Yext
YEXT Small CapTechnology · Software - Infrastructure
Updated: Jul 6, 2026, 22:20 UTC
Price Chart
Key Metrics
Valuation Analysis
About the Company
Yext, Inc. operates a platform that offers answers to consumer questions in North America and internationally. The company operates Yext Digital Presence platform, a cloud-based platform that allows its customers to provide answers to consumer questions, to control the information about their businesses and the content of their landing pages, and to manage their consumer reviews, as well as to offer customers the ability to update their information and content through its publisher network of maps, apps, search engines, GPS systems, digital assistants, vertical directories, and social networks. Its platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information
Yext Stock at a Glance
Yext (YEXT) is currently trading at $4.99 with a market capitalization of $500.2M. The trailing P/E ratio stands at 62.38x, with a forward P/E of 7.56x. The 52-week range spans from $3.27 to $9.20; the current price is 45.8% below the yearly high. Year-over-year revenue growth stands at -1.4%. The net profit margin stands at 8.93%.
💰 Dividend
Yext currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.
📊 Analyst Rating
1 analysts rate Yext (YEXT) on consensus: None. The average price target is $5.00, implying +0.2% from the current price. Analyst price targets range from $5.00 to $5.00.
Yext: The Investment Case in Detail
Yext (YEXT) operates in the Technology — specifically Software - Infrastructure — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.
The Bull Case
Earnings growth of 226.4% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 74.79%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 47.72% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.
The Bear Case
Revenue is contracting at -1.4% year-over-year — until that trend reverses, valuation is exposed to further downgrades. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. The debt-to-equity ratio of 917.94% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.
What to Watch Next
- The forward P/E of 7.56x is meaningfully below the trailing 62.38x — analysts expect earnings to step up; the next earnings release is the test.
Investment Thesis: Strengths & Weaknesses
- High return on equity (47.72% ROE)
- High gross margin of 74.79% — indicates pricing power
- Positive free cash flow
- –Revenue shrinking (-1.4% YoY)
- –High valuation multiple (P/E 62.38x)
- –Currently flagged as overvalued
- –High leverage (D/E 917.94)
Technical Snapshot
The price is in a transition zone relative to the moving averages — no clear signal.
Risk Profile
The data points to market-like volatility, elevated short interest (9.02%), higher leverage relative to equity.
Trading Data
Related Stocks in the Same Sector
Yext at $3.46: the orphaned digital-presence platform trading at 5x forward earnings
The Real Story
Yext does one boring thing well: it keeps a business's name, address, hours and product info synchronized across 200-plus discovery surfaces — Google Maps, Apple Maps, Bing, Yelp, Facebook, Alexa, ChatGPT search. If you have 4 000 dentist offices or 12 000 bank branches, Yext is the single source of truth that pushes every change in 60 seconds to every directory and AI search index that matters.
The market killed this stock for three reasons. First, the SEO-listings business was the original cash cow and it has stopped growing as Google de-emphasized third-party citations in favor of Google Business Profile. Second, the company acquired Hearsay Systems in 2024 (financial-advisor compliance-on-social-media SaaS) and the market hated paying 4x revenue for it. Third, generative AI seemingly threatens the entire premise — if ChatGPT answers questions about a business directly, who needs Yext?
The third fear is exactly backwards. The AI search era makes Yext more important, not less. When an LLM pulls business info to answer a query, it pulls from the structured-data layer that Yext literally feeds. The company has signed early deals with both OpenAI and Perplexity to be a verified data provider. That is the bull thesis the market is not paying for at all.
What Smart Money Thinks
Hestia Capital Partners (small-cap activist) ran a proxy fight in 2023 and now has 2 board seats — they pushed for cost cuts that took GAAP loss to near break-even. Engine Capital also has a position. No mega-fund 13F whale. Insider ownership ~5 percent, CEO Michael Walrath (former AppNexus founder) bought stock on the open market in late 2024.
Explore the BMI Smart-Money Tracker →
📈 The 3 Real Bull Points
📉 The 3 Real Bear Points
Valuation in Context
At $3.46 with $0.07 trailing EPS, the trailing P/E looks awful, but forward P/E on consensus $0.70 forward EPS is 4.9 — pricing in almost no growth recovery. EV/EBITDA 18.6 is more demanding given net cash is small. The market is saying enterprise SaaS at 1x sales with no growth.
🗓️ Next 3 Catalyst Dates
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💬 Daniel's Take
I find Yext interesting precisely because the market is conflating two things: a slowly declining legacy product and a brand-new AI-search distribution franchise. If the AI piece is worth even $200M alone, the rest of the company is free at $3.46. The risk is that the legacy product declines faster than the new opportunity scales — possible, but the management cost discipline since 2023 is real. I would size 1 to 2 percent and let the AI-deal flow unfold over four to six quarters. It is a venture-bet inside a public small cap, not a value compounder.
Sources (3)
Disclaimer: This article is not investment advice. Investing in stocks carries risks, including total loss.
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