Yelp Inc. Q2 2025 Earnings Recap

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.