Yext, Inc.YEXT

Yext, Inc. Leases Disclosure

10-KFiled Mar 10, 20263 min read
Leases
The Company's operating lease arrangements are principally for office space. As of January 31, 2026, the Company had $18.6 million of operating lease liabilities, current, $61.9 million of operating lease liabilities, non-current, $50.9 million of operating lease right-of-use assets, and no financing leases, on its consolidated balance sheet. The operating lease arrangements included in the measurement of lease liabilities had a weighted-average remaining lease term of 4.9 years and a weighted-average discount rate of 6.0%, as of January 31, 2026. During the fiscal year ended January 31, 2026, the Company paid $19.6 million for amounts included in the measurement of lease liabilities and obtained $0.7 million of operating lease right-of-use assets in exchange for lease obligations.
The following table summarizes the Company's lease expense for the periods presented:
Fiscal year ended January 31,
(in thousands)202620252024
Operating lease expense$14,736 $14,894 $15,637 
Short-term lease expense115 748 709 
Variable lease expense10,167 9,696 10,082 
Total lease expense$25,018 $25,338 $26,428 
Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than twelve months and therefore are recorded on the balance sheet. Upon impairment of an operating lease, lease expense is recognized based on accretion of the lease liability and amortization of the right of use asset which is recorded on a straight-line basis through the end of remaining the lease term. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and includes real estate taxes and utilities, among other office space related expenses.
The total remaining operating lease payments included in the measurement of lease liabilities on the Company's consolidated balance sheet as of January 31, 2026, was as follows (in thousands):
Fiscal year ending January 31:Operating Lease Payments
2027$19,207 
202818,979 
202918,823 
203017,324 
203117,200 
2032 and thereafter
1,980 
Total operating lease payments
93,513 
Less: imputed interest(13,008)
Total lease liabilities, reflecting the present value of net lease payments$80,505 
During the fiscal year ended January 31, 2026, the Company subleased a floor related to its corporate headquarters and was in the process of subleasing an additional floor as of January 31, 2026. In connection with these arrangements, the Company recorded a $8.6 million impairment loss during the fiscal year ended January 31, 2026, of which $6.5 million was attributable to the right-of-use asset and $2.1 million to the related leasehold improvements. The following table summarizes the Company’s impairment loss for the periods presented:
Fiscal year ended January 31,
(in thousands)202620252024
Cost of revenue$2,528 $— $— 
Sales and marketing2,272 — — 
Research and development2,052 — — 
General and administrative1,700 — — 
Total impairment loss
$8,552 $— $— 
During the fiscal year ended January 31, 2026, the Company recorded $0.6 million of sublease income. As of January 31, 2026, the Company's future cash inflows from subleases are as follows (in thousands):
Fiscal year ending January 31:
2027$1,880 
20282,506 
20292,506 
20302,506 
2031
2,506 
2032 and thereafter
208 
Total
$12,112 

Historical Timeline

Fiscal YearFiled
2026Mar 10, 2026Showing above
2025Mar 13, 2025
2024Mar 13, 2024
2023Mar 17, 2023
2022Mar 18, 2022
2021Mar 16, 2021
2020Mar 20, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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