Yext 2026 Q3 Earnings Record Net Income of $6.14M, 147.9% Turnaround

Yext (YEXT) reported fiscal 2026 Q3 results on Dec 8, 2025, with revenue declining 1.7% to $112M but net income surging to $6.14M—a 147.9% improvement from a $12.8M loss in Q3 2025. The stock fell 1.01% in the latest trading day but gained 4.13% over the week. The company provided no explicit guidance, citing strategic reviews of CEO Michael Walrath’s acquisition proposal and operational uncertainties.

Revenue

The total revenue of Yext decreased by 1.7% to $112 million in 2026 Q3, down from $113.99 million in 2025 Q3. This 2% year-over-year decline fell short of analyst estimates of $113.13 million. Direct customers, contributing 83% of total ARR, saw revenue dip 2% to $368.6 million, while reseller revenue increased 2% to $75.8 million.

Earnings/Net Income

Yext returned to profitability with EPS of $0.05 in 2026 Q3, reversing from a loss of $0.10 per share in 2025 Q3 (150.0% positive change). The company achieved a remarkable turnaround with net income of $6.14 million, representing a 147.9% positive swing from the net loss of $-12.80 million in 2025 Q3. This marked a new 10-year high for Q3 net income. The non-GAAP net income rose to $17.5 million, up from $15.6 million in the prior year.

Price Action

The stock price of Yext has edged down 1.01% during the latest trading day, has climbed 4.13% during the most recent full trading week, and has climbed 3.76% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, Yext’s stock experienced mixed reactions. While the company’s adjusted EBITDA margin of 24% and cost discipline (non-GAAP operating expenses at 56% of revenue) were well-received, the revenue miss weighed on short-term sentiment. The stock closed the day down 1.9% in after-hours trading, reflecting investor caution around the CEO’s acquisition proposal and strategic uncertainties.

CEO Commentary

Michael Walrath highlighted Q3 2026 performance, noting a 2% revenue decline to $112.0 million but improved net income ($6.1 million vs. $12.8M loss in Q3 2025). He emphasized cost discipline, with non-GAAP operating expenses at 56% of revenue (down from 62% in Q3 2025) and a 24% Adjusted EBITDA margin. Walrath acknowledged challenges in maintaining ARR growth, with a 1% decline to $444.4 million, while underscoring strong retention metrics: 96% dollar-based net retention for direct customers and 99% for resellers. The tone remained cautious, citing strategic review of Walrath’s non-binding acquisition proposal and its impact on operational focus.

Guidance

The company provided no explicit financial guidance for future periods. Forward-looking statements emphasized ongoing evaluation of strategic alternatives, including Walrath’s acquisition proposal, and uncertainties in regulatory approvals, stakeholder alignment, and operational disruptions. The board stated it would consider all options “consistent with its fiduciary duties,” but no specific revenue, EPS, or margin targets were outlined. The document reiterated risks related to litigation, transaction timing, and potential impacts on customer/employee retention.

Additional News

Yext’s CEO submitted a non-binding $9.00-per-share acquisition proposal in August 2025, prompting a special board committee to evaluate strategic alternatives. Concurrently, the company secured a $200 million debt facility from BlackRock to fund growth initiatives and strategic acquisitions, replacing its previous revolving credit facility. Additionally, Yext released a report showing 86% of AI citations stem from brand-managed sources, highlighting its role in shaping AI-driven search outcomes. These developments underscore the company’s focus on both operational efficiency and strategic positioning amid evolving market dynamics.