Yext, Inc.

Tuesday, September 1, 2026

Dear Shareholders,

During the second quarter, we made solid progress towards our long-term objectives. The enterprise side of our business grew again this quarter, as ARR from customers paying us $50,000 or more per year ended July at $405.9 million, a 2% year-over-year increase, accelerating from 1% in fiscal Q1. Total ARR declined 1% on a year-over-year basis, driven by our sub-$50K ARR cohort, and increased slightly from fiscal Q1. GAAP net income was $13.1 million and Adjusted EBITDA was $34.0 million, up 29% from the same quarter last year. Our Adjusted EBITDA margin increased 730 basis points year over year to 31% from 23%. We repurchased 1.8 million shares during the quarter, ending with 99.3 million shares outstanding. We will continue to drive shareholder value through prudent capital allocation.

In June, we laid out a plan for investors outlining what this year should look like: 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. We executed well against each of these objectives during the second quarter.

Building on this momentum, this letter details four key areas shaping our progress:

1. Our second quarter results and the continued shift of our business toward larger, more profitable enterprise customer relationships;

2. The GoShine acquisition, the launch of Action Center, and the launch of an experiment to strengthen our SMB offering;

3. Our multi-year journey to best-in-class efficiency, including how we got here and where we are headed; and

4. Our capital allocation framework and its role in shareholder value creation.