YEXT earnings analysis
What we found in YEXT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Yext generated $111.103 million of revenue and reported $0.21 of EPS, beating the $0.16 EPS consensus but falling $1.97 million short of revenue expectations. Profitability improved materially, with gross margin of 75.2% and operating margin of 26.2%, although the filing indicates that six-month revenue declined 2% year over year. Liquidity is the principal concern: the company held $86.8 million of cash against $147.7 million of outstanding debt after completing $140.0 million of Tender Offer repurchases, while management provided no numeric forward guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Remains Essentially Flat
- Revenue was $111.103 million, approximately 3% above the prior quarter's $108 million, but below the $113 million comparable period shown in the quarterly history. Revenue was also $1.97 million below the $111.3 million consensus estimate.
- Operating Margin Expanded
- Gross margin was 75.2%, up from 73.0% in the prior quarter but below the 76.8% level shown for the earlier comparable period. Operating margin expanded sharply to 26.2% from 5.2% in the prior quarter.
- EPS Beat Consensus
- Reported EPS was $0.21 versus the $0.16 consensus estimate, a $0.05 beat. The filing also reports net income of $15.8 million for the six months ended July 31, 2026.
- Liquidity and Debt Disclosed
- Cash and cash equivalents totaled $86.8 million as of July 31, 2026, while outstanding debt was $147.7 million and the principal amount was $150.0 million under the May 2025 Credit Agreement.
- Significant Capital Return
- The company repurchased 24,347,825 shares for $140.0 million in the Tender Offer and 1,817,696 shares under the share repurchase program during the six months ended July 31, 2026; approximately $106.2 million remained available under the program.
- Controls Remained Effective
- Management concluded that disclosure controls and procedures were effective as of July 31, 2026, and reported no changes during the six months ended July 31, 2026 that materially affected, or were reasonably likely to materially affect, internal control over financial reporting.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Debt Exceeds Cash
- Cash of $86.8 million was below outstanding debt of $147.7 million, creating a net debt position of approximately $60.9 million before other balance-sheet items. A 1% change in interest rates would affect annual interest expense by approximately $1.5 million.
- Capital Returns Reduce Liquidity
- The company repurchased 24,347,825 shares for $140.0 million in the Tender Offer and had repurchased 30,747,993 shares for $193.8 million under the share repurchase program as of July 31, 2026. The filing warns that repurchases diminish cash reserves and may increase leverage.
- Revenue Contraction Risk
- Revenue decreased 2% from the six months ended July 31, 2025 to the six months ended July 31, 2026. Management also states that growth could slow further or contract, and that the June 2024 cost-cutting plan may limit organic growth.
- Integration and Acquisition Risk
- The company acquired GoShine AI Ltd. on June 14, 2026, following the Hearsay acquisition on August 1, 2024 and Places Scout acquisition on February 7, 2025. Management warns that acquisitions may require additional debt or equity, create integration costs and result in impairment charges if expected returns are not achieved.
- Publisher Network Dependency
- The company states that more than 200 third-party service and application providers comprise its Publisher Network. Loss of access to a key provider, including Google Business Profile, could impair the platform's competitiveness and customer retention.
- Expanding AI Regulatory Exposure
- The filing identifies generative AI as a developing risk and cites potential European Union AI Act penalties of up to the greater of EUR 35 million or 7% of worldwide annual turnover for certain violations, and up to the greater of EUR 15 million or 3% of worldwide annual turnover for high-risk AI requirements.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.21
- Gross margin
- 75.2%
- Operating margin
- 26.2%
What they said about what is next.
The filing does not provide numeric revenue or EPS guidance. It states that the company does not plan to release earnings guidance or host earnings conference calls in the near future; the prior fiscal-year revenue outlook of $450 million-$470 million was not updated in the provided filing text.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 2, 2026
- Yext's Q1 fiscal year 2027 results revealed a revenue of $107.9 million, slightly below last year’s $109.5 million. However, net income increased significantly to $2.6 million from $0.8 million, driven by reduced…
- 10-K · March 10, 2026
- Yext describes a platform-led strategy to help businesses manage structured knowledge across a Publisher Network of over 200 providers and is investing in product expansion (Listings, Pages, Reviews, Search, Social,…
- 10-Q · December 8, 2025
- Yext reported Q3 revenue of $111.998M, down 2% year-over-year, but delivered a return to operating profitability with operating income of $7.78M and net income of $6.14M. Gross margin compressed to 73.9% from 77.0% and…
- 10-K · March 13, 2025
- Yext describes a strategy focused on expanding its digital presence platform (Knowledge Graph + Publisher Network of 200+ providers) by growing direct customers, expanding product adoption, international expansion,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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