Yext (NYSE:YEXT) Stock Price Up 6.1% on Strong Earnings

Yext (NYSE:YEXTGet Free Report)’s stock price rose 6.1% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $7.36 and last traded at $6.9290. 234,182 shares changed hands during trading, a decline of 89% from the average daily volume of 2,041,556 shares. The stock had previously closed at $6.53.

The company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.04. The firm had revenue of $111.10 million for the quarter, compared to the consensus estimate of $111.30 million. Yext had a net margin of 8.93% and a return on equity of 43.47%. The firm’s revenue for the quarter was down 1.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.13 EPS.

Yext News Roundup

Here are the key news stories impacting Yext this week:

  • Positive Sentiment: Yext reported fiscal second-quarter adjusted earnings of $0.21 per share, exceeding the $0.17 analyst consensus and improving from $0.13 a year earlier. Adjusted EBITDA was $34.0 million, representing a 31% margin. Yext Q2 Earnings Beat Estimates
  • Positive Sentiment: Management highlighted its AI-focused product strategy, including expanded agentic capabilities, the completed GoShine acquisition and a working prototype of Corvo AI. These initiatives could improve Yext’s positioning as businesses seek greater visibility in AI-generated search results. Yext Expands Agentic Capabilities
  • Neutral Sentiment: Annual recurring revenue was $440.8 million, down from $444.4 million a year earlier, while dollar-based net retention was 96%. The figures indicate a relatively stable recurring-revenue base but limited customer expansion. Yext Reports Second-Quarter Results
  • Negative Sentiment: Revenue was $111.1 million, slightly below the $111.3 million consensus and down 1.8% year over year. GAAP net income also fell to $13.1 million from $26.8 million, reinforcing concerns that Yext’s product improvements have stabilized profitability without yet restoring top-line growth. Yext Product Evolution and Sales Recovery Analysis
  • Negative Sentiment: The earnings beat was therefore overshadowed by declining sales, a lack of ARR growth and uncertainty about when AI investments will translate into stronger bookings. Those concerns appear to be driving a more cautious investor reaction despite the better-than-expected per-share earnings. Yext Q2 Sales Decline

Analysts Set New Price Targets

Several research firms recently weighed in on YEXT. Zacks Research cut Yext from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Yext in a research note on Monday. Finally, B Riley reissued a “neutral” rating on shares of Yext in a report on Wednesday. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $6.67.

Get Our Latest Research Report on Yext

Insider Transactions at Yext

In other news, Director Seth H. Waugh acquired 133,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were purchased at an average cost of $3.75 per share, for a total transaction of $498,750.00. Following the transaction, the director directly owned 319,411 shares in the company, valued at approximately $1,197,791.25. This represents a 71.35% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Daniel J. Englander purchased 76,190 shares of the company’s stock in a transaction dated Monday, July 13th. The shares were purchased at an average price of $5.22 per share, for a total transaction of $397,711.80. Following the completion of the purchase, the director owned 141,190 shares of the company’s stock, valued at approximately $737,011.80. This trade represents a 117.22% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 7.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Yext

Several hedge funds have recently bought and sold shares of the company. Lynrock Lake LP increased its holdings in Yext by 23.3% during the 4th quarter. Lynrock Lake LP now owns 15,132,384 shares of the company’s stock valued at $121,967,000 after acquiring an additional 2,861,653 shares in the last quarter. Lead Edge Capital Management LLC purchased a new stake in shares of Yext in the second quarter valued at about $36,628,192. BlackRock Inc. acquired a new stake in shares of Yext in the second quarter valued at approximately $34,536,000. The Manufacturers Life Insurance Company grew its position in shares of Yext by 7.1% in the second quarter. The Manufacturers Life Insurance Company now owns 5,595,447 shares of the company’s stock valued at $47,561,000 after purchasing an additional 371,253 shares during the last quarter. Finally, Hudson Bay Capital Management LP increased its stake in shares of Yext by 126.2% during the 4th quarter. Hudson Bay Capital Management LP now owns 2,952,453 shares of the company’s stock worth $23,797,000 after purchasing an additional 1,647,174 shares in the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Yext Stock Performance

The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 6.03. The firm has a market capitalization of $693.72 million, a PE ratio of 98.86 and a beta of 1.13. The stock’s 50 day moving average price is $5.55 and its two-hundred day moving average price is $4.76.

Yext Company Profile

(Get Free Report)

Yext, Inc is a software-as-a-service company that provides a platform for digital knowledge management. Its core offering enables businesses to centrally manage and synchronize public-facing information—such as location details, product descriptions and service offerings—across a network of search engines, mapping services, voice assistants and third-party directories.

The Yext platform is built around a proprietary Knowledge Graph, which stores and structures data to ensure consistency and accuracy.

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