Yext, Inc.

Previous wording

Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates. We offer subscriptions in a discrete range of packages, with pricing based on specified feature sets and the number of licenses managed by the customer as well as on a capacity-basis.

Current wording

Revenue is a function of the number of customers, the number of licenses or capacity purchased by each customer, the package to which each customer subscribes, the price of the package and renewal rates. We offer subscriptions in a discrete range of packages, with pricing based on specified capabilities and solutions and the number of licenses managed by the customer as well as on a capacity-basis.

Previous wording

See Part II Item 1A “Risk Factors” for further discussion of the possible impact of the current macroeconomic conditions and recent developments on our business.

Current wording

See Part II Item 1A “Risk Factors” for further discussion of the possible impact of the current macroeconomic conditions and shareholder developments on our business.

Previous wording

Total revenue was $107.9 million for the three months ended April 30, 2026, compared to $109.5 million for the three months ended April 30, 2025, a decrease of $1.6 million or 1%. The decrease was primarily driven by customer attrition. For the three months ended April 30, 2026 and 2025, revenue recognized from subscription and associated support to our platform was 94%, while revenue recognized from professional services was 6%, compared to 93% and 7%, respectively.

Current wording

Total revenue was $111.1 million for the three months ended July 31, 2026, compared to $113.1 million for the three months ended July 31, 2025, a decrease of $2.0 million or 2%. The decrease was primarily driven by customer attrition. For the three months ended July 31, 2026 and 2025, revenue recognized from subscription and associated support to our platform was 94%, while revenue recognized from professional services was 6%, compared to 93% and 7%, respectively.

Previous wording

Revenue for the three months ended April 30, 2026, included a positive impact from foreign currency exchange rates of approximately $0.6 million, using a constant currency basis. We calculate constant currency by translating our current period results for entities reporting in currencies other than U.S. Dollars (“USD”) into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period.

Current wording

Revenue for the three months ended July 31, 2026, included a negative impact from foreign currency exchange rates of approximately $0.2 million, using a constant currency basis. We calculate constant currency by translating our current period results for entities reporting in currencies other than U.S. Dollars (“USD”) into USD at the average monthly exchange rates in effect during the comparative period, as opposed to the average monthly exchange rates in effect during the current period.

Previous wording

Gross margin was 72.9% for the three months ended April 30, 2026, compared to 75.2% for the three months ended April 30, 2025 as reflected in the discussion above.

Current wording

Gross margin was 75.5% for the three months ended July 31, 2026, compared to 75.2% for the three months ended July 31, 2025 as reflected in the discussion above.

Previous wording

Net income was $2.6 million and $0.8 million for the three months ended April 30, 2026 and 2025, respectively.

Current wording

Net income was $13.1 million and $26.8 million for the three months ended July 31, 2026 and 2025, respectively.

Previous wording

Cost of revenue was $29.2 million for the three months ended April 30, 2026, compared to $27.1 million for the three months ended April 30, 2025, an increase of $2.1 million or 8%. The increase was primarily driven by a $1.1 million increase in data center costs. In addition, asset impairment charges of $1.5 million were recognized during the three months ended April 30, 2026, primarily in connection with subleasing a floor of our corporate headquarters.

Current wording

Cost of revenue was $56.5 million for the six months ended July 31, 2026, compared to $55.2 million for the six months ended July 31, 2025, an increase of $1.3 million or 2%. The increase was primarily driven by a $2.0 million increase in data center costs. In addition, asset impairment charges of $1.5 million were recognized during the six months ended July 31, 2026, in connection with subleasing a floor of our corporate headquarters. This was offset by smaller decreases in lease expense largely due to subleasing activity, personnel-related costs, and professional fees, among others.

Previous wording

Sales and marketing expense was $29.4 million for the three months ended April 30, 2026, compared to $36.2 million for the three months ended April 30, 2025, a decrease of $6.8 million or 19%. The decrease was primarily driven by employee-related costs as personnel-related costs decreased $5.7 million and stock-based compensation expense decreased $0.8 million, reflecting lower headcount. This was offset by asset impairment charges of $1.1 million recognized during the three months ended April 30, 2026, primarily in connection with subleasing a floor of our corporate headquarters.

Current wording

Sales and marketing expense was $55.7 million for the six months ended July 31, 2026, compared to $68.3 million for the six months ended July 31, 2025, a decrease of $12.6 million or 18%. The decrease was primarily driven by a $10.1 million decrease in personnel-related costs, reflecting lower headcount, a $1.1 million decrease in lease expense largely due to subleasing activity, and a $1.0 million decrease in professional fees. This was offset by asset impairment charges of $1.1 million recognized during the six months ended July 31, 2026, in connection with subleasing a floor of our corporate headquarters.

Previous wording

Research and development expense was $21.5 million for the three months ended April 30, 2026, compared to $21.9 million for the three months ended April 30, 2025, a decrease of $0.4 million or 2%. The decrease was primarily driven by a $0.8 million decrease in personnel-related costs, reflecting lower headcount, as well as a $0.5 million decrease in lease expense largely due to subleasing activity. This was offset by asset impairment charges of $1.0 million recognized during the three months ended April 30, 2026, primarily in connection with subleasing a floor of our corporate headquarters.

Current wording

Research and development expense was $40.9 million for the six months ended July 31, 2026, compared to $45.2 million for the six months ended July 31, 2025, a decrease of $4.4 million or 10%. The decrease was primarily driven by a $2.4 million decrease in personnel-related costs, reflecting lower headcount, and a $1.0 million decrease in lease expense largely due to subleasing activity. This was offset by asset impairment charges of $1.0 million recognized during the six months ended July 31, 2026, in connection with subleasing a floor of our corporate headquarters.

Previous wording

General and administrative expense was $22.3 million for the three months ended April 30, 2026, compared to $23.2 million for the three months ended April 30, 2025, a decrease of $0.9 million or 4%. The decrease was primarily driven by changes in the fair value of contingent consideration of $1.6 million. See Note 6 "Fair Value of Financial Instruments" to our condensed consolidated financial statements for additional information on contingent consideration. In addition, stock-based compensation expense decreased $1.9 million mainly due to the timing of awards vesting and professional related costs decreased $0.9 million inclusive of acquisition-related costs related to Places Scout included in our results for the three months ended April 30, 2025. This was offset by an increase in personnel-related costs of $2.1 million, reflecting higher headcount, and asset impairment charges of $1.1 million recognized during the three months ended April 30, 2026, primarily in connection with subleasing a floor of our corporate headquarters.

Current wording

General and administrative expense was $42.9 million for the six months ended July 31, 2026, compared to $23.1 million for the six months ended July 31, 2025, an increase of $19.8 million or 86%. The increase was primarily driven by changes in the fair value of contingent consideration of $21.6 million pertaining to the Hearsay acquisition, stemming from a decline in the estimated achievement of the earnout arrangement during the six months ended July 31, 2025. In addition, personnel-related cost increased $3.2 million, reflecting higher headcount, and asset impairment charges of $1.1 million were recognized during the six months ended July 31, 2026, in connection with subleasing a floor of our corporate headquarters. This was offset by a $1.3 million decrease in professional fees and a $4.9 million decrease in stock-based compensation expense, primarily due to a shift in our granting practices from time-based restricted stock awards to performance-based awards, compounded by lower grant date fair values for awards granted during fiscal 2027, and by awards that have fully vested for certain executives.

Previous wording

As of April 30, 2026, our principal sources of liquidity were cash and cash equivalents of $91.9 million. We believe our existing cash and cash equivalents, will be sufficient to meet our projected operating requirements for at least the next 12 months. Our cash flows, including net cash used in or provided by operating activities, may vary significantly from quarter to quarter, due to the timing of billings, cash collections and lease payments, significant marketing events and related expenses, acquisitions, and other factors.

Current wording

As of July 31, 2026, our principal sources of liquidity were cash and cash equivalents of $86.8 million. We believe our existing cash and cash equivalents, will be sufficient to meet our projected operating requirements for at least the next 12 months. Our cash flows, including net cash used in or provided by operating activities, may vary significantly from quarter to quarter, due to the timing of billings, cash collections and lease payments, significant marketing events and related expenses, acquisitions, and other factors.

Previous wording

In March 2022, our Board of Directors authorized a $100.0 million share repurchase program of our common stock which was increased by an additional $50.0 million in September 2023 and an additional $50.0 million in March 2025. During the three months ended April 30, 2026, no repurchases were made under the share repurchase program. As of April 30, 2026, approximately $14.9 million remains available for future purchases, exclusive of commissions paid on the repurchase of shares. In May 2026, our Board of Directors authorized an additional $100.0 million to our share repurchase program.

Current wording

In March 2022, our Board of Directors authorized a $100.0 million share repurchase program of our common stock which was increased by an additional $50.0 million in September 2023, $50.0 million in March 2025, and $100.0 million in May 2026. During the three and six months ended July 31, 2026, 1,817,696 shares were repurchased and as of July 31, 2026, approximately $106.2 million remains available for future purchases, exclusive of commissions paid on the repurchase of shares.

Previous wording

Net cash provided by operating activities of $37.4 million for the three months ended April 30, 2026 reflected our net income of $2.6 million, adjusted by non-cash charges including stock-based compensation expense of $10.0 million, depreciation and amortization expense of $6.2 million, as well as amortization of operating lease right-of-use assets of $2.3 million and asset impairment charges of $4.7 million. In addition, there were positive adjustments resulting from changes in accounts receivable of $49.4 million, mainly due to the timing of billing and cash collections during the period, and costs to obtain revenue contracts of $2.9 million. These increases were offset by changes in unearned revenue of $15.8 million, accounts payable, accrued expense and other current liabilities of $14.7 million, prepaid expenses and other current assets of $6.3 million, operating lease liabilities of $3.7 million and other long term assets of $0.9 million.

Current wording

Net cash provided by operating activities of $45.4 million for the six months ended July 31, 2026 reflected our net income of $15.8 million, adjusted by non-cash charges including stock-based compensation expense of $20.0 million, depreciation and amortization expense of $12.4 million, asset impairment charges of $4.7 million, and amortization of operating lease right-of-use assets of $4.5 million. In addition, there were positive adjustments resulting from changes in accounts receivable of $50.2 million, mainly due to the timing of billing and cash collections during the period, and costs to obtain revenue contracts of $4.5 million. These increases were offset by changes in unearned revenue of $37.3 million, accounts payable, accrued expense and other current liabilities of $17.7 million, operating lease liabilities of $7.4 million, and prepaid expenses and other current assets of $5.1 million.

Previous wording

Net cash provided by operating activities of $37.7 million for the three months ended April 30, 2025 reflected our net income of $0.8 million, adjusted by non-cash charges including stock-based compensation expense of $12.7 million, depreciation and amortization expense of $6.9 million, including $4.1 million related to the amortization of acquired intangibles, as well as $2.3 million related to the amortization of operating lease right-of-use assets and $1.8 million related to adjustments in contingent consideration. In addition, there were positive adjustments resulting from changes in accounts receivable of $43.1 million, mainly due to the timing of billing and cash collections during the period, as well as changes in other long term assets of $5.9 million, costs to obtain revenue contracts of $3.2 million and $0.8 million in accounts payable, accrued expenses and other current liabilities. These increases were offset by changes in unearned revenue of $21.7 million, other long term liabilities of $10.3 million, prepaid expenses and other current assets of $5.0 million and operating lease liabilities of $3.5 million.

Current wording

Net cash provided by operating activities of $46.1 million for the six months ended July 31, 2025 reflected our net income of $27.5 million, adjusted by non-cash charges including stock-based compensation expense of $25.6 million, depreciation and amortization expense of $13.6 million, including $8.2 million related to the amortization of acquired intangibles, and $4.7 million related to the amortization of operating lease right-of-use assets. These non-cash charges were offset by $21.6 million related to adjustments in contingent consideration. In addition, there were positive adjustments resulting from changes in accounts receivable of $47.3 million, mainly due to the timing of billing and cash collections during the period, as well as changes in other long term assets of $6.8 million, and costs to obtain revenue contracts of $7.0 million. These increases were offset by changes in unearned revenue of $46.5 million, other long term liabilities of $11.1 million, prepaid expenses and other current assets of $2.0 million and operating lease liabilities of $7.0 million.

Previous wording

Net cash used in investing activities of $19.4 million for the three months ended April 30, 2025 reflected cash outflows of $18.8 million related to cash paid, net of cash acquired, in the acquisition of Places Scout, as well as capital expenditures of $0.6 million.

Current wording

Net cash used in investing activities of $19.9 million for the six months ended July 31, 2025 reflected cash outflows of $18.8 million related to cash paid, net of cash acquired, in the acquisition of Places Scout, as well as capital expenditures of $1.1 million.

Previous wording

Net cash used in financing activities of $100.1 million for the three months ended April 30, 2026 reflected cash outflows of $142.0 million associated with our Tender Offer, $5.0 million associated with payments for taxes related to the net share settlement of stock-based compensation awards, and deferred acquisition payments of $2.9 million made in connection with the Hearsay and Places Scout acquisitions. This was offset by proceeds from debt issuance of $49.5 million related to the May 2025 Credit Agreement.

Current wording

Net cash used in financing activities of $111.3 million for the six months ended July 31, 2026 reflected cash outflows of $150.9 million associated with repurchases of our common stock, inclusive of $142.1 million associated with our Tender Offer and $8.8 million associated with our share repurchase program, $7.8 million associated with payments for taxes related to the net share settlement of stock-based compensation awards, and deferred acquisition payments of $2.9 million made in connection with the Hearsay and Places Scout acquisitions. This was offset by proceeds from debt issuance of $49.5 million related to the May 2025 Credit Agreement.

Previous wording

Net cash used in financing activities of $29.0 million for the three months ended April 30, 2025 was primarily related to cash outflows of $27.6 million associated with repurchases of common stock as part of our share repurchase program, as well as $2.1 million associated with payments for taxes related to the net share settlement of stock-based compensation awards.

Current wording

Net cash provided by financing activities of $40.7 million for the six months ended July 31, 2025 reflected proceeds from debt issuance of $99.0 million related to the May 2025 Credit Agreement, and $1.6 million of net proceeds from employee stock purchase plan withholdings. This was offset by $45.4 million associated with repurchases of common stock as part of our share repurchase program, as well as $14.0 million associated with payments for taxes related to the net share settlement of stock-based compensation awards.