Yelp Inc.

Yelp Inc. Earnings Recaps

YELP Communication Services 3 recaps
Q1 2026 May 9, 2026

Shares of Yelp declined 5.0% following the quarter, as investors were disappointed by persistent revenue deceleration in core ad segments and margin pressure despite investments in growth initiatives.

Key takeaways
  • Total net revenue rose just 1% year-over-year to $361 million, with Services Ad revenue up 1% but the more lucrative RR&O ad revenue down 11%.
  • Adjusted EBITDA declined 7% year-over-year to $79 million, with margins compressing to 22%, reflecting underlying operational challenges.
  • Net income margin dropped to 5% ($18 million), down 27% year-over-year, signaling pressure on profitability.
  • Growth in “other revenue” streams was strong (+75% YoY), driven by AI-related initiatives such as Yelp Host and data licensing, but these remain nascent and not yet sufficient to offset core headwinds.
  • Management highlighted a challenging macro environment for local businesses, limiting near-term visibility despite ongoing AI investments and strategic acquisitions.
Full recap
Q3 2025 Nov 7, 2025

Yelp Inc. reported strong Q3 2025 results with record net revenue of $376 million, driven by a 7% year-over-year increase in Services revenue, despite challenges in the Restaurant, Retail, and Other categories.

Key takeaways
  • Net income rose 2% year-over-year to $39 million, maintaining a 10% net income margin.
  • Adjusted EBITDA margin stood at 26%, with efficacy driven by disciplined expense management.
  • Significant growth in AI-led initiatives, including a 400% increase in project submissions via Yelp Assistant.
  • New partnership with DoorDash expands food ordering capabilities to over 500,000 restaurants, expected to generate incremental revenue.
  • Overall decline of 2% in RR&O revenue indicates persistent macro pressures, affecting paying advertising locations.
Full recap
Q2 2025 Aug 8, 2025

Yelp Inc. reported impressive second-quarter results with record net revenue of $370 million, driven primarily by a robust 8% growth in services revenue, while maintaining strong profitability through disciplined expense management.

Key takeaways
  • Net income rose 16% year-over-year to $44 million, achieving a 12% net income margin.
  • Adjusted EBITDA increased by 10% to $100 million, equating to a 27% margin, notably exceeding guidance.
  • Services revenue hit a quarterly record of $241 million, offsetting a 5% decline in restaurant and retail revenue.
  • Significant traction in AI initiatives, including a 400% increase in project submissions via Yelp Assistant, pointing to strong future growth potential.
  • Ongoing expense management led to reduced stock-based compensation, with efforts to decrease this further in coming years, enhancing margin quality.
Full recap