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 large‑customer 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.