NYSE:YEXT
Yext, Inc.
Yext empowers businesses to maintain accurate digital listings across the web through its automated cloud platform and local search optimization services.
Key Metrics
Investment Thesis
Bull Case
Investors might consider Yext due to its dominant market position in the critical local search ecosystem and high barriers to entry created by its exclusive data partnerships with major platforms. The recurring nature of subscription revenue provides predictable cash flows, while recent AI advancements could unlock new monetization opportunities in automated content generation for millions of small businesses.
Bear Case
The stock faces severe headwinds from persistent losses totaling $27.9M in 2025 and a substantial retained earnings deficit of over $700 million, indicating structural profitability issues. Heavy cash burn of $91.5M in investing activities combined with rising general and administrative expenses suggests the company may struggle to achieve sustainable positive free cash flow without significant margin expansion.
About Yext, Inc.
Yext, Inc. is a cloud-based software platform that helps businesses manage their digital presence across search engines, maps, social media, and review sites. Operating primarily in the United States and internationally, the company provides automated tools for updating Name, Address, and Phone (NAP) data to ensure consistency. Its core revenue streams include subscription fees for its Digital Presence Platform (DPP), performance-based fees from local SEO services, and sales of proprietary software solutions.
Analysis
Management Discussion
While Yext generated $421.0M in revenue for 2025 showing a modest growth trajectory from previous years, the company recorded a net loss of $27.9M, a significant deterioration compared to the near-breakeven position in 2024. Operating expenses of $357.0M heavily outweighed the gross profit of $324.6M, resulting in an operating loss of $32.4M and a cash burn that reduced net cash by $71.5M year-over-year.
Industry Overview
The local search and digital presence management industry is rapidly evolving as AI reshapes how businesses interact with consumers on maps and review sites. Competition is intensifying from both traditional SEO firms and emerging tech giants, forcing established players to differentiate through data exclusivity and automation capabilities.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $400.9M | $404.3M | $421.0M |
| Cost of Revenue | $104.0M | $87.5M | $96.4M |
| Gross Profit | $296.9M | $316.9M | $324.6M |
| Operating Expenses | $361.7M | $323.1M | $357.0M |
| Operating Income | $-64.8M | $-6.2M | $-32.4M |
| R&D | $70.9M | $72.0M | $77.2M |
| G&A | $79.3M | $72.2M | $105.1M |
| Marketing | $211.5M | $178.8M | $174.8M |
| Stock-Based Comp | $63.1M | $45.0M | $51.8M |
| Depreciation | $17.6M | $15.8M | $11.4M |
| Amortization | — | — | $7.1M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $970.0K | $5.9M | $4.4M |
| Pre-Tax Income | $-63.9M | $-338.0K | $-28.1M |
| Income Tax | $2.1M | $2.3M | $-110.0K |
| Continuing Ops | $-65.9M | $-2.6M | $-27.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-65.9M | $-2.6M | $-27.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-65.9M | $-2.6M | $-27.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $346.6M | $359.9M | $285.8M |
| Cash & Equivalents | $190.2M | $210.2M | $123.1M |
| Accounts Receivable | $109.7M | $108.2M | $112.9M |
| Prepaid Expenses | $15.6M | $14.8M | $18.1M |
| Other Current Assets | $31.0M | $26.7M | $31.6M |
| Long-Term Assets | $177.2M | $148.9M | $324.3M |
| PP&E (Net) | $62.1M | $48.5M | $39.7M |
| Goodwill | $4.5M | $4.5M | $96.8M |
| Operating Leases | $85.5M | $76.0M | $67.5M |
| Other LT Assets | $25.2M | $19.9M | $120.4M |
| Total Assets | $523.8M | $508.8M | $610.1M |
| Current Liabilities | $290.9M | $267.8M | $344.7M |
| Accounts Payable | $7.3M | $7.4M | $4.8M |
| Current Leases | $18.2M | $16.8M | $18.6M |
| Deferred Revenue | $223.7M | $212.2M | $229.1M |
| Other Current Liab | $41.8M | $31.3M | $92.2M |
| Long-Term Liabilities | $104.9M | $93.9M | $112.2M |
| LT Operating Leases | $100.5M | $89.6M | $76.8M |
| Other LT Liab | $4.2M | $3.6M | $34.8M |
| Total Liabilities | $395.7M | $361.6M | $456.9M |
| Shareholders' Equity | $128.0M | $147.2M | $153.2M |
| Paid-In Capital | $897.4M | $942.6M | $996.5M |
| Retained Earnings | $-676.5M | $-679.2M | $-707.1M |
| AOCI | $-3.6M | $-4.2M | $-6.0M |
| Treasury Stock | $89.3M | — | — |
| Total L&E | $523.8M | $508.8M | $610.1M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-65.9M | $-2.6M | $-27.9M |
| Non-Cash Adjustments | $76.4M | $84.2M | $91.3M |
| Working Capital Changes | $7.4M | $-35.4M | $-13.2M |
| Cash from Operations | $17.9M | $46.2M | $50.2M |
| Capital Expenditures | $6.2M | $2.7M | $2.1M |
| Cash from Investing | $-6.2M | $-2.7M | $-91.5M |
| Share Buybacks | $77.2M | $23.1M | $17.9M |
| Cash from Financing | $-79.0M | $-23.3M | $-28.5M |
| FX Effect | $-3.6M | $-205.0K | $-1.7M |
| Net Change in Cash | $-71.0M | $20.0M | $-71.5M |
| Beginning Cash | $261.2M | $190.2M | $210.2M |
| Ending Cash | $190.2M | $210.2M | $138.7M |
Frequently Asked Questions
How does Yext, Inc. make money?
The company's revenue is driven by its Digital Presence Platform (DPP) subscriptions which generate recurring SaaS income, performance-based Local Search Services fees tied to client growth, and sales of specialized software solutions for managing customer feedback and location data.
What are the main risks for YEXT?
High customer concentration risk where a few large enterprise accounts drive significant revenue, potential erosion of margins due to increasing cloud infrastructure costs relative to operating expenses, and regulatory challenges regarding data privacy and AI usage in local search ranking algorithms.
What is YEXT's competitive advantage?
Yext possesses a massive proprietary database of business listings that creates high switching costs for enterprise clients, utilizes advanced AI automation to reduce manual update efforts, and maintains deep integrations with major search engines like Google and Apple Maps.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.