Yext (YEXT) Q4 2025 earnings summary

Executive summary

• Strategic positioning strengthened by successful integration of Hearsay and launch of Yext Scout, driving product innovation and customer enthusiasm.

• Q4 revenue reached $113.1 million, up 12% year-over-year, driven by Hearsay Systems integration.

• Positive momentum in performance metrics, with increasing gross and net retention rates and strong EBITDA margins above 20%.

• Demand environment improving due to product developments and focus on customer success, despite persistent macroeconomic challenges.

• Scout launch generated unprecedented customer interest, signaling strong future demand.

Financial highlights

• Q4 gross profit was $86.8 million, up from $79.4 million in Q4 last year.

• Q4 adjusted EBITDA was $24.6 million, with a 22% margin, marking record performance.

• Gross ARR retention increased to the high 80s; net retention up across both direct and reseller channels.

• Sequential ARR decline in Q4 primarily driven by $3.5 million FX impact and $2.5 million from contract restructuring, but pace of decline has slowed significantly year-over-year.

• Free cash flow conversion rate expected around 70% for the coming fiscal year, including acquisition-related payments.

Outlook and guidance

• FY26 adjusted EBITDA is projected between $100.0 million and $103.0 million.

• No full-year revenue guide provided; expanded ARR disclosure to include uncommitted ARR for clearer forward visibility.

• Fiscal 2026 EBITDA guidance assumes modest ARR recovery, with flexibility to invest in growth or allow margin expansion depending on ARR trends.

• Management remains conservative on expenses until growth materializes, with quarterly updates to ARR outlook.