One-glance verdict
Undervalued
$7.67 our estimate vs market $6.48
Wall Street consensus: $7.00 (-8.7% lower than our fair-value estimate)
15% below our estimate, below the bear case
Fundamentals snapshot
Yext, Inc.
YEXT · NYQ · Technology · Software - Infrastructure
Current price
$6.48
52-week range
$3.27 - $9.03
Market cap
$641.38M
Balance sheet
Watch
5.88x Adequate
Net debt $134.85M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
- Reward Returns 27.8% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 5/10 years.
What this company does
Yext, Inc.
Yext sells software that lets businesses manage their public information, like store hours and services, across hundreds of online platforms like Google Maps and Alexa from a single dashboard. The company makes money primarily from recurring revenue (predictable income from ongoing subscriptions), which businesses pay to ensure their potential customers always find accurate and consistent answers online. This matters because correct information helps businesses attract and retain customers who are searching for them.
How the company got here
Yext was founded in 2006 as a local advertising business and later shifted to a pay-per-call model where they generated customer leads for businesses. In 2012, the company sold its pay-per-call business to focus on managing online business listings, which became its core offering. This strategic shift allowed Yext to concentrate on helping businesses control their information across a wide range of online directories and platforms. The company went public on the New York Stock Exchange in 2017, marking a major milestone in its growth. Over the years, Yext has expanded its platform beyond just listings to include a broader suite of tools for managing a company's entire digital presence.
What it actually does
Yext provides a software platform that helps businesses manage all the public facts about their brand online. Think of it as a single source of truth for a company's information, like store hours, addresses, and phone numbers. Yext takes this information and ensures it is consistent and accurate across hundreds of digital services, including Google, Apple Maps, Yelp, and Amazon Alexa. This saves businesses the massive headache of having to manually update their information on every single website and app. The platform also offers tools to manage customer reviews, build local web pages, and analyze how customers are finding the business online.
Digital Presence Platform
Yext operates as a single, integrated platform and doesn't break out different business lines in its financial reports. The core of their business is selling subscriptions to this platform, which businesses pay for on a recurring basis, typically through annual contracts. This subscription model provides a steady stream of revenue (money a company receives from its business activities). The platform's main features include Listings (keeping business information accurate everywhere online), Pages (creating web pages for locations or professionals), Reviews (managing customer feedback), and Search (powering the search bar on a company's own website). This comprehensive suite of tools is the primary way the company generates money.
What management is betting on now
Yext is heavily focused on positioning itself as a critical tool for businesses in the age of AI-driven search. The company believes that for AI assistants and new search engines to provide accurate answers, they need access to structured, correct data about businesses, which is what the Yext platform provides. They are investing in what they call "agentic marketing," which involves using AI to proactively manage and update a brand's information without constant human oversight. A key part of this strategy is their focus on attracting larger enterprise customers and improving profitability, sometimes by prioritizing higher-quality revenue over sheer growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$-16.37M
FY2025 Q4
$38.03M
FY2026 Q1
$37.16M
FY2026 Q2
$7.83M
FY2026 Q3
$-20.34M
FY2026 Q4
$28.63M
FY2027 Q1
$37.00M
FY2027 Q2
$7.69M
Revenue
$111.10M
Net income
$13.15M
Diluted EPS
0.13
Operating cash flow
$7.95M
Free cash flow
$7.69M
Fetching…
Sources
Revenue
$107.92M
Net income
$2.62M
Diluted EPS
0.02
Operating cash flow
$37.43M
Free cash flow
$37.00M
Fetching…
Sources
Revenue
$112.00M
Net income
$4.21M
Diluted EPS
0.02
Operating cash flow
$29.54M
Free cash flow
$28.63M
Fetching…
Sources
Revenue
$112.00M
Net income
$6.14M
Diluted EPS
0.01
Operating cash flow
$-19.82M
Free cash flow
$-20.34M
Fetching…
Sources
Revenue
$113.09M
Net income
$26.75M
Diluted EPS
0.03
Operating cash flow
$8.41M
Free cash flow
$7.83M
Fetching…
Sources
Revenue
$109.48M
Net income
$770.00K
Diluted EPS
0.01
Operating cash flow
$37.73M
Free cash flow
$37.16M
Fetching…
Sources
Revenue
$113.09M
Net income
$-7.28M
Diluted EPS
-0.06
Operating cash flow
$38.35M
Free cash flow
$38.03M
Fetching…
Sources
Revenue
$113.99M
Net income
$-12.80M
Diluted EPS
-0.10
Operating cash flow
$-15.79M
Free cash flow
$-16.37M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.67 vs current price $6.48
Wall Street consensus is the average analyst price target: $7.00 (-8.7% lower than our fair-value estimate).
Our most-likely fair value is $7.67 a share — about 18.3% above today's price of $6.48, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $134.8M. Interest coverage 5.9x.
Net debt
$134.85M
Interest coverage
5.88x
Yext, Inc.'s profit covers its interest bill about 5.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
YEXT
BASELINE
Yext, Inc.
Total debt $221.67M Interest coverage 5.88x This is the baseline the peer rows are being compared against.
Total debt $45.88M Interest coverage -17.37x -100% vs YEXT This peer has almost no interest-payment cushion compared with YEXT.
Total debt $33.12M Interest coverage 2,764.25x +46,903% vs YEXT Carries about 470.0x more debt cushion than YEXT.
Total debt $3.52B Interest coverage 20.06x +241% vs YEXT Carries about 3.4x more debt cushion than YEXT.
What you should know
The case for and against YEXT
2 Rewards
0 Risks
Rewards
-
Returns 27.8% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.12x
Forward P/E
8.53x
P/B
5.00x
P/S
1.45x
EV/EBITDA
19.48x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
74.9%
Operating margin
16.1%
Net margin
5.9%
ROE
27.8%
ROA
1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
6.22x
Current ratio
0.83x
Quick ratio
0.68x
Total debt
$221.67M
Total cash
$86.83M
Growth
How the business has been compounding
Revenue TTM
$443.02M
Revenue 5Y CAGR
3.4%
EPS TTM
0.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$55.09M
Free CF TTM
$53.29M
FCF margin
12.0%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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