Yelp Inc. Reports Strong Q2 2025 Financial Results

Yelp Inc ( (YELP) ) has released its Q2 earnings. Here is a breakdown of the information Yelp Inc presented to its investors.

Yelp Inc., a community-driven platform, connects people with local businesses through reviews and photos, primarily operating in the online advertising industry. In its second quarter of 2025, Yelp reported a 4% increase in net revenue to $370 million, surpassing its outlook. The company also saw a 16% rise in net income to $44 million, with an adjusted EBITDA of $100 million, reflecting a 10% increase from the previous year. Key drivers included growth in advertising revenue from services businesses and strategic AI-powered updates.

Yelp’s financial performance was marked by a 12% net income margin and a 27% adjusted EBITDA margin. Despite a 7% decrease in ad clicks, the average cost-per-click rose by 11%, indicating strong demand from services advertisers. The company also repurchased 1.9 million shares, reflecting confidence in its long-term growth potential. Challenges persisted in the Restaurant, Retail & Other categories, with a 5% decline in advertising revenue due to competitive pressures and reduced advertiser demand.

Strategically, Yelp is investing in AI and product innovation to drive growth, particularly in the home and auto services sectors. The integration of RepairPal and enhancements like the Yelp Assistant chatbot have shown promising results. The company is also focusing on improving advertiser value through new ad formats and optimizing ad budgets.

Looking ahead, Yelp expects its net revenue for 2025 to range between $1.465 billion and $1.475 billion, with adjusted EBITDA projected between $350 million and $360 million. The company remains committed to leveraging AI for operational efficiencies and delivering shareholder value through prudent capital allocation and strategic initiatives.