Yext (YEXT) Q2 2027 earnings summary

Executive summary

• Revenue for the quarter ended July 31, 2026, was $111.1 million, down 2% year-over-year, primarily due to customer attrition and macroeconomic headwinds.

• Net income for the quarter was $13.1 million, a decrease from $26.8 million in the prior year period.

• Adjusted EBITDA for the quarter was $34.0 million, representing a 31% margin, up from $26.4 million in the prior year.

• The company completed a $140 million self-tender offer, repurchasing 24.3 million shares, and continued open market repurchases, with $106.2 million remaining authorized.

• Acquisition of GoShine AI Ltd. for $1.1 million expanded AI capabilities, and the Corvo AI prototype was launched targeting small business owners.

Financial highlights

• Gross margin for the quarter was 75.5%, slightly up from 75.2% year-over-year.

• Adjusted EBITDA margin improved to 31% from 23.3% year-over-year.

• Non-GAAP net income per share (basic) increased to $0.21 from $0.13 year-over-year.

• Free cash flow for the six months ended July 31, 2026, was $44.7 million, with a margin of 20%.

• Cash and cash equivalents at quarter-end were $86.8 million, down from $154.1 million at the start of the year.

Outlook and guidance

• Management expects continued macroeconomic uncertainty to impact customer spending and contract renewals.

• The company is focused on integrating AI and expanding its API and MCP offerings to enhance customer experience.

• Management expects momentum in enterprise ARR growth to continue into Q3, driven by improved retention and expansion.

• The company believes its liquidity is sufficient for at least the next 12 months and remains committed to disciplined capital allocation.