Yext (YEXT) AI Stock Analysis

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Yext

(NYSE:YEXT)

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Rating:58Neutral

Price Target:$8.00▲(3.23% Upside)

Action:reiterated

Date:10/14/26

The score is driven primarily by mixed financial fundamentals: improved profitability and positive free cash flow are outweighed by sharply negative TTM revenue trends and significantly higher leverage from a thin equity base. Technicals are supportive with strong trend/momentum signals, while valuation is only moderately attractive given a ~29.9 P/E and no dividend yield data. A recent corporate event modestly supports alignment, but does not offset the core growth and balance-sheet risks.

Positive Factors

Strong software gross marginsSustained gross margins in the mid-70% range support the economics of Yext’s software model and provide room to fund product investment, sales activity, and customer support. This margin profile can help preserve earnings potential as the company works through changing revenue conditions.

Negative Factors

Sharp revenue contractionA 44.7% TTM revenue decline is a substantial deterioration in demand or contracting momentum and threatens the scale benefits of Yext’s software platform. Continued contraction could weaken operating leverage, reduce investment capacity, and pressure the durability of recent profitability.

Yext Key Performance Indicators (KPIs)

Dollar-Based Net Retention RateMeasures customer loyalty and growth by tracking revenue changes from existing customers, revealing the company's ability to retain clients and increase their spending over time.

Chart Insights

DBNRR dropped from just above parity during the 2022 pullback and lingered in the mid‑90s for several quarters before a steady rebound through 2025 toward pre‑downturn levels. That implies churn and downsells weighed on organic expansion, but recent improvements—likely better retention, cross‑sell, or pricing execution—are restoring net expansion. It’s meaningful progress, yet still short of sustained >100% net expansion, so future ARR growth will remain dependent on new bookings unless retention momentum continues.

Data provided by:

The Fly

Yext (YEXT) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $767.08M
Dividend Yield: ―
Average Volume (3M): 903.26K
Price to Earnings (P/E): 33.1
Beta (1Y): 0.84
Revenue Growth: -1.48%
EPS Growth: 257.78%
Country: US
Employees: 1,120
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

Yext Business Overview & Revenue Model

Company Description

Yext, Inc., founded in 2006 and headquartered in New York, New York, specializes in structuring and disseminating critical business information to address consumer queries across North America and globally. The company's core offering is the Yext pla...

How the Company Makes Money

Yext primarily makes money by selling subscriptions to its software platform (SaaS). Revenue is generated through recurring fees customers pay to access and use Yext’s products and features, typically under term contracts that can scale by factors su...

Yext Earnings Call Summary

Earnings Call Date:Jun 03, 2025(Q1-2026)|% Change Since:13.64%|Next Earnings Date:Nov 26, 2026

Earnings Call SentimentPositive

The earnings call reflects a strong quarter for Yext with significant improvements in business metrics, growing demand for new products like Yext Scout, and a solid financial position. Although macroeconomic uncertainties pose some caution, the overall trajectory and innovation-driven growth present a positive outlook.

Positive Updates

Strong Q1 Performance

Yext outperformed its guidance across all metrics and sees continued strength into Q2.

Negative Updates

Macro-Economic Uncertainty

Lingering caution is due to macroeconomic uncertainties, such as potential impacts from tariffs, affecting expansion plans.

Company Guidance

During the Yext, Inc.'s First Quarter Fiscal 2026 Financial Results Conference Call, the company reported outperforming its guidance on all metrics for Q1, with continued strength anticipated into Q2. Key highlights included improvements in gross and net retention, customer satisfaction, and overall value perception across Yext's platform. The company emphasized the importance of managing digital visibility in the rapidly evolving AI-driven search market, which has positively impacted the perception of Yext's core products. Additionally, Yext's new product, Scout, is experiencing strong demand, with a waitlist of 2,000 customers and a mix of existing and new clients showing interest. Despite these positive developments, Yext maintains a cautious outlook due to macroeconomic uncertainties and plans to continue strategic investments in product innovation and potential M&A opportunities, supported by a strong balance sheet and a new credit facility from BlackRock.

Yext Financial Statement Overview

Summary

Profitability and cash generation improved materially versus prior years, supported by strong software gross margins and positive free cash flow. Offsetting this, TTM revenue fell sharply (-44.7%) and leverage rose substantially as equity thinned (debt-to-equity ~6.2x), reducing financial flexibility and raising risk if operating trends soften.

Income Statement

58Neutral

Balance Sheet

35Negative

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	443.02M	446.58M	420.96M	404.32M	400.85M	390.58M
Gross Profit	327.66M	332.51M	324.59M	316.85M	296.89M	292.28M
EBITDA	72.18M	84.11M	169.00K	24.74M	-36.89M	-65.36M
Net Income	26.12M	37.87M	-27.95M	-2.63M	-65.94M	-93.26M
Balance Sheet
Total Assets	483.95M	621.78M	610.08M	508.81M	523.76M	620.34M
Cash, Cash Equivalents and Short-Term Investments	86.83M	154.12M	123.13M	210.18M	190.21M	261.21M
Total Debt	221.67M	178.46M	95.41M	106.36M	118.69M	132.62M
Total Liabilities	448.29M	462.36M	456.88M	361.64M	395.74M	408.46M
Stockholders Equity	35.66M	159.42M	153.19M	147.17M	128.02M	211.87M
Cash Flow
Free Cash Flow	52.98M	53.29M	48.13M	43.43M	11.66M	8.43M
Operating Cash Flow	55.09M	55.85M	50.21M	46.16M	17.85M	21.85M
Investing Cash Flow	-3.18M	-21.36M	-91.49M	-2.73M	-6.19M	-13.42M
Financing Cash Flow	-161.57M	-9.52M	-28.54M	-23.25M	-79.02M	24.62M

Yext Technical Analysis

Technical Analysis SentimentPositive

Last Price7.75

Price Trends

50DMA6.83Positive

100DMA6.15Positive

200DMA5.34Positive

Market Momentum

MACD0.24Negative

RSI64.64Neutral

STOCH55.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YEXT, the sentiment is Positive. The current price of 7.75 is above the 20-day moving average (MA) of 7.33, above the 50-day MA of 6.83, and above the 200-day MA of 5.34, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 55.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YEXT.

Yext Risk Analysis

Yext disclosed 63 risk factors in its most recent earnings report. Yext reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Our capital allocation strategy, including our ongoing self-tender offer, may not be effective at enhancing stockholder value, or providing other benefits we expect.Q4, 2025

2.Our credit agreement may limit our operating flexibility or otherwise adversely affect our business.Q4, 2025

3.We may be unable to fully capture the expected value from strategic acquisitions.Q4, 2025

Yext Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

YEXT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	80Outperform	$3.96T	27.14	33.21%	0.70%	17.91%	36.06%
ORCL	79Outperform	$356.74B	19.81	42.58%	1.56%	21.62%	45.95%
GDDY	76Outperform	$13.72B	15.43	1200.87%	―	6.53%	24.06%
PRGS	64Neutral	$1.79B	20.23	18.36%	―	6.36%	95.43%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
YEXT	58Neutral	$758.98M	33.06	27.89%	―	-1.48%	257.78%
BLIN	49Neutral	$8.15M	-5.52	-14.51%	―	1.61%	58.69%

* Technology Sector Average

Performance Comparison

YEXT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
YEXT	Yext Inc	7.75	-0.87	-10.09%
BLIN	Bridgeline Digital	0.62	-0.44	-41.23%
MSFT	Microsoft	521.13	21.94	4.40%
ORCL	Oracle Corporation	128.38	-86.32	-40.20%
PRGS	Progress Software	44.30	2.00	4.73%
GDDY	GoDaddy Inc.	113.54	-17.53	-13.37%

Yext Corporate Events

Business Operations and StrategyExecutive/Board Changes

Yext Board Approves Long-Term CEO Stock Option Grant

Positive

Oct 14, 2026

On October 11, 2026, Yext’s board approved a major nonstatutory stock option grant for Chief Executive Officer Michael Walrath, covering 11,000,000 shares and intended to be his sole new equity compensation for the next decade, subject to shareholder...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 14, 2026

Yext AI Stock Analysis