SaaS / Digital Experience Management / AI-Powered Search
Strategic Profile
Yext operates a recurring SaaS business model with strong unit economics, achieving 15% ARR growth and 95% net retention rates. The company is strategically positioned in the high-growth AI search and digital presence management markets, with a robust platform that leverages AI and machine learning to automate workflows and provide actionable cross-channel insights.
Cyborg Score Rationale
Yext demonstrates solid business fundamentals with consistent revenue growth (Q2 FY2026 up 16% YoY), strong profitability (Q2 Adjusted EBITDA of $26.4M with 23% margin), and healthy unit economics. However, recent Q3 showed revenue decline (-2% YoY) and gross margin compression, with ongoing uncertainty from the CEO's acquisition proposal affecting forward guidance.
Top Insights
ARR reached $444.4M (15% YoY growth) in Q2 FY2026 with 95% dollar-based net retention, indicating strong customer stickiness and expansion revenue potential
Q3 FY2026 revenue declined 2% YoY to $112M with 6% gross profit decline, suggesting potential market headwinds or customer concentration challenges
CEO Michael Walrath's acquisition proposal at $9.00/share was withdrawn in February 2026 due to financing constraints; company is now executing $180M Dutch auction tender at $5.75-6.50 range
Positioned in high-growth AI search market; 62% of consumers now trust AI for brand discovery, creating significant TAM expansion opportunity for the platform
Named Competitors
Customer Experience Management — Customer experience and feedback platform
Content Management & Design — Digital experience and creative software
Web Platform — Website design and hosting platform
SEO & Local Marketing — SEO tools and local business solutions
Recent Developments
(March 2026) Dutch auction tender offer commenced for up to $180M at $5.75-6.50/share, expiring March 12, 2026
(February 2026) CEO Michael Walrath withdrew $9.00/share acquisition proposal; Board approved capital return through tender offer instead
(December 2025) Q3 FY2026 results showed $112M revenue (-2% YoY) and $82.8M gross profit (-6% YoY); company released AI research showing 86% of AI citations come from brand-controlled sources
(September 2025) Q2 FY2026 exceeded guidance with $113.1M revenue (+16% YoY), $26.8M net income, and $444.4M ARR (+15% YoY); acquired Places Scout
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