar-Based Net Retention Rate:
- For Total and Direct customers: 96%.
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For Third-party Reseller customers: 99%.
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Remaining Performance Obligations (RPO):
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$415.6 million as of October 31, 2025.
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Cash, Cash Equivalents, and Restricted Cash:
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$158.9 million as of October 31, 2025, compared to $138.7 million as of January 31, 2025.
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Unearned Revenue:
- $154.6 million as of October 31, 2025, down from $160.9 million as of October 31, 2024.
Share Repurchase Program:
- Yext repurchased $59.6 million worth of shares year-to-date with approximately $22.3 million remaining for future purchases.
Additional Highlights:
- Operating expenses were $75.0 million, or 67% of revenue, compared to 86% in Q3 2025.
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Sales and marketing costs contributed 30% to revenue, down from 38% in Q3 2025.
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Non-GAAP Operating Expenses:
- $62.3 million or 56% of revenue, compared to 62% in Q3 2025.
Earnings Per Share (EPS):
- Basic EPS:
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$0.05, compared to a loss of $0.10 in Q3 2025.
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Diluted EPS:
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$0.01, compared to a loss of $0.10 in Q3 2025.
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Non-GAAP EPS:
- $0.14, up from $0.12 in Q3 2025.
Conclusion:
Yext’s Q3 2026 results reflect a mixed performance, with decreases in revenue and gross profit margins, but notable improvements in net income, adjusted EBITDA and EPS, indicating solid operational cost management. The company continues to explore strategic alternatives, including a non-binding acquisition proposal.
Here are the extracted tables in HTML format.
Condensed Consolidated Statements of Operations and Comprehensive Income (In thousands, except share and per share data)
| Three months ended October 31, | 2025 | 2024 | Nine months ended October 31, | 2025 | 2024 |
|---|---|---|---|---|---|
| Revenue | $111,998 | $113,989 | $334,575 | $307,866 | |
| Cost of revenue | 29,203 | 26,247 | 84,368 | 70,086 | |
| Gross profit | 82,795 | 87,742 | 250,207 | 237,780 | |
| Operating expenses: | |||||
| Sales and marketing | 34,037 | 43,667 | 102,314 | 128,878 | |
| Research and development | 22,614 | 21,070 | 67,863 | 56,709 | |
| General and administrative | 18,364 | 33,373 | 41,457 | 75,553 | |
| Total operating expenses | 75,015 | 98,110 | 211,634 | 261,140 | |
| Income (loss) from operations | 7,780 | -10,368 | 38,573 | -23,360 | |
| Interest income | 1,156 | 823 | 2,967 | 5,578 | |
| Interest expense | -2,358 | -222 | -5,278 | -738 | |
| Other income (expense), net | 94 | -55 | -306 | -397 | |
| Income (loss) from operations before income taxes | 6,672 | -9,822 | 35,956 | -18,917 | |
| Provision for income taxes | -536 | -2,977 | -2,299 | -1,756 | |
| Net income (loss) | $6,136 | -$12,799 | $33,657 | -$20,673 | |
| Net income (loss) per share attributable to common stockholders, basic | $0.05 | -$0.10 | $0.27 | -$0.16 | |
| Net income (loss) per share attributable to common stockholders, diluted | $0.01 | -$0.10 | $0.06 | -$0.16 | |
| Weighted-average number of shares used in computing net income (loss) per share attributable to common stockholders, basic | 123,151,525 | 128,036,993 | 123,866,513 | 126,668,394 | |
| Weighted-average number of shares used in computing net income (loss) per share attributable to common stockholders, diluted | 128,888,811 | 128,036,993 | 130,301,177 | 126,668,394 | |
| Other comprehensive income (loss): | |||||
| Foreign currency translation adjustment | 308 | -144 | 3,612 | -324 | |
| Unrealized gain on marketable securities, net | 10 | 2 | 1 | 6 | |
| Total comprehensive income (loss) | $6,454 | -$12,941 | $37,270 | -$20,991 |
Condensed Consolidated Balance Sheets (In thousands, except share and per share data)
| October 31, 2025 | January 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $139,916 | $123,133 |
| Restricted cash, current | 5,259 | 9,671 |
| Accounts receivable, net of allowances | 62,857 | 112,942 |
| Prepaid expenses and other current assets | 17,788 | 18,094 |
| Costs to obtain revenue contracts, current | 17,025 | 21,961 |
| Total current assets | 242,845 | 285,801 |
| Property and equipment, net | 32,937 | 39,689 |
| Operating lease right-of-use assets | 55,963 | 67,452 |
| Restricted cash, non-current | 13,756 | 5,850 |
| Costs to obtain revenue contracts, non-current | 7,531 | 11,145 |
| Goodwill | 110,726 | 96,782 |
| Intangible assets, net | 89,172 | 94,247 |
| Other long term assets | 2,843 | 9,112 |
| Total assets | $555,773 | $610,078 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable, accrued expenses and other current liabilities | $39,030 | $70,022 |
| Unearned revenue, current | 154,631 | 229,144 |
| Operating lease liabilities, current | 18,147 | 18,604 |
| Contingent consideration, current | 10,155 | 26,944 |
| Total current liabilities | 221,963 | 344,714 |
| Operating lease liabilities, non-current | 65,140 | 76,809 |
| Contingent consideration, non-current | 9,245 | 18,056 |
| Long term debt, net | 98,167 | — |
| Other long term liabilities | 6,086 | 17,306 |
| Total liabilities | 400,601 | 456,885 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.001 par value per share | — | — |
| Common stock, $0.001 par value per share; 500,000,000 shares authorized at October 31, 2025 and January 31, 2025; 157,562,349 and 153,017,243 shares issued at October 31, 2025 and January 31, 2025, respectively; 123,005,705 and 126,999,461 shares outstanding at October 31, 2025 and January 31, 2025, respectively | 158 | 153 |
| Additional paid-in capital | 1,021,190 | 996,477 |
| Accumulated other comprehensive loss | -2,356 | -5,969 |
| Accumulated deficit | -673,463 | -707,120 |
| Treasury stock, at cost | -190,357 | -130,348 |
| Total stockholders’ equity | 155,172 | 153,193 |
| Total liabilities and stockholders’ equity | $555,773 | $610,078 |