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YI

Yext, Inc. (YEXT)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 delivered double-digit top-line growth with revenue of $113.1M (+12% YoY) and record Adjusted EBITDA of $24.6M; non-GAAP EPS was $0.13, while GAAP EPS was -$0.06 .
  • Sequential revenue was modestly lower vs Q3 FY25, driven by three fewer days in Q1 vs Q4 and adverse FX; management withdrew full-year FY26 revenue guidance, shifting focus to profitability and ARR disclosure including usage components .
  • FY25 results: revenue $421.0M (+4% YoY), Adjusted EBITDA $67.0M (15.9% margin), non-GAAP EPS $0.35; achieved FY25 revenue within/above prior Q3 guidance ($420.3–$420.8M) and EBITDA at the low end ($67.0–$67.5M) .
  • Catalysts: launch of Yext Scout (AI search and competitive intelligence agent), inclusion of usage in ARR (now $442.7M), and share repurchase authorization increased by $50M; management expects FY26 Adjusted EBITDA of $100–$103M and non-GAAP EPS $0.50–$0.53 .

What Went Well and What Went Wrong

What Went Well

  • Record profitability: Adjusted EBITDA rose to $24.6M (21.7% margin; rounded to 22% in headline), non-GAAP EPS improved to $0.13; commentary highlighted margins “north of 20%” and strong free cash flow generation .
  • Product momentum: Launched Yext Scout; CEO noted “I have never experienced a more enthusiastic response” and “hundreds of waitlist sign-ups” within days, signaling robust demand for AI-driven search intelligence .
  • Go-to-market execution: Hearsay integration progressing ahead of expectations, driving efficiency and accretive ARR; early traction for Yext Social (19 Direct, 30 Reseller customers) and upsells across healthcare and financial services .

What Went Wrong

  • FX headwinds: Strengthening USD (particularly vs GBP) pressured revenue and ARR; Direct ARR declined sequentially largely due to ~$2.9M FX impact .
  • GAAP loss: Q4 GAAP net loss of $7.3M (vs $1.7M GAAP income in prior year), reflecting acquisition-related costs and amortization of intangibles .
  • ARR softness in core: On a constant currency basis, overall ARR declined $2.6M sequentially; management cited continued contract restructurings and downgrades (not logo churn) in the legacy Yext business, partly offset by Hearsay growth .

Financial Results

MetricQ4 FY24 (oldest)Q3 FY25Q4 FY25 (newest)
Revenue ($USD Millions)$101.1 $114.0 $113.1
GAAP EPS ($)$0.01 $(0.10) $(0.06)
Non-GAAP EPS ($)$0.10 $0.12 $0.13
Adjusted EBITDA ($USD Millions)$14.85 $23.09 $24.56
Gross Profit ($USD Millions)$79.45 $87.74 $86.81
GAAP Gross Margin (%)78.6% —76.8%
Non-GAAP Gross Margin (%)79.3% —79.2%

Notes:

  • Adjusted EBITDA margin was 21.7% per reconciliation and presented as 22% in the press release headline .
  • Sequential revenue dynamics reflect calendar-day effects and FX headwinds per Q&A supplement (three fewer days in Q1 vs Q4; leap-year skew and adverse FX) .

ARR Breakdown (including usage)

ARR ($USD Millions)Jan 31, 2024 (oldest)Oct 31, 2024Jan 31, 2025 (newest)
Direct Customers$315.59 $374.50 $368.20
Third-Party Reseller Customers$76.59 $74.15 $74.46
Total ARR$392.18 $448.65 $442.66

Methodology update: Starting Q4 FY25, ARR includes usage/overages; management disclosed both “including usage” and historical “excluding usage” series for comparison .

KPIs and Balance Sheet

KPIJan 31, 2024 (oldest)Oct 31, 2024Jan 31, 2025 (newest)
Net Dollar-Based Retention – Total92% 92% 93%
Net Dollar-Based Retention – Direct91% 91% 92%
Net Dollar-Based Retention – Reseller93% 94% 95%
Remaining Performance Obligations (RPO) ($M)——$490.1
Cash, Cash Equivalents & Restricted ($M)$210.2 $118.0 $138.7
Unearned Revenue ($M)$212.2 $160.9 $229.1
Share Repurchases ($M)—YTD $(6.8) Q4 $(11.1); FY $(18.1)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY25$420.3–$420.8M (Q3 FY25) Actual: $420.96M Achieved in-line/above
Adjusted EBITDAFY25$67.0–$67.5M (Q3 FY25) Actual: $67.04M Achieved at lower end
RevenueQ1 FY26—$107.3–$107.8M New quarterly guidance
Adjusted EBITDAQ1 FY26—$21.5–$22.0M New quarterly guidance
Non-GAAP EPSQ1 FY26—$0.11–$0.12 (25% tax rate; 127.3M WAB) New quarterly guidance
Adjusted EBITDAFY26—$100.0–$103.0M New full-year guidance
Non-GAAP EPSFY26—$0.50–$0.53 (25% tax rate; 129.9M WAB) New full-year guidance
RevenueFY26Historically providedWithdrawn (no full-year revenue guide) Withdrawn

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 FY25)Previous Mentions (Q3 FY25)Current Period (Q4 FY25)Trend
AI/technology initiatives (Scout)Emphasis on generative AI’s coming wave; need for structured data; cautious timing Early phases of fragmented search; product roadmap acceleration Launch of Yext Scout; strongest customer enthusiasm in 16 years; hundreds of waitlist sign-ups Accelerating
FX/macro headwindsStable core; FX benefits in Q3 noted; conservative posture FX benefit in Q3, expected Q4 FX headwind; conservative guide FX pressured Q4 revenue/ARR; adverse GBP; Q&A explained calendar and FX impacts Persistent headwind
Reseller usage-based shiftHighlighted move from committed to usage to meet customer needs Continued focus on usage to mitigate committed ARR declines Including usage in ARR; sequential Reseller ARR growth; disclosure expanded Structural transition
Hearsay integrationClosed Aug 1; synergies expected; similar deal cycles Integration ahead of plan; modest dilutive margin near term Accretive to Direct ARR; faster-than-expected integration; compliance capabilities driving wins Positive integration
Vertical traction (healthcare/financial services)Vendor consolidation tailwind; roadmap guided by customer needs New logos and upsells; healthcare strong Notable expansions in healthcare; FS upsells leveraging Hearsay and Listings Strengthening
Capital allocation (buybacks/M&A)Evaluate M&A vs buybacks; opportunistic Expect margin expansion; flexible deployment Authorization +$50M; FCF conversion ~70% FY26 incl. acquisition payments; opportunistic repurchases Balanced, opportunistic

Management Commentary

  • “Our EBITDA margins are north of 20% and our outlook for over $100 million in EBITDA in fiscal year ’26 points to the financial strength of our business” — Michael Walrath, CEO .
  • “I have never experienced a more enthusiastic response from our customers to one of our product announcements” (regarding Scout) — Michael Walrath .
  • “We will no longer provide full year revenue guidance…we will continue to provide full year non-GAAP EPS and Adjusted EBITDA guidance… and guidance for next quarter’s revenue, Adjusted EBITDA and non-GAAP EPS” — Shareholder Letter .
  • “We are including usage in our ARR calculation…and we believe our investors will benefit from the expanded disclosure” — Shareholder Letter .
  • “We continue to believe that our stock is a great investment…reflected in our share repurchase activity” — Shareholder Letter .

Q&A Highlights

  • Guidance philosophy: Emphasis on controllable profitability (EBITDA) vs top-line in dynamic macro; expense management remains conservative, with optionality to invest if ARR re-accelerates .
  • ARR dynamics: Sequential ARR decline primarily FX (~$3.5M) plus modest downgrades; improved renewals and retention underpin confidence in FY26 ARR growth .
  • Scout positioning: Merges Places Scout’s SEO ranking intelligence with AI share-of-voice and sentiment measurement; provides actionable, scalable recommendations via Yext’s platform .
  • Capital deployment: Increased buyback authorization; strong FCF conversion (~70% in FY26 includes acquisition-related payments); balanced between organic investment, M&A, and repurchases .
  • Quarterly sequential revenue: Three fewer days and adverse FX explain sequential guide vs Q4 performance (calendar effect explicitly noted) .

Estimates Context

  • We attempted to retrieve S&P Global consensus estimates for revenue, EPS, and EBITDA to benchmark Q4 FY25 results; consensus data was unavailable due to SPGI daily request limits. As a result, we do not present beat/miss versus Wall Street consensus in this recap [GetEstimates error].
  • Investors should anchor near-term expectations on company-provided Q1 FY26 guidance (Revenue: $107.3–$107.8M; Adjusted EBITDA: $21.5–$22.0M; non-GAAP EPS: $0.11–$0.12) and FY26 profitability targets (Adjusted EBITDA: $100–$103M; non-GAAP EPS: $0.50–$0.53) .

Key Takeaways for Investors

  • Profitability inflection: Q4 Adjusted EBITDA margin expanded to ~22%; FY26 guide targets further margin gains and strong FCF conversion (~70%), supporting valuation resilience amid macro uncertainty .
  • Strategic pivot: Withdrawal of full-year revenue guidance shifts focus to ARR and profitability; quarterly revenue guide and expanded ARR disclosure (including usage) improve transparency on growth trajectory .
  • AI catalyst: Scout launch and Places Scout integration position Yext to lead in AI and fragmented search visibility; early customer enthusiasm suggests potential for upsell/cross-sell and retention improvement .
  • Vertical momentum: Healthcare and financial services showing strength, with compliance-enabled social and listings synergies driving multi-product wins; watch for continued enterprise expansions .
  • FX sensitivity: Persistent FX headwinds (GBP) impacted Q4; monitor currency effects on ARR and reported revenue while focusing on underlying demand indicators (NRR improvements) .
  • Capital allocation: Increased buyback authorization (+$50M) alongside disciplined M&A enhances shareholder return optionality; management remains opportunistic given cash generation and balance sheet .
  • Near-term setup: Q1 FY26 guide reflects calendar/FX impacts; execution on Scout commercialization and sustained Hearsay integration are likely narrative drivers for estimate revisions and stock sentiment in coming quarters .

Citations:

  • 8-K earnings release and shareholder letter: .
  • Q4 FY25 earnings call transcripts: .
  • Q3 FY25 press/call: .
  • Q2 FY25 press/call: .
  • Yext Scout press release: .