Yext (YEXT) AI Stock Analysis

• Market Cap: $679.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• 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: 122,933,030
• 10 Day Avg. Volume: 3,123,428
• 30 Day Avg. Volume: 1,978,849
• 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: 1.16
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 11.81
• 1Y Price Target: $10.00
• Price Target Upside: 23.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $5.50 ▼(-32.18% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily supported by improving profitability and solid cash-flow conversion with manageable leverage, reinforced by improving ARR and net retention KPIs. Offsetting this, the stock’s technical picture is very weak (price far below key moving averages with negative MACD), and valuation signals are limited by a deeply negative P/E with no dividend yield provided.

Positive Factors

High gross margin

A 76% gross margin reflects a highly scalable SaaS cost structure with low incremental servicing costs. That structural margin provides durable operating leverage as revenue grows, enabling sustained investment in product and sales while protecting profitability over the next several quarters.

Strong free cash flow conversion

Near-1x FCF-to-net-income conversion shows reported earnings largely convert into cash, reducing reliance on external funding. This durable cash-generation ability supports reinvestment, debt servicing and strategic flexibility, improving resilience through medium-term operating cycles.

Improving margins and customer KPIs

Rising EBIT/EBITDA margins combined with improving ARR and net retention indicate better unit economics and stronger customer monetization. These structural improvements suggest emerging operating leverage and higher recurring revenue quality that can sustain profitability gains over coming quarters.

Negative Factors

Negative revenue growth

Top-line decline is a durable concern: shrinking revenue erodes SaaS operating leverage and makes margin gains harder to scale. Without a sustained reversal in sales growth, improvements in unit economics may not translate into stronger overall profitability or enable continued reinvestment.

Very low net margin

A 1.66% net margin signals limited retained profitability after all costs, leaving little buffer for shocks and constraining shareholder returns. Even with improving operating margins, converting that into meaningful net income requires sustained top-line growth or further cost discipline over multiple quarters.

Declining free cash flow growth

Negative FCF growth suggests the company’s cash generation is weakening despite strong conversion ratios, which can limit capital allocation flexibility. Over a medium-term horizon this may constrain product investment, M&A or debt reduction, pressuring strategic options if not reversed.

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

Mixed fundamentals: strong gross margin (76%) and improved EBIT/EBITDA margins (2.95%/10.94%) with solid cash generation (FCF to net income 0.97), but negative revenue growth and low net margin (1.66%) temper the outlook. Balance sheet leverage is manageable (D/E 0.57) yet ROE remains low (4.90%). KPI trends (ARR and net retention improving) are supportive but not enough to offset the revenue decline risk.

Income Statement

Yext's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 76%, which is strong for the software industry. However, the net profit margin is low at 1.66%, and the revenue growth rate is negative, indicating a decline in sales. The EBIT and EBITDA margins have improved to 2.95% and 10.94% respectively, showing better operational efficiency compared to previous periods.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 0.57, indicating manageable leverage. Return on equity is low at 4.90%, suggesting limited profitability from shareholders' equity. The equity ratio stands at 27.92%, showing a reasonable level of equity financing.

Cash Flow

Cash flow analysis reveals a solid performance with an operating cash flow to net income ratio of 0.24 and a free cash flow to net income ratio of 0.97, indicating strong cash generation relative to net income. However, the free cash flow growth rate is negative, suggesting a decline in cash available after capital expenditures.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	447.67M	420.96M	404.32M	400.85M	390.58M	354.66M
Gross Profit	338.12M	324.59M	316.85M	296.89M	292.28M	268.26M
EBITDA	66.57M	169.00K	24.74M	-36.89M	-65.36M	-71.17M
Net Income	26.38M	-27.95M	-2.63M	-65.94M	-93.26M	-94.69M
Balance Sheet
Total Assets	555.77M	610.08M	508.81M	523.76M	620.34M	595.99M
Cash, Cash Equivalents and Short-Term Investments	139.92M	123.13M	210.18M	190.21M	261.21M	230.41M
Total Debt	246.59M	95.41M	106.36M	118.69M	132.62M	137.75M
Total Liabilities	400.60M	456.88M	361.64M	395.74M	408.46M	388.75M
Stockholders Equity	155.17M	153.19M	147.17M	128.02M	211.87M	207.24M
Cash Flow
Free Cash Flow	62.69M	48.13M	43.43M	11.66M	8.43M	-63.91M
Operating Cash Flow	64.66M	50.21M	46.16M	17.85M	21.85M	1.20M
Investing Cash Flow	-20.77M	-91.49M	-2.73M	-6.19M	-13.42M	-65.11M
Financing Cash Flow	-5.26M	-28.54M	-23.25M	-79.02M	24.62M	22.55M

Yext Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.11 is above the 20-day moving average (MA) of 5.95, above the 50-day MA of 7.23, and above the 200-day MA of 7.99, indicating a bearish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 86.54 is Negative, 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
RAMP	73 Outperform	$1.59B	23.91	7.16%	―	10.13%	1280.04%
ATEN	70 Outperform	$1.43B	35.00	19.01%	1.33%	10.27%	3.52%
RDWR	69 Neutral	$1.14B	55.31	6.09%	―	10.40%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
YEXT	56 Neutral	$679.82M	-486.84	16.74%	―	9.46%	―
VRNS	54 Neutral	$3.02B	-22.64	-24.53%	―	11.37%	-34.44%