Yext, Inc.

Long-Term Value Creation

Over the course of fiscal 2026, we continued a transformation that is far more important than any single quarterly result: we strengthened the economic engine of the business. It is important to step back from the quarter-to-quarter volatility and examine the arc of progress that we have made over the past four years.

The past few years, the central question about Yext was whether we combine durable revenue with consistent profitability. That question has now been answered. We have strengthened our balance sheet, materially improved operating leverage, expanded Adjusted EBITDA margins, reduced our share count, and improved retention metrics - all while navigating a rapidly evolving search landscape.

This transformation has not been accidental, and it hasn’t been the result of short-term actions. It reflects disciplined execution, a sharper strategic focus, and a consistent commitment to capital efficiency. It reflects a structural improvement in how we operate. We have transitioned from restructuring mode to operating from a position of strength.

An investment in Yext today is not a trade on quarterly fluctuations in ARR or in AI as a software killer - it is an investment in:

•A durable recurring revenue base.

•A business with demonstrated operating leverage.

•A balance sheet that provides strategic flexibility.

•A platform positioned at the center of AI-driven digital discovery.

•A management team that has proven it can execute through multiple industry cycles.

We exited our fiscal year with a business that is structurally stronger than it was just a few years ago. While revenue growth has remained measured, the quality of that revenue has improved meaningfully. Net retention trends have strengthened relative to prior periods, reflecting improved customer value perception and reduced downgrade pressure. Sales and marketing expense as a percentage of revenue remains significantly lower than historical levels, demonstrating durable operating leverage. And Adjusted EBITDA margins for the year reflect a company that has learned how to grow efficiently.

Most importantly, we are generating meaningful free cash flow. Q4 capped a year in which cash generation was a defining characteristic of our model. That free cash flow, combined with disciplined capital allocation, gives us the flexibility to reinvest in innovation, pursue selective acquisitions, and repurchase shares when valuation does not reflect intrinsic value.