Yext (YEXT) Q1 2027 earnings summary

Executive summary

• Revenue for the quarter ended April 30, 2026, was $107.9 million, down 1% year-over-year, primarily due to customer attrition, with a positive $0.6 million impact from foreign currency exchange rates.

• Net income increased to $2.6 million from $0.8 million in the prior year quarter, with basic and diluted EPS of $0.02; non-GAAP net income per share was $0.15.

• Adjusted EBITDA reached $26.9 million, with a 25% margin, up from 22.5% the prior year.

• Annual Recurring Revenue (ARR) was $440.8 million, down 1% year-over-year.

• Completed a $140 million self-tender offer, repurchasing 24.3 million shares at $5.75 per share, funded in part by a $50 million draw on a term loan facility; board authorized an additional $100 million for share repurchases.

Financial highlights

• Gross margin declined to 72.9% from 75.2% year-over-year, with gross profit at $78.7 million.

• Operating income was $5.6 million, up from $1.1 million year-over-year.

• Operating expenses decreased across all categories: sales and marketing down 19%, research and development down 2%, and general and administrative down 4% year-over-year.

• Free cash flow was $37.0 million, with a free cash flow margin of 34%.

• Cash and cash equivalents at quarter-end were $91.9 million, down from $154.1 million at the start of the quarter; debt outstanding was $147.6 million under the May 2025 Credit Agreement.

Outlook and guidance

• Management expects existing cash and cash equivalents to be sufficient for at least the next 12 months.

• Macroeconomic uncertainty, customer attrition, and competitive pressures may continue to impact revenue growth and retention rates.

• Management highlighted improving year-over-year growth in customers with ARR ≥ $50K and sees expanding opportunities as AI adoption grows.

• Strong cash position supports continued R&D, M&A, and capital returns.