How did Yext's revenue and expenses shift in Q4 2025?

Yext's revenue for Q4 2025 was $113.1 million, marking a 12% increase year-over-year, primarily driven by the integration of Hearsay Systems. However, expenses were $95.9 million, which, when compared to the revenue, indicate that operating expenses were 85% of the revenue for the quarter. This suggests that while Yext saw a boost in revenue, they also faced corresponding increases in operational costs, which is typical during integration periods for software companies.

1. **Revenue Growth**: Yext's revenue in Q4 2025 was $113.1 million, a 12% increase from the same period the previous year. This growth was attributed to the integration of Hearsay Systems, which brought expected go-to-market and cost synergies.
2. **Expense Management**: The company's operating expenses were $95.9 million for the quarter, constituting 85% of the revenue. This indicates that while Yext was successful in growing its revenue, it also faced significant costs associated with integrating Hearsay Systems and likely other operational expenses that could impact the bottom line.
3. **Profitability Metrics**: Despite the increase in revenue, Yext reported a net loss per share of $0.06 for the quarter, indicating that expenses were high enough to eat into the company's profitability. However, the company also reported a non-GAAP earnings per share (EPS) of $0.13, which suggests that if we adjust for certain items (like stock-based compensation), the company had a positive earnings trend.
4. **Future Outlook**: Looking ahead, Yext anticipates an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of over $100 million for fiscal year 2026, indicating a strong confidence in its future profitability and cash flow generation.

In conclusion, while Yext experienced significant revenue growth in Q4 2025, this was accompanied by increased expenses, primarily related to the integration of Hearsay Systems. The company's focus on strategic investments and product innovation is positioning it for long-term growth and success, as evidenced by the projected EBITDA for fiscal year 2026.