YEXTNEUTRAL

YEXT Gross Margin Analysis

72.9%

Higher than 66% of Technology sector peers

Updated 812h ago·SEC filings & market data

Key Takeaway

Yext's gross margin of 72.9% means that for every dollar of revenue, the company keeps roughly 73 cents after paying direct costs like hosting or data acquisition, leaving 27 cents to cover other expenses.

Sector Performance

66th percentile

YEXT

72.9%

Sector Median

65.2%

Sector Avg

60.2%

Prior Period

73.5%(May 2026)

→ Stable

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Deep Analysis

This figure sits well above the sector median of 63.8%, placing Yext in the 65th percentile among technology peers—a position that indicates above-average pricing power or cost efficiency. The year-over-year change is not available, but the quarter-over-quarter change shows a slight decline of 0.8 percentage points from 73.5% to 72.9%, suggesting a marginal erosion in profitability at the gross level. The combination of a high absolute margin with a small quarterly dip implies limited immediate risk, but the lack of YoY data means the trajectory is unclear, tempering any strong positive signal. Given the overall NEUTRAL verdict, this metric supports that stance: the gross margin is a strength relative to peers, yet the negative near-term trend warrants caution rather than outright bullishness.

Frequently Asked Questions

What does the Gross Margin tell investors about YEXT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does YEXT's Gross Margin compare to its sector?

YEXT's Gross Margin of 72.9% compares to a Technology sector median of 65.2%, placing it in the 66th percentile.

Who are YEXT's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), NVDA (74.9%), LIF (77.3%), SMTC (52.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.