The accelerating enterprise ARR growth (2% vs 1% in Q1) combined with a 31% EBITDA margin suggests the deliberate mix-shift strategy is gaining traction. Monitor Q3 for continued enterprise cohort acceleration, which would validate the inflection narrative. The $106.2M buyback authorization provides a floor, but the sub-$50K ARR runoff (-22% YoY) will continue to pressure total revenue growth in the near term.
Price Chart
Executive Summary
Yext reported Q2 FY27 revenue of $111.1M (-2% YoY), a GAAP EPS of $0.13, and a non-GAAP EPS of $0.21. While total revenue continued to decline due to the deliberate shift away from SMB customers, enterprise ARR ($50K+ cohort) grew 2% YoY to $405.9M, accelerating from 1% in Q1. Adjusted EBITDA margin surged to 31% (up 730bps YoY), well ahead of the 30% target, and the company repurchased 1.8M shares. The market will focus on the accelerating enterprise cohort growth and the record profitability, which offset the top-line contraction narrative.
Key Financial Metrics
Key Facts
- Revenue was $111.1M, down 2% YoY from $113.1M.
- GAAP EPS was $0.13; Non-GAAP EPS was $0.21.
- Adjusted EBITDA was $34.0M, up 29% YoY, with a margin of 31% (up from 23%).
- Enterprise ARR ($50K+ cohort) grew 2% YoY to $405.9M, accelerating from 1% in Q1.
- Total ARR was flat at $440.8M; sub-$50K ARR declined 22% YoY to $34.9M.
- Net retention rate for the $50K+ cohort improved to 98% (from 96% a year ago).
- Repurchased 1.8M shares at an average price of $4.78; $106.2M remaining under buyback authorization.
- Completed the acquisition of GoShine and launched a working prototype of Corvo AI for SMBs.
- Free cash flow was $7.7M for the quarter, with TTM FCF of $53.0M.
Financial Impact
Revenue declined $2.0M YoY (-2%), but Adjusted EBITDA increased $7.6M (+29%) and GAAP net income was $13.1M.
Risk Factors
- Total revenue continues to decline YoY (-2%), driven by the deliberate SMB runoff.
- Sub-$50K ARR declined 22% YoY, and the Corvo AI SMB experiment is unproven.
- Net debt of $60.9M, though manageable at 0.5x TTM EBITDA, limits financial flexibility.
- The company provides no forward guidance, creating uncertainty around the timing of a top-line inflection.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-059706 |
| Exhibit: ex991q2fy27earningsrelease.htm | 0001628280-26-059706 |
| Exhibit: ex993q2fy27productupdatepr.htm | 0001628280-26-059706 |
| Document: yext-20260901.htm | 0001628280-26-059706 |
| Document: 0001628280-26-059706-index-headers.html | 0001628280-26-059706 |
| Document: 0001628280-26-059706-index.html | 0001628280-26-059706 |
| Document: 0001628280-26-059706.txt | 0001628280-26-059706 |
| 8-K Data (Synthetic) | 0001628280-26-059706 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 13d ago | 8-K | $7.13 | awaiting T+20 | — | $7.22 (+1.26%) |
Sep 1, 2026 8w ago | 8-K | $6.53 $6.61 | ▲ +1.15% | ▼ −0.03% | $7.22 (+10.57%) |
Jul 13, 2026 15w ago | Insider Buy | $5.43 $5.71 | ▲ +5.16% | ▲ +2.67% | $7.22 (+32.97%) |
Jun 11, 2026 19w ago | 8-K | $4.06 $5.09 | ▲ +25.37% | ▲ +23.59% | $7.22 (+77.83%) |
Jun 2, 2026 21w ago | 8-K | $3.83 $4.95 | ▲ +29.24% | ▲ +30.24% | $7.22 (+88.51%) |
Apr 27, 2026 26w ago | DEFA14A | $3.93 $3.80 | ▼ −3.31% | ▼ −8.78% | $7.22 (+83.72%) |
Feb 24, 2026 35w ago | 8-K | $5.55 $4.38 | ▼ −21.08% | ▼ −15.85% | $7.22 (+30.09%) |
US Market Status
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