Yelp tops Q3 revenue estimates, driven by AI feature upgrades

Yelp

06/11/2025 21:40

Overview

Yelp Q3 2025 revenue up 4% yr/yr to $376 mln, beating analyst expectations

Net income rose 2% yr/yr to $39 mln, reflecting a 10% margin

Adjusted EBITDA fell 3% yr/yr to $98 mln, but beat analyst estimates

Outlook

Yelp updates 2025 net revenue outlook to $1.460 bln - $1.465 bln

Yelp revises 2025 adjusted EBITDA outlook to $360 mln - $365 mln

Result Drivers

AI TRANSFORMATION - Over 35 new AI-powered features, including Yelp Assistant and Yelp Host, contributed to revenue growth, per CEO Jeremy Stoppelman

SERVICES SEGMENT - Services continued to drive business performance despite macro challenges, per CFO David Schwarzbach

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$376.04 mln
$368.33 mln (9 Analysts)
Q3 Net Income
$39.32 mln
Q3 Adjusted EBITDA
Beat
$98 mln
$83.99 mln (9 Analysts)
Q3 Operating Income
$52.89 mln
Q3 Pretax Profit
$58.24 mln


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 $34.63, about 7.1% above its November 5 closing price of $32.16

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

Press Release: ID:nBw2fPvp2a

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