Yext, Inc. (NYSE: YEXT) reported fourth‑quarter and full‑year 2026 financial results on March 9 2026. Revenue for the quarter was $112.0 million, falling short of the consensus estimate of roughly $115.9 million and representing a 1.0% year‑over‑year decline. Full‑year revenue reached $446.6 million, up 6% from $421.0 million in FY25, but still below the $450 million consensus estimate. Adjusted earnings per share for the quarter were $0.14, missing the consensus estimate of $0.15 by $0.01, while full‑year adjusted EPS was $0.56, exceeding the $0.50 forecast by $0.06.
The company’s profitability metrics remained strong. Adjusted EBITDA for FY26 was $107.3 million, a 24% margin, and $29.0 million in Q4, a 26% margin. Gross margin in Q4 was 73.5%, slightly below the 75.3% margin reported for the prior year, reflecting a modest mix shift toward higher‑margin enterprise contracts. Free cash flow for the year was $53.3 million, up from $48.1 million in FY25, underscoring disciplined cash‑generation even amid revenue pressure.
Management highlighted the operational turnaround, noting that workforce reductions and cost discipline have lifted margins. CEO Michael Walrath said, "Fiscal year 2026 was a year of significant operational achievement for Yext, highlighted by the generation of $107.3 million in Adjusted EBITDA and a continued expansion of our free cash flow." He also emphasized the Scout platform, stating, "With the strong traction of our Scout launch, we are defining a new category of agentic marketing. By moving beyond simple insights to deliver automated, agent‑driven optimizations across the leading AI engines and search platforms, we are making our customers' brands the ones that engines trust and consumers choose."
Yext also disclosed a strategic shift in its customer mix: the sub‑$50,000 ARR segment now represents 9% of total ARR, down from 11% a year earlier, while the $50,000+ segment accounts for 91% of ARR. This move toward larger enterprise accounts is intended to support higher‑margin growth, though it has contributed to the modest revenue decline as the company phases out lower‑margin SMB contracts. The company suspended its forward‑looking guidance for the next quarter and fiscal year, a decision that signals uncertainty about near‑term demand and reflects the impact of competitive pressures and the need for further cost discipline.
Investors reacted negatively to the results, citing the EPS miss, revenue miss, and guidance suspension as key concerns. The market’s response underscores the importance of earnings accuracy and forward guidance in maintaining investor confidence, even as Yext continues to invest in AI‑driven solutions and pursue a higher‑margin customer base.
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