Yelp (YELP) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.50
• Revenue Growth: 5.35%
• EPS Growth: 33.74%
• Country: US
• Employees: 5,116
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.61
• Shares Outstanding: 61,491,990
• 10 Day Avg. Volume: 873,693
• 30 Day Avg. Volume: 1,038,211
• PEG Ratio: 0.52
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: $33.29
• Price Target Upside: 6.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.18
• Revenue Forecast (FY): $1.46B

• Rating: 77 Outperform
• Price Target: $36.00 ▲(15.02% Upside)

Yelp's overall stock score reflects strong financial performance and positive technical indicators. The company's strategic focus on AI and partnerships supports growth, despite challenges in certain segments and macroeconomic uncertainties. The valuation is reasonable, and the expanded credit facility enhances financial flexibility.

Positive Factors

AI Transformation

The introduction of AI features like Yelp Assistant boosts user engagement and operational efficiency, driving long-term growth and innovation.

Strategic Partnerships

Partnerships with companies like DoorDash enhance Yelp's service offerings and market reach, strengthening its competitive position in the industry.

Financial Health

A strong balance sheet with low debt enhances financial stability and flexibility, supporting sustainable growth and investment capacity.

Negative Factors

Decline in RR&O Revenue

A decline in RR&O revenue indicates challenges in key segments, potentially affecting overall revenue growth and market share.

Ad Clicks Decline

Decreased ad clicks reflect competitive pressures and macroeconomic challenges, which could impact advertising revenue and profitability.

Macroeconomic Uncertainties

Ongoing macroeconomic uncertainties can hinder growth prospects and lead to cautious financial forecasting, affecting strategic planning.

Yelp Business Overview & Revenue Model

Company Description

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location Ad products, as well as enables businesses to deliver targeted search advertising to local audiences; and business listing page products. The company also offers other services comprising Yelp Reservations that provide online reservations for restaurants, nightlife, and other venues directly from their Yelp business pages; Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free and paid access to content and data for consumer-facing enterprise use through publicly available APIs. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website, as well as non-advertising partner arrangements. It has strategic partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. Yelp Inc. was incorporated in 2004 and is headquartered in San Francisco, California.

How the Company Makes Money

Yelp generates revenue primarily through its advertising services, which include pay-per-click (PPC) advertising, where businesses pay to have their ads displayed prominently in search results and on business pages. Additionally, Yelp offers enhanced business profiles, which provide businesses with features like the ability to add photos, videos, and special offers for a subscription fee. Another significant revenue stream comes from Yelp's reservations and food delivery services, where it partners with companies to facilitate bookings and deliveries for restaurants. Yelp also generates income through its 'Yelp Deals' and 'Gift Certificates' programs, allowing businesses to offer discounts and gift certificates to attract customers. Strategic partnerships and collaborations with other firms in the hospitality and service sectors further contribute to its revenue, as they expand Yelp's reach and enhance its service offerings.

Yelp Financial Statement Overview

Summary

Yelp demonstrates strong financial health with impressive profitability and efficient cash flow management. The income statement shows a high gross profit margin and consistent revenue growth. The balance sheet is solid with a low debt-to-equity ratio, and cash flow statements highlight robust operating cash flow. Minor concerns include cost pressures and slight debt increases.

Income Statement

Yelp's income statement shows strong profitability with a high gross profit margin of 90.47% TTM and a net profit margin of 10.23% TTM. The company has demonstrated consistent revenue growth, with a notable increase of 8.1% TTM. EBITDA and EBIT margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

Yelp maintains a solid balance sheet with a low debt-to-equity ratio of 0.037 TTM, reflecting prudent financial management. The return on equity is strong at 20.33% TTM, indicating effective use of shareholder funds. The equity ratio is stable, showcasing a balanced capital structure. However, the slight increase in total debt over the years warrants monitoring.

Cash Flow

Yelp's cash flow statement highlights robust operating cash flow with a coverage ratio of 1.95 TTM. Free cash flow has grown by 9.27% TTM, showcasing strong cash generation capabilities. The free cash flow to net income ratio of 0.87 TTM indicates efficient conversion of earnings into cash. However, fluctuations in free cash flow growth in previous years suggest some volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.41B	1.34B	1.19B	1.03B	872.93M
Gross Profit	1.33B	1.29B	1.22B	1.09B	953.74M	815.75M
EBITDA	256.09M	206.55M	149.31M	163.27M	126.57M	15.68M
Net Income	150.02M	132.85M	99.17M	36.35M	39.67M	-19.42M
Balance Sheet
Total Assets	989.88M	983.57M	1.01B	1.02B	1.05B	1.15B
Cash, Cash Equivalents and Short-Term Investments	343.55M	327.91M	446.40M	410.62M	489.78M	606.80M
Total Debt	27.40M	43.15M	87.30M	126.33M	168.22M	200.10M
Total Liabilities	256.73M	239.60M	265.19M	305.60M	299.21M	300.41M
Stockholders Equity	733.15M	743.97M	749.53M	710.32M	751.32M	854.53M
Cash Flow
Free Cash Flow	311.37M	248.47M	279.43M	160.33M	184.37M	138.57M
Operating Cash Flow	358.52M	285.81M	306.28M	192.31M	212.66M	176.70M
Investing Cash Flow	-80.80M	-77.27M	-54.68M	-126.14M	-27.65M	248.36M
Financing Cash Flow	-308.57M	-303.80M	-246.78M	-237.53M	-300.49M	-21.05M

Yelp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Positive. The current price of 31.3 is above the 20-day moving average (MA) of 29.85, above the 50-day MA of 30.77, and below the 200-day MA of 33.55, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YELP.

Yelp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	77 Outperform	$1.92B	13.81	20.37%	―	5.35%	33.74%
EVER	77 Outperform	$964.70M	18.75	36.81%	―	57.83%	293.63%
TBLA	72 Outperform	$1.16B	55.16	2.63%	―	10.96%	―
ANGI	62 Neutral	$551.90M	17.35	3.42%	―	-13.14%	17.25%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	58 Neutral	$854.80M	-13.44	-14.07%	―	6.65%	50.32%
IAC	56 Neutral	$3.10B	-15.14	-4.58%	―	-29.40%	-529.81%

Yelp Corporate Events

Yelp Expands Revolving Credit Facility and Liquidity Capacity

On December 18, 2025, Yelp Inc. amended its existing revolving credit and guaranty agreement, increasing its total borrowing capacity to $325 million and raising the letter of credit sub-limit to $35 million, while appointing Wells Fargo Bank, National Association as the new administrative and collateral agent in place of JPMorgan Chase Bank, N.A. As of that date, Yelp had no outstanding loans and $4.2 million in letters of credit under the facility, and the amendment left interest terms, fees, covenants and default provisions materially unchanged, signaling an expanded but conservatively structured liquidity backstop for the company without altering its risk profile for lenders and other stakeholders.