Yelp Host, powered by Yelp’s trusted data and now enhanced with GPT-Live-1, transforms restaurant call handling with the most natural voice AI experience available
Hatch’s purpose-built business intelligence, now with GPT-Live-1, brings a new generation of advanced voice AI to help service businesses book more jobs
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that it has integrated OpenAI’s GPT-Live-1 into two of its AI-powered business tools: Yelp Host, its voice AI solution for restaurants, and Hatch, its AI communication platform for service businesses. Yelp Host and Hatch are among the first solutions to deploy GPT-Live-1, OpenAI's latest voice model featuring a full-duplex voice architecture, which enables conversations to include natural pauses, interruptions, and overlapping speech.
Yelp and Hatch are among the first to advance voice AI for restaurants and service pros with OpenAI's GPT-Live-1, enabling more natural conversations that can handle interruptions, adapt to tone, and support nearly any language.
Share By integrating GPT-Live-1 as the front-end voice layer—the technology that interacts directly with callers—within each product’s deep business data and purpose-built intelligence, Yelp Host and Hatch deliver more natural conversations with reliable call handling that understands business context and takes action. Callers can interrupt, change topics mid-sentence, or speak to people in the background, and the AI quickly adapts. The voice AIs can also detect the caller’s tone, such as excitement, frustration or impatience, and respond appropriately. By layering Yelp Host and Hatch’s language enhancements on top of GPT-Live-1, the voice AIs can also now automatically detect and respond to callers in nearly any language, so no customers are missed due to a language barrier.
Since launching in October 2025, Yelp Host has handled more than 1 million calls for restaurants. For service businesses, Hatch manages tens of millions of leads across voice, text, email, and web, representing billions of dollars of value attributed to its customers annually.
“We’re excited to be among the first to integrate GPT-Live-1 into Yelp Host and provide the leading AI voice solution for restaurants,” said Akhil Kuduvalli Ramesh, chief product officer at Yelp. “Powered by our reliable business data and frontier tech stack, Yelp Host’s value to restaurants is not only how it sounds, but how deeply it understands each restaurant’s operations. With GPT-Live-1, every call is more conversational and responsive. Yelp Host now gives restaurants an advanced voice AI that delivers exceptional guest experiences, captures revenue opportunities they may have otherwise missed, and helps staff focus on serving guests instead of answering the phone.”
“Hatch is among the first platforms to integrate OpenAI’s GPT-Live-1, and we’re thrilled to deliver a new, more natural real-time voice AI experience for service businesses,” said Chris Bache, co-founder and chief executive officer at Hatch. “Great voice AI requires more than a great voice model. We’ve dedicated years to building the intelligence that understands how service businesses operate, from technician availability and service areas to scheduling rules and emergency routing. GPT-Live-1 transforms how the conversation feels, and Hatch provides the operational intelligence that turns those conversations into booked jobs.”
“We’re bringing GPT-Live-1 to the API so developers can build more natural, powerful voice experiences by pairing it with their choice of models and tools,” said Teri Yu, multimodal product lead at OpenAI. “It’s exciting to see customers like Yelp and Hatch use these capabilities to solve everyday problems for local businesses—from handling reservation calls to scheduling repairs—and bring the benefits of AI to more people."
Yelp Host Delivers a More Capable Voice Experience for Restaurants
Yelp Host with GPT-Live-1 now provides the most advanced, natural-sounding voice experience available for restaurants. Yelp’s proprietary technology stack, trained on each restaurant's business and operational data—including business information on Yelp, reservation availability, food ordering, menu specials, seating areas, and more—differentiates Yelp Host and enables the solution to handle calls with skill and context so staff can focus on serving guests. In production testing at scale, initial results show an improvement in call-handling and a reduction in call transfers.
With the addition of GPT-Live-1, callers now experience a more natural conversational flow, improved turn-taking, and smoother handling of interruptions and background noise. This is reflected in more Yelp Host callers speaking in full, natural sentences during early testing, rather than short voice commands. GPT-Live-1 also delivers sharper post-call transcription accuracy, giving restaurant operators cleaner records of every conversation.
Hatch Elevates the Voice AI Experience for Service Businesses
Hatch's voice AI is built on the same operational logic service businesses already run on. Whether handling a customer service call or qualifying a lead, the agent diagnoses the issue quickly, verifies service area and job details, and uses real-time availability to book appointments. By bringing that operational intelligence together with GPT-Live-1, Hatch’s voice AI delivers more natural conversations that understand business context and result in more booked appointments, faster problem resolution, and higher customer satisfaction.
Hatch’s agents are designed to provide the level of service customers expect, from reaching out with annual service reminders to building new relationships with the tens of millions of leads businesses bring in from third-party sources.
Today's announcement reflects Yelp's broader efforts to deliver smarter, purpose-built AI tools that help local businesses grow and operate more efficiently. From Yelp Host handling reservations and food orders to Hatch powering lead conversion for service businesses, Yelp is building advanced voice AI solutions grounded in real business data that drive measurable results to help businesses succeed.
Additional Information and Assets
For more details about how GPT-Live-1 is enhancing Hatch’s voice AI product and Yelp Host, read the blog on Hatch here, view the Hatch product page here, and explore the Yelp Host product page here. Demos are available for download here. For further information about Yelp, visit the company's Fast Facts page.
About Yelp Inc.
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
About Hatch
Hatch (usehatchapp.com), a Yelp company, is an AI-powered communications platform built for service businesses. By combining conversational AI with purpose-built operational intelligence, Hatch helps businesses turn customer demand into action across voice, text, email, and web. Its AI agent-powered CSRs engage leads, answer and qualify calls, nurture opportunities, and book appointments 24/7, all while integrating with the systems businesses rely on to run their operations. Hatch helps service businesses deliver exceptional customer experiences, convert more opportunities into booked jobs, and build lasting customer relationships. Hatch was founded in 2018 and joined Yelp in 2026.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future product plans, including the ability of its investments and initiatives to drive profitable long-term growth and shareholder value, which are based on its current expectations, forecasts, and assumptions that involve risks and uncertainties.
Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results, and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.
Yelp Inc. (YELP) Goldman Sachs Communacopia + Technology Conference 2026 September 9, 2026 6:05 PM EDT
Company Participants
David Schwarzbach - Chief Financial Officer
Jeremy Stoppelman - Co-Founder, CEO & Director
Presentation
Unknown Analyst
All right. We can kick it off. Well, thanks to the team from Yelp for being here. I think this has become an annual tradition, so we appreciate the partnership. Jeremy Stoppelman, CEO; David Schwarzbach, CFO. David, I think you have a safe harbor to read quickly.
David Schwarzbach
Chief Financial Officer
Thanks, [ Alex ], for having us at the conference. We'll be making some forward-looking statements during the conversation today that are subject to risks and uncertainties. Please refer to our SEC filings for more information on the risk factors that may affect our results.
Question-and-Answer Session
Unknown Analyst
Great. Jeremy, I want to start with you with a big-picture, table-setting question. The platform has been under a lot of evolution over the last couple of years. You guys have really leaned into what you call the product-led growth strategy. Maybe frame for us some of the key product developments that you are most excited about and how you see them driving growth going forward.
Jeremy Stoppelman
Co-Founder, CEO & Director
Sure. Yes. If you go back to the early history of Yelp, we were really go-to-market-led for a number of years. Then we entered into -- probably around 2018 or so -- a product-led era where we made a great bit of progress on the business, having taken the Yelp Ads business to greater heights, something on the order of $1.5 billion-ish a year. And then now we're at the point that really it's the AI era. Obviously, a huge technological shift. We've had to rapidly adapt that technology both internally in terms of how we work, but then especially modernize the product, bring AI elements into it like Yelp
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that management will present at the Goldman Sachs Communacopia & Technology Conference on September 9, 2026 at 3:05 p.m. Pacific Time. The live and archived webcasts of the presentation will be available on the company's investor relations website at www.yelp-ir.com. The archived webcast will remain available for 180 days after the conclusion of the live pres.
Joseph R. Nachman, Chief Operating Officer of Yelp Inc. (YELP +2.98%), reported a disposition of 10,333 shares on Aug. 20, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)10,333Transaction value$243,859Post-transaction shares (directly held)250,993Post-transaction value$5.9 millionTransaction value based on SEC Form 4 weighted average sale price ($23.60); post-transaction value based on Aug. 20, 2026, market close ($23.60).
Key questionsWhat was the technical nature of this disposition?
The transaction was non-discretionary and executed solely to satisfy tax withholding requirements triggered by the vesting of restricted stock units (RSUs) and, as such, does not reflect the insider's view of the company's valuation.What is the extent of the executive's remaining direct equity exposure?
Following this tax-related disposal, Joseph R. Nachman retains direct ownership of 250,993 shares of common stock, which represents approximately 0.46% of the company's total shares outstanding.How does the current market valuation relate to the company's financial fundamentals?
As of the Aug. 21, 2026, market close, the stock traded at $23.46, giving the firm a market capitalization of $1.3 billion, with trailing twelve-month revenue of $1.5 billion and net income of $126.5 million.What was the performance context of the stock at the time of the transaction?
As of the Aug. 20, 2026, transaction date, the company's shares had experienced a one-year total return of -24%.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$23.46Market Capitalization$1.3 billionRevenue (TTM)$1.5 billionNet Income (TTM)$126.5 millionCompany SnapshotYelp operates a digital platform that connects consumers with local businesses across multiple sectors, including dining, retail, wellness, healthcare, home services, automotive, and professional trades, generating revenue through both complimentary and premium advertising solutions, such as pay-per-click and specialized promotional tools.The company monetizes its platform through a diversified business model that serves both consumers and businesses, offering advertising and promotional services to local enterprises seeking to reach customers through Yelp's extensive digital marketplace.Yelp's primary customers include local businesses of varying sizes seeking tools for customer acquisition and engagement, as well as consumers who use the platform to discover and review local services and establishments across the United States and internationally.Yelp Inc. operates a leading digital marketplace connecting consumers with local businesses globally, with a market capitalization of $1.3 billion and TTM revenue of $1.5 billion. The company leverages its extensive user base and business coverage to generate revenue through targeted advertising and promotional services, positioning itself as a critical platform for discovery and engagement in local commerce. With 5,168 employees and operations spanning multiple business verticals, Yelp maintains a diversified revenue model that captures value from both supply and demand sides of the local services marketplace.
What this transaction means for investorsInsider transactions can be complicated to understand. After all, many involve complex factors like pre-arranged sales, tax withholding, and estate planning. Therefore, it's always best to review a company's fundamentals to get a true sense of how it is performing. With that in mind, let's take a closer look at Yelp.
To begin, Yelp's stock has significantly underperformed the broader stock market over the last five years. Yelp stock has generated a negative total return of -38%, equating to a compound annual growth rate (CAGR) of -9.1% over the last five years. The S&P 500, meanwhile, has delivered an 83% total return, with a 12.8% CAGR over the same period.
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The reasons for the underperformance are varied, but they start with stagnation. Yelp once boasted year-over-year revenue growth above 20%, but those days are far in the rearview mirror now. In its most recent quarter, the company posted year-over-year revenue growth of just 1.4%. Increased competition is mostly to blame. Google and Apple Maps have both integrated review systems, which have eaten into Yelp's market position for restaurant and nightlife reviews, driving down the company's ad clicks. What's more, younger consumers increasingly turn to TikTok and Instagram for video reviews.
That said, Yelp is shifting its strategy. The company is seeking to integrate artificial intelligence (AI) tools. However, this pivot is costly, and as a result, net income has fallen from $150 million in 2025 to $127 million now.
In summary, Yelp is a company that is facing increasing threats from deep-pocketed competitors. As the company makes a strategic shift, some investors may take a wait-and-see approach to see how the pivot plays out.
Yelp Inc. (NYSE:YELP – Get Free Report) has been assigned an average recommendation of “Reduce” from the seven brokerages that are presently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $27.5714.
Several brokerages have weighed in on YELP. Evercore set a $30.00 price objective on Yelp in a research note on Monday, May 11th. Zacks Research upgraded Yelp from a “strong sell” rating to a “hold” rating in a report on Thursday, May 14th. JPMorgan Chase & Co. lifted their target price on Yelp from $22.00 to $26.00 and gave the stock a “neutral” rating in a report on Friday, May 8th. Morgan Stanley cut their target price on Yelp from $28.00 to $24.00 and set an “underweight” rating on the stock in a research report on Friday, May 15th. Finally, Robert W. Baird set a $28.00 price target on Yelp in a report on Friday, May 8th.
Check Out Our Latest Research Report on YELP
Yelp News Summary Here are the key news stories impacting Yelp this week: Positive Sentiment: Zacks modestly raised its fiscal 2026 EPS forecast to $1.85 from $1.84, slightly above the current consensus estimate of $1.84. Neutral Sentiment: The firm kept its “Hold” rating on Yelp. Its estimates imply EPS of $2.14 in fiscal 2027 and fiscal 2028, although the fiscal 2028 projection was subsequently reduced. Negative Sentiment: Zacks cut its third-quarter 2026 EPS forecast to $0.45 from $0.57 and its fourth-quarter forecast to $0.48 from $0.55, lowering expectations for second-half 2026 earnings. Negative Sentiment: Fiscal 2027 EPS was reduced to $2.14 from $2.28, with individual reductions for the third quarter to $0.56 from $0.64 and the fourth quarter to $0.58 from $0.66. Negative Sentiment: Additional cuts affected fiscal 2028: first-quarter EPS fell to $0.53 from $0.58, second-quarter EPS to $0.62 from $0.65, and full-year EPS to $2.14 from $2.32. Insider Buying and Selling In other Yelp news, CTO Alexander Coleman Levy sold 3,829 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $23.40, for a total transaction of $89,598.60. Following the sale, the chief technology officer directly owned 54,124 shares of the company’s stock, valued at approximately $1,266,501.60. This trade represents a 6.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO David A. Schwarzbach sold 8,809 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $23.19, for a total transaction of $204,280.71. Following the transaction, the chief financial officer owned 180,466 shares in the company, valued at $4,185,006.54. The trade was a 4.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 13,638 shares of company stock valued at $317,879 in the last three months. 8.30% of the stock is currently owned by insiders.
Hedge Funds Weigh In On Yelp Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC raised its position in Yelp by 100.0% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 892 shares of the local business review company’s stock valued at $28,000 after purchasing an additional 446 shares during the last quarter. Fifth Third Bancorp raised its holdings in shares of Yelp by 70.4% in the fourth quarter. Fifth Third Bancorp now owns 1,159 shares of the local business review company’s stock valued at $35,000 after buying an additional 479 shares during the last quarter. Rockefeller Capital Management L.P. boosted its stake in shares of Yelp by 71.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,158 shares of the local business review company’s stock worth $35,000 after buying an additional 482 shares during the period. Hantz Financial Services Inc. increased its position in Yelp by 181.3% in the 4th quarter. Hantz Financial Services Inc. now owns 1,297 shares of the local business review company’s stock valued at $39,000 after acquiring an additional 836 shares during the period. Finally, Strs Ohio acquired a new position in Yelp in the 1st quarter valued at about $56,000. Hedge funds and other institutional investors own 90.11% of the company’s stock.
Yelp Stock Performance Shares of NYSE YELP opened at $23.16 on Monday. The stock’s 50-day moving average is $25.02 and its 200 day moving average is $24.50. The stock has a market cap of $1.26 billion, a price-to-earnings ratio of 11.08, a P/E/G ratio of 2.11 and a beta of 0.45. Yelp has a 1-year low of $19.60 and a 1-year high of $34.49. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16.
Yelp (NYSE:YELP – Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The local business review company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.36 by $0.21. Yelp had a net margin of 8.59% and a return on equity of 19.52%. The company had revenue of $375.52 million during the quarter, compared to analyst estimates of $366.89 million. During the same period in the prior year, the business posted $0.67 EPS. The firm’s revenue was up 1.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Yelp will post 1.84 EPS for the current fiscal year.
About Yelp (Get Free Report)
Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company’s flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.
Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.
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Jeremy Stoppelman, Chief Executive Officer of Yelp Inc. (YELP +1.58%), disposed of 20,479 shares of common stock on August 20, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)20,479Transaction value~$483,304Post-transaction shares (directly held)918,455Post-transaction value~$21.68 millionTransaction value based on SEC Form 4 weighted average sale price ($23.60); post-transaction value based on August 20, 2026 market close ($23.60).
Key questionsWhat prompted this disposition of common stock?
The sale was a non-discretionary event where shares were withheld by Yelp to satisfy tax liabilities triggered by the vesting of restricted stock units (RSUs) previously granted to the executive.What remains of the CEO's direct equity stake?
Following the withholding, Jeremy Stoppelman maintains direct ownership of ~918,000 shares, representing a total market value of $21.68 million as of the transaction date.How has the stock performed relative to this transaction?
The transaction occurred when shares were priced at $23.60, representing a one-year total return of -24% as of the August 20, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$23.46Market Capitalization$1.3 billionRevenue (TTM)$1.5 billionNet Income (TTM)$126.5 millionCompany SnapshotYelp operates a digital platform that connects consumers with local businesses across multiple sectors including dining, retail, wellness, healthcare, home services, automotive, and professional trades, generating revenue through advertising solutions including pay-per-click advertising and specialized promotional tools.The company monetizes its platform through a diversified business model that serves both consumers and businesses, offering advertising and promotional services to local enterprises seeking to reach customers through Yelp's extensive digital marketplace.Yelp's primary customers include local businesses of varying sizes seeking customer acquisition and engagement tools, as well as consumers utilizing the platform to discover and review local services and establishments across the United States and internationally.Yelp Inc. operates a leading digital marketplace connecting consumers with local businesses globally. The company leverages its extensive user base and business coverage to generate revenue through targeted advertising and promotional services, positioning itself as a critical discovery and engagement platform for local commerce.
With operations spanning multiple business verticals, Yelp maintains a diversified revenue model that captures value from both supply and demand sides of the local services marketplace.
What this transaction means for investorsCEO Jeremy Stoppelman's Aug. 20 sale of Yelp stock is not a cause for investor concern. It was a non-discretionary transaction executed specifically to cover tax withholding obligations tied to the vesting of restricted stock units (RSUs).
An RSU is a form of compensation where a company promises to give an employee shares of stock at a future date. When that vesting date arrives, as was the case here, a "sell to cover" transaction occurs to pay for the related taxes.
Stoppelman maintains a sizable equity position in Yelp, post transaction. His 918,455 directly held shares indicate his interests remain aligned with shareholders.
Yelp stock has floundered over the past 12 months, dropping to a 52-week low of $19.60 in February as the company struggled to grow sales. In the second quarter, revenue rose just 1% year over year to $376 million.
Yelp adopted strategic initiatives intended to boost sales. This includes reconceiving its platform around answers and actions for consumers through an artificial intelligence assistant.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
LOUISVILLE, Colo.--(BUSINESS WIRE)--Alchemer, a global leader in customer experience and feedback intelligence, today released two new automotive customer experience reports. The research reveals several important findings about consumer behavior, review preferences, satisfaction ratings, emerging feedback channels and brand loyalty across the automotive customer experience. “Alchemer's new research underscores the importance of truly understanding automotive customer preferences and expectatio.
Yelp (NYSE:YELP) reported second-quarter revenue growth of 1% year over year as the company increased investment in artificial intelligence-driven products, data licensing and lead-management offerings while navigating what executives described as a challenging environment for local businesses.
Second-quarter net revenue rose to $376 million, exceeding the high end of the company’s outlook range by $8 million. Net income declined 28% from a year earlier to $32 million, or an 8% net income margin. Adjusted EBITDA fell 9% to $91 million, representing a 24% margin and coming in $16 million above the high end of Yelp’s outlook range.
Chief Executive Officer Jeremy Stoppelman said the company is advancing an AI transformation aimed at making local discovery more conversational, providing new tools for businesses and expanding Yelp’s content distribution through partnerships.
Advertising Revenue Reflects Local-Business Pressures Advertising trends remained pressured during the quarter. Services advertising revenue was flat year over year at $241 million, while restaurant, retail and other, or RR&O, advertising revenue declined 10% to $102 million.
Paying advertising locations fell 1% year over year to 510,000, as services locations remained flat and RR&O locations declined. Ad clicks decreased 5%, driven by fewer clicks in RR&O categories, though services-category clicks increased slightly. Average cost per click rose 1%, which Chief Financial Officer David Schwarzbach attributed to services clicks comprising a larger portion of total clicks.
Chief Operating Officer Jed Nachman said paying advertiser location trends showed improvement from the first quarter. Restaurant advertiser locations posted their strongest performance in several years, while services advertiser locations were flat. Still, Nachman said local businesses continue to contend with inflation, gas costs and other input-cost pressures, and the company does not expect a major turnaround in the broader local economy in the near term.
Other Revenue Nearly Doubles on AI Offerings Other revenue increased 98% year over year to a record $33 million. The growth reflected contributions from Hatch, Yelp’s lead-management business acquired in February, as well as growth in data licensing and food-order revenue.
Hatch’s annual revenue run rate reached $35 million in June, up 59% year over year. Stoppelman said Yelp significantly expanded the Hatch team during the second quarter to accelerate the product roadmap, though the expansion created what he described as an adjustment period during the quarter. The company saw improved trends in July.
Schwarzbach said Yelp is investing in Hatch across product, engineering and go-to-market functions as it seeks to scale what had been a startup operation. He said the company believes Hatch’s longer-term margin profile could resemble that of other subscription businesses, though Yelp intends to continue investing in the near term to pursue the market opportunity.
Yelp is targeting an annual run rate of $250 million in other revenue by the end of 2028. Schwarzbach said the company views AI-driven offerings, including Yelp Host, Hatch and data licensing, as important contributors to that objective.
Yelp Host, OpenAI Partnership Expand Product Reach Yelp Host, the company’s AI-powered call-answering service for restaurants, reached an annual run rate of 2.4 million calls handled in July, more than tripling from January. The company added support for 16 new languages and introduced an OpenTable integration that allows callers to book and manage reservations automatically through Yelp Host.
Yelp also added food-ordering functionality with point-of-sale integration, enabling restaurants to take pickup orders by phone without added fees. Stoppelman said the product has created positive synergies with Yelp’s restaurant sales efforts, which include Yelp Ads and Yelp Guest Manager, although he said it remains early and Yelp Host has not materially changed the company’s restaurant advertising business.
On the consumer side, Stoppelman said Yelp saw improvements in app installs and page views. Yelp Assistant, its conversational product across local categories, showed early positive engagement trends. In services, the assistant contributed to approximately 10% year-over-year growth in project submissions, according to the company.
Yelp also said its ratings and reviews began powering ChatGPT’s local experience in relevant categories through its OpenAI partnership. A Request a Quote integration with ChatGPT is expected to launch soon. Stoppelman said the relationship could become a meaningful distribution channel over time, though he characterized traffic and conversion data from the integration as too early to assess.
He said Yelp has also benefited from product work on search engine optimization, higher app downloads, partner-network traffic and what he described as positive Google algorithmic changes favoring user-generated content. Yelp’s paid traffic activity is relatively limited compared with its overall organic traffic, he said.
Outlook Calls for Continued Investment Yelp expects the difficult environment for local businesses to continue through the remainder of the year, weighing on advertising revenue across categories. For the third quarter, the company forecast net revenue of $365 million to $370 million and adjusted EBITDA of $70 million to $75 million.
For the full year, Yelp narrowed its revenue outlook to $1.460 billion to $1.470 billion and its adjusted EBITDA outlook to $315 million to $325 million. The company expects expenses to increase sequentially in the third quarter as it invests in its AI strategy, Hatch and consumer marketing.
Yelp repurchased $15 million of stock in the second quarter at an average price of $24.92 per share and approximately $25 million more in the third quarter, bringing year-to-date repurchases to about $200 million. The company said it has paused repurchases to pay down its revolving credit facility and expects to resume buybacks in 2027. Yelp had $339 million remaining under its existing repurchase authorization.
About Yelp (NYSE:YELP) Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company’s flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.
Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.
Key Takeaways Yelp's Q2 earnings beat estimates as revenues rose 1.4%, helped by a 98% surge in other revenues.Advertising revenues fell 3% as Restaurants, Retail & Other weakness offset stable Services demand.Yelp narrowed its 2026 outlook as AI, Hatch and consumer marketing investments lift near-term costs. Yelp Inc. (YELP - Free Report) reported second-quarter 2026 earnings of 57 cents per share, declining 14.9% year over year. The Zacks Consensus Estimate for the bottom line is pegged at 32 cents per share.
Yelp’s second-quarter net revenues increased 1.4% year over year to $375.5 million and surpassed the consensus mark of $366 million. The top-line performance benefited from rapid growth in other revenues, while advertising revenues remained pressured. Other revenues jumped 98% year over year to $33 million, supported by Hatch, data licensing and food ordering.
YELP’s Revenue Mix Shows Mixed Advertising TrendsAdvertising revenues declined 3% year over year to $342.5 million. Services advertising revenues were essentially flat at $241 million compared with $240.8 million in the year-ago quarter, as advertiser demand remained stable despite a difficult environment for local businesses.
Restaurants, Retail & Other advertising revenues fell 10% to $101.5 million from $112.9 million. Lower ad clicks and average cost per click hurt the category, while weaker paying advertising locations and average revenue per location also weighed on performance.
Yelp’s Ad Metrics Reflect Softer RR&O DemandTotal paying advertising locations decreased 1% year over year to 510,000. Ad clicks declined 5%, primarily because of weakness in Restaurants, Retail & Other categories, while average cost per click increased 1% as higher-priced Services clicks represented a larger share of total clicks.
Management noted improving trends compared with the first quarter. Restaurants, Retail & Other ad clicks, average cost per click and paying advertising locations improved sequentially, while overall consumer traffic benefited from better app installs and page views.
YELP Expands AI Products and Hatch ScaleYelp Assistant continued to gain traction as the company reshaped its consumer experience around conversational search. The product generated roughly 10% of Request-a-Quote projects in the second quarter and helped drive overall project growth of about 10% year over year.
Yelp Host reached a 2.4-million annual run rate for calls handled in July, more than tripling from January. Meanwhile, Hatch annual run rate revenues increased 59% year over year to $35 million in June. Yelp is adding product, engineering, sales and marketing resources to expand Hatch’s AI voice and lead-management capabilities.
Yelp’s Costs Rise as AI Investments Pressure MarginsTotal costs and expenses increased 4.6% year over year to $331.8 million. The cost of revenues rose 17.9% to $41.8 million, reflecting higher infrastructure expenses tied partly to AI products and Hatch. Sales and marketing expenses jumped 6.2% to $153.6 million.
Product development expenses declined 10.1% to $70.5 million, while general and administrative expenses increased 3.3% to $47.9 million. Adjusted EBITDA fell 9% to $91 million, and the adjusted EBITDA margin contracted to 24% from 27% a year earlier.
YELP’s Cash Flow and Capital Allocation Stay ActiveYelp ended the second quarter with $94.1 million in cash and cash equivalents and $100 million in borrowings under its revolving credit facility. It generated operating cash flow of $75.8 million and free cash flow of $61.1 million in the second quarter.
The company repurchased $50 million of shares during the quarter at an average price of $24.92. It subsequently bought back roughly $25 million of shares in the third quarter, bringing 2026 repurchases to about $200 million, before pausing the program to reduce revolving-credit borrowings.
Yelp Narrows 2026 Guidance RangeFor the third quarter, Yelp expects net revenues between $365 million and $370 million. Adjusted EBITDA is projected between $70 million and $75 million as expenses rise sequentially on investments in its AI transformation, Hatch and consumer marketing.
For 2026, management narrowed its net revenue outlook to $1.460-$1.470 billion from $1.455-$1.475 billion previously. The adjusted EBITDA range was narrowed to $315-$325 million from $310-$330 million. Yelp continues to target a $250-million annual run rate for other revenues by the end of 2028 as AI-driven offerings and data licensing scale.
YELP’s Zacks Rank & Stocks to ConsiderYelp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum (LITE - Free Report) , Applied Materials (AMAT - Free Report) and Analog Devices (ADI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Lumentum have surged 141.5% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year.
Shares of Applied Materials have jumped 109.8% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.17 per share, up by 3 cents over the past seven days, suggesting a rise of 29.2% year over year.
Analog Devices shares have rallied 43.8% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, implying an increase of 59.4% year over year.
3 hot mid-caps set to report Q3 earningsYelp NYSE: YELP reported second-quarter revenue growth of 1% year over year as the company increased investment in artificial intelligence-driven products, data licensing and lead-management offerings while navigating what executives described as a challenging environment for local businesses.
Second-quarter net revenue rose to $376 million, exceeding the high end of the company’s outlook range by $8 million. Net income declined 28% from a year earlier to $32 million, or an 8% net income margin. Adjusted EBITDA fell 9% to $91 million, representing a 24% margin and coming in $16 million above the high end of Yelp’s outlook range.
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Are Dividend-Paying Office REITs Finally Staging A Comeback?Chief Executive Officer Jeremy Stoppelman said the company is advancing an AI transformation aimed at making local discovery more conversational, providing new tools for businesses and expanding Yelp’s content distribution through partnerships.
Advertising Revenue Reflects Local-Business Pressures Advertising trends remained pressured during the quarter. Services advertising revenue was flat year over year at $241 million, while restaurant, retail and other, or RR&O, advertising revenue declined 10% to $102 million.
Paying advertising locations fell 1% year over year to 510,000, as services locations remained flat and RR&O locations declined. Ad clicks decreased 5%, driven by fewer clicks in RR&O categories, though services-category clicks increased slightly. Average cost per click rose 1%, which Chief Financial Officer David Schwarzbach attributed to services clicks comprising a larger portion of total clicks.
Chief Operating Officer Jed Nachman said paying advertiser location trends showed improvement from the first quarter. Restaurant advertiser locations posted their strongest performance in several years, while services advertiser locations were flat. Still, Nachman said local businesses continue to contend with inflation, gas costs and other input-cost pressures, and the company does not expect a major turnaround in the broader local economy in the near term.
Other Revenue Nearly Doubles on AI Offerings Other revenue increased 98% year over year to a record $33 million. The growth reflected contributions from Hatch, Yelp’s lead-management business acquired in February, as well as growth in data licensing and food-order revenue.
Hatch’s annual revenue run rate reached $35 million in June, up 59% year over year. Stoppelman said Yelp significantly expanded the Hatch team during the second quarter to accelerate the product roadmap, though the expansion created what he described as an adjustment period during the quarter. The company saw improved trends in July.
Schwarzbach said Yelp is investing in Hatch across product, engineering and go-to-market functions as it seeks to scale what had been a startup operation. He said the company believes Hatch’s longer-term margin profile could resemble that of other subscription businesses, though Yelp intends to continue investing in the near term to pursue the market opportunity.
Yelp is targeting an annual run rate of $250 million in other revenue by the end of 2028. Schwarzbach said the company views AI-driven offerings, including Yelp Host, Hatch and data licensing, as important contributors to that objective.
Yelp Host, OpenAI Partnership Expand Product Reach Yelp Host, the company’s AI-powered call-answering service for restaurants, reached an annual run rate of 2.4 million calls handled in July, more than tripling from January. The company added support for 16 new languages and introduced an OpenTable integration that allows callers to book and manage reservations automatically through Yelp Host.
Yelp also added food-ordering functionality with point-of-sale integration, enabling restaurants to take pickup orders by phone without added fees. Stoppelman said the product has created positive synergies with Yelp’s restaurant sales efforts, which include Yelp Ads and Yelp Guest Manager, although he said it remains early and Yelp Host has not materially changed the company’s restaurant advertising business.
On the consumer side, Stoppelman said Yelp saw improvements in app installs and page views. Yelp Assistant, its conversational product across local categories, showed early positive engagement trends. In services, the assistant contributed to approximately 10% year-over-year growth in project submissions, according to the company.
Yelp also said its ratings and reviews began powering ChatGPT’s local experience in relevant categories through its OpenAI partnership. A Request a Quote integration with ChatGPT is expected to launch soon. Stoppelman said the relationship could become a meaningful distribution channel over time, though he characterized traffic and conversion data from the integration as too early to assess.
He said Yelp has also benefited from product work on search engine optimization, higher app downloads, partner-network traffic and what he described as positive Google algorithmic changes favoring user-generated content. Yelp’s paid traffic activity is relatively limited compared with its overall organic traffic, he said.
Outlook Calls for Continued Investment Yelp expects the difficult environment for local businesses to continue through the remainder of the year, weighing on advertising revenue across categories. For the third quarter, the company forecast net revenue of $365 million to $370 million and adjusted EBITDA of $70 million to $75 million.
For the full year, Yelp narrowed its revenue outlook to $1.460 billion to $1.470 billion and its adjusted EBITDA outlook to $315 million to $325 million. The company expects expenses to increase sequentially in the third quarter as it invests in its AI strategy, Hatch and consumer marketing.
Yelp repurchased $15 million of stock in the second quarter at an average price of $24.92 per share and approximately $25 million more in the third quarter, bringing year-to-date repurchases to about $200 million. The company said it has paused repurchases to pay down its revolving credit facility and expects to resume buybacks in 2027. Yelp had $339 million remaining under its existing repurchase authorization.
About Yelp (NYSE:YELP)Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company's flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.
Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Yelp surged ~10% post-Q2 earnings but remains down ~10% YTD, reflecting ongoing underperformance. I maintain a negative stance on YELP, as its recent guidance boost does not offset broader concerns about quality and value. The current market favors selective rotation into small and mid-cap value stocks, particularly those with high quality—criteria YELP does not sufficiently meet.
Net Revenue increased by 1% year over year to $376 million
Net Income decreased from the prior year to $32 million, reflecting an 8% margin
Adjusted EBITDA1 decreased 9% year over year to $91 million, reflecting a 24% margin
Narrows outlook range of 2026 Net Revenue to $1.460 billion to $1.470 billion; and 2026 Adjusted
EBITDA to $315 million to $325 million2
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today posted its financial results for the second quarter ended June 30, 2026 in the Shareholder Letter available on its Investor Relations website at yelp-ir.com.
“Yelp’s AI transformation continued to gain momentum in the second quarter, with encouraging signs across several key metrics and Other revenue nearly doubling year over year,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “We are seeing the benefits of our strategic initiatives take shape. Yelp Assistant drove early positive signs in engagement, Yelp Host scaled rapidly, and Hatch accelerated their product roadmap. At the same time, our trusted content is powering local discovery for ChatGPT and other AI partners. While headwinds for local businesses persist, I’m confident we are building a stronger Yelp, transformed with AI, that is well-positioned to drive long-term profitable growth.”
“In the second quarter, Yelp delivered net revenue of $376 million, $8 million above the high end of our outlook range,” said David Schwarzbach, Yelp's chief financial officer. “Other revenue accelerated from the first quarter, increasing 98% year over year to a record $33 million. We are continuing to invest in our strategic initiatives to create shareholder value over the long term, even as consumers and local businesses navigate a challenging economic environment.”
Quarterly Conference Call
Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss the second quarter financial results and outlook for the third quarter and full year 2026. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including its expected financial results for the full year 2026, its expectations regarding its AI transformation as well as its investments in and benefits from strategic initiatives, changes to its product offerings, the implications of trends in its key metrics and its ability to drive long-term profitable growth, that are based on its current expectations, forecasts and assumptions that involve risks and uncertainties.
Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:
Adverse macroeconomic conditions — particularly those affecting local economies — and their impact on consumer behavior and advertiser spending; Yelp’s ability to maintain and expand its advertiser base; Yelp’s ability to execute on its strategic initiatives, including its AI transformation, and the effectiveness thereof; Yelp's ability to maintain and increase traffic to and user engagement on its platform, including its ability to generate, maintain and recommend sufficient content that consumers find relevant, helpful and reliable; Yelp’s reliance on internet search engines and application marketplaces, certain providers of which offer products and services that compete directly with its products; Yelp’s ability to successfully manage acquisitions of new businesses, solutions or technologies, to successfully integrate those businesses, solutions or technologies, including Hatch, and to monetize such acquired products, solutions or technologies; Yelp’s ability to continue to effectively operate with a remote work force and attract and retain key talent; Yelp’s reliance on third-party service providers and strategic partners; Competition in, and the rapid evolution of, Yelp’s industry; Yelp’s ability to maintain, protect and enhance its brand; and Yelp’s ability to maintain the uninterrupted and proper operation of its technology and network infrastructure. Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.
YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$
94,142
$
216,062
Short-term marketable securities
—
103,290
Accounts receivable, net
157,720
153,224
Prepaid expenses and other current assets
41,639
42,359
Total current assets
293,501
514,935
Property, equipment and software, net
99,176
91,685
Operating lease right-of-use assets
16,044
16,046
Goodwill
354,708
135,847
Intangibles, net
92,093
49,038
Other non-current assets
135,043
150,927
Total assets
$
990,565
$
958,478
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$
151,922
$
158,789
Operating lease liabilities — current
7,352
7,426
Deferred revenue
8,573
5,845
Total current liabilities
167,847
172,060
Revolving credit facility
100,000
—
Operating lease liabilities — long-term
15,951
17,451
Other long-term liabilities
62,240
58,115
Total liabilities
346,038
247,626
Stockholders’ equity:
Preferred stock
—
—
Common stock
—
—
Additional paid-in capital
2,073,762
2,010,948
Treasury stock
(2,868
)
(999
)
Accumulated other comprehensive loss
(9,814
)
(7,677
)
Accumulated deficit
(1,416,553
)
(1,291,420
)
Total stockholders’ equity
644,527
710,852
Total liabilities and stockholders’ equity
$
990,565
$
958,478
YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net revenue
$
375,519
$
370,394
$
736,976
$
728,928
Costs and expenses:
Cost of revenue(1)
41,776
35,447
80,185
70,275
Sales and marketing(1)
153,562
144,612
306,572
290,896
Product development(1)
70,468
78,362
147,625
162,267
General and administrative(1)
47,865
46,318
97,215
98,025
Depreciation and amortization
18,118
12,365
34,351
24,715
Total costs and expenses
331,789
317,104
665,948
646,178
Income from operations
43,730
53,290
71,028
82,750
Other income, net
733
5,695
3,319
11,466
Income before income taxes
44,463
58,985
74,347
94,216
Provision for income taxes
12,811
14,896
24,960
25,736
Net income attributable to common stockholders
$
31,652
$
44,089
$
49,387
$
68,480
Net income per share attributable to common stockholders
Basic
$
0.57
$
0.69
$
0.87
$
1.06
Diluted
$
0.57
$
0.67
$
0.86
$
1.03
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic
55,305
64,145
57,051
64,700
Diluted
55,726
65,683
57,630
66,610
(1) Includes stock-based compensation expense as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Cost of revenue
$
1,242
$
1,070
$
2,382
$
2,241
Sales and marketing
6,082
7,295
12,536
14,934
Product development
10,671
17,846
25,381
37,255
General and administrative
7,754
8,564
15,957
17,814
Total stock-based compensation
$
25,749
$
34,775
$
56,256
$
72,244
YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2026
2025
Operating Activities
Net income
$
49,387
$
68,480
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
34,351
24,715
Provision for credit losses
18,005
22,562
Stock-based compensation
56,256
72,244
Amortization of right-of-use assets
3,002
6,715
Deferred income taxes
20,426
(2,968
)
Amortization of deferred contract cost
11,047
12,035
Other adjustments, net
2,474
1,471
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable
(22,091
)
(23,935
)
Prepaid expenses and other assets
(24,070
)
(14,540
)
Operating lease liabilities
(4,355
)
(15,396
)
Accounts payable, accrued liabilities and other liabilities
(10,794
)
4,646
Net cash provided by operating activities
133,638
156,029
Investing Activities
Purchases of marketable securities
(5,975
)
(37,201
)
Sales and maturities of marketable securities
109,293
34,769
Purchases of other investments
(650
)
(700
)
Maturities of other investments
5,000
—
Acquisition, net of cash received
(263,600
)
—
Purchases of property, equipment and software
(27,409
)
(23,555
)
Other investing activities
75
67
Net cash used in investing activities
(183,266
)
(26,620
)
Financing Activities
Proceeds from issuance of common stock for employee stock-based plans
19,476
12,023
Taxes paid related to the net share settlement of equity awards
(17,571
)
(35,155
)
Repurchases of common stock
(174,000
)
(128,450
)
Proceeds from revolving credit facility
165,000
—
Repayments on revolving credit facility
(65,000
)
—
Other financing activities
(119
)
—
Net cash used in financing activities
(72,214
)
(151,582
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(149
)
2,651
Change in cash, cash equivalents and restricted cash
(121,991
)
(19,522
)
Cash, cash equivalents and restricted cash — Beginning of period
216,289
217,682
Cash, cash equivalents and restricted cash — End of period
$
94,298
$
198,160
Non-GAAP Financial Measures
This press release and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which the Securities and Exchange Commission has defined as a “non-GAAP financial measure.”
We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income (expense), net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as expenses for which we expect to be indemnified, acquisition and integration costs and other items that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.
Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or principles, have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Yelp’s financial results as reported in accordance with generally accepted accounting principles in the United States (“GAAP”). In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. Some of these limitations are:
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp’s working capital needs; Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp; Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; Adjusted EBITDA does not take into account certain income and expense items, such as indemnifiable expenses, acquisition and integration costs or other costs that management determines are not indicative of ongoing operating performance; Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and other companies, including those in Yelp’s industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures. Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp’s other GAAP results.
The following is a reconciliation of net income to Adjusted EBITDA, as well as the calculation of net income margin and Adjusted EBITDA margin, for each of the periods indicated (in thousands, except percentages; unaudited):
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Reconciliation of Net Income to Adjusted EBITDA:
Net income
$
31,652
$
44,089
$
49,387
$
68,480
Provision for income taxes
12,811
14,896
24,960
25,736
Other income, net
(733
)
(5,695
)
(3,319
)
(11,466
)
Depreciation and amortization
18,118
12,365
34,351
24,715
Stock-based compensation
25,749
34,775
56,256
72,244
Indemnifiable expenses(1)(2)
352
55
1,248
5,181
Acquisition and integration costs(1)(3)
3,480
—
7,900
539
Adjusted EBITDA
$
91,429
$
100,485
$
170,783
$
185,429
Net revenue
$
375,519
$
370,394
$
736,976
$
728,928
Net income margin
8
%
12
%
7
%
9
%
Adjusted EBITDA margin
24
%
27
%
23
%
25
%
The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Yelp (YELP - Free Report) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +93.75%. A quarter ago, it was expected that this online business reviews company would post earnings of $0.26 per share when it actually produced earnings of $0.36, delivering a surprise of +38.46%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Yelp, which belongs to the Zacks Internet - Content industry, posted revenues of $375.52 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.74%. This compares to year-ago revenues of $370.39 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Yelp shares have lost about 15.5% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Yelp?While Yelp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Yelp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $372.56 million in revenues for the coming quarter and $1.79 on $1.46 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Similarweb (SMWB - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12.
This digital intelligence company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Similarweb's revenues are expected to be $75.5 million, up 6.4% from the year-ago quarter.
Yelp (YELP - Free Report) reported $375.52 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.4%. EPS of $0.62 for the same period compares to $0.67 a year ago.
The reported revenue represents a surprise of +2.74% over the Zacks Consensus Estimate of $365.52 million. With the consensus EPS estimate being $0.32, the EPS surprise was +93.75%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Yelp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Paying Advertising Locations: 510 thousand versus the two-analyst average estimate of 386 thousand.Paying Advertising Locations - Restaurants, Retail & Other: 251 thousand versus the two-analyst average estimate of 234.5 thousand.Paying Advertising Locations - Services: 259 thousand compared to the 251.5 thousand average estimate based on two analysts.Net revenue- Advertising: $342.5 million compared to the $336.62 million average estimate based on three analysts. The reported number represents a change of -3.2% year over year.Net revenue- Other services: $33.02 million versus $28.9 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +97.8% change.Net revenue- Advertising revenue- Services: $240.96 million compared to the $240.03 million average estimate based on two analysts. The reported number represents a change of +0.1% year over year.Net revenue- Advertising revenue- Restaurants, Retail & Other: $101.53 million compared to the $97.42 million average estimate based on two analysts. The reported number represents a change of -10.1% year over year.View all Key Company Metrics for Yelp here>>>
Shares of Yelp have returned +0.6% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that management will present at the KeyBanc Capital Markets Technology Leadership Forum on August 11, 2026 at 12:30 p.m. Pacific Time.
The live and archived webcasts of the presentation will be available on the company’s investor relations website at www.yelp-ir.com. The archived webcast will remain available for 180 days after the conclusion of the live presentation.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that Yelp Host, the voice AI solution for restaurants, has handled more than 1 million calls—the equivalent of nearly 2 years of phone conversations and growing at an average of 38% month-over-month since its October 2025 launch through June 2026. Building on that momentum, Yelp introduced more than a dozen new updates to Yelp Host, including a new integration wit.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, announced that it will release its financial results for the quarter ended June 30, 2026 after the market closes on Thursday, August 6, 2026. Yelp will issue a press release when its Shareholder Letter has been posted on its investor relations website at www.yelp-ir.com. Following the release of the Shareholder Letter, Yelp will host a webcasted conference call to discuss its se.
Yelp Inc. (NYSE:YELP – Get Free Report) CFO David Schwarzbach sold 7,500 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $26.60, for a total transaction of $199,500.00. Following the completion of the transaction, the chief financial officer directly owned 209,300 shares in the company, valued at $5,567,380. The trade was a 3.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Yelp Price Performance Shares of NYSE:YELP opened at $27.92 on Monday. The company’s fifty day moving average price is $23.93 and its 200-day moving average price is $27.91. The firm has a market capitalization of $1.66 billion, a price-to-earnings ratio of 12.41, a PEG ratio of 0.70 and a beta of 0.47. Yelp Inc. has a one year low of $19.60 and a one year high of $41.22.
Yelp (NYSE:YELP – Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The local business review company reported $0.61 EPS for the quarter, topping analysts’ consensus estimates of $0.47 by $0.14. The firm had revenue of $359.99 million for the quarter, compared to analyst estimates of $358.70 million. Yelp had a net margin of 9.94% and a return on equity of 19.96%. The business’s revenue for the quarter was down .5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.62 EPS. As a group, equities research analysts expect that Yelp Inc. will post 2.22 EPS for the current year.
Analysts Set New Price Targets YELP has been the topic of a number of research analyst reports. Robert W. Baird set a $25.00 price target on shares of Yelp in a report on Friday, February 13th. Weiss Ratings cut shares of Yelp from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, February 11th. JPMorgan Chase & Co. reduced their price target on shares of Yelp from $30.00 to $22.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 17th. The Goldman Sachs Group reduced their price target on shares of Yelp from $33.00 to $25.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 17th. Finally, Morgan Stanley reduced their price target on shares of Yelp from $30.00 to $28.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 13th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $28.50.
Read Our Latest Stock Report on YELP
Institutional Trading of Yelp A number of institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System boosted its stake in shares of Yelp by 0.7% during the second quarter. California State Teachers Retirement System now owns 58,298 shares of the local business review company’s stock valued at $1,998,000 after purchasing an additional 393 shares during the period. PNC Financial Services Group Inc. boosted its stake in shares of Yelp by 6.0% during the fourth quarter. PNC Financial Services Group Inc. now owns 7,204 shares of the local business review company’s stock valued at $219,000 after purchasing an additional 408 shares during the period. Pinnacle Holdings LLC boosted its stake in shares of Yelp by 1.2% during the third quarter. Pinnacle Holdings LLC now owns 35,838 shares of the local business review company’s stock valued at $1,118,000 after purchasing an additional 413 shares during the period. CWA Asset Management Group LLC boosted its stake in shares of Yelp by 2.2% during the fourth quarter. CWA Asset Management Group LLC now owns 19,871 shares of the local business review company’s stock valued at $604,000 after purchasing an additional 436 shares during the period. Finally, Bfsg LLC boosted its stake in shares of Yelp by 110.3% during the third quarter. Bfsg LLC now owns 839 shares of the local business review company’s stock valued at $26,000 after purchasing an additional 440 shares during the period. Hedge funds and other institutional investors own 90.11% of the company’s stock.
About Yelp (Get Free Report)
Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company’s flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.
Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.
Featured Articles Five stocks we like better than Yelp
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SAN FRANCISCO--(BUSINESS WIRE)--Vagaro, a leading software platform for beauty, wellness, and fitness businesses, today announced a new integration with Yelp, the company that connects people with great local businesses, that enables consumers to book services directly from Yelp business pages and Yelp Assistant, creating a more seamless path from discovery to appointment.
“By integrating with Yelp, we’re removing friction in the customer journey and helping businesses capture demand the moment a customer is ready to book.” — Fred Helou, Founder & CEO, Vagaro
Share With this integration, iOS users can book appointments through Vagaro directly from Yelp Assistant, the platform’s AI-powered conversational assistant, or from participating Yelp business pages by tapping “Book now on Vagaro.” They are then directed to the business’s Vagaro scheduling page, where they can select services, providers, dates, and times. Android and desktop functionality are expected to roll out later in 2026.
The integration comes as consumer expectations continue to shift toward convenience and immediacy, particularly in industries where online reviews play a critical role in decision-making. By enabling booking at the moment of highest intent, Vagaro helps businesses convert Yelp traffic into confirmed appointments more efficiently.
“Consumers expect a seamless experience from discovery to booking,” said Fred Helou, founder and CEO of Vagaro. “By integrating with Yelp, we’re removing friction in the customer journey and helping businesses capture demand the moment a customer is ready to book.”
The integration also enhances the client experience by guiding users from Yelp reviews to a branded Vagaro booking page, reinforcing trust while allowing businesses to showcase their services, availability, and expertise.
With millions of users turning to Yelp each day to evaluate local businesses, the new integration provides Vagaro businesses with access to a highly engaged, high-intent audience actively searching for services.
“We’re excited to integrate Vagaro into Yelp to help businesses convert high-intent customers at the moment they’re ready to book,” said Craig Saldanha, chief product officer at Yelp. “This partnership makes it easy to book appointments and classes directly from Yelp—including through the new Yelp Assistant—enabling business owners to attract more clients and keep their calendars full, all from the scheduling platform they already know and trust.”
The Yelp integration is now available for Vagaro businesses on iOS, with expanded platform support expected later this year.
About Vagaro
Vagaro is the leading salon, spa, and fitness software, serving hundreds of thousands of professionals worldwide. Vagaro simplifies business management, credit card and payment processing, and makes it easy for businesses to grow their clientele on a modern consumer marketplace. Vagaro's a-la-carte options and affordable pricing provide a unique level of scalability, making it suitable for businesses of all sizes, from the solopreneur to enterprise franchises. Simple, innovative, and reliable, Vagaro empowers beauty and wellness professionals to excel in a digital age. Visit Vagaro to learn more.
The new AI-powered Yelp Assistant works across every category on Yelp and helps consumers book, order and schedule in one conversation
New integrations with Vagaro, Zocdoc and Calendly expand seamless booking across Yelp
Enhanced Menu Vision overlays dish photos on menus using a phone camera
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, announced its Spring Product Release, introducing more than 35 new features and updates that transform how consumers discover, connect and get things done with local businesses. The release unveils the new Yelp Assistant, an AI-powered chatbot that delivers instant answers, reliable recommendations and seamless booking—from restaurant reservations to beauty appointments—all in one conversation. New integrations with Vagaro, Zocdoc and Calendly expand scheduling capabilities across more categories on Yelp, while enhancements to AI-powered Menu Vision make deciding what to order more visual and engaging. The release also introduces new tools for advertisers, including an AI-powered support chatbot and enhanced advertising tools.
Yelp's 2026 Spring Product Release introduces 35+ new features and updates, including the new Yelp Assistant, expanded booking integrations, and an enhanced Menu Vision.
Share “The new Yelp Assistant is our most significant AI product evolution yet as we reconceive Yelp around instant answers and seamless actions,” said Craig Saldanha, chief product officer at Yelp. “The experiences and opinions from real people that power every recommendation are what sets Yelp Assistant apart, delivering trustworthy results that help consumers make confident decisions, faster. And for the first time, consumers can seamlessly move from discovery to action in a single conversation with new and enhanced integrations—from booking a table, to ordering delivery or scheduling an appointment. As we transform Yelp with AI, this is only the beginning of a more conversational, personalized and action-oriented Yelp experience.”
Discover and get things done across every category with AI-powered Yelp Assistant
First introduced to help consumers hire services professionals and answer questions about individual businesses, Yelp Assistant now works across every category on Yelp and is accessible at the center of the app through a new “Assistant” tab on iOS and Android. Powered by hundreds of millions of reviews, photos and detailed business information from the Yelp community, Yelp Assistant can handle complex and highly specific requests and surfaces real user-generated content from first-hand experiences in answers to validate each recommendation.
New and existing integrations make it easy to go from discovery to doing, directly from the app:
Reserve a table at thousands of restaurants that use Yelp Guest Manager for table booking, with the ability to join a Yelp Waitlist coming soon. Order takeout or delivery from more than half a million restaurants through DoorDash, Yelp’s preferred partner, as well as Grubhub and other food delivery platforms. Request a quote from professionals across more than 450 categories, including home, local, auto, beauty, pet and event services. Book appointments through integrations with Vagaro on iOS for beauty, wellness and fitness businesses, Zocdoc on iOS for healthcare providers, RepairPal for auto shops and, later this summer, Calendly for service professionals. More ways to book, order and schedule on Yelp
The new integrations available through Yelp Assistant are now also accessible throughout the Yelp app, making it easier than ever for consumers to take action across the platform. New partnerships with Vagaro, Zocdoc and Calendly bring booking, ordering and scheduling capabilities to more categories.
Vagaro: Consumers can now book beauty and wellness appointments—such as haircuts, massages and nail services—on Yelp through a new integration with Vagaro, a leading salon, spa and fitness marketplace. Available on iOS, the Vagaro integration will be available on Android and desktop later this year. Zocdoc: For the first time, consumers can go from finding to booking a doctor on Yelp through a new integration with Zocdoc, the healthcare access platform that connects patients to great care. Available on iOS, the Zocdoc integration will be coming to Android and desktop later this year. Calendly: Service professionals can now connect their Calendly schedules to Yelp, allowing consumers to book consultations and appointments seamlessly. “Through our expanded integration with Yelp, we’re making it easier than ever for consumers to move from discovery to booking in just a few taps,” said Fred Helou, CEO of Vagaro. “By connecting Yelp’s powerful search and recommendation platform with Vagaro’s robust scheduling capabilities, beauty, wellness and fitness businesses can capture high-intent customers at the exact moment they’re ready to book. We’re excited to partner with Yelp to deliver a more seamless, end-to-end experience that benefits both businesses and their clients.”
“Booking a doctor’s appointment should be just as easy as booking dinner,” said Oliver Kharraz, MD, founder and CEO of Zocdoc. “Integrating Zocdoc’s healthcare access infrastructure into Yelp is another step toward making access to in-network care simple and immediate, wherever patients begin their search.”
"Scheduling should be the easiest part of winning a new customer,” said Chirag Chheda, CTO of Calendly. “Our integration with Yelp makes that a reality for service professionals by bringing Calendly's real-time availability directly into the conversation when a customer is ready to book. This partnership represents a deeper expansion into home services, connecting our scheduling platform with one of the largest marketplaces where high intent consumers discover and connect with businesses every day. We're excited to help service pros on Yelp turn more leads into appointments with less effort."
Smarter menus, personalized feeds and more
Additional features and updates from Yelp’s 2026 Spring Product Release:
Enhanced Menu Vision: First introduced in 2025, Menu Vision now overlays photos of dishes, drinks and desserts directly over text-based menus when viewed through diners’ phone cameras. “Popular” badges call out standout items, and with one tap, consumers can read reviews about the item. Plus, expanded coverage and improved matching accuracy mean more items are recognized across more restaurants. Menu Vision is available on iOS and Android from a business’s media gallery or directly from the business page under the menu section. A more personalized and engaging home feed: A new AI-powered personalization model for the Yelp home feed on iOS surfaces more relevant, tailored content, more updates from people you follow, immersive full-screen videos and smarter nearby recommendations. Smarter photo discovery: Natural language search within a business’s media gallery allows consumers to use conversational queries to find specific photos. AI-powered chat support: Yelp’s new AI-powered support chatbot for advertisers helps business owners get answers and resolve issues faster. Built with advanced large language models, the chatbot delivers conversational assistance across a wide range of support topics and provides intelligent real-time solutions. Yelp is also rolling out new tools to help businesses manage leads and optimize their advertising. Additional information and assets
For more details on the news, learn more in Yelp’s 2026 Spring Product Release blog post, and a Q&A with Yelp's Vice President of Product Nicole Lund on what's next for local businesses on Yelp. Assets and images are available here. For further information about Yelp, visit the company’s Fast Facts page.
About Yelp Inc.
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews, and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect, and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in San Francisco in 2004.
Forward-looking statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future product plans, including the ability of its investments and initiatives to drive profitable long-term growth and shareholder value, which are based on its current expectations, forecasts, and assumptions that involve risks and uncertainties.
Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results, and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.
On the back of an update to its product lineup, Yelp (YELP +0.30%) stock did well on Tuesday. Investors pushed the shares up by more than 3% during an otherwise forgettable trading session that saw the S&P 500 index dip by 0.6%.
An intelligent move Well before market open, Yelp announced its spring product release, a refreshing of the business listing specialist's suite of offerings.
Image source: Getty Images.
This release centers on a new offering, Yelp Assistant, a chatbot underpinned by artificial intelligence (AI) that assists users in finding the goods and services they're looking for. It also assists in taking action, as it can book restaurant reservations, obtain quotes from service providers, reserve appointments, and the like.
According to Yelp, Assistant isn't just an expansion of its business. The company quoted chief product officer Craig Saldanha as saying that it "is our most significant AI product evolution yet as we reconceive Yelp around instant answers and seamless actions."
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Yelp of the future So, if the new offering is sufficiently attractive and appealing to Yelp's considerable user base, it could help boost the company's ambitions to move away from its present business model -- which remains heavily dependent on advertising. It's early days for this strategic shift, so for me, Yelp is a wait-and-see as to how effectively it can make that transition.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, announced that it will release its financial results for the quarter ended March 31, 2026 after the market closes on Thursday, May 7, 2026.
Yelp will issue a press release when its Shareholder Letter has been posted on its investor relations website at www.yelp-ir.com. Following the release of the Shareholder Letter, Yelp will host a webcasted conference call to discuss its first quarter results starting at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day. The live and archived webcasts will be accessible from Yelp’s investor relations website at the same web address as above.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in San Francisco in 2004.
Evergreen Capital Management LLC purchased a new position in shares of Yelp Inc. (NYSE:YELP – Free Report) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 32,795 shares of the local business review company’s stock, valued at approximately $997,000. Evergreen Capital Management LLC owned approximately 0.05% of Yelp as of its most recent SEC filing.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Bfsg LLC grew its holdings in Yelp by 110.3% during the 3rd quarter. Bfsg LLC now owns 839 shares of the local business review company’s stock worth $26,000 after acquiring an additional 440 shares in the last quarter. CIBC Private Wealth Group LLC grew its holdings in Yelp by 100.0% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 892 shares of the local business review company’s stock worth $28,000 after acquiring an additional 446 shares in the last quarter. Strs Ohio acquired a new position in Yelp during the 1st quarter worth approximately $56,000. Hudson Bay Capital Management LP acquired a new position in Yelp during the 3rd quarter worth approximately $55,000. Finally, Signaturefd LLC grew its holdings in Yelp by 76.5% during the 4th quarter. Signaturefd LLC now owns 2,097 shares of the local business review company’s stock worth $64,000 after acquiring an additional 909 shares in the last quarter. Institutional investors and hedge funds own 90.11% of the company’s stock.
Analyst Ratings Changes YELP has been the subject of several analyst reports. Robert W. Baird set a $25.00 price target on shares of Yelp in a report on Friday, February 13th. JPMorgan Chase & Co. lowered their price target on shares of Yelp from $30.00 to $22.00 and set a “neutral” rating for the company in a report on Tuesday, February 17th. UBS Group set a $28.00 price target on shares of Yelp in a report on Tuesday, January 13th. Wall Street Zen cut shares of Yelp from a “buy” rating to a “hold” rating in a report on Saturday, February 14th. Finally, Weiss Ratings cut shares of Yelp from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, February 11th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, Yelp presently has an average rating of “Reduce” and an average target price of $28.50.
Get Our Latest Analysis on YELP
Yelp Trading Down 2.5% Shares of Yelp stock opened at $28.33 on Friday. The company has a fifty day simple moving average of $24.34 and a 200-day simple moving average of $27.87. Yelp Inc. has a 12-month low of $19.60 and a 12-month high of $41.22. The stock has a market cap of $1.69 billion, a price-to-earnings ratio of 12.59, a PEG ratio of 0.73 and a beta of 0.47.
Yelp (NYSE:YELP – Get Free Report) last issued its earnings results on Thursday, February 12th. The local business review company reported $0.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.14. Yelp had a net margin of 9.94% and a return on equity of 19.96%. The business had revenue of $359.99 million during the quarter, compared to analysts’ expectations of $358.70 million. During the same quarter in the prior year, the business posted $0.62 EPS. The company’s revenue for the quarter was down .5% on a year-over-year basis. On average, analysts forecast that Yelp Inc. will post 2.02 earnings per share for the current fiscal year.
Insider Activity at Yelp In related news, CEO Jeremy Stoppelman sold 30,000 shares of the company’s stock in a transaction on Friday, January 30th. The shares were sold at an average price of $27.26, for a total value of $817,800.00. Following the completion of the sale, the chief executive officer owned 756,458 shares in the company, valued at $20,621,045.08. This represents a 3.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dan Jedda sold 1,464 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $21.02, for a total transaction of $30,773.28. Following the sale, the director owned 17,100 shares of the company’s stock, valued at approximately $359,442. This represents a 7.89% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 156,264 shares of company stock worth $4,115,893. Corporate insiders own 8.00% of the company’s stock.
Yelp Profile (Free Report)
Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company’s flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.
Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.
Featured Articles Five stocks we like better than Yelp Want to see what other hedge funds are holding YELP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Yelp Inc. (NYSE:YELP – Free Report).
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Shares of Yelp Inc. (NYSE:YELP – Get Free Report) have earned a consensus recommendation of “Reduce” from the eight brokerages that are currently covering the firm, MarketBeat.com reports. Four investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $28.50.
Several equities analysts have recently commented on YELP shares. Robert W. Baird set a $25.00 price target on shares of Yelp in a research report on Friday, February 13th. Morgan Stanley reduced their price target on shares of Yelp from $30.00 to $28.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 13th. JPMorgan Chase & Co. cut their target price on shares of Yelp from $30.00 to $22.00 and set a “neutral” rating on the stock in a report on Tuesday, February 17th. Wall Street Zen downgraded Yelp from a “buy” rating to a “hold” rating in a research note on Saturday, February 14th. Finally, Weiss Ratings downgraded Yelp from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, February 11th.
Check Out Our Latest Research Report on Yelp
Yelp Stock Performance Shares of YELP stock opened at $28.75 on Monday. Yelp has a one year low of $19.60 and a one year high of $41.22. The company’s 50-day simple moving average is $24.49 and its 200-day simple moving average is $27.79. The stock has a market capitalization of $1.71 billion, a price-to-earnings ratio of 12.78, a PEG ratio of 0.72 and a beta of 0.47.
Yelp (NYSE:YELP – Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The local business review company reported $0.61 EPS for the quarter, topping the consensus estimate of $0.47 by $0.14. Yelp had a net margin of 9.94% and a return on equity of 19.96%. The business had revenue of $359.99 million for the quarter, compared to analysts’ expectations of $358.70 million. During the same quarter last year, the company posted $0.62 earnings per share. The company’s quarterly revenue was down .5% compared to the same quarter last year. As a group, research analysts forecast that Yelp will post 2.02 EPS for the current year.
Insider Buying and Selling In other Yelp news, Director Dan Jedda sold 1,464 shares of Yelp stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $21.02, for a total value of $30,773.28. Following the completion of the transaction, the director directly owned 17,100 shares in the company, valued at $359,442. The trade was a 7.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO David A. Schwarzbach sold 10,000 shares of Yelp stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $25.00, for a total value of $250,000.00. Following the completion of the transaction, the chief financial officer owned 227,959 shares of the company’s stock, valued at approximately $5,698,975. The trade was a 4.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 156,264 shares of company stock valued at $4,115,893. 7.40% of the stock is currently owned by insiders.
Hedge Funds Weigh In On Yelp A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. LSV Asset Management boosted its stake in Yelp by 11.6% in the fourth quarter. LSV Asset Management now owns 2,682,238 shares of the local business review company’s stock valued at $81,513,000 after acquiring an additional 279,300 shares during the period. Dimensional Fund Advisors LP boosted its stake in Yelp by 7.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,226,666 shares of the local business review company’s stock valued at $67,666,000 after acquiring an additional 156,430 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in shares of Yelp by 8.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,976,150 shares of the local business review company’s stock valued at $61,656,000 after buying an additional 151,354 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Yelp by 7.0% during the second quarter. Ameriprise Financial Inc. now owns 1,501,764 shares of the local business review company’s stock valued at $51,458,000 after buying an additional 98,303 shares during the last quarter. Finally, River Road Asset Management LLC raised its holdings in shares of Yelp by 1.4% during the fourth quarter. River Road Asset Management LLC now owns 1,161,711 shares of the local business review company’s stock valued at $35,304,000 after buying an additional 15,849 shares during the last quarter. 90.11% of the stock is currently owned by institutional investors and hedge funds.
About Yelp (Get Free Report)
Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company’s flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities.
Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises.
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On April 28, 2026, Yelp Inc YELP shares fell 4.7% to a current price of $27.74. This decline comes amidst a challenging year for the stock, which has seen a 52-week range between $19.60 and $41.22. The shares are currently trading significantly below their recent highs, reflecting broader market pressures and company-specific challenges.
GF Value™ verdict: Shares are trading at a 35.6% discount to the GF Value™ of $43.10.GF Score™ of 79/100 indicates the stock is above average compared to peers.Insiders sold $7.6 million in stock over the last three months, which may signal caution. Is YELP Overvalued or Undervalued? Yelp Inc's current price of $27.74 suggests a significant undervaluation when compared to the GF Value™ of $43.10, representing a 35.6% margin of safety. This significant gap indicates that the market may not fully recognize Yelp's potential for growth and profitability. The GF Valuation label categorizes Yelp as "Significantly Undervalued," which could present an attractive opportunity for long-term investors looking for value stocks.
However, while the undervaluation may present an opportunity, investors should remain cautious. The sell-off by insiders raises questions about the company's future performance and could indicate that those closest to the company are not optimistic about its near-term prospects. Furthermore, a significant drop in momentum, as indicated by a low momentum rank of 1/10, may suggest that the stock's recent performance is not expected to improve in the short term. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does YELP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.3x 34.8x Forward P/E 13.4x - Yelp's current P/E (TTM) of 12.3x is considerably below its 5-year median P/E of 34.8x, suggesting that the stock is trading at a much lower valuation compared to its historical levels. The forward P/E of 13.4x also indicates that the stock is expected to remain relatively inexpensive in the near future. This analysis aligns with the GF Value™ verdict, reinforcing the notion that Yelp is undervalued relative to its historical performance.
What Does YELP's GF Score™ Tell Us? Metric Rating GF Score™ 79/100 Financial Strength 8/10 Profitability 8/10 Growth 9/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 79/100 indicates that Yelp Inc has strong financial and profitability metrics, with both rated 8/10. The growth rank is even higher at 9/10, suggesting that Yelp has significant potential for future expansion. However, the valuation rank of 4/10 and a momentum rank of just 1/10 highlight areas of concern. Low momentum could indicate that the stock may struggle to gain traction in the near term, suggesting that while the fundamentals are strong, market perception may not yet align with the underlying value.
What Are Insiders Doing with YELP Stock? In the last three months, insiders have sold $7.6 million worth of Yelp shares, with no reported buying activity. This pattern of selling could suggest a lack of confidence among company executives about the stock's future performance. Insider selling, particularly at this scale, usually raises red flags for potential investors, as it may indicate that those with the most knowledge about the company foresee challenges ahead or believe the stock is currently overvalued.
What This Means for Investors Based on the GF Value™ analysis, Yelp Inc YELP is currently undervalued, trading significantly below its intrinsic value. However, potential investors should consider the implications of insider selling and the company's low momentum score, which may suggest caution before making any decisions.
For the complete analysis, visit the Yelp Inc YELP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is YELP's GF Score™?
Yelp's GF Score™ is 79/100, indicating that it ranks above average among its peers based on key financial metrics.
Is YELP overvalued or undervalued?
Yelp is currently undervalued with a GF Value™ of $43.10 compared to its current price of $27.74, suggesting significant upside potential.
What is YELP's P/E ratio?
Yelp's P/E (TTM) is 12.3x, which is significantly below its 5-year median P/E of 34.8x, indicating that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Analysts on Wall Street project that Yelp (YELP - Free Report) will announce quarterly earnings of $0.26 per share in its forthcoming report, representing a decline of 27.8% year over year. Revenues are projected to reach $354.57 million, declining 1.1% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific Yelp metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Net revenue- Advertising' should arrive at $332.17 million. The estimate indicates a year-over-year change of -2.9%.
It is projected by analysts that the 'Net revenue- Other services' will reach $22.40 million. The estimate points to a change of +35.5% from the year-ago quarter.
Analysts' assessment points toward 'Net revenue- Advertising revenue- Services' reaching $233.42 million. The estimate points to a change of +0.8% from the year-ago quarter.
Analysts forecast 'Net revenue- Advertising revenue- Restaurants, Retail & Other' to reach $100.13 million. The estimate points to a change of -9.3% from the year-ago quarter.
The combined assessment of analysts suggests that 'Paying Advertising Locations' will likely reach 492.50 thousand. The estimate is in contrast to the year-ago figure of 517.00 thousand.
The average prediction of analysts places 'Paying Advertising Locations - Restaurants, Retail & Other' at 236.08 thousand. Compared to the current estimate, the company reported 256.00 thousand in the same quarter of the previous year.
The consensus among analysts is that 'Paying Advertising Locations - Services' will reach 256.42 thousand. The estimate is in contrast to the year-ago figure of 261.00 thousand.
View all Key Company Metrics for Yelp here>>>
Over the past month, shares of Yelp have returned +14.2% versus the Zacks S&P 500 composite's +10.3% change. Currently, YELP carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Net Revenue increased by 1% year over year to $361 million
Net Income decreased from the prior year to $18 million, reflecting a 5% margin
Adjusted EBITDA1 decreased 7% year over year to $79 million, reflecting a 22% margin
Reaffirms full-year 2026 outlook: Expects Net Revenue in the range of $1.455 billion to $1.475 billion and Adjusted EBITDA in the range of $310 million to $330 million2
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today posted its financial results for the first quarter ended March 31, 2026 in the Shareholder Letter available on its Investor Relations website at yelp-ir.com.
“We continued to accelerate Yelp's AI transformation in the first quarter,” said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. “Even as local businesses continued to navigate a challenging operating environment, we made meaningful progress against our strategic priorities to reconceive Yelp around answers and actions, deliver new AI tools for businesses, and extend the reach of our trusted content through data licensing. We recently rolled out more than 35 new product updates and features, including a new Yelp Assistant that now works across all categories. Product momentum, strong traction from Hatch and Yelp Host, and a growing partner ecosystem give me confidence in Yelp's AI transformation and our ability to drive long-term profitable growth.”
“First quarter net revenue of $361 million and an adjusted EBITDA margin of 22% both exceeded the high end of our outlook,” said David Schwarzbach, Yelp's chief financial officer. “While local economies remained pressured, other revenue grew 75% year over year to a record $29 million. Looking ahead, we see a significant opportunity to drive growth in other revenue by scaling Yelp Host, Hatch, and data licensing. We are targeting an annual run rate of $250 million in other revenue by the end of 2028.”
Quarterly Conference Call
Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss the first quarter financial results and outlook for the second quarter and full year 2026. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including its expected financial results for the second quarter and full year 2026, its expectations regarding its AI transformation, changes to its product offerings, and its ability to scale revenue streams and drive long-term profitable growth, that are based on its current expectations, forecasts and assumptions that involve risks and uncertainties.
Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:
Adverse macroeconomic conditions — particularly those affecting local economies — and their impact on consumer behavior and advertiser spending; Yelp’s ability to maintain and expand its advertiser base; Yelp’s ability to execute on its strategic initiatives, including its AI transformation, and the effectiveness thereof; Yelp’s reliance on internet search engines and application marketplaces, certain providers of which offer products and services that compete directly with its products; Yelp’s ability to successfully manage acquisitions of new businesses, solutions or technologies, such as Hatch, to successfully integrate those businesses, solutions or technologies, and to monetize such acquired products, solutions or technologies; Yelp’s ability to continue to effectively operate with a remote work force and attract and retain key talent; Yelp’s reliance on third-party service providers and strategic partners; Competition in, and the rapid evolution of, Yelp’s industry; Yelp’s ability to generate and maintain sufficient high-quality content from its users; Yelp’s ability to maintain, protect and enhance its brand; and Yelp’s ability to maintain the uninterrupted and proper operation of its technology and network infrastructure. Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.
YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$
110,412
$
216,062
Short-term marketable securities
—
103,290
Accounts receivable, net
152,211
153,224
Prepaid expenses and other current assets
39,409
42,359
Total current assets
302,032
514,935
Property, equipment and software, net
95,368
91,685
Operating lease right-of-use assets
17,371
16,046
Goodwill
355,625
135,847
Intangibles, net
98,773
49,038
Other non-current assets
144,129
150,927
Total assets
$
1,013,298
$
958,478
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$
155,031
$
158,789
Operating lease liabilities — current
7,063
7,426
Deferred revenue
11,628
5,845
Total current liabilities
173,722
172,060
Revolving credit facility
130,000
—
Operating lease liabilities — long-term
17,861
17,451
Other long-term liabilities
60,626
58,115
Total liabilities
382,209
247,626
Stockholders’ equity:
Preferred stock
—
—
Common stock
—
—
Additional paid-in capital
2,041,401
2,010,948
Treasury stock
(6,264
)
(999
)
Accumulated other comprehensive loss
(9,601
)
(7,677
)
Accumulated deficit
(1,394,447
)
(1,291,420
)
Total stockholders’ equity
631,089
710,852
Total liabilities and stockholders’ equity
$
1,013,298
$
958,478
YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2026
2025
Net revenue
$
361,457
$
358,534
Costs and expenses:
Cost of revenue(1)
38,409
34,828
Sales and marketing(1)
153,010
146,284
Product development(1)
77,157
83,905
General and administrative(1)
49,350
51,707
Depreciation and amortization
16,233
12,350
Total costs and expenses
334,159
329,074
Income from operations
27,298
29,460
Other income, net
2,586
5,771
Income before income taxes
29,884
35,231
Provision for income taxes
12,149
10,840
Net income attributable to common stockholders
$
17,735
$
24,391
Net income per share attributable to common stockholders
Basic
$
0.30
$
0.37
Diluted
$
0.30
$
0.36
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic
58,816
65,261
Diluted
59,374
67,324
(1) Includes stock-based compensation expense as follows:
Three Months Ended
March 31,
2026
2025
Cost of revenue
$
1,140
$
1,171
Sales and marketing
6,454
7,639
Product development
14,710
19,409
General and administrative
8,203
9,250
Total stock-based compensation
$
30,507
$
37,469
YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2026
2025
Operating Activities
Net income
$
17,735
$
24,391
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
16,233
12,350
Provision for credit losses
9,438
10,559
Stock-based compensation
30,507
37,469
Amortization of right-of-use assets
1,703
3,440
Deferred income taxes
9,705
3,287
Amortization of deferred contract cost
5,559
6,013
Other adjustments, net
1,298
1,252
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable
(8,015
)
(13,998
)
Prepaid expenses and other assets
(14,727
)
(617
)
Operating lease liabilities
(2,814
)
(9,902
)
Accounts payable, accrued liabilities and other liabilities
(8,806
)
23,751
Net cash provided by operating activities
57,816
97,995
Investing Activities
Purchases of marketable securities
(5,975
)
(15,134
)
Sales and maturities of marketable securities
109,293
13,610
Maturities of other investments
5,000
—
Acquisition, net of cash received
(263,600
)
—
Purchases of property, equipment and software
(12,660
)
(10,531
)
Other investing activities
61
52
Net cash used in investing activities
(167,881
)
(12,003
)
Financing Activities
Proceeds from issuance of common stock for employee stock-based plans
8,726
273
Taxes paid related to the net share settlement of equity awards
(9,792
)
(19,486
)
Repurchases of common stock
(124,001
)
(62,500
)
Proceeds from revolving credit facility
165,000
—
Repayments on revolving credit facility
(35,000
)
—
Other financing activities
(18
)
—
Net cash provided by (used in) financing activities
4,915
(81,713
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(267
)
652
Change in cash, cash equivalents and restricted cash
(105,417
)
4,931
Cash, cash equivalents and restricted cash — Beginning of period
216,289
217,682
Cash, cash equivalents and restricted cash — End of period
$
110,872
$
222,613
Non-GAAP Financial Measures
This press release and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which the Securities and Exchange Commission has defined as a “non-GAAP financial measure.”
We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as expenses for which we expect to be indemnified, acquisition and integration costs and other items that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.
Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or principles, have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Yelp’s financial results as reported in accordance with generally accepted accounting principles in the United States (“GAAP”). In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. Some of these limitations are:
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements; Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp’s working capital needs; Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp; Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation; Adjusted EBITDA does not take into account certain income and expense items, such as indemnifiable expenses, acquisition and integration costs or other costs that management determines are not indicative of ongoing operating performance; Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and other companies, including those in Yelp’s industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures. Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp’s other GAAP results.
The following is a reconciliation of net income to Adjusted EBITDA, as well as the calculation of net income margin and Adjusted EBITDA margin, for each of the periods indicated (in thousands, except percentages; unaudited):
Three Months Ended
March 31,
2026
2025
Reconciliation of Net Income to Adjusted EBITDA:
Net income
$
17,735
$
24,391
Provision for income taxes
12,149
10,840
Other income, net
(2,586
)
(5,771
)
Depreciation and amortization
16,233
12,350
Stock-based compensation
30,507
37,469
Indemnifiable expenses(1)(2)
896
5,126
Acquisition and integration costs(1)(3)
4,420
539
Adjusted EBITDA
$
79,354
$
84,944
Net revenue
$
361,457
$
358,534
Net income margin
5
%
7
%
Adjusted EBITDA margin
22
%
24
%
The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):
Three Months Ended
March 31,
2026
2025
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Net cash provided by operating activities
$
57,816
$
97,995
Purchases of property, equipment and software
(12,660
)
(10,531
)
Free cash flow
$
45,156
$
87,464
Net cash used in investing activities
$
(167,881
)
$
(12,003
)
Net cash provided by (used in) financing activities
Yelp (YELP - Free Report) reported $361.46 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 0.8%. EPS of $0.36 for the same period compares to $0.36 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $354.57 million, representing a surprise of +1.94%. The company delivered an EPS surprise of +38.46%, with the consensus EPS estimate being $0.26.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Yelp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Paying Advertising Locations: 485 thousand versus 492.5 thousand estimated by three analysts on average.Paying Advertising Locations - Restaurants, Retail & Other: 235 thousand compared to the 236.08 thousand average estimate based on three analysts.Paying Advertising Locations - Services: 250 thousand versus 256.42 thousand estimated by three analysts on average.Net revenue- Advertising: $332.49 million versus $332.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.8% change.Net revenue- Other services: $28.97 million versus $22.4 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +75.2% change.Net revenue- Advertising revenue- Services: $233.79 million versus the three-analyst average estimate of $233.42 million. The reported number represents a year-over-year change of +1%.Net revenue- Advertising revenue- Restaurants, Retail & Other: $98.7 million compared to the $100.13 million average estimate based on three analysts. The reported number represents a change of -10.6% year over year.View all Key Company Metrics for Yelp here>>>
Shares of Yelp have returned +11.5% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Yelp (YELP - Free Report) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +38.46%. A quarter ago, it was expected that this online business reviews company would post earnings of $0.47 per share when it actually produced earnings of $0.61, delivering a surprise of +29.79%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Yelp, which belongs to the Zacks Internet - Content industry, posted revenues of $361.46 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.94%. This compares to year-ago revenues of $358.53 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Yelp shares have lost about 6.8% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Yelp?While Yelp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Yelp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $369.77 million in revenues for the coming quarter and $2.02 on $1.47 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Perion Network (PERI - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 20.
This digital media company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -45.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Perion Network's revenues are expected to be $94.43 million, up 5.7% from the year-ago quarter.
Key Takeaways YELP Q1 EPS was 30 cents, down 16.7% Y/Y, while net revenues rose 0.8% to $361.5M.Yelp's other revenues jumped 75% to a record $29M, lifted by Hatchify plus data licensing and food ordering.YELP Assistant adoption hit 15% of Request-a-Quote projects as 35 AI updates expanded local discovery. Yelp Inc. (YELP - Free Report) reported first-quarter 2026 earnings of 30 cents per share, declining 16.7% year over year. The Zacks Consensus Estimate for the bottom line was pegged at 26 cents.
Net revenues rose 0.8% year over year to $361.5 million and surpassed the consensus mark by 1.9%. Strength in other revenues and steady Services advertising demand drove the outperformance, while Yelp Assistant adoption continued to expand, accounting for about 15% of Request-a-Quote projects in the quarter.
YELP’s Revenue Mix Shows Services ResilienceTotal net revenues increased to $361.5 million from $358.5 million a year ago. Advertising revenues declined 2.8% year over year to $332.49 million, reflecting weaker trends in Restaurants, Retail & Other categories.
Services advertising revenues edged up to $233.8 million from $231.6 million, supported by a modest increase in ad clicks and a higher average revenue per location that partially offset fewer paying locations. In contrast, Restaurants, Retail & Other advertising revenues fell to $98.7 million from $110.4 million as softer consumer demand weighed on ad clicks.
Other revenues stood out, rising 75% year over year to a record $29 million. The jump was driven by the inclusion of Hatchify revenues (acquired in February 2026), along with growth in data licensing and food ordering.
Yelp’s Profitability Slips as Costs RiseNet income attributable to common stockholders declined 27% year over year to $18 million, translating to a 5% net income margin versus 7% in the year-ago quarter. Income from operations was $27.3 million, down from $29.4 million in the year-ago quarter, reflecting higher overall costs and expenses.
Total costs and expenses increased 2% year over year to $334 million. The cost of revenues rose 10% year over year to $38.4 million, partly tied to infrastructure investments, including AI product integration and incremental costs from the Hatchify acquisition.
Sales and marketing expenses increased 5% to $153 million on higher marketing spend and employee-related costs, including a Hatchify-related headcount. Product development expense declined 8% to $77 million, while general and administrative expenses fell 5% to $49 million, reflecting lower stock-based compensation and other items, partially offset by acquisition and integration costs.
Adjusted EBITDA decreased 7% year over year to $79 million, with adjusted EBITDA margin contracting 200 basis points to 22%.
YELP Expands Consumer AI Experience and PartnershipsYelp continued to accelerate its AI transformation in the first quarter, rolling out more than 35 new features and updates and introducing a new Yelp Assistant that now supports local discovery across every business category. The expanded assistant is designed to provide recommendations with explanations, surfaced reviews, star ratings and other details while letting users refine searches and ask follow-up questions.
Yelp also broadened its partner ecosystem to help consumers complete actions beyond discovery. Food ordering and delivery through the DoorDash partnership drove 88% year-over-year growth in food ordering revenues, reflecting expanded restaurant availability on the platform.
Beyond discovery and ordering, Yelp announced new integrations with Vagaro and Zocdoc to support booking for beauty, wellness, fitness and healthcare appointments. Yelp also enhanced Menu Vision to deliver more visual and detail-rich menu browsing, using AI to improve photo-to-menu matching and recognition of dish names and synonyms.
Yelp Bets on Hatchify, Host and Data Licensing MomentumManagement highlighted a sharper focus on scaling AI-driven offerings that can expand “other revenue” over time. Yelp Host, its AI-powered call answering service for restaurants, surpassed an annual run rate of 1.5 million calls handled in April, more than doubling from January, and the company plans to add capabilities such as placing food orders by phone.
Hatchify also showed strong early momentum post-acquisition. Hatchify’s annual run rate revenues exceeded $34 million in March, up 92% year over year and 27% from November 2025, and Yelp indicated plans to expand Hatchify’s voice capabilities and enhance lead management functionality.
Data licensing remains another key lever. Yelp cited robust demand for its licensing products, including new licensing agreements with OpenAI, and expanding integrations with existing partners such as Alexa+, where users can book and manage Yelp restaurant reservations through the Reservations API. Management reiterated a longer-term goal of reaching an annual run rate of $250 million in other revenues by the end of 2028 compared with an annual run rate of $116 million delivered in the first quarter of 2026.
YELP’s Liquidity Position and Shareholder Return PolicyYelp’s liquidity remained solid, ending the first quarter with $110 million in cash and cash equivalents, alongside $130 million in net borrowings under its credit facility. During the first quarter, the company generated operating cash flow and free cash flow of $57.8 million and $45.2 million, respectively.
YELP Reiterates FY26 GuidanceFor 2026, the company continues to anticipate revenues between $1.455 billion and $1.475 billion. This compares with 2025 revenues of $1.465 billion and the Zacks Consensus Estimate of $1.47 billion. Adjusted EBITDA is still expected in the range of $310-$330 million, which is way lower than the 2025 level of $369 million.
Yelp initiated its guidance for the second quarter of 2026. Yelp anticipates second-quarter 2026 revenues between $363 million and $368 million, which fell short of the Zacks Consensus Estimate of $369.8 million as well as the year-ago quarter’s revenues of $370.4 million. Second-quarter adjusted EBITDA is projected in the band of $70-$75 million.
YELP’s Zacks Rank and Stocks to ConsiderCurrently, Yelp carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Micron Technology (MU - Free Report) , Broadcom (AVGO - Free Report) and NVIDIA (NVDA - Free Report) . Micron Technology sports a Zacks Rank #1 (Strong Buy) at present, while Broadcom and NVIDIA each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has been revised upward by a penny to $58.37 per share in the past 30 days, suggesting an increase of 604.1% from fiscal 2025’s reported figure. Micron Technology shares have surged 125.3% year to date (YTD).
The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings has moved northward by 9 cents to $11.45 per share over the past 30 days and calls for a year-over-year jump of 67.9%. Broadcom shares have soared 19.2% YTD.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 earnings has moved upward by 4 cents to $8.07 per share in the past 30 days, implying a year-over-year improvement of approximately 69.2%. NVIDIA shares have risen 13.6% YTD.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that management will present at the J.P. Morgan Global Technology, Media and Communications Conference on May 18, 2026 at 2:50 p.m. Eastern Time.
The live and archived webcasts of the presentation will be available on the company’s investor relations website at www.yelp-ir.com. The archived webcast will remain available for 30 days after the conclusion of the live presentation.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
Yelp is rated Buy, trading at 6x economic EBITDA with no debt, $300M cash, and aggressive buybacks despite minimal top-line growth. YELP's Q1 revenue grew 1% with stable services and ad revenue, while ad clicks declined 10% but CPC rose 8%, signaling pricing power. Stock-based compensation remains elevated but is targeted to fall below 6% of revenue by 2027; buybacks retired 12% of shares in a year.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that management will present at the 2026 Jefferies Software, Internet & AI Conference on May 27, 2026 at 4:00 p.m. Pacific Time.
The live and archived webcasts of the presentation will be available on the company’s investor relations website at www.yelp-ir.com. The archived webcast will remain available for 180 days after the conclusion of the live presentation.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced that management will present at the 2026 Evercore Global TMT Conference on June 3, 2026 at 10:50 a.m. Pacific Time.
The live and archived webcasts of the presentation will be available on the company’s investor relations website at www.yelp-ir.com. The archived webcast will remain available for 180 days after the conclusion of the live presentation.
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.
When you think of America’s biggest brands, tech companies like Apple, Google, and Amazon; retailers like Walmart and Target; and food and beverage giants like McDonald’s and Starbucks usually come to mind.
But every year, those established brands also face the risk of being upended by smaller, faster-growing upstarts. Now, the crowd-sourced review platform Yelp has published its annual list of the fastest-growing brands in America.
Here are the top 10 brands Yelp says are growing the fastest across the country.
Starbucks competitor 7 Brew leads the listAccording to Yelp’s data, the fastest-growing brand in America in 2026 is the drive-through coffee chain and Starbucks competitor 7 Brew.
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Yelp says its data showed that the coffee chain saw “244% growth in consumer interest in 2025,” noting that “Americans are increasingly centering their morning routines around caffeinated drive-thru beverages.”
Here is the top 10 list:
7 Brew Smoothie King Bojangles Sprouts Farmers Market Paris Baguette Boot Barn Bob’s Discount Furniture Black Rock Coffee Bar Nothing Bundt Cakes Wingstop A 7 Brew Coffee in Rome, New York. [Photo: Mahmoud Suhail/Adobe Stock]What is perhaps most interesting about Yelp’s findings is that seven of Yelp’s top 10 fastest-growing brands of 2026 are food or restaurant-related businesses. Only Sprouts Farmers Market, Boot Barn, and Bob’s Discount Furniture are not food or restaurant brands.
