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.
Key Performance Indicators
Revenue
Decreasing
97.89M
QoQ: 1.98% | YoY: -4.59%
Gross Profit
Decreasing
75.59M
77.23% margin
QoQ: 1.54% | YoY: -5.75%
Operating Income
Decreasing
-7.57M
QoQ: -39.44% | YoY: -78.82%
Net Income
Decreasing
-4.06M
QoQ: -6.29% | YoY: -18.04%
EPS
Decreasing
-0.03
QoQ: -5.59% | YoY: -16.30%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $97.89m in QQ2 2025; YoY -4.59%; QoQ +1.98%.
Gross Profit: $75.59m; Gross Margin 77.23%; YoY -5.75%; QoQ +1.54%.
Operating Income: -$7.57m; Operating Margin -7.73%; YoY -78.82%; QoQ -39.44%.
Net Income: -$4.06m; Net Margin -4.14%; YoY -18.04%; QoQ -6.29%.
EPS (Diluted): -$0.0321; YoY -16.30%; QoQ -5.59%.
EBITDA: -$0.37m; EBITDA Margin ~ -0.38%.
Free Cash Flow: -$11.19m; FCF Margin ~ -11.43% of revenue.
Cash & Equivalents: $234.82m; Total Debt: $100.78m; Net Debt: -$134.05m.
Deferred Revenue: $156.19m (contract liabilities indicating revenue recognition in future periods).
Working Capital Metrics: Days Sales Outstanding ~43.1 days; Current Ratio 1.55; Cash Ratio 1.13.
Shareholder Equity: $162.80m; Cash Flow from Operations: -$10.65m; Capex: -$0.55m.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
97.89M
-4.59%
1.98%
Gross Profit
75.59M
-5.75%
1.54%
Operating Income
-7.57M
-78.82%
-39.44%
Net Income
-4.06M
-18.04%
-6.29%
EPS
-0.03
-16.30%
-5.59%
Key Financial Ratios
Gross Profit Margin
Excellent
77.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.08%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.04%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.55
Current ratio shows adequate liquidity to meet short-term obligations