Yext Reports $446.6 Million Revenue and $37.9 Million Net Income for Fiscal Year Ending January 31, 2026

Yext, Inc. reported a total revenue of $446.6 million for the fiscal year ending January 31, 2026, marking a 6% increase from $421.0 million in the previous fiscal year. This growth was primarily attributed to the acquisition of Hearsay Social, which contributed significantly to the revenue figures. Without this acquisition, Yext would have experienced a 2% decline in revenue year-over-year. The company also reported a net income of $37.9 million, a notable recovery from a net loss of $27.9 million in the prior year, reflecting a positive shift in profitability.

The company's cost of revenue increased by 18% to $114.1 million, driven by higher amortization expenses related to acquired intangible assets and increased personnel costs. As a result, Yext's gross margin decreased to 74.5% from 77.1% in the previous year. Operating expenses saw a significant reduction, totaling $288.0 million, down from $357.0 million, largely due to decreased sales and marketing expenses as well as general and administrative costs. This reduction in operating expenses contributed to the company's improved income from operations, which stood at $44.5 million compared to a loss of $32.4 million in the previous year.

Yext's operational metrics showed a mixed performance in customer retention and growth. The company reported an Annual Recurring Revenue (ARR) of $444.3 million, with a slight increase in customers generating over $50,000 in ARR, while those with less than $50,000 saw a decline. The dollar-based net retention rate improved to 97% from 93%, indicating a stronger ability to retain and expand revenue from existing customers. However, the company faced challenges in its customer base, particularly with a decrease in smaller customers, which could impact future growth.

Strategically, Yext has been active in expanding its capabilities through acquisitions, including the recent purchase of Places Scout for $20.3 million, aimed at enhancing its competitive intelligence offerings. The company also initiated a self-tender offer to repurchase up to $140 million of its common stock, reflecting a commitment to returning value to shareholders. Looking ahead, Yext anticipates continued investment in product development and international expansion, although it acknowledges potential macroeconomic challenges that could affect customer spending and overall business performance.

In terms of workforce, Yext reported approximately 1,120 full-time employees as of January 31, 2026, a reduction from previous years due to restructuring efforts. The company continues to focus on enhancing its digital presence platform, which integrates with over 200 service and application providers, to better serve its diverse customer base across various industries. The outlook remains cautiously optimistic, with management emphasizing the importance of adapting to changing market conditions and customer needs while maintaining operational efficiency.