Yext, Inc.YEXT
Yext, Inc. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets
Goodwill
Goodwill is not amortized but is subject to periodic testing for impairment at the reporting unit level, which is at or one level below the operating segment level. The Company operates as one operating segment, which represents its one reporting unit. The test for impairment is conducted annually each November 1st, or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
On February 7, 2025, the Company completed its acquisition of Places Scout and during the three months ended April 30, 2025, the Company recorded additional measurement period adjustments upon finalizing the accounting for its acquisition of Hearsay, which resulted in the following changes in the carrying amount of goodwill. See Note 4 "Business Combinations" for additional information.
The following table presents a reconciliation of the beginning and ending balances of goodwill:
| (in thousands) | ||||||||
Balance as of January 31, 2025 | $ | 96,782 | ||||||
| Goodwill acquired - Places Scout | 13,801 | |||||||
| Measurement period adjustments related to Hearsay acquisition | (189) | |||||||
| Effect of foreign currency translation on Goodwill acquired | 407 | |||||||
Balance as of January 31, 2026 | $ | 110,801 | ||||||
The Company determined that no events occurred or circumstances changed that would more likely than not reduce the fair value of the Company's reporting unit below its carrying amount during the reporting periods ended January 31, 2026, and 2025. However, if certain events occur or circumstances change, it may be necessary to record impairment charges in the future.
Intangible Assets
The Company’s intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives, which range from approximately 2 to 15 years. Intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company has no indefinite-lived intangible assets.
The Company determined that no events occurred or circumstances changed during the reporting periods ended January 31, 2026 and 2025 that would indicate that its intangible assets with finite lives may not be recoverable. However, if certain events occur or circumstances change, it may be necessary to record impairment charges in the future.
Amortization expense was $16.3 million and $7.1 million for the fiscal years ended January 31, 2026 and 2025, respectively, and less than $0.1 million for the fiscal year ended January 31, 2024.
The gross carrying amount and accumulated amortization of intangible assets other than goodwill are as follows:
As of January 31, 2026 | |||||||||||||||||||||||
| (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Remaining Useful Life | |||||||||||||||||||
| Domains | $ | 365 | $ | (245) | $ | 120 | 5.1 | ||||||||||||||||
Customer relationships(1) | 77,100 | (9,392) | 67,708 | 11.5 | |||||||||||||||||||
Technology(2) | 30,400 | (13,520) | 16,880 | 2.2 | |||||||||||||||||||
Trademarks(3) | 850 | (425) | 425 | 1.5 | |||||||||||||||||||
Total as of January 31, 2026 | $ | 108,715 | $ | (23,582) | $ | 85,133 | 9.5 | ||||||||||||||||
As of January 31, 2025 | |||||||||||||||||||||||
| (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Remaining Useful Life | |||||||||||||||||||
| Domains | $ | 365 | $ | (221) | $ | 144 | 6.0 | ||||||||||||||||
| Customer relationships | 76,200 | (2,931) | 73,269 | 12.5 | |||||||||||||||||||
Technology | 24,200 | (4,033) | 20,167 | 2.5 | |||||||||||||||||||
| Trademarks | 800 | (133) | 667 | 2.5 | |||||||||||||||||||
Total as of January 31, 2025 | $ | 101,565 | $ | (7,318) | $ | 94,247 | 10.1 | ||||||||||||||||
(1) Includes amounts recognized in connection with the acquisitions of Hearsay and Places Scout of $76.2 million and $0.9 million, respectively.
(2) Includes amounts recognized in connection with the acquisitions of Hearsay and Places Scout of $24.8 million and $5.6 million, respectively.
(3) Includes amounts recognized in connection with the acquisition of Hearsay of $0.9 million.
The estimated future aggregate amortization expense as of January 31, 2026 is as follows (in thousands):
| Fiscal Year Ending January 31, | |||||
| 2027 | $ | 15,856 | |||
| 2028 | 11,281 | ||||
| 2029 | 7,005 | ||||
| 2030 | 7,004 | ||||
| 2031 | 5,882 | ||||
| 2032 and thereafter | 38,105 | ||||
| Total | $ | 85,133 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 10, 2026 | Showing above |
| 2025 | Mar 13, 2025 | |
| 2024 | Mar 13, 2024 | |
| 2023 | Mar 17, 2023 | |
| 2022 | Mar 18, 2022 | |
| 2021 | Mar 16, 2021 | |
| 2020 | Mar 20, 2020 | |
| 2019 | Mar 15, 2019 | |
| 2018 | Mar 16, 2018 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.