Executive Summary
Yext delivered a meaningful step up in profitability in QQ2 2026, highlighted by a revenue of USD 113.094 million and a robust gross margin of 75.19% (gross profit USD 85.034 million). Operating income reached USD 29.674 million with an operating margin of 26.24%, while net income was USD 26.751 million (net margin 23.65%). The quarterly results imply improved operating leverage, driven by a combination of revenue growth and disciplined cost management, against a backdrop of a cloud-based platform with a large deferred revenue base. The company also generated positive operating cash flow (USD 8.407 million) and finished the period with a solid liquidity position (cash and cash equivalents USD 178.761 million; net debt negative USD 91.867 million). Free cash flow came in at USD 7.834 million, underscoring cash generation stability as Yext continues to scale its knowledge network and AI-enabled offerings.
While the headline figures look favorable, the business faces the ongoing challenge of balancing growth investments with profitability as it expands its customer base across verticals and geographies. The sizable deferred revenue balance (USD 185.592 million) signals strong revenue visibility and potential upside from renewal and upsell opportunities. Management commentary (where available) and cadence of 2H 2026 will be important to confirm sustained margin expansion, cash flow trajectory, and the pace of largeācustomer deals. Investors should monitor product adjacencies (AI that enhances the Yext knowledge network), international expansion, and any evidence of price discipline as the company scales toward higher profitability.
Key Performance Indicators
QoQ: 2 554.20% | YoY:492.20%
QoQ: 3 374.16% | YoY:759.38%
QoQ: 3 506.56% | YoY:785.36%
Key Insights
Revenue: USD 113.094M; YoY +15.54%; QoQ +3.30%.
Gross Profit: USD 85.034M; YoY +12.49%; QoQ +3.22%; Gross Margin 75.19%.
Operating Income: USD 29.674M; YoY +492.20%; QoQ +2,554.20%.
Net Income: USD 26.751M; YoY +759.38%; QoQ +3,374.16%.
EPS (basic): USD 0.22; EPS (diluted): USD 0.006100? (reported data shows 0.0256; see note below). YoY EPS change: +785.36%; QoQ change: +3,506.56%.
EBITDA: USD 39.964M; EBITDA Margin 35.34%; Operating Cash Flow: USD 8.407M.
Balance Sheet Highlights: Cash & ca...
Financial Highlights
Revenue: USD 113.094M; YoY +15.54%; QoQ +3.30%.
Gross Profit: USD 85.034M; YoY +12.49%; QoQ +3.22%; Gross Margin 75.19%.
Operating Income: USD 29.674M; YoY +492.20%; QoQ +2,554.20%.
Net Income: USD 26.751M; YoY +759.38%; QoQ +3,374.16%.
EPS (basic): USD 0.22; EPS (diluted): USD 0.006100? (reported data shows 0.0256; see note below). YoY EPS change: +785.36%; QoQ change: +3,506.56%.
EBITDA: USD 39.964M; EBITDA Margin 35.34%; Operating Cash Flow: USD 8.407M.
Balance Sheet Highlights: Cash & cash equivalents USD 178.761M; Total assets USD 626.166M; Total liabilities USD 473.637M; Stockholdersā equity USD 152.529M; Net debt (cash) position USD -91.867M; Deferred revenue USD 185.592M; Goodwill USD 110.686M; Intangible assets USD 93.211M; Total current assets USD 300.353M; Total current liabilities USD 286.097M.
Cash Flow: Net cash from operating activities USD 8.407M; Free cash flow USD 7.834M; Net cash provided by financing activities USD 69.771M; Cash at end of period USD 209.538M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
113.09M |
15.54% |
3.30% |
| Gross Profit |
85.03M |
12.49% |
3.22% |
| Operating Income |
29.67M |
492.20% |
2 554.20% |
| Net Income |
26.75M |
759.38% |
3 374.16% |
| EPS |
0.22 |
785.36% |
3 506.56% |
Management Commentary
Note: No earnings call transcript data is provided in the source dataset. As a result, the following highlights synthesize the reported financial results and general market/sector context rather than verbatim management quotes.
- Growth and monetization: The quarter shows solid topāline expansion with 15.5% YoY growth and meaningful operating leverage, suggesting that the company is benefiting from its cloud platform and knowledge network economics as customer scale increases.
- Margin expansion and profitability: Gross margin ~75% combined with a positive operating income of USD 29.7M points to improving operating leverage. The substantial YoY and QoQ gains in net income imply favorable cost structure realization and potential oneātime effects or scale benefits as the quarter progressed.
- Cash generation and balance sheet health: Positive operating cash flow (USD 8.4M) and a net cash position (net debt of -USD 91.9M) provide liquidity headroom for investment in product development and goātoāmarket expansion. The sizable deferred revenue balance (USD 185.6M) indicates revenue visibility and steady renewal/upsell momentum.
- Forward look cues (qualitative): Absent formal guidance in the provided data, investors should watch for management commentary on AIāenabled enhancements to the knowledge network, pipeline discussions for large enterprise deals, and potential geographic expansion, which could underpin sustained revenue growth and margin improvement.
Forward Guidance
No explicit quantitative guidance is disclosed in the QQ2 2026 data provided. Given the improving profitability metrics and healthy cash generation, the company may be positioning for continued revenue growth through enterprise expansions and AIādriven product enhancements. Investors should monitor: (1) any updated revenue or EBITDA targets for 2H 2026, (2) explicit cost control or headcount expansion plans, (3) progression of deferred revenue into actual billings/recognition, and (4) progress in international expansion and platform integrations that could broaden addressable markets.