Yelp (YELP)
NYSE:YELP
Top Page
Yelp
(NYSE:YELP)
Select Model
Select Model
Rating:71Outperform
Price Target:
$27.00
▲(8.83% Upside)
Action:UpgradedDate:02/13/26
Overall score reflects strong underlying financial performance (high margins, robust free cash flow, and a low-debt balance sheet) and a supportive earnings multiple, partially offset by very weak technical momentum and mixed forward outlook as 2026 investment plans pressure near-term EBITDA while legacy ad categories remain under strain.
Positive Factors
High and scalable profitability
Yelp's exceptionally high gross margin (~90%+) and double-digit operating/net margins reflect a software-like economics for its marketplace and advertising platform. Those margins create durable earnings leverage as revenue recovers and support reinvestment, buybacks, and sustained ROE over multiple years.
Negative Factors
Revenue decline trend
A meaningful TTM revenue decline (-13.4%) raises structural questions about demand and growth durability for Yelp’s core advertising business. Sustained top-line weakness can erode operating leverage, make margin gains harder to sustain, and increase reliance on non‑ad or transactional revenue to drive long-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High and scalable profitability
Yelp's exceptionally high gross margin (~90%+) and double-digit operating/net margins reflect a software-like economics for its marketplace and advertising platform. Those margins create durable earnings leverage as revenue recovers and support reinvestment, buybacks, and sustained ROE over multiple years.
Read all positive factors
Yelp (YELP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)13.2
Beta (1Y)0.43
Revenue Growth5.35%
EPS Growth33.74%
CountryUS
Employees5,116
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.61
Shares Outstanding59,517,014
10 Day Avg. Volume1,217,351
30 Day Avg. Volume1,565,328
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)2.71
Price to Sales (P/S)1.31
P/FCF Ratio5.96
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit1.02
Enterprise Value/Ebitda5.37
Forecast
1Y Price Target
$25.20Price Target Upside1.57% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)2.07
Revenue Forecast (FY)$1.47B
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...
How the Company Makes Money
Yelp primarily makes money by selling advertising and other paid marketing services to local businesses that want increased visibility and customer leads on Yelp’s platform. The largest revenue stream is performance-based and/or impression-based a...
Yelp Key Performance Indicators (KPIs)
Any
Net Revenue By Geography
Reveals revenue distribution across regions, indicating where the company excels and where it might encounter challenges or opportunities for expansion.
Reveals revenue distribution across regions, indicating where the company excels and where it might encounter challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyYelp Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call balanced strong full-year financial results, record revenue per location, robust cash flow, accelerating non-ad revenue and clear momentum in AI-driven product innovation (Yelp Assistant, Yelp Host, Hatch acquisition, OpenAI partnership) against meaningful category-level weakness and near-term headwinds. RR&O categories and Q4 operating results showed clear pressure, ad engagement declined (clicks -7%) and Yelp expects to invest heavily in AI and paid acquisition in 2026, which reduces near-term EBITDA guidance. Overall, the company demonstrated durable profitability and strategic positioning for future AI-driven growth, while acknowledging short-term softness in legacy ad categories and anticipated margin pressure from investments.Positive Updates
Full-Year Revenue Growth and Record Net Revenue
Net revenue for 2025 increased 4% year-over-year to $1.46 billion, representing a record annual net revenue figure for Yelp.
Negative Updates
Pressure in Restaurants, Retail & Other (RR&O)
RR&O category revenue declined 6% year-over-year for 2025 to $444 million, with sharper pressure in Q4: RR&O revenue fell 12% year-over-year to $107 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth and Record Net Revenue
Net revenue for 2025 increased 4% year-over-year to $1.46 billion, representing a record annual net revenue figure for Yelp.
Read all positive updates
Company Guidance
Yelp guided Q1 2026 net revenue of $350–$355 million and full-year 2026 net revenue of $1.455–$1.475 billion, with Q1 adjusted EBITDA of $58–$63 million and full-year adjusted EBITDA of $310–$330 million; management said expenses will increase seasonally Q4→Q1 (payroll taxes/benefits) and will rise over the year driven by investments in its AI transformation, paid traffic acquisition and Hatch operations. They expect many 2025 trends to persist—continued pressure on advertising revenue and RR&O—while other revenue and services should drive performance; headcount is expected to be roughly flat year‑over‑year in 2026 excluding the recently integrated Hatch team. Capital allocation and efficiency targets include an additional $500 million share repurchase authorization (with $38.8 million remaining under the prior program), $292 million repurchased in 2025 at an average price of $33.29 (including $88.5 million in Q4), a goal to reduce stock‑based compensation to <6% of revenue by end of 2027 (below 8% in Dec‑2025), and continued focus on margin expansion after 2025 results of $1.46 billion revenue, $146 million net income (10% margin), $369 million adjusted EBITDA (25% margin), $372 million cash from operations and $324 million free cash flow.Yelp Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.46B | 1.41B | 1.34B | 1.19B | 1.03B |
| Gross Profit | 1.32B | 1.29B | 1.22B | 1.09B | 953.74M |
| EBITDA | 264.52M | 206.55M | 149.31M | 163.27M | 126.57M |
| Net Income | 145.60M | 132.85M | 99.17M | 36.35M | 39.67M |
Balance Sheet | |||||
| Total Assets | 958.48M | 983.57M | 1.01B | 1.02B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 319.35M | 327.91M | 446.40M | 410.62M | 489.78M |
| Total Debt | 42.33M | 43.15M | 87.30M | 126.33M | 168.22M |
| Total Liabilities | 247.63M | 239.60M | 265.19M | 305.60M | 299.21M |
| Stockholders Equity | 710.85M | 743.97M | 749.53M | 710.32M | 751.32M |
Cash Flow | |||||
| Free Cash Flow | 323.02M | 248.47M | 279.43M | 160.33M | 184.37M |
| Operating Cash Flow | 371.37M | 285.81M | 306.28M | 192.31M | 212.66M |
| Investing Cash Flow | -45.65M | -77.27M | -54.68M | -126.14M | -27.65M |
| Financing Cash Flow | -329.39M | -303.80M | -246.78M | -237.53M | -300.49M |
Yelp Technical Analysis
Neutral
24.81
Price Trends
24.47
Negative
27.22
Negative
30.10
Negative
Market Momentum
0.13
Negative
51.90
Neutral
58.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Neutral. The current price of 24.81 is above the 20-day moving average (MA) of 24.14, above the 50-day MA of 24.47, and below the 200-day MA of 30.10, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 58.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YELP.
Yelp Risk Analysis
Yelp disclosed 1 risk factors in its most recent earnings report. Yelp reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Yelp Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $564.22M | 9.83 | 54.21% | ― | 57.83% | 293.63% | |
71 Outperform | $1.48B | 13.22 | 19.96% | ― | 5.35% | 33.74% | |
61 Neutral | $835.57M | 33.98 | 4.51% | ― | 10.96% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $266.70M | 13.76 | 4.41% | ― | -13.14% | 17.25% | |
51 Neutral | $3.01B | -29.16 | -2.17% | ― | -29.40% | -529.81% | |
51 Neutral | $527.31M | ― | -12.56% | ― | 6.65% | 50.32% |
* Communication Services Sector Average
YELP
Yelp
24.81
-13.35
-34.98%
ANGI
Angi
6.65
-8.05
-54.76%
EVER
EverQuote
15.66
-10.90
-41.04%
IAC
IAC/InteractiveCorp.
39.12
-0.14
-0.36%
TBLA
Taboola.com
3.01
<0.01
0.33%
NXDR
Nextdoor Holdings
1.36
-0.17
-11.11%
Yelp Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Yelp Completes $270 Million Acquisition of Hatchify
Positive
Feb 6, 2026
On January 17, 2026, Yelp Inc. agreed to acquire Hatchify Inc. through a merger of its wholly owned subsidiary Hargrove Merger Sub, Inc. with Hatchify, and on February 2, 2026, the merger closed, making Hatchify a wholly owned subsidiary of Yelp. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.