Executive Summary
Yext reported Q3 2025 with a solid topline increase but a widening loss profile, underscoring a growth-at-all-costs posture common to expanding SaaS platforms. Revenue reached $113.99 million, up 12.68% year over year and 16.45% quarter over quarter, accompanied by a robust gross margin of 76.97%. Despite gross profitability, operating income declined to -$10.37 million and net income declined to -$12.80 million, resulting in negative EBITDA of -$1.11 million. The cash flow statement shows ongoing cash burn, with net cash used in operating activities of -$15.80 million and free cash flow of -$16.37 million; cash at period-end stood at $118.01 million, with total debt of $98.67 million and net debt of approximately -$1.81 million, delivering a modest liquidity cushion.
The balance sheet remains asset-rich, featuring substantial goodwill and intangibles (Goodwill $105.02M; Intangible Assets $87.99M) and a sizable deferred revenue balance of $160.86M, which provides revenue visibility but also implies substantial future delivery obligations. Although the firm maintains a low current ratio (~0.78), liquidity is supported by a solid cash balance and limited near-term debt maturities. Thequarter reflected continued investment in product and go-to-market initiatives, which should precede meaningful operating leverage if revenue growth accelerates and the company achieves greater operating efficiency.
From an investment standpoint, the key question is whether the growth investments can translate into durable profitability and positive free cash flow. With top-line momentum intact but profitability yet to materialize, the stock presents a higher-risk, growth-oriented profile. Monitoring profitability trajectory, improvements in working capital efficiency, and progress toward sustainable FCF break-even will be critical over the coming quarters.
Key Performance Indicators
QoQ: -37.03% | YoY:-482.14%
QoQ: -215.48% | YoY:-2 634.83%
QoQ: -211.53% | YoY:-2 531.58%
Key Insights
Revenue: $113.99M; YoY growth 12.68%; QoQ growth 16.45% | Gross Profit: $87.74M; Gross Margin 76.97%; YoY +10.93%; QoQ +16.07% | Operating Income: -$10.37M; Operating Margin -9.10% | Net Income: -$12.80M; Net Margin -11.22% | EBITDA: -$1.11M; EBITDA Margin -0.97% | EPS: -$0.10; Diluted EPS: -$0.10 | Net Cash by Operating Activities: -$15.80M | Free Cash Flow: -$16.37M | Cash at End of Period: $118.01M | Total Debt: $98.67M; Net Debt: -$1.81M | Deferred Revenue: $160.86M | Current Ratio: 0.78 | G...
Financial Highlights
Revenue: $113.99M; YoY growth 12.68%; QoQ growth 16.45% | Gross Profit: $87.74M; Gross Margin 76.97%; YoY +10.93%; QoQ +16.07% | Operating Income: -$10.37M; Operating Margin -9.10% | Net Income: -$12.80M; Net Margin -11.22% | EBITDA: -$1.11M; EBITDA Margin -0.97% | EPS: -$0.10; Diluted EPS: -$0.10 | Net Cash by Operating Activities: -$15.80M | Free Cash Flow: -$16.37M | Cash at End of Period: $118.01M | Total Debt: $98.67M; Net Debt: -$1.81M | Deferred Revenue: $160.86M | Current Ratio: 0.78 | Gross Margin: 76.97% | Net Cash / Debt Position: Net cash ~ $1.81M favorable vs. debt
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
113.99M |
12.68% |
16.45% |
| Gross Profit |
87.74M |
10.93% |
16.07% |
| Operating Income |
-10.37M |
-482.14% |
-37.03% |
| Net Income |
-12.80M |
-2 634.83% |
-215.48% |
| EPS |
-0.10 |
-2 531.58% |
-211.53% |
Key Financial Ratios
operatingProfitMargin
3.61%
operatingCashFlowPerShare
$-0.12
freeCashFlowPerShare
$-0.13
priceEarningsRatio
-18.03
Management Commentary
Note: The earnings call transcript was not provided in the dataset. The synthesis below relies on the reported results and typical management emphasis seen in similar quarterly releases. - Growth-focused investments: Management is expected to discuss platform expansion and sales execution as catalysts for longer-term profitability. - Revenue quality and visibility: With $160.86M in deferred revenue, executives would likely stress revenue visibility and milestone-based recognition as key to sustainable growth. - Margin trajectory and cost discipline: Given ongoing investments, management commentary would typically address cost-control measures, efficiency programs, and path to operating leverage.
Forward Guidance
No explicit forward-looking targets were provided in the data set for QQ3 2025. Based on the quarter’s performance and the large deferred revenue base, the company may guide for continued top-line growth with a gradual improvement in operating leverage as investments mature. Investors should monitor: (1) trajectory of revenue growth and mix between onboarding new customers vs. expanding within existing accounts, (2) progression toward positive operating margin and free cash flow as SG&A and R&D investments normalize, (3) the utilization of the sizable deferred revenue to underpin near-term revenue recognition, and (4) balance sheet liquidity given ongoing cash burn. If management demonstrates a credible plan to achieve sustainable profitability and FCF in the next few quarters, the outlook would improve; otherwise, the stock remains exposed to execution risk and longer payback periods.