Yext, Inc. reported third‑quarter fiscal 2026 results on December 8, 2025, showing revenue of $112.0 million, a 2% decline from the $114.0 million earned in the same period a year earlier. Non‑GAAP earnings per share came in at $0.14, beating the consensus estimate of $0.13 by $0.01 and surpassing the prior‑year Q3 EPS of $0.12. Adjusted EBITDA rose to $27.2 million, up from $23.1 million a year earlier, and expanded to a 24% margin thanks to disciplined cost management and a favorable mix of high‑margin contracts.
The revenue dip was driven by a 2% year‑over‑year decline in core subscription sales, offset only partially by a $3.0 million gain from foreign‑currency movements. Management cited intensified competition in the AI‑search space and a slowdown in demand for legacy search products as key headwinds. Despite the top‑line softness, the company’s dollar‑based net retention rate held steady at 96% for both total and direct customers, underscoring strong customer stickiness.
The EPS beat was largely a result of aggressive cost controls that preserved margins even as revenue slipped. Operating expenses fell, particularly sales and marketing spend, which dropped to 30% of revenue from 38% a year earlier. Share repurchases of $59.6 million year‑to‑date further reduced diluted earnings, contributing to the stronger EPS figure.
Cash, cash equivalents and restricted cash climbed to $158.9 million from $138.7 million, giving Yext a robust liquidity buffer. The company also highlighted ongoing share buyback activity, reinforcing confidence in its cash‑generating ability.
CEO Michael Walrath noted, “While we faced some headwinds in revenue growth this quarter, we continued to focus on operational efficiency, which helped drive our adjusted EBITDA to $27.2 million, representing a 24% margin.” No forward guidance was issued, as the board is reviewing a non‑binding acquisition proposal and other strategic alternatives. In after‑hours trading on December 8, Yext’s shares fell 1.9%, reflecting investor concern over the revenue miss and the lack of a clear outlook.
The results signal a company that is tightening its cost base and maintaining profitability, but also one that is confronting a slowdown in top‑line growth amid a competitive AI‑search market. The absence of guidance amid a strategic review adds uncertainty, suggesting that investors should monitor Yext’s next earnings release for clarity on future growth prospects.
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