Yext Inc delivered QQ4 2025 results characterized by solid revenue topline growth and robust cash generation, but the quarter also reflected continuing profitability headwinds. Revenue reached 113.1 million USD, up 11.9% year-over-year, supported by a durable gross margin around 76%, while the company posted a net loss of 7.28 million USD and an operating loss of 9.09 million USD. Despite the near-term earnings compression, Yext generated 38.35 million USD of operating cash flow and 30.03 million USD of free cash flow, underscoring strong liquidity and incremental cash generation potential from its platform model. The balance sheet remains healthy with a net cash position (net debt of approximately -27.7 million USD) and substantial deferred revenue, which provides revenue visibility and optionality for future monetization.
Looking ahead, the company appears focused on leveraging its knowledge-network platform to drive ARR expansion and cross-sell opportunities, while pursuing operating efficiency to improve margins. However, management did not publish explicit forward guidance in the provided materials, so investors should monitor progress on cost discipline, scale of recurring revenue, and acceleration of profitability metrics in upcoming quarters. Relative valuation remains attractive on a price-to-sales basis given the current revenue base, but the market will assess improvement in profitability and cash conversion as essential catalysts for multiple expansion.
Key Performance Indicators
Revenue
Increasing
113.09M
QoQ: -0.79% | YoY: 11.85%
Gross Profit
Increasing
86.81M
76.76% margin
QoQ: -1.06% | YoY: 9.27%
Operating Income
Decreasing
-9.09M
QoQ: 12.35% | YoY: -971.33%
Net Income
Decreasing
-7.28M
QoQ: 43.16% | YoY: -531.24%
EPS
Decreasing
-0.06
QoQ: 42.90% | YoY: -519.85%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: 113.091 million USD in QQ4 2025; YoY +11.85%, QoQ -0.79%
Gross Profit: 86.813 million USD; Gross Margin 76.76%; YoY +9.27%, QoQ -1.06%
Operating Income: -9.089 million USD; Operating Margin -8.04%; YoY -971.33%, QoQ +12.35%
Net Income: -7.275 million USD; Net Margin -6.43%; YoY -531.24%, QoQ +43.16%
EPS: -0.0571 USD; YoY -519.85%, QoQ +42.90%
EBITDA: -0.224 million USD; EBITDA Margin around -0.20%
Cash Flow: Operating cash flow 38.346 million USD; Free cash flow 30.030 million USD
Capex: -0.316 million USD; Free cash flow yield and per-share metrics reflect modest capex intensity
Liquidity: Cash and cash equivalents 123.133 million USD; Total cash position including short-term investments 123.133 million USD; Net debt -27.72 million USD
Balance Sheet: Total assets 610.078 million USD; Total liabilities 456.885 million USD; Total stockholders’ equity 153.193 million USD
Working Capital: Deferred revenue 229.144 million USD; Current liabilities 344.714 million USD; Current assets 285.801 million USD
Valuation Metrics (USD): P/S 7.57; P/B 5.59; P/FCF 22.56; Net debt disclosure indicates a net cash position despite a negative enterprise value multiple signal in provided data
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
113.09M
11.85%
-0.79%
Gross Profit
86.81M
9.27%
-1.06%
Operating Income
-9.09M
-971.33%
12.35%
Net Income
-7.28M
-531.24%
43.16%
EPS
-0.06
-519.85%
42.90%
Key Financial Ratios
Gross Profit Margin
Excellent
75.40%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
3.04%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.06%
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
-0.05%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.77
Current ratio below safe levels, potential liquidity risk