Yext reported QQ2 2025 revenue of $97.9 million, up approximately 1.98% QoQ but down about 4.59% year over year. The quarter delivered a gross margin of ~77.23% ($75.6m on $97.9m revenue), while EBITDA remained negative at about -$0.37m and operating income printed -$7.57m, yielding an operating margin of -7.73% and a net income of -$4.06m (net margin -4.14%). Earnings per share stood at -$0.032. The company continues to deploy R&D and SG&A investments, with R&D at $18.58m and SG&A at $64.58m, contributing to the negative profitability metrics despite a relatively healthy gross margin. Free cash flow was -$11.19m in the quarter, and operating cash flow was -$10.65m, underscoring remaining cash burn even as the balance sheet shows robust liquidity.
Key balance sheet statistics as of QQ2 2025 include cash and cash equivalents of $234.82m and total debt of $100.78m, resulting in a net debt position of -$134.05m and a strong net cash balance. Deferred revenue stands at $156.19m, signaling revenue visibility and multi-period recognition potential. The company’s liquidity supports ongoing product development and GTM initiatives, but profitability hinges on continued cost discipline and accelerating top-line growth. Relative to SaaS peers, Yext’s gross margin aligns with the low-to-mid 70s, yet the company remains below peers that achieve sustained positive EBITDA and net profitability. Investors should monitor revenue trend momentum, gross margin stability, operating expense leverage, and the pace of cash burn toward cash flow breakeven.