Yelp Q2 revenue beats estimates on AI transformation, related products

Yelp

06/08/2026 21:23

Overview
Online reviews platform's Q2 revenue rose 1% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 fell 9% yr/yr but beat analyst expectations
Company narrowed 2026 revenue and adjusted EBITDA outlooks amid persistent headwinds for local businesses

Outlook
Yelp narrows 2026 net revenue outlook to $1.460 bln-$1.470 bln
Company narrows 2026 adjusted EBITDA outlook to $315 mln-$325 mln

Result Drivers
AI INITIATIVES - Co said AI transformation and related products, including Yelp Assistant and Yelp Host, contributed to Q2 results
OTHER REVENUE GROWTH - Co said 'Other revenue' accelerated, rising 98% yr/yr to a record $33 mln
ECONOMIC HEADWINDS - Co said local businesses continue to face a challenging economic environment

Company press release: ID:nBw9qX9zWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$375.52 mln
$366.97 mln (9 Analysts)
Q2 Net Income
 
$31.65 mln
 
Q2 Adjusted EBITDA
Beat
$91 mln
$74.90 mln (9 Analysts)
Q2 Operating Income
 
$43.73 mln
 
Q2 Pretax Profit
 
$44.46 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 $26.72, about 4% above its August 5 closing price of $25.69
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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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.)