Yext Inc (0M2Q.L) Q3 2026 Earnings Report

Yext reported QQ3 2026 total revenue of $111.998 million, down 1.75% year-over-year (YoY) and down 0.97% quarter-over-quarter (QoQ). Gross profit stood at $82.795 million, yielding a gross margin of approximately 73.93%. Operating income reached $7.78 million, implying an operating margin of about 6.95%, while net income was $6.136 million with earnings per share (EPS) of $0.05 (basic) and $0.01 (diluted). These results reflect stable near-term revenue, modest margin expansion versus prior periods, and a disciplined cost structure, even as the company continues to invest in growth initiatives.

Yet, cash flow remained negative on a reported basis. Net cash provided by operating activities was $(19.82) million for the quarter, and free cash flow was $(20.34) million, driven by non-cash charges (stock-based compensation of $12.34 million) and working capital movements (notably a sizable negative swing from accounts payable and other working capital items). The company ended the period with cash and cash equivalents of $139.92 million and total cash at end of period of $158.93 million, accompanied by a net cash position (net debt) of $(56.63) million, indicating a balance sheet that remains liquidity-rich but with near-term cash burn from operations.

On a more strategic note, Yext maintains a high-quality asset base with a large deferred revenue balance of $154.63 million, suggesting durable ARR and multi-period revenue recognition potential. R&D and SG&A investments continue to support product development and GTM capabilities, with R&D at roughly 20% of revenue and SG&A in the low-to-mid 40% range of total costs, highlighting a growth-oriented posture common in mid-to-late-stage SaaS companies. In the absence of a published forward-looking guidance in the provided data, investors should monitor accelerating ARR, billings trends, and the cadence of operating cash flow normalization as revenue scales and working capital dynamics evolve.