Yext Reports Q2 Fiscal 2027 Revenue Decline to $111.1 Million

Yext, Inc. reported its financial results for the second quarter of fiscal 2027, revealing a revenue of $111.1 million, a decrease of 2% from $113.1 million in the same period last year. For the six months ending July 31, 2026, total revenue was $219.0 million, down from $222.6 million year-over-year. The company's net income for the quarter was $13.1 million, compared to $26.8 million in the prior year, while net income for the six-month period was $15.8 million, down from $27.5 million. The decline in revenue and profitability was attributed primarily to customer attrition and increased operating expenses.

Yext's operating expenses rose significantly, totaling $66.3 million for the quarter, up from $55.4 million a year earlier. This increase was driven by a notable rise in general and administrative expenses, which surged to $20.6 million from a minimal expense in the previous year, largely due to changes in the fair value of contingent consideration related to the Hearsay acquisition. Sales and marketing expenses also decreased by 18% to $26.3 million, reflecting a reduction in personnel-related costs and professional fees.

The company reported a total of 99.3 million shares outstanding as of July 31, 2026, down from 122.9 million a year prior, following a share repurchase program that included a tender offer completed in March 2026, where Yext repurchased 24.3 million shares for $140 million. The company’s cash and cash equivalents stood at $86.8 million, a decrease from $154.1 million at the beginning of the fiscal year, indicating a tightening liquidity position.

Yext's customer base showed mixed results, with annual recurring revenue (ARR) totaling $440.8 million, a slight decline from $444.4 million a year earlier. The dollar-based net retention rate improved to 96% from 95%, indicating that existing customers are expanding their contracts despite the overall decline in customer numbers. The company continues to focus on enhancing its digital presence platform, which includes recent acquisitions aimed at strengthening its competitive position in the market.

Looking ahead, Yext anticipates ongoing challenges due to macroeconomic conditions, including inflation and foreign currency fluctuations, which may impact customer spending and contract renewals. The company remains committed to its strategic initiatives, including product development and geographic expansion, while managing its operational costs to improve profitability in the coming quarters.