Summary
Yext ended fiscal 2025 with fourth quarter revenue of $113.1 million, up 11.9% from the prior-year quarter. Full-year revenue was $421.0 million, up 4.1%. The full-year increase was entirely driven by the Hearsay acquisition, which closed on August 1, 2024, and was partly offset by the absence of revenue from a large customer that did not renew as of January 31, 2024. Gross profit was $86.8 million in the quarter, up 9.3%, and $324.6 million for the full year, up 2.4%. Gross margin slipped to 76.8% in the quarter, down 1.8 percentage points, and 77.1% for the full year, down 1.3 percentage points.
Profitability deteriorated. The fourth quarter produced an operating loss of $9.1 million, down from operating income a year earlier, and an operating margin of -8.0%, down 9.1 percentage points. The full-year operating loss was $32.4 million, a wider loss than the prior year, with an operating margin of -7.7%, down 6.2 percentage points. Net loss was $7.3 million in the quarter, down from net income a year earlier. For the full year, net loss was $27.9 million, a wider loss than the prior year. Full-year diluted EPS was -$0.22, a wider loss than the prior-year period.
Cash generation improved. Fourth quarter operating cash flow was $38.3 million, up 36.9%. Full-year operating cash flow was $50.2 million, up 8.8%. Capital expenditures were $0.3 million in the quarter, down 22.5%, and $2.1 million for the full year, down 23.6%. Free cash flow, a non-GAAP measure, was $48.1 million for the full year. Deferred revenue, current portion, was $229.1 million, up 8.0% from the prior-year quarter. Remaining performance obligations were $490.1 million, up 5.4%.
Key operating metrics showed mixed trends. Total ARR was $442.7 million as of January 31, 2025, up 13% from $392.2 million a year earlier. Direct customer ARR was $368.2 million, up 17%. Third-party reseller ARR was $74.5 million, down from $76.6 million a year earlier. Under the prior ARR definition, total ARR was $435.7 million, up 12%. Dollar-based net retention for total customers was 93%, compared with 92%. Direct customer retention was 92%, compared with 91%. Third-party reseller retention was 95%, compared with 93%. Customer count was approximately 2,920 as of January 31, 2025. The company refined its ARR methodology in the fourth quarter of fiscal 2025 to include usage.
Management also pursued acquisitions and restructuring. Yext acquired Hearsay for approximately $125 million in cash, with a $20 million bonus pool and up to $75 million in contingent consideration. On February 7, 2025, it acquired Places Scout for $20.3 million in cash and agreed to grant approximately $10.0 million of incentive equity. The June 4, 2024 restructuring plan reduced the workforce by approximately 12 percent compared with headcount as of January 31, 2024.
Guidance and risks. The February 10, 2025 press release updated the outlook and said Yext expects results for the fourth quarter and full fiscal year ended January 31, 2025 to be in-line with or above its previously stated guidance ranges from the December 4, 2024 shareholder letter, despite foreign exchange headwinds in the period. Management listed macroeconomic conditions, foreign currency fluctuations, inflation, recession risks, and geopolitical events as risks. It said customers may reduce, suspend, or delay technology spending, seek contract concessions such as extended billing and payment terms, shorten contract durations, or elect not to renew subscriptions. The company also flagged risks tied to integrating Places Scout and realizing the expected benefits of the acquisition.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $113.1M | $114.0M | -0.8% | $101.1M | +11.9% |
| Gross profit | $86.8M | $87.7M | -1.1% | $79.4M | +9.3% |
| Gross margin | 76.8% | 77.0% | -0.2 pp | 78.6% | -1.8 pp |
| Research & development | $20.5M | $21.1M | -2.7% | $18.1M | +13.2% |
| Sales & marketing | $45.9M | $43.7M | +5.1% | $41.9M | +9.6% |
| General & administrative | $29.5M | $33.4M | -11.6% | $18.4M | +60.3% |
| Total operating expenses | $95.9M | $98.1M | -2.3% | $78.4M | +22.3% |
| Operating income (loss) | -$9.1M | -$10.4M | +12.3% | $1.0M | -971.3% |
| Operating margin | -8.0% | -9.1% | +1.1 pp | 1.0% | -9.1 pp |
| Net income (loss) | -$7.3M | -$12.8M | +43.2% | $1.7M | -531.2% |
| Net margin | -6.4% | -11.2% | +4.8 pp | 1.7% | -8.1 pp |
| Diluted EPS | -$0.06 | -$0.10 | +$0.04 | $0.01 | -$0.07 |
| Net retention rate | 92.0% | 91.0% | +1.0 pp | 92.0% | ±0.0 pp |
Risks
Yext disclosed that revenue growth slowed and even contracted in recent periods. Reported revenue rose 4.1% for FY2025 year to date versus prior year, but the filing states the increase was inorganic due to the Hearsay acquisition and without it revenue would have otherwise declined 4% year-over-year, with additional pressure from a large customer that did not renew as of Jan 31 2024.
Yext had a net loss of $27.9 million for FY2025 year to date and an accumulated deficit of $707.1 million as of Jan 31 2025. The filing warns it may not achieve profitability in the future, and reported operating loss widened to $32.4 million for FY2025 year to date from $6.2 million in the prior-year period.
Yext completed the Hearsay acquisition for approximately $125 million in cash in August 2024 and the Places Scout acquisition for $20.3 million in February 2025, and may owe up to $75 million in Hearsay earnout. The filing cites integration challenges, potential loss of acquired customers, goodwill impairment, dilution, and unanticipated liabilities.
Adverse economic conditions, inflation, reduced technology spending, and rapid changes in U.S. government spending and fiscal policy could cause longer sales cycles, lower demand or prices, fewer subscriptions, and requests to renegotiate contracts or shorten durations. MD&A states this could materially adversely impact future results.
Yext states revenue growth is substantially reliant on its sales force and that it has had difficulty recruiting and retaining sales personnel. The June 2024 restructuring reduced total workforce by approximately 12% versus headcount as of Jan 31 2024 and may continue to limit its ability to grow organically.
For fiscal years ended Jan 31 2025, 2024, and 2023, the top five customers accounted for approximately 8%, 8%, and 9% of revenue. The attrition of one top five customer that did not renew as of Jan 31 2024 has and will be realized primarily in quarterly results for the fiscal year ending Jan 31 2025.
A significant portion of revenue depends on third-party reseller customers whose efforts Yext does not control. Third-party reseller revenue decreased 4% for FY2025 year to date versus prior year, and reseller ARR was $74.5 million at Jan 31 2025, down 3% from $76.6 million at Jan 31 2024.
Yext is incorporating generative AI into some products, a new and developing technology that may present compliance and reputational risks. Regulatory and legislative developments related to AI use could adversely affect its products, services, and business.
The market for Yext's platform is competitive, rapidly evolving, and fragmented. Competitors may have greater resources, name recognition, and customer bases, and some offer lower prices, which could reduce revenue growth or margins.
Because the platform is sold to enterprises with complex operating environments, Yext may encounter long and unpredictable sales cycles, including enterprise-wide approvals and lengthy evaluations, which could delay revenue recognition and cause results to vary by period.
Yext recently began offering capacity-based pricing for Pages and Search, and there is no assurance this new pricing and distribution model will be successful. Large customers may demand greater discounts, and future price reductions or shorter contract durations could adversely affect revenue, gross margin, and cash flow.
Yext's growth depends on strategic relationships with over 200 Publisher Network application providers, including Google, Apple, and Yelp. Loss of access to key applications or provider fees could reduce customer value and lead to customer losses.
SaaS KPIs
All quarters →Customer Count
Adjusted EBITDA
Free Cash Flow Margin
Total Annual Recurring Revenue
Free Cash Flow
Summary, forecast, risks and KPIs are extracted from Yext, Inc.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.