Yext Reports Q3 Fiscal 2026 Revenue of $112M, Net Income Turnaround

Yext, Inc. reported its financial results for the third quarter of fiscal 2026, revealing a revenue of $112.0 million for the three months ended October 31, 2025, a decrease of 2% from $114.0 million in the same period last year. For the nine months ended October 31, 2025, total revenue increased by 9% to $334.6 million, compared to $307.9 million for the same period in fiscal 2025. The company achieved a net income of $6.1 million for the quarter, a significant turnaround from a net loss of $12.8 million in the prior year. For the nine-month period, net income was $33.7 million, compared to a loss of $20.7 million in the previous year.

The decrease in quarterly revenue was attributed primarily to customer attrition, particularly among direct customers, which saw a revenue drop of 2% to $93.3 million. However, revenue from third-party reseller customers remained stable at $18.7 million. The increase in nine-month revenue was largely driven by the inclusion of revenue from the acquisition of Hearsay, completed in August 2024. The company also noted a positive impact from foreign currency exchange rates, contributing approximately $0.3 million in the third quarter and $2.1 million for the nine months.

Yext's operating expenses for the third quarter decreased by 23% to $75.0 million, down from $98.1 million in the prior year, primarily due to reduced sales and marketing costs, which fell by 22% to $34.0 million. General and administrative expenses also saw a significant decline of 45% to $18.4 million, largely due to costs associated with the Hearsay acquisition that were incurred in the previous year. Research and development expenses increased by 7% to $22.6 million, reflecting higher stock-based compensation costs.

In terms of operational metrics, Yext reported a total Annual Recurring Revenue (ARR) of $444.4 million as of October 31, 2025, a slight decrease of 1% from $448.6 million a year earlier. The company’s dollar-based net retention rate improved to 96% for direct customers, up from 91% in the previous year, indicating better customer retention and expansion. Yext's cash and cash equivalents stood at $139.9 million, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Yext remains focused on its strategic objectives, including the integration of recent acquisitions and potential future growth opportunities. The company is also evaluating a non-binding acquisition proposal from its CEO, Michael Walrath, which could impact its strategic direction. Yext's management expressed confidence in its ability to navigate macroeconomic challenges and continue delivering value to its customers and shareholders.