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olivLaw · US equity research

Yelp Inc. YELP

Services-Personal Services · SIC 7200 · Vertical: Services-Personal Services (SIC 7200)

22.05USD+11.20% · 1 dayClose 04 Nov 2026

Yelp is one of the best known internet brands in the United States, connecting consumers with local businesses through reviews and pay-per-click advertising. It reported net revenue of 1.46 billion USD in fiscal 2025, and is now trying to reshape its model with AI while local business demand stays soft.

At the close of 04 Nov 2026, Yelp Inc. (YELP) stock was 22.05 USD (+11.20% on the day), with market capitalisation 1.2 bn USD, P/E 10.6 on diluted EPS of 2.09 USD over the last 12 months, beta 0.68, 52-week range 17.59–32.16 USD. Latest reported quarter (Q2 2026): revenue of 375.5 m USD (+1.4% YoY), net income of 31.7 m USD (−28.2% YoY), diluted EPS 0.57 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1.2 bn USD
shares as of 31 Jul 2026
P/E (TTM)
10.6
Diluted EPS TTM 2.09 · TTM to 30 Jun 2026
E/P (TTM)
9.46%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.68
Volatility (1y) 46%
52-week range
17.5932.16

Price history

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Technical reading

RSI (14)
64.6
strong (55–70)
Bollinger (20, 2)
17.92 – 21.27
above the upper band · %B 1.23 · band width 17.1%
SMA 50 / 200
19.93 / 23.60
mixed trend
MACD (12, 26, 9)
0.11 / -0.13
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+19.2%−1.1%+20.3 pp—
3 months−14.2%−0.5%−13.7 pp—
6 months−22.1%+4.4%−26.5 pp—
Year to date−27.4%+12.3%−39.8 pp—
1 year−29.7%+13.5%−43.3 pp−9.9%
3 years−50.7%+76.4%−127.1 pp+22.1%
5 years−42.3%+63.7%−106.0 pp—
Max drawdown (1y)
−45.3%
05 Nov 2025 → 28 Sept 2026
Max drawdown (5y)
−63.7%
22 Dec 2023 → 28 Sept 2026
Compound annual growth (5y)
−10.4%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
375.5 m USD
+1.4% YoY
Net income
31.7 m USD
−28.2% YoY
Diluted EPS
0.57
−14.9% YoY
net / operating
8.4% / 11.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue360.3 m362.0 m358.5 m370.4 m376.0 m360.0 m361.5 m375.5 m
Cost of revenue32.4 m33.3 m34.8 m35.4 m36.3 m36.0 m38.4 m41.8 m
Operating income46.7 m53.4 m29.5 m53.3 m52.9 m48.9 m27.3 m43.7 m
Depreciation & amortisation9.3 m11.6 m12.4 m12.4 m12.5 m12.9 m16.2 m18.1 m
Interest expense———121.0 k———1.6 m
Pre-tax income53.9 m60.1 m35.2 m59.0 m58.2 m51.6 m29.9 m44.5 m
Income tax15.4 m17.8 m10.8 m14.9 m18.9 m13.8 m12.1 m12.8 m
Net income38.4 m42.2 m24.4 m44.1 m39.3 m37.8 m17.7 m31.7 m
Diluted EPS0.560.61 ≈0.360.670.610.61 ≈0.300.57
Operating cash flow102.3 m ≈71.0 m98.0 m58.0 m ≈131.5 m ≈84.5 m57.8 m75.8 m ≈
Capex9.8 m ≈11.0 m10.5 m13.0 m ≈12.6 m ≈12.2 m12.7 m14.7 m ≈
Share repurchases65.7 m ≈62.5 m62.5 m66.0 m ≈75.0 m ≈87.5 m124.0 m50.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 0 percentile of its own 34-quarter history (min 11.3, median 45.8, max 267.7; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue942.8 m1.0 bn872.9 m1.0 bn1.2 bn1.3 bn1.4 bn1.5 bn
Revenue YoY+10.8%+7.6%−13.9%+18.2%+15.7%+12.0%+5.6%+3.7%
Net income55.4 m40.9 m-19.4 m39.7 m36.3 m99.2 m132.9 m145.6 m
Net income YoY−63.8%−26.1%−147.5%unavailable−8.4%+172.9%+34.0%+9.6%
Diluted EPS0.620.52-0.270.500.501.351.882.24
Diluted EPS YoY−64.8%−16.1%−151.9%unavailable0.0%+170.0%+39.3%+19.1%
net %5.9%4.0%-2.2%3.8%3.0%7.4%9.4%9.9%
Free cash flow115.2 m167.3 m144.7 m184.4 m160.3 m279.4 m248.5 m323.7 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
216.1 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
710.9 m USD
Total assets
958.5 m USD
Debt / equity
unavailable
Current ratio
2.99x
ROE
20.0%
ROA
15.0%
FCF margin
22.1%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
1.3 bn
2024
1.4 bn
2025
1.5 bn

SEC (XBRL)· 27 Feb 2026verified

Cost of revenue
2023
114.2 m
2024
123.7 m
2025
142.6 m

SEC (XBRL)· 27 Feb 2026verified

Gross profit
2023
1.2 bn ≈
2024
1.3 bn ≈
2025
1.3 bn ≈

SEC (XBRL)· 27 Feb 2026derived

Research & development
2023
320.6 m
2024
310.5 m
2025
297.8 m

SEC (XBRL)· 27 Feb 2026verified

Operating income
2023
79.0 m
2024
151.0 m
2025
184.5 m

SEC (XBRL)· 27 Feb 2026verified

Depreciation & amortisation
2023
42.2 m
2024
40.4 m
2025
50.1 m

SEC (XBRL)· 27 Feb 2026verified

EBITDA
2023
121.2 m ≈
2024
191.5 m ≈
2025
234.6 m ≈

SEC (XBRL)· 27 Feb 2026derived

Pre-tax income
2023
105.1 m
2024
183.0 m
2025
204.0 m

SEC (XBRL)· 27 Feb 2026verified

Income tax
2023
5.9 m
2024
50.1 m
2025
58.4 m

SEC (XBRL)· 27 Feb 2026verified

Net income
2023
99.2 m
2024
132.9 m
2025
145.6 m

SEC (XBRL)· 27 Feb 2026verified

Diluted EPS
2023
1.35
2024
1.88
2025
2.24

SEC (XBRL)· 27 Feb 2026verified

Weighted average diluted shares
2023
73.6 m
2024
70.6 m
2025
65.1 m

SEC (XBRL)· 27 Feb 2026verified

Balance sheet · USD

Cash
2023
313.9 m
2024
217.3 m
2025
216.1 m

SEC (XBRL)· 27 Feb 2026verified

Receivables
2023
146.1 m
2024
155.3 m
2025
153.2 m

SEC (XBRL)· 27 Feb 2026verified

Current assets
2023
624.2 m
2024
516.9 m
2025
514.9 m

SEC (XBRL)· 27 Feb 2026verified

Property, plant & equipment, net
2023
68.7 m
2024
75.7 m
2025
91.7 m

SEC (XBRL)· 27 Feb 2026verified

Goodwill
2023
103.9 m
2024
131.0 m
2025
135.8 m

SEC (XBRL)· 27 Feb 2026verified

Intangibles (excl. goodwill)
2023
7.6 m
2024
58.8 m
2025
49.0 m

SEC (XBRL)· 27 Feb 2026verified

Total assets
2023
1.0 bn
2024
983.6 m
2025
958.5 m

SEC (XBRL)· 27 Feb 2026verified

Accounts payable
2023
11.9 m
2024
11.9 m
2025
9.8 m

SEC (XBRL)· 27 Feb 2026verified

Current liabilities
2023
175.9 m
2024
155.0 m
2025
172.1 m

SEC (XBRL)· 27 Feb 2026verified

Total liabilities
2023
265.2 m
2024
239.6 m
2025
247.6 m

SEC (XBRL)· 27 Feb 2026verified

Equity
2023
749.5 m †
2024
744.0 m †
2025
710.9 m †

SEC (XBRL)· 27 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
306.3 m
2024
285.8 m
2025
372.0 m

SEC (XBRL)· 27 Feb 2026verified

Capex
2023
26.8 m
2024
37.3 m
2025
48.4 m

SEC (XBRL)· 27 Feb 2026verified

Free cash flow
2023
279.4 m ≈
2024
248.5 m ≈
2025
323.7 m ≈

SEC (XBRL)· 27 Feb 2026derived

Investing cash flow
2023
-54.7 m
2024
-77.3 m
2025
-45.7 m

SEC (XBRL)· 27 Feb 2026verified

Financing cash flow
2023
-246.8 m
2024
-303.8 m
2025
-330.0 m

SEC (XBRL)· 27 Feb 2026verified

Share repurchases
2023
200.0 m
2024
250.9 m
2025
290.9 m

SEC (XBRL)· 27 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
3.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
7.1%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
10.9%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
22.2%
computed by olivLawFY 2025
Net income growth (YoY)
9.6%
computed by olivLawFY 2025
Net income CAGR 3Y
58.8%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
19.1%
computed by olivLawFY 2025
EPS CAGR 3Y
64.9%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
30.3%
computed by olivLawFY 2025

Profitability

Gross margin
89.6%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
15.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
11.7%
computed by olivLawTTM to 30 Jun 2026
Net margin
8.6%
computed by olivLawTTM to 30 Jun 2026
FCF margin
20.2%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
18.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
12.8%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
21.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
1.7x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.6x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
349.6 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
52.2 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
297.4 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
235.1%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
150.4%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
39 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
25 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
1.2 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
9.5x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
10.6x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
9.5%
computed by olivLawTTM to 30 Jun 2026
P/B
1.9x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.8x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
4.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
24.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
28.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 58.3% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

22.05 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 1.2 bn USD

Key indicators

Market capitalisation
1.2 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
10.6x
computed by olivLawTTM to 30 Jun 2026
P/B
1.9x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
18.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
8.6%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
3.7%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

29/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 07 Aug 2026
verified 2140derived 166

Score by group

58% · Insufficient data

Estimated value range

Low
23.61
USD per share
Mid
27.49
USD per share
High
63.43
USD per share
Price: 22.05 USD
The price is below the range
Potential to the central value: 24.7% (value / price − 1)
Margin of safety: 19.8% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 23.61 – 63.43 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E23.61 – 63.43 (Mid 27.49)
    7 companies used · median multiple 13.2x · quartiles 11.3x – 30.4x
    CSV, EVI, HRB, RGS, SCI, UNF, WW
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Services-Personal Services (SIC 7200)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 58.3% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality8.6%60 (vs peers)11%
FCF conversion · Quality235.1%100 (on a fixed band)11%
Revenue CAGR 3Y · Growth7.1%59 (on a fixed band)14%
EPS CAGR 3Y · Growth64.9%100 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet1.7x79 (on a fixed band)7%
P/E (TTM) · Valuation10.6x71 (vs peers)18%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation24.9%100 (on a fixed band)14%
Shareholder yield (distributions) · Returns28.1%100 (on a fixed band)11%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial79/100 · 1/3 factors with a value
  • Growth79/100 · 2/2 factors with a value
  • Quality80/100 · 2/3 factors with a value
  • Returns· partial100/100 · 1/2 factors with a value
  • Valuation84/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

YELP INC (YELP). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 1.5 bn USD in 2025; YoY growth 3.7%; net margin 8.6%; ROE 18.2%.

The estimated value range is 23.61–63.43 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 27.49 USD, the price of 22.05 USD leaves a potential of 24.7% (value / price − 1) and a margin of safety of 19.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 235.1%
  • EPS CAGR 3Y: 64.9%
  • Current ratio: 1.7x
  • P/E (TTM): 10.6x
  • FCF yield: 24.9%
  • Shareholder yield (distributions): 28.1%
  • The price is below the estimated value range

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Services-Personal Services (SIC 7200) · same industry (4-digit SIC) · compared with 10 companies

Multiples and returns vs the median

P/E
10.6x
vertical median 13.2x
below median (−19.8%)
EV/EBITDA
—
vertical median 7.4x
P/S
0.8x
vertical median 0.5x
above median (+64.8%)
P/B
1.9x
vertical median 2.0x
below median (−5.2%)
ROE
18.2%
vertical median 17.3%
at median
Net margin
8.6%
vertical median 3.7%
above median (+131.1%)
EBIT margin
11.7%
vertical median 3.5%
above median (+233.4%)
Revenue YoY
3.7%
vertical median 4.3%
below median (−13.3%)
Net debt/EBITDA
—
vertical median 4.6x
Dividend yield
—
vertical median 1.4%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SCIService Corporation International10.5 bn19.235.7%12.7%+2.9%−3% / +26%
HRBH&R Block Inc6.8 bn9.8710.9%18.6%+4.9%+32% / +22%
YELPYelp Inc1.2 bn10.618.2%8.6%+3.7%−30% / −51%
CSVCarriage Services, Inc.571.4 m12.817.3%10.7%+3.3%−17% / +59%
EVIEVI Industries, Inc.282.3 m45.35.3%1.7%+14.6%+6% / −16%
WWWw International, Inc.121.3 m0.1332.6%148.1%−11.6%−57% / unavailable
RGSRegis Corporation79.4 m13.23.7%3.1%+6.8%+18% / +362%
DLPNDolphin Entertainment, Inc.12.2 m—-51.6%-6.3%+9.7%−42% / −70%
XWELXWELL, Inc.5.1 m——-82.9%−13.8%−21% / −75%
UNFUnifirst Corporation—41.75.0%4.3%+3.7%+45% / +45%
MRMMedirom Healthcare Technologies Inc.——26.0%1.8%+21.5%−85% / −94%

1- and 3-year price returns: for YELP from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
14.95
Total return -32% · Per year -32%
26.40
Total return 20% · Per year 20%
39.72
Total return 80% · Per year 80%
3 years
15.27
Total return -31% · Per year -12%
30.26
Total return 37% · Per year 11%
49.88
Total return 126% · Per year 31%
5 years
15.59
Total return -29% · Per year -7%
34.69
Total return 57% · Per year 9%
62.65
Total return 184% · Per year 23%
What moves the 3-year price the most
  • Exit P/E± 7.57
  • Net margin± 5.30
  • Annual revenue growth± 4.24
  • Annual dilution± 0.44

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Yelp is one of the best known internet brands in the United States, connecting consumers with local businesses through reviews and pay-per-click advertising. It reported net revenue of 1.46 billion USD in fiscal 2025, and is now trying to reshape its model with AI while local business demand stays soft.

SWOT

Strengths

  • Yelp has a very well known brand and a large volume of user-generated reviews that is hard to replicate 1.
  • The pay-per-click auction model lets the company monetise traffic directly 1.
  • The company has remained profitable and reduced its share count through repurchases 1.

Weaknesses

  • Advertising makes up nearly all revenue, leaving the company exposed to local business budget cuts 1.
  • Platform traffic has been weak in restaurant and retail categories 1.
  • AI and acquisition spending could outpace revenue growth in the short term 2.

Opportunities

  • Licensing data to AI partners could become a meaningful recurring revenue source 3.
  • AI products for services businesses could extend customer relationships beyond advertising 1.
  • Integrations with AI platforms could bring new users to Yelp 2.

Threats

  • AI search could reduce direct traffic to the Yelp site and app 1.
  • A prolonged economic downturn could cut advertising budgets of small businesses 1.
  • Competitors offering cheaper or more integrated products could win advertisers 1.

Risks

  • Local economic conditionshigh

    Inflation, uncertainty and high borrowing costs could reduce consumer spending and local business budgets 1.

  • Advertising dependencehigh

    Nearly all revenue comes from ads, and advertisers can cancel campaigns at any time without penalty 1.

  • Traffic and AI searchmedium

    If users shift to AI search that does not send them to Yelp, traffic and revenue could decline 1.

  • Execution of AI strategymedium

    New AI products might not generate enough revenue to justify the investment made in them 1.

  • Acquisition integrationlow

    Integrating Hatch and other acquisitions could be delayed and could affect margins 1.

Investment thesis

What would need to be true (bull case)

  • If data and AI revenue keeps growing quickly, the company could reduce its reliance on advertising and improve margins over the long term 3.
  • A strong brand and human-generated content could make Yelp a valuable partner for AI platforms 1.
  • Share repurchases and lower stock-based compensation could support shareholder value 1.

What would break the thesis

  • If local businesses keep cutting advertising, revenue could stay nearly flat 2.
  • AI search could weaken the link between traffic and advertising, which could affect the core model 1.
  • Higher spending on AI and acquisitions could reduce profitability in the near term 2.

What to watch

  • Whether 2026 net revenue lands within the 1.46 to 1.47 billion USD outlook2026
  • Progress of other revenue toward the 250 million USD run-rate target2028
  • Trends in ad clicks and average cost per clickQ3 2026

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Yelp runs a platform of reviews and discovery for local businesses, where users post ratings and photos about restaurants, services and retail. Most revenue comes from performance advertising, where ads are sold through auctions priced per click 1. Its human-generated content is also an asset that AI search providers can license 1.

Other revenue includes subscription products for businesses, such as Yelp Guest Manager, Yelp Host and Yelp Receptionist, as well as license fees for data access through its Places and AI APIs 1. In February 2026 the company acquired Hatch, an AI lead management platform for Services businesses 1. This extends the portfolio beyond advertising.

Advertising accounted for 95% of revenue in 2025 1, so changes in local business demand flow directly into results. The company sells ads through local and multi-location sales teams, a self-serve channel and partners 1.

Segments

Advertising

Pay-per-click ads, multi-location ad products and business page upgrades generate nearly all revenue 1. In the second quarter of 2026 net revenue was 375.5 million USD, up 1% 2.

Other revenue

Other revenue includes subscriptions, data licensing and transaction partnerships such as DoorDash 1. In the second quarter of 2026 it rose 98% year over year to 33 million USD 3, and the company targets an annual run rate of 250 million USD by the end of 2028 2.

AI business tools

Hatch, Yelp Host and Yelp Receptionist are AI products for call handling and customer management aimed at Services businesses and restaurants 1. Hatch had an annual run rate revenue of about 35 million USD in June 2026 2.

Market context

The company describes its market as US local digital advertising, a large and growing segment where small businesses are the main customers 1. Restaurant and retail demand has weakened since late 2023, and platform traffic has stayed below pre-pandemic levels 1.

For 2026, advertising revenue is expected to stay under pressure, with net revenue guidance between 1.46 and 1.47 billion USD 3. These figures depend on local economic conditions, which the company cannot predict with certainty 1.

Trends

  • Local business ad demandheadwind

    Restaurant, retail and service businesses have cut advertising budgets amid inflation and economic uncertainty 1. If these conditions persist, advertising revenue could remain weak.

  • AI and local searchmixed

    AI search features can display results in formats that de-emphasize links to Yelp 1. At the same time, Yelp data now powers local experiences in ChatGPT and Apple Maps 2, opening new licensing revenue.

  • Data and transaction revenuetailwind

    AI API licences and transaction partnerships grew quickly in 2026 3. If this growth continues, dependence on advertising could decline over time.

  • Cost disciplinemixed

    The company kept headcount roughly flat and is reducing stock-based compensation 1. AI investments raise expenses in 2026 2, which limits margin expansion.

Competitive position

Yelp competes for consumer attention and local business budgets with other review and local search platforms and with general search engines 1. Competition is intense and fragmented, and AI search can shift traffic to other interfaces 1.

In business services, competition also comes from customer management and lead generation tools, where Hatch seeks to differentiate 1. Yelp's advantage remains its human content and well known brand 1.

  • Google (Local Services Ads, Maps)GOOGL

    Google's search and local services are cited as alternatives for users and advertisers, including through Hatch integrations 12.

  • Search engines and AI platforms

    Search engines and AI chatbots could draw user attention away from the Yelp platform 1.

  • Customer management platforms for services

    Rival lead generation and management tools compete with Hatch and the subscription products 1.

  • Restaurant booking and ordering platforms

    Reservation and ordering apps compete with Yelp Host and the platform's transaction features 12.

News & filings

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Yelp Inc. · 27 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Yelp Inc. · 07 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Yelp Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.