Yext (YEXT) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 752.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 9.46%
• EPS Growth: N/A
• Country: US
• Employees: 1,150
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.14
• Shares Outstanding: 122,627,000
• 10 Day Avg. Volume: 796,795
• 30 Day Avg. Volume: 752,804
• PEG Ratio: -0.03
• Price to Book (P/B): 5.45
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 17.34
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $10.00
• Price Target Upside: 20.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $9.50 ▲(14.05% Upside)

Yext's overall stock score reflects a mixed financial performance with strong gross margins but weak revenue growth. Technical analysis shows positive momentum, supporting the stock's current trend. However, valuation concerns due to a negative P/E ratio and lack of dividend yield weigh down the score. Investors should monitor the company's ability to sustain revenue growth and improve profitability metrics.

Positive Factors

Strong Gross Margins

High gross margins indicate efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Strategic Partnerships

Partnerships with major tech platforms enhance service offerings, drive customer adoption, and strengthen market position over time.

Cash Generation Ability

Strong cash generation relative to net income provides financial flexibility for growth investments and debt management.

Negative Factors

Negative Revenue Growth

Declining revenue growth suggests challenges in market expansion and customer acquisition, impacting long-term business sustainability.

Low Net Profit Margins

Low net profit margins indicate limited profitability, which can constrain reinvestment in business growth and innovation.

Declining Free Cash Flow Growth

Declining free cash flow growth limits the company's ability to fund new projects and return capital to shareholders, affecting long-term growth potential.

Yext Business Overview & Revenue Model

Company Description

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to provide answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews, as well as provides customers to update their information and content through its knowledge network of approximately 200 maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks. The platform enables its customers to centralize, control and manage data fields, including store information, such as name, address, phone number and holiday hours; professional information, comprising of headshot, specialties, and education; job information, consisting of title and description; and FAQs and other information. It serves the healthcare, retail, and financial services industries. The company was incorporated in 2006 and is headquartered in New York, New York.

How the Company Makes Money

Yext generates revenue primarily through subscription fees for its software-as-a-service (SaaS) offerings. The company provides a range of products that allow businesses to manage their online information, improve their search rankings, and enhance customer engagement. Key revenue streams include monthly or annual subscription fees from clients who utilize the Yext Knowledge Engine and related services. Additionally, Yext offers premium features and add-ons that can increase revenue per customer. The company has formed significant partnerships with major platforms such as Google, Facebook, and Amazon, which enhance its service offerings and drive customer adoption. Furthermore, Yext benefits from a growing demand for businesses to maintain accurate and consistent information across digital platforms, contributing to its overall earnings.

Yext Financial Statement Overview

Summary

Yext demonstrates solid revenue growth and effective cash flow management, with a 3.5% increase in revenue and a 39.95% growth in free cash flow. However, challenges in profitability are evident with a negative net profit margin and return on equity.

Income Statement

Yext has shown a positive trend in revenue growth with a 3.5% increase in the TTM period, indicating a steady demand for its services. The gross profit margin remains strong at approximately 76.5%, showcasing efficient cost management. However, the net profit margin is negative, reflecting challenges in achieving profitability. The EBIT and EBITDA margins have improved but remain low, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.65 in the TTM period, indicating a moderate level of leverage. However, the return on equity remains negative, highlighting ongoing profitability challenges. The equity ratio stands at a healthy level, suggesting a stable capital structure, but the negative ROE indicates that the company is not yet generating sufficient returns for shareholders.

Cash Flow

Yext's cash flow performance has been strong, with a significant 39.95% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is positive, indicating effective cash generation relative to reported earnings. The free cash flow to net income ratio is close to 1, suggesting that the company is efficiently converting its earnings into cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	420.96M	404.32M	400.85M	390.58M	354.66M
Gross Profit	324.59M	316.85M	296.89M	292.28M	268.26M
EBITDA	169.00K	24.74M	-36.89M	-65.36M	-71.17M
Net Income	-27.95M	-2.63M	-65.94M	-93.26M	-94.69M
Balance Sheet
Total Assets	610.08M	508.81M	523.76M	620.34M	595.99M
Cash, Cash Equivalents and Short-Term Investments	123.13M	210.18M	190.21M	261.21M	230.41M
Total Debt	95.41M	106.36M	118.69M	132.62M	137.75M
Total Liabilities	456.88M	361.64M	395.74M	408.46M	388.75M
Stockholders Equity	153.19M	147.17M	128.02M	211.87M	207.24M
Cash Flow
Free Cash Flow	48.13M	43.43M	11.66M	8.43M	-63.91M
Operating Cash Flow	50.21M	46.16M	17.85M	21.85M	1.20M
Investing Cash Flow	-91.49M	-2.73M	-6.19M	-13.42M	-65.11M
Financing Cash Flow	-28.54M	-23.25M	-79.02M	24.62M	22.55M

Yext Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YEXT, the sentiment is Negative. The current price of 8.33 is below the 20-day moving average (MA) of 8.51, below the 50-day MA of 8.46, and above the 200-day MA of 7.83, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 41.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YEXT.

Yext Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	79 Outperform	$1.29B	26.32	23.88%	1.34%	10.27%	3.52%
RAMP	75 Outperform	$1.89B	48.90	4.10%	―	10.13%	1280.04%
RDWR	65 Neutral	$1.04B	63.91	5.09%	―	10.40%	―
VRNT	64 Neutral	―	―	4.72%	―	-2.32%	7.70%
YEXT	63 Neutral	$1.02B	-730.70	16.74%	―	9.46%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VRNS	48 Neutral	$3.94B	-32.98	-22.17%	―	11.37%	-34.44%

Yext Corporate Events

Yext Inc.’s Financial Flexibility at Risk Due to Restrictive Covenants and Debt Obligations

Yext Inc. faces significant business risks due to restrictive covenants in its credit agreement, which limit its ability to transfer assets, acquire companies, or engage in other strategic actions without lender consent. These restrictions could hinder Yext’s operational flexibility and prevent it from pursuing potentially beneficial opportunities. Additionally, the company’s obligations are secured by most of its assets, and failure to meet financial covenants could lead to accelerated debt obligations, posing further risks. The uncertainty of generating sufficient cash flow or securing future financing to meet these obligations exacerbates the potential adverse impact on Yext’s business.