Yelp (YELP)
NYSE:YELP
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Yelp
(NYSE:YELP)
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Rating:74Outperform
Price Target:
$30.00
▲(7.37% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial quality—high profitability, very low leverage, solid ROE, and strong cash generation—partly offset by near-term variability (FCF decline and slightly lower net margin). The latest earnings call adds a cautiously positive but mixed signal (non-ad/other revenue momentum and buybacks vs. weakening core ads and conservative guidance). Technicals are neutral-to-mixed, and valuation is moderate with no dividend support.
Positive Factors
High profitability and margins
Sustained very high gross margins and healthy operating/EBITDA margins imply durable unit economics and pricing power. This margin base supports reinvestment in product, AI and marketing, cushions cyclical ad weakness, and allows sustained free cash flow generation under normal revenue variability.
Negative Factors
Weakness in core RR&O advertising
Core RR&O ad declines and lower engagement hit Yelp's primary revenue engine. Persistent drops in paying advertising locations and clicks undermine recurring ad revenue, pressuring top-line predictability and making long-term growth contingent on successful monetization of new products and restored local-business demand.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained very high gross margins and healthy operating/EBITDA margins imply durable unit economics and pricing power. This margin base supports reinvestment in product, AI and marketing, cushions cyclical ad weakness, and allows sustained free cash flow generation under normal revenue variability.
Read all positive factors
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 (YELP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.51B
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)20.5
Beta (1Y)0.48
Revenue Growth2.09%
EPS Growth4.03%
CountryUS
Employees5,116
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)2.23
Shares Outstanding55,833,190
10 Day Avg. Volume897,001
30 Day Avg. Volume1,111,648
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 Cap0.94
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda5.57
Forecast
1Y Price Target
$27.50Price Target Upside-1.57% Downside
Rating ConsensusHold
Number of Analyst Covering7
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call balanced meaningful strategic and product progress—strong growth in 'other' revenue (75%), rapid Hatch and food-ordering acceleration, AI product rollouts, and margin/repurchase actions—against clear near-term weakness in core advertising metrics (RR&O -11%, ad clicks -10%), a 27% decline in net income, and continued macro/geopolitical uncertainty. Management beat quarterly guidance and emphasized investments that should unlock higher-margin AI-driven revenue streams and productivity gains over time, but they maintained a cautious outlook for the near term.Positive Updates
Revenue Slightly Up and Beats Outlook
Net revenue increased 1% year-over-year to $361 million, which was $6 million above the high end of Yelp's Q1 outlook.
Negative Updates
Decline in Core RR&O Advertising
RR&O ad revenue decreased 11% year-over-year to $99 million, reflecting softness in traditional local advertising categories.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Slightly Up and Beats Outlook
Net revenue increased 1% year-over-year to $361 million, which was $6 million above the high end of Yelp's Q1 outlook.
Read all positive updates
Company Guidance
Yelp guided Q2 net revenue of $363–368 million and full‑year net revenue of $1.455–1.475 billion, with Q2 adjusted EBITDA of $70–75 million and full‑year adjusted EBITDA of $310–330 million (each adjusted EBITDA range excludes approximately $4 million in Q2 and $13 million for the full year of accrued Hatch acquisition/integration payments); management said expenses will rise sequentially as it invests in AI and marketing amid a challenging local-business environment. For context, Q1 results were net revenue $361 million (‑/+$6M vs. outlook), adjusted EBITDA $79 million (22% margin), net income $18 million (5% margin), other revenue $29 million (+75% YoY), Hatch run‑rate revenue >$34 million in March (+92% YoY), Q1 stock‑based comp was 8% of revenue (down 2 pts YoY, with a target <6% by end‑2027), and the company repurchased $125 million of stock in Q1 at an average $24.58 (diluted shares down 12% YoY) with $414 million remaining on the repurchase authorization; management reiterated a target of a $250 million other‑revenue annual run rate by end of 2028.Yelp Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
91
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 1.46B | 1.41B | 1.34B | 1.19B | 1.03B |
| Gross Profit | 1.32B | 1.32B | 1.29B | 1.22B | 1.09B | 953.74M |
| EBITDA | 256.19M | 264.52M | 206.55M | 149.31M | 163.27M | 126.57M |
| Net Income | 138.94M | 145.60M | 132.85M | 99.17M | 36.35M | 39.67M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 958.48M | 983.57M | 1.01B | 1.02B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 110.41M | 319.35M | 327.91M | 446.40M | 410.62M | 489.78M |
| Total Debt | 24.92M | 42.33M | 43.15M | 87.30M | 126.33M | 168.22M |
| Total Liabilities | 382.21M | 247.63M | 239.60M | 265.19M | 305.60M | 299.21M |
| Stockholders Equity | 631.09M | 710.85M | 743.97M | 749.53M | 710.32M | 751.32M |
Cash Flow | ||||||
| Free Cash Flow | 280.71M | 323.02M | 248.47M | 279.43M | 160.33M | 184.37M |
| Operating Cash Flow | 331.19M | 371.37M | 285.81M | 306.28M | 192.31M | 212.66M |
| Investing Cash Flow | -201.53M | -45.65M | -77.27M | -54.68M | -126.14M | -27.65M |
| Financing Cash Flow | -242.76M | -329.39M | -303.80M | -246.78M | -237.53M | -300.49M |
Yelp Technical Analysis
Positive
27.94
Price Trends
23.98
Positive
26.67
Positive
29.46
Negative
Market Momentum
0.77
Negative
76.39
Negative
93.92
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 27.94 is above the 20-day moving average (MA) of 25.42, above the 50-day MA of 23.98, and below the 200-day MA of 29.46, indicating a neutral trend. The MACD of 0.77 indicates Negative momentum. The RSI at 76.39 is Negative, neither overbought nor oversold. The STOCH value of 93.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $725.15M | 7.42 | 75.44% | ― | 24.49% | 181.60% | |
79 Outperform | $1.43B | 3.70 | 11.91% | ― | 9.62% | 880.15% | |
74 Outperform | $1.51B | 20.51 | 19.70% | ― | 2.09% | 4.03% | |
64 Neutral | $3.28B | 206.42 | 2.30% | ― | -34.87% | ― | |
64 Neutral | $762.82M | -11.86 | -10.32% | ― | 6.78% | 52.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $235.81M | -8.89 | 2.06% | ― | -9.14% | -60.63% |
* Communication Services Sector Average
YELP
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NXDR
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Yelp Corporate Events
Business Operations and StrategyExecutive/Board Changes
Yelp Announces CTO Transition and Leadership Succession Plan
Neutral
Apr 29, 2026
On April 23, 2026, Yelp Inc. announced that Chief Technology Officer Sam Eaton will step down from his role, effective June 30, 2026, after more than 13 years with the company. The long-tenured technology leader will be succeeded by Alex Levy, cur...
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.