Yelp beats Q1 revenue expectations, maintains FY revenue forecast

Yelp

07/05/2026 21:39

Overview

US local business platform's Q1 2026 revenue rose 1% yr/yr, beating analyst expectations

Adjusted EBITDA for Q1 fell 7% yr/yr but beat analyst expectations

Company reaffirmed full-year 2026 outlook and cited progress on AI transformation

Outlook

Yelp reaffirms 2026 net revenue outlook of $1.455 bln to $1.475 bln

Company maintains 2026 adjusted EBITDA guidance of $310 mln to $330 mln

Yelp targets $250 mln annual run rate in other revenue by end of 2028

Result Drivers

AI-DRIVEN PRODUCT UPDATES - Co said it accelerated AI transformation and launched over 35 new features, including Yelp Assistant, to support growth

OTHER REVENUE GROWTH - Co reported 'other revenue' rose 75% yr/yr to $29 mln, driven by Hatch, Yelp Host and data licensing

CHALLENGING LOCAL ECONOMIES - Co said local businesses continued to face a difficult operating environment, affecting results

Company press release: ID:nBwc2lg3ka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$361.46 mln
$353.46 mln (10 Analysts)
Q1 Net Income
$17.74 mln
Q1 Adjusted EBITDA
Beat
$79 mln
$61.95 mln (10 Analysts)
Q1 Operating Income
$27.30 mln
Q1 Pretax Profit
$29.88 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy."

Wall Street's median 12-month price target for Yelp Inc is $25.50, about 9.9% below its May 6 closing price of $28.31

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)