Yelp (YELP) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: N/A
• Average Volume (3M): 935.98K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.52
• 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: 1,188,297
• 30 Day Avg. Volume: 935,979
• 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: 0.94
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: 6.59
• 1Y Price Target: $33.50
• Price Target Upside: 15.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.17
• Revenue Forecast (FY): $1.46B

• Rating: 70 Outperform
• Price Target: $32.00 ▲(10.19% Upside)

Yelp's overall stock score reflects strong financial performance and strategic growth initiatives, particularly in AI and services. However, bearish technical indicators and macroeconomic challenges weigh on the score. The valuation is reasonable, but the lack of a dividend yield and cautious earnings guidance temper the outlook.

Positive Factors

AI Transformation

Yelp's significant investment in AI transformation enhances user engagement and operational efficiency, positioning it for sustainable growth.

Strategic Partnerships

Partnership with DoorDash expands Yelp's service offerings and market reach, strengthening its competitive position in the food service industry.

Financial Stability

Low leverage and a strong balance sheet provide Yelp with financial stability and flexibility to invest in growth opportunities.

Negative Factors

Decline in RR&O Revenue

A decline in RR&O revenue indicates challenges in key segments, potentially impacting overall growth and profitability.

Ad Clicks Decline

A significant drop in ad clicks suggests competitive pressure and macroeconomic challenges, affecting revenue from advertising services.

Macroeconomic Uncertainties

Persistent macroeconomic uncertainties may hinder revenue growth and lead to cautious financial outlooks, impacting long-term 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: Negative
• Last Price: 29.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Negative. The current price of 29.04 is below the 20-day moving average (MA) of 29.88, below the 50-day MA of 31.26, and below the 200-day MA of 34.01, indicating a bearish trend. The MACD of -0.85 indicates Negative momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YELP.

Yelp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	73 Outperform	$944.92M	18.36	36.81%	―	57.83%	293.63%
YELP	70 Outperform	$1.79B	12.81	20.37%	―	5.35%	33.74%
TBLA	67 Neutral	$1.18B	56.40	2.63%	―	10.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ANGI	58 Neutral	$487.60M	15.33	3.42%	―	-13.14%	17.25%
NXDR	51 Neutral	$686.19M	―	-14.07%	―	6.65%	50.32%
IAC	46 Neutral	$2.68B	―	-4.58%	―	-29.40%	-529.81%

Yelp Corporate Events

Yelp’s Earnings Call: Record Revenue Amid Challenges

Yelp Inc. recently held its earnings call, revealing a strong quarter characterized by record revenue and profitability. The company experienced significant growth in services revenue and made strides in strategic AI and partnership initiatives. However, challenges in the Restaurants, Retail & Other (RR&O) segment, a decline in ad clicks, and macroeconomic uncertainties have led to a cautious outlook.

Yelp Inc. Reports Record Revenue in Q3 2025

Yelp Inc. is a community-driven platform that connects people with local businesses, providing trusted reviews and information to help consumers make informed spending decisions. The company operates primarily in the online services sector, offering a one-stop platform for discovering and transacting with businesses across various categories.

Yelp Expands Board with New Independent Director

On August 19, 2025, Yelp Inc. expanded its Board of Directors by appointing Logan Green as an independent director, increasing the board size from eight to nine members. This strategic move is expected to enhance the company’s governance and potentially influence its future direction, with Mr. Green set to receive standard compensation and indemnification as part of his role.

The most recent analyst rating on (YELP) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Yelp stock, see the YELP Stock Forecast page.

Yelp Inc. Earnings Call: AI Drives Growth Amid Challenges

Yelp Inc. recently held its earnings call, revealing a mixed sentiment with record net revenue and strong profitability driven by AI-powered product enhancements and growth in services revenue. However, the company faces challenges with declining RR&O revenue, a decrease in paying advertising locations, and macroeconomic uncertainties. Despite these hurdles, Yelp’s strategic focus on AI and data licensing offers promising potential for future growth.

Yelp Inc. Reports Strong Q2 2025 Financial Results

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.