Executive Summary
Yext reported QQ2 2025 revenue of $97.9 million, up approximately 1.98% QoQ but down about 4.59% year over year. The quarter delivered a gross margin of ~77.23% ($75.6m on $97.9m revenue), while EBITDA remained negative at about -$0.37m and operating income printed -$7.57m, yielding an operating margin of -7.73% and a net income of -$4.06m (net margin -4.14%). Earnings per share stood at -$0.032. The company continues to deploy R&D and SG&A investments, with R&D at $18.58m and SG&A at $64.58m, contributing to the negative profitability metrics despite a relatively healthy gross margin. Free cash flow was -$11.19m in the quarter, and operating cash flow was -$10.65m, underscoring remaining cash burn even as the balance sheet shows robust liquidity.
Key balance sheet statistics as of QQ2 2025 include cash and cash equivalents of $234.82m and total debt of $100.78m, resulting in a net debt position of -$134.05m and a strong net cash balance. Deferred revenue stands at $156.19m, signaling revenue visibility and multi-period recognition potential. The company’s liquidity supports ongoing product development and GTM initiatives, but profitability hinges on continued cost discipline and accelerating top-line growth. Relative to SaaS peers, Yext’s gross margin aligns with the low-to-mid 70s, yet the company remains below peers that achieve sustained positive EBITDA and net profitability. Investors should monitor revenue trend momentum, gross margin stability, operating expense leverage, and the pace of cash burn toward cash flow breakeven.
Key Performance Indicators
QoQ: -39.44% | YoY:-78.82%
QoQ: -6.29% | YoY:-18.04%
QoQ: -5.59% | YoY:-16.30%
Key Insights
Revenue: $97.89m in QQ2 2025; YoY -4.59%; QoQ +1.98%.
Gross Profit: $75.59m; Gross Margin 77.23%; YoY -5.75%; QoQ +1.54%.
Operating Income: -$7.57m; Operating Margin -7.73%; YoY -78.82%; QoQ -39.44%.
Net Income: -$4.06m; Net Margin -4.14%; YoY -18.04%; QoQ -6.29%.
EPS (Diluted): -$0.0321; YoY -16.30%; QoQ -5.59%.
EBITDA: -$0.37m; EBITDA Margin ~ -0.38%.
Free Cash Flow: -$11.19m; FCF Margin ~ -11.43% of revenue.
Cash & Equivalents: $234.82m; Total Debt: $100.78m; Net Debt: -$134.05m.
Deferred...
Financial Highlights
Revenue: $97.89m in QQ2 2025; YoY -4.59%; QoQ +1.98%.
Gross Profit: $75.59m; Gross Margin 77.23%; YoY -5.75%; QoQ +1.54%.
Operating Income: -$7.57m; Operating Margin -7.73%; YoY -78.82%; QoQ -39.44%.
Net Income: -$4.06m; Net Margin -4.14%; YoY -18.04%; QoQ -6.29%.
EPS (Diluted): -$0.0321; YoY -16.30%; QoQ -5.59%.
EBITDA: -$0.37m; EBITDA Margin ~ -0.38%.
Free Cash Flow: -$11.19m; FCF Margin ~ -11.43% of revenue.
Cash & Equivalents: $234.82m; Total Debt: $100.78m; Net Debt: -$134.05m.
Deferred Revenue: $156.19m (contract liabilities indicating revenue recognition in future periods).
Working Capital Metrics: Days Sales Outstanding ~43.1 days; Current Ratio 1.55; Cash Ratio 1.13.
Shareholder Equity: $162.80m; Cash Flow from Operations: -$10.65m; Capex: -$0.55m.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
97.89M |
-4.59% |
1.98% |
| Gross Profit |
75.59M |
-5.75% |
1.54% |
| Operating Income |
-7.57M |
-78.82% |
-39.44% |
| Net Income |
-4.06M |
-18.04% |
-6.29% |
| EPS |
-0.03 |
-16.30% |
-5.59% |
Key Financial Ratios
operatingProfitMargin
-7.73%
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.09
priceEarningsRatio
-44.91
Management Commentary
Note: No earnings call transcript data was provided in the input. As a result, there are no management quotes or theme-based insights to extract. If a transcript is supplied, I can deliver a thematically organized section with quotes by management on strategy, product execution, market conditions, and guidance.
Forward Guidance
No formal numeric guidance is disclosed for QQ3 2025 or the full-year in the provided data. Given the current trajectory, indicators to monitor include: (1) Revenue momentum and mix (enterprise vs. SMB) to determine if top-line growth can re-accelerate; (2) Operating expense discipline to drive EBITDA toward breakeven, including potential optimization of SG&A and R&D spend; (3) Gross margin stability post-product and pricing initiatives; (4) Cash burn progression and ability to convert deferred revenue into actual recognized revenue over time. If the company can stabilize revenue and achieve some operating leverage, a path to EBITDA breakeven or positive EBITDA could emerge in the latter part of 2025. Key factors investors should watch are churn/retention (net revenue retention), cross-sell/upsell momentum, and the pace at which deferred revenue converts to recognized revenue.