Yext Adjusted EBITDA Reaches $34.0 Million
The enterprise agentic marketing platform posted a 31% Adjusted EBITDA margin in the three months ended July 31, 2026.
Yext, Inc. (YEXT), the enterprise agentic marketing platform, reported Adjusted EBITDA of $34.0 million for the three months ended July 31, 2026, up 29% from $26.4 million a year earlier, with Adjusted EBITDA margin of 31% versus 23% a year earlier.
That profitability step-up was the quarter’s defining result. Adjusted EBITDA also rose sequentially to $34.0 million from $26.9 million in the prior quarter, and the margin widened to 31% from 25%. Chairman and CEO Michael Walrath said the company was achieving record Adjusted EBITDA while returning capital to shareholders.
Revenue was $111.1 million, down 2% from $113.1 million in the year-ago quarter. The decline reflected customer-size cohort dynamics and the company’s go-to-market strategy. Revenue rose sequentially from $107.9 million in the prior quarter. Gross margin improved to 75.5% on a GAAP basis from 75.2% a year earlier.
GAAP net income was $13.1 million, or $0.13 a share basic, versus $26.8 million, or $0.22 a share basic, a year earlier. Non-GAAP net income was $21.2 million, or $0.21 a share. The weighted-average basic share count fell 19% year over year to 100.1 million, with the quarter showing the full effect of the spring tender offer.
Annual recurring revenue ended the quarter at $440.8 million, down 1% from $444.4 million a year earlier and essentially unchanged from the prior quarter. The mix inside that total is the operating story. ARR from customers paying $50,000 or more was $405.9 million, up 2% year over year. That growth accelerated from 1% in the fiscal first quarter and was accelerating on both a sequential and year-over-year basis.
ARR from customers with less than $50,000 was $34.9 million, down 22% from $45.0 million a year earlier and down from $37.7 million at the end of the prior quarter. Dollar-based net retention for the $50,000-or-more cohort was 98%, versus 97% at the end of the prior quarter and 96% a year earlier. Total-customer net retention was 96%, versus 95% a quarter earlier. For the sub-$50,000 cohort, dollar-based net retention was 79%, versus 86% at the end of the prior quarter and 91% a year earlier.
Walrath said growth in the enterprise ARR customer cohort accelerated again in the second quarter, driven by improvements in both retention and expansion, and that the company was seeing signs it expects that momentum to carry into the third quarter. The company expects third-quarter results to reflect continued positive momentum in that cohort.
The company completed the acquisition of GoShine, which expanded the platform to brand-level visibility optimization for AI search, and released a working prototype of Corvo AI in August, a conversational platform aimed at small business owners. Walrath described the future of discovery as agentic and said the platform’s structured-data infrastructure lets customers and their agents act on brand information across the internet.
The company repurchased 1.8 million shares during the quarter, ending with 99.3 million shares outstanding. Cash and cash equivalents were $86.8 million at July 31, 2026. Long-term debt, net, was $147.7 million. Unearned revenue, current, was $179.6 million.
In June the company laid out a plan for the year: continued growth in the large-customer cohort, Adjusted EBITDA margin building toward 30% throughout the year, GAAP net income margins of 10% to 15% in each remaining quarter, and a share count reflecting the full effect of the tender offer. The company executed against each of those objectives in the second quarter.