Yext (YEXT) Q3 2026 Financial Results Summary

2025-12-09 · Stocks · QuoteReporter

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.
Non-GAAP Gross margin: 77.6%, down from 79.4% in Q3 2025.
Net Income:
$6.1 million, compared to a net loss of $12.8 million in Q3 2025.
Non-GAAP Net Income:
$17.5 million, up 12% from $15.6 million in Q3 2025.
Adjusted EBITDA:
$27.2 million, an increase of 18% from $23.1 million in Q3 2025.
Adjusted EBITDA margin: 24.3%, compared to 20.3% in Q3 2025.
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.
Third-party Reseller customers contributed 17% of total ARR, totaling $75.8 million, an increase of 2% from Q3 2025.
Dollar-Based Net Retention Rate:
For Total and Direct customers: 96%.
For Third-party Reseller customers: 99%.
Remaining Performance Obligations (RPO):
$415.6 million as of October 31, 2025.
Cash, Cash Equivalents, and Restricted Cash:
$158.9 million as of October 31, 2025, compared to $138.7 million as of January 31, 2025.
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.
Sales and marketing costs contributed 30% to revenue, down from 38% in Q3 2025.
Non-GAAP Operating Expenses:
$62.3 million or 56% of revenue, compared to 62% in Q3 2025.

Earnings Per Share (EPS):

Basic EPS:
$0.05, compared to a loss of $0.10 in Q3 2025.
Diluted EPS:
$0.01, compared to a loss of $0.10 in Q3 2025.
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	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