Summary
Yext closed fiscal 2026 with a fourth quarter that showed mixed top-line trends but much stronger profitability. Revenue slipped 1.0% year over year to $112.0 million. Gross profit declined 5.2% to $82.3 million, and gross margin compressed to 73.5%, down 3.3 percentage points. The bottom line improved sharply. Operating income was $6.0 million, a swing from an operating loss in the prior-year quarter. Net income was $4.2 million, also a swing from a loss. Operating margin reached 5.3%, up 13.4 percentage points. Adjusted EBITDA, a non-GAAP measure, was $29.0 million, or a 26% margin. Non-GAAP net income was $18.3 million, or 16.3% of revenue.
For the full fiscal year, revenue rose 6.1% to $446.6 million. Gross profit increased 2.4% to $332.5 million, while gross margin was 74.5%, down 2.7 percentage points. Full-year operating income was $44.5 million, a swing from an operating loss. Net income was $37.9 million, another swing from a loss. Diluted EPS was $0.07, up from a loss per share. Operating margin was 10.0%, up 17.7 percentage points. Adjusted EBITDA for the fiscal year was $107.3 million, a 24% margin.
Cash generation was uneven by period. Fourth-quarter operating cash flow fell 23.0% to $29.5 million. Full-year operating cash flow rose 11.2% to $55.8 million. Fourth-quarter capital expenditures rose 187.0% to $0.9 million, and full-year capital expenditures rose 22.6% to $2.6 million. Free cash flow, a non-GAAP measure, was $28.6 million in the fourth quarter and $53.3 million for the fiscal year. Deferred revenue was $217.5 million, down 5.1% from the prior-year quarter. Remaining performance obligations were $513.3 million, up 4.7%.
Operational metrics point to a widening gap between large and small customers. Total ARR was $444.3 million, compared with $442.7 million. Customers with $50,000 or more in ARR represented $403.6 million, up 2%. Customers with less than $50,000 in ARR represented $40.6 million, down 14%. Total dollar-based net retention rate was 97%, up from 93%. The $50,000-and-up cohort had a 99% net retention rate, up from 94%, while the under-$50,000 cohort had 86%, down from 88%. Total gross retention rate was 88%, up from 86%. The enterprise cohort again carried the business.
Capital allocation is active. Yext launched a tender offer to repurchase up to $140.0 million of common stock, after reducing the maximum from $180.0 million, and extended the expiration date to March 18, 2026. The company borrowed an additional $50.0 million on March 6, 2026, which it intends to use in connection with the tender offer. Michael Walrath, chairman and CEO, withdrew a non-binding proposal to acquire all outstanding shares at $9.00 per share. Management commentary highlighted the Scout launch and a push into agentic marketing across AI engines and search platforms.
Risks remain familiar. The company cites macroeconomic uncertainty, foreign currency fluctuations, inflation, interest rates, tariffs and trade restrictions, and geopolitical shifts. Customer budget pressure could lead to reduced, delayed or renegotiated technology spending, shorter contract durations, or non-renewals. Competition is intense. The tender offer and related financing carry execution and capital cost risks. The May 2025 credit agreement restricts stock repurchases, debt, dividends, and acquisitions, and requires minimum qualified cash of at least $35.0 million. The quarter's profit improvement is real, but the revenue decline and lower gross margin show the business still faces pressure at the smaller end of the customer base.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $112.0M | $112.0M | +0.0% | $113.1M | -1.0% |
| Gross profit | $82.3M | $82.8M | -0.6% | $86.8M | -5.2% |
| Gross margin | 73.5% | 73.9% | -0.5 pp | 76.8% | -3.3 pp |
| Research & development | $22.0M | $22.6M | -2.7% | $20.5M | +7.4% |
| Sales & marketing | $32.5M | $34.0M | -4.7% | $45.9M | -29.3% |
| General & administrative | $63.3M | — | — | $29.5M | +114.6% |
| Total operating expenses | $76.3M | $75.0M | +1.8% | $95.9M | -20.4% |
| Operating income (loss) | $6.0M | $7.8M | -23.2% | -$9.1M | +165.8% |
| Operating margin | 5.3% | 7.0% | -1.6 pp | -8.0% | +13.4 pp |
| Net income (loss) | $4.2M | $6.1M | -31.3% | -$7.3M | +157.9% |
| Net margin | 3.8% | 5.5% | -1.7 pp | -6.4% | +10.2 pp |
| Diluted EPS | $0.03 | $0.01 | +$0.02 | -$0.06 | +$0.09 |
| Net retention rate | 93.0% | 96.0% | -3.0 pp | 92.0% | +1.0 pp |
Risks
FY2026 revenue of $446.6 million was up 6.1% year over year, but MD&A states the increase was entirely from the Hearsay acquisition and without it revenue would have declined 2% year over year. Q4 revenue was down 1.0% year over year to $112.0 million, and the risk factor states revenue has slowed and even contracted.
Yext completed the Hearsay acquisition in August 2024 and the Places Scout acquisition in February 2025 and is integrating both. MD&A attributes FY2026 revenue growth entirely to Hearsay, while risk factors note integration may divert management, fail to retain acquired customers, or result in impairment charges.
In February 2026 the Board commenced a modified Dutch auction self-tender offer, initially up to $180.0 million and decreased to up to $140.0 million on March 4, 2026. The risk factor states long-term indebtedness is expected to increase to approximately $147.5 million from approximately $98.0 million as of January 31, 2026, which may reduce liquidity, increase leverage, and not enhance stockholder value.
MD&A reports total dollar-based net retention rate improved to 97% from 93%, but customers with less than $50,000 ARR had a net retention rate of 86% versus 88%, and their ARR declined 14% to $40.6 million. Risk factors state customers may reduce subscriptions or not renew, which would lower revenue.
A significant portion of revenue depends on third-party reseller customers whose efforts Yext does not control. MD&A shows third-party reseller ARR rose 3% to $76.4 million while total ARR was flat, and risk factors note resellers may not renew or may purchase fewer licenses.
Yext is incorporating generative AI into some products, which risk factors say presents compliance and reputational risks. Regulatory and legislative developments related to AI could adversely affect the company's use of such technologies in products, services, and business.
For FY2026, FY2025 and FY2024, the top five customers accounted for approximately 9%, 8% and 8% of revenue, respectively. Risk factors note prior attrition of a top five customer and that loss of additional large customers could cause revenue to decline.
Risk factors and MD&A cite inflation, tariffs, trade disputes, interest rates, and reduced technology spending as risks. MD&A states these may cause customers to reduce, suspend or delay technology spending, renegotiate contracts, shorten durations, or not renew, which could materially adversely affect future periods.
Risk factors state Yext may encounter long and unpredictable sales cycles because it sells to enterprises with complex operating environments. MD&A notes macro uncertainty may cause customers to reduce, suspend or delay spending, and a delay or failure to complete sales could cause results to vary from period to period.
SaaS KPIs
All quarters →Adjusted EBITDA
ARR
Dollar-Based Net Retention Rate (Total Customers)
Adjusted EBITDA Margin
Free Cash Flow Margin
Free Cash Flow
Dollar-Based Gross Retention Rate (Total Customers)
Summary, forecast, risks and KPIs are extracted from Yext, Inc.'s SEC filings for Q4 FY2026 (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.