Yext's Q4 2025: Unpacking Contradictions in AI Impact, ARR Growth, and Places Scout Revenue

These are the key contradictions discussed in Yext's latest 2025Q4 earnings call, specifically including: AI impact on products and bookings, ARR growth expectations, and Places Scout's revenue contribution:



Strategic Positioning and Product Innovation:
- Yext's integration of Hearsay and launch of new products like Yext Scout enhanced its platform and product roadmap, indicating strong strategic positioning.
- The company recognizes the rapid rate of change driven by AI as a growth opportunity and is adapting its platform to address this.

Financial Performance and Profitability:
- Yext reported EBITDA margins surpassing 20%, with an outlook for over $100 million in EBITDA for fiscal year 2026.
- High retention rates (gross ARR retention in the high 80s and net retention up across both direct and reseller) contributed to financial strength.

Search Fragmentation and Competitive Positioning:
- Yext's acquisition of Places Scout has expanded its ability to provide comprehensive search insights, optimizing data across various platforms.
- This move allows Yext to offer AI-driven solutions for understanding and optimizing digital presence in an increasingly fragmented search landscape.

Macro Trends and Customer Enthusiasm:
- Despite unchanged macroeconomic conditions, Yext experienced positive trends in performance metrics, driven by product developments and customer success initiatives.
- The launch of Yext Scout was met with high enthusiasm from customers, signaling potential growth opportunities in the future.