The revenue decline and ARR contraction are intentional (mix shift away from SMB), but the stock will be driven by the capital return story ($140M tender + $100M new buyback) and margin expansion trajectory (EBITDA margin guided toward 30% in Q2-Q4). The suspension of guidance and earnings calls reduces near-term catalysts and increases uncertainty — watch for Q2 results in September to validate the margin ramp and enterprise ARR inflection.
Price Chart
Executive Summary
Yext reported Q1 FY27 revenue of $107.9M, down 1% YoY, with GAAP EPS of $0.02 and non-GAAP EPS of $0.14, beating the $0.13 consensus. The company completed a $140M tender offer (24.3M shares at $5.75) and announced a new $100M buyback authorization. Total ARR declined 1% YoY to $440.8M, with enterprise ($50K+) ARR up 1% and sub-$50K ARR down 19%. The company suspended forward guidance and quarterly earnings calls, shifting to periodic investor days.
Key Financial Metrics
Key Facts
- Revenue $107.9M, down 1% YoY (1% decline as-reported, 2% constant currency)
- GAAP EPS $0.02; Non-GAAP EPS $0.14 vs consensus $0.13 (7.7% beat)
- Adjusted EBITDA $26.9M (25% margin), up from $24.7M (22.5%) YoY
- Total ARR $440.8M, down 1% YoY; enterprise ($50K+) ARR $403.1M, up 1%; sub-$50K ARR $37.7M, down 19%
- Completed $140M tender offer for 24.3M shares at $5.75; new $100M buyback authorized
- Net debt $56M; drew $150M of $200M BlackRock facility; net debt/EBITDA well below 1x
- Suspended forward guidance and quarterly earnings calls; will host periodic investor days
- Free cash flow $37.0M (34% margin), flat YoY
- Q1 had 89 days vs 92 days in Q2-Q4; management expects EBITDA margins to expand toward 30% in subsequent quarters
Financial Impact
Revenue declined 1% YoY to $107.9M; non-GAAP EPS beat consensus by 7.7% ($0.14 vs $0.13); $140M tender offer reduced share count by ~22%
Risk Factors
- Revenue declining 1% YoY with no forward guidance creates uncertainty about top-line trajectory
- Sub-$50K ARR declining 19% YoY may accelerate if AI self-serve experiments fail
- Net retention in $50K+ cohort dropped from 99% to 97% sequentially — needs to stabilize
- Suspension of earnings calls reduces transparency and may alienate some investors
- Leverage increased with $49.5M additional debt draw in Q1
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-039786 |
| Exhibit: ex991q1fy27earningsrelease.htm | 0001628280-26-039786 |
| Document: yext-20260602.htm | 0001628280-26-039786 |
| Document: 0001628280-26-039786-index-headers.html | 0001628280-26-039786 |
| Document: 0001628280-26-039786-index.html | 0001628280-26-039786 |
| Document: 0001628280-26-039786.txt | 0001628280-26-039786 |
| 8-K Data (Synthetic) | 0001628280-26-039786 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 12d ago | 8-K | $7.13 | awaiting T+20 | — | $7.42 (+4.07%) |
Sep 1, 2026 7w ago | 8-K | $6.53 $6.61 | ▲ +1.15% | ▼ −0.03% | $7.42 (+13.63%) |
Jul 13, 2026 14w ago | Insider Buy | $5.43 $5.71 | ▲ +5.16% | ▲ +2.67% | $7.42 (+36.65%) |
Jun 11, 2026 19w ago | 8-K | $4.06 $5.09 | ▲ +25.37% | ▲ +23.59% | $7.42 (+82.76%) |
Jun 2, 2026 20w ago | 8-K | $3.83 $4.95 | ▲ +29.24% | ▲ +30.24% | $7.42 (+93.73%) |
Apr 27, 2026 26w ago | DEFA14A | $3.93 $3.80 | ▼ −3.31% | ▼ −8.78% | $7.42 (+88.80%) |
Feb 24, 2026 34w ago | 8-K | $5.55 $4.38 | ▼ −21.08% | ▼ −15.85% | $7.42 (+33.69%) |
US Market Status
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