Yext Inc (YEXT) Q3 2025 Earnings Report

- Overview: Yext reported QQ3 2025 revenue of $113.99 million, up ~13% YoY largely due to the inclusion of Hearsay Systems, while the legacy Yext business remained stable. Gross profit was $87.74 million (gross margin ~77%), and operating loss was $10.37 million, with a net loss of $12.80 million (EPS -$0.10). EBITDA was negative at -$10.37 million. The mix shift to Hearsay contributed to top-line growth, but profitability remains pressured by ongoing investments and integration costs.
- What drove the results: The company highlighted a fragmented AI-enabled search environment as a strategic tailwind, with brands needing to structure data for diverse consumer-find experiences. Healthcare logos expanded (new logos and expansion activity cited in the call), and Hearsay provided a material growth contribution post-acquisition. Management stressed that the core Yext ARR was stable, with modest improvement in retention; Hearsay ARR was contributing meaningfully to growth. FX movements created a notable impact on the quarterly guide, with guidance reflecting post-period FX levels.
- Outlook and positioning: Management signaled ongoing focus on margin expansion and growth acceleration, aiming for Rule of 40 progress through a combination of improved monetization, organic growth, and selective M&A. They stated that deals are starting to accelerate in certain tailwinds from digital transformation, and that the integration of Hearsay is tracking to be largely complete by year-end. The near-term uncertainty centers on FX volatility and the pace of ARR expansion; longer-term catalysts include AI-driven fragmentation, a unified data platform, and expanding Yext Social/Hearsay-enabled capabilities.