Yelp slightly beats Q4 revenue expectations on strength in advertisment

Yelp

12/02/2026 21:13

Overview

Local business platform's Q4 revenue slightly beat analyst expectations

2025 net income increased 10% yr/yr, driven by growth in Services and product innovation

Company announced agreement with OpenAI to enhance AI transformation

Outlook

Yelp expects 2026 net revenue between $1.455 bln and $1.475 bln

Company anticipates 2026 adjusted EBITDA between $310 mln and $330 mln

Yelp focuses on AI transformation to drive growth in 2026

Result Drivers

SERVICES ADVERTISING - Services advertising revenue increased 8% yr/yr to a record $948 mln, driving overall growth despite challenges in local business sectors

PRODUCT INNOVATION - Introduction of over 55 new features and updates contributed to record net revenue, per CEO Jeremy Stoppelman

AI TRANSFORMATION - Focus on AI tools and agreement with OpenAI to enhance consumer engagement and business efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$359.99 mln
$358.70 mln (9 Analysts)
Q4 Net Income
$37.80 mln
Q4 Operating Income
$48.89 mln
Q4 Pretax Profit
$51.58 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "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 $33.00, about 42.2% above its February 11 closing price of $23.21

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw49xBCza

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(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.)