Company: YEXT
Filing Date: 2025-12-08
Form Type: 10-Q
Source: 0001628280-25-055819
Chunk: 291

Company: Yext, Inc.
Filing Date: 2025-12-08
Form: 10-Q
Item: Part I, Item 1
Chunk 291
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 mandatory prepayment events, including an excess cash flow sweep of up to 30% for excess cash flow periods in which the Company’s annualized recurring revenue is less than $350.0 million.In connection with the May 2025 Credit Agreement, the Company incurred original issue discount costs of $1.0 million and debt issuance costs of $0.7 million. These costs will be amortized to interest expense over the term of the Term Loan Facilities using the effective interest method. As of October 31, 2025, the Company was in compliance with all debt covenants.The following table sets forth the Company’s debt obligations for the period presented:(in thousands)October 31, 2025Principal $100,000 Unamortized original issue discount and debt issuance costs (1,833)Net carrying amount $98,167 

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12. Income Taxes

The Company calculates its year-to-date provision for income taxes by applying the estimated annual effective tax rate ("AETR") to year-to-date income or loss from operations before income taxes and adjusts for discrete tax items recorded in the period.On July 4, 2025, The One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA makes permanent various provisions of the Tax Cuts and Jobs Act which otherwise would have expired as well as modifications to the U.S. international tax framework. The Company has reflected the income tax effects of the OBBBA in the AETR and income tax payable for the nine months ended October 31, 2025, primarily resulting from the full expensing of domestic research and experimental expenditures, including the transitional effects of the amortization on amounts previously capitalized. For the three and nine months ended October 31, 2025, the Company recorded a provision for income taxes of $0.5 million and $2.3 million, respectively. During the three and nine months ended October 31, 2024, the company recorded a provision for income tax of $3.0 million and $1.8 million, respectively. The Company's effective tax rate generally differs from the U.S. federal statutory tax rate primarily due to full valuation allowances related to the Company's net deferred tax assets in the U.S. and certain foreign jurisdictions, U.S. state income taxes, and foreign rate differential on profitable jurisdictions. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance on a jurisdictional basis if it