Yelp Inc. Q3 2025 Earnings Recap

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.