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Yelp
(NYSE:YELP)
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Rating:76Outperform
Price Target:
$26.00
▲(9.70% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by strong financial quality (high margins, substantial free cash flow, and a low-debt balance sheet) and an appealing P/E valuation. Offsetting these positives are a mixed technical picture (below key moving averages with neutral momentum) and a balanced earnings call where AI/Other revenue momentum is strong but core advertising trends and near-term profitability/guidance are under pressure due to investment and macro headwinds.
Positive Factors
High-margin business model
Yelp’s asset-light advertising and lead-generation model produces substantial gross profit and healthy operating margins. This margin structure provides flexibility to fund product development while retaining the ability to generate earnings through changing local-advertising conditions.
Negative Factors
Core advertising weakness
The core advertising engine remains under pressure, especially in Restaurants, Retail and Other categories. Falling clicks and paying locations can limit monetization of Yelp’s audience and make sustained top-line growth dependent on newer businesses that are still scaling.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin business model
Yelp’s asset-light advertising and lead-generation model produces substantial gross profit and healthy operating margins. This margin structure provides flexibility to fund product development while retaining the ability to generate earnings through changing local-advertising conditions.
Read all positive factors
Yelp Key Performance Indicators (KPIs)
Any
Net Revenue By Geography
Reveals revenue distribution across regions, indicating where the company excels and where it might encounter challenges or opportunities for expansion.
Reveals revenue distribution across regions, indicating where the company excels and where it might encounter challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyYelp (YELP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.23B
Dividend YieldN/A
Average Volume (3M)1.20M
Price to Earnings (P/E)10.7
Beta (1Y)0.50
Revenue Growth1.50%
EPS Growth-6.82%
CountryUS
Employees5,168
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)2.11
Shares Outstanding54,263,622
10 Day Avg. Volume932,176
30 Day Avg. Volume1,195,745
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)2.71
Price to Sales (P/S)1.31
P/FCF Ratio5.96
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$27.00Price Target Upside13.92% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.81
Revenue Forecast (FY)$1.47B
Yelp Business Overview & Revenue Model
Company Description
Yelp Inc. operates a digital platform facilitating connections between consumers and local enterprises, both within the U.S. and globally. Its extensive coverage spans numerous business sectors, including dining, retail, wellness, healthcare, home...
How the Company Makes Money
Yelp primarily makes money by selling advertising and related marketing services to local businesses. Its core revenue stream is paid digital advertising, where merchants pay to promote their placement and visibility on Yelp’s platform (for exampl...
Yelp Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: core advertising metrics remained pressured (notably RR&O revenue down 10%, ad clicks down 5%, paying locations down 1%) and near-term profitability declined (net income -28%, adjusted EBITDA -9%), but Yelp showed clear momentum in AI-driven growth areas—Other revenue nearly doubled (+98% to $33M), Yelp Host scaled rapidly (2.4M call run rate), Hatch ARR grew 59% to $35M—and beat near-term outlook on revenue and adjusted EBITDA. Management is investing aggressively in AI products, data licensing partnerships, and Hatch to drive long-term growth while acknowledging short-term expense headwinds and macro softness.Positive Updates
Top-line Revenue Slightly Up
Net revenue increased 1% year-over-year to $376 million, coming in $8 million above the high end of guidance.
Negative Updates
Net Income and EBITDA Declines
Net income decreased 28% year-over-year to $32 million (8% margin); adjusted EBITDA decreased 9% year-over-year to $91 million despite beating outlook.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Revenue Slightly Up
Net revenue increased 1% year-over-year to $376 million, coming in $8 million above the high end of guidance.
Read all positive updates
Company Guidance
Yelp guided third-quarter net revenue of $365–370 million and full-year net revenue of $1.460–1.470 billion (both ranges narrowed), and expects third-quarter adjusted EBITDA of $70–75 million and full‑year adjusted EBITDA of $315–325 million, while warning Q3 expenses will increase sequentially as it invests in its AI transformation, Hatch, and consumer marketing amid a persistently challenging local‑business environment that will continue to pressure advertising revenue. Management highlighted Other revenue momentum — Q2 Other revenue was a record $33 million (+98% YoY) and the company is targeting an Other revenue annual run rate of $250 million by the end of 2028 — and reiterated key operating results from Q2: net revenue $376 million (+1% YoY), net income $32 million (8% margin, -28% YoY), adjusted EBITDA $91 million (24% margin, -9% YoY), Services ad revenue $241 million (flat), RR&O ad revenue $102 million (-10%), paying advertising locations 510,000 (-1% YoY), ad clicks -5% YoY and average CPC +1%. On capital allocation, Yelp repurchased $15 million in Q2 at an average price of $24.92 and about $25 million in Q3 (≈$200 million repurchased YTD), has paused repurchases to pay down its revolver with $339 million remaining under authorization and plans to resume in 2027, intends to return >50% of free cash flow annually, and expects to reduce stock‑based compensation to <6% of revenue by end of 2027 (Q2 was 7%, down 3 ppt YoY).Yelp Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.47B | 1.46B | 1.41B | 1.34B | 1.19B | 1.03B |
| Gross Profit | 1.30B | 1.32B | 1.29B | 1.22B | 1.09B | 953.74M |
| EBITDA | 264.83M | 264.52M | 238.46M | 175.35M | 163.27M | 126.57M |
| Net Income | 126.51M | 145.60M | 132.85M | 99.17M | 36.35M | 39.67M |
Balance Sheet | ||||||
| Total Assets | 990.57M | 958.48M | 983.57M | 1.01B | 1.02B | 1.05B |
| Cash, Cash Equivalents and Short-Term Investments | 94.14M | 324.35M | 327.91M | 446.40M | 410.62M | 489.78M |
| Total Debt | 123.30M | 24.88M | 43.15M | 87.30M | 126.33M | 168.22M |
| Total Liabilities | 346.04M | 247.63M | 239.60M | 265.19M | 305.60M | 299.21M |
| Stockholders Equity | 644.53M | 710.85M | 743.97M | 749.53M | 710.32M | 751.32M |
Cash Flow | ||||||
| Free Cash Flow | 296.77M | 323.02M | 248.47M | 279.43M | 160.33M | 184.37M |
| Operating Cash Flow | 348.98M | 371.37M | 285.81M | 306.28M | 192.31M | 212.66M |
| Investing Cash Flow | -202.30M | -45.65M | -77.27M | -54.68M | -126.14M | -27.65M |
| Financing Cash Flow | -250.02M | -329.39M | -303.80M | -246.78M | -237.53M | -300.49M |
Yelp Technical Analysis
Negative
23.70
Price Trends
24.95
Negative
25.08
Negative
26.01
Negative
Market Momentum
-0.60
Positive
38.19
Neutral
37.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Negative. The current price of 23.7 is below the 20-day moving average (MA) of 24.55, below the 50-day MA of 24.95, and below the 200-day MA of 26.01, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 38.19 is Neutral, neither overbought nor oversold. The STOCH value of 37.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YELP.
Yelp Risk Analysis
Yelp disclosed 1 risk factors in its most recent earnings report. Yelp reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Yelp Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $919.05M | 7.81 | 50.29% | ― | 22.75% | 144.55% | |
76 Outperform | $1.23B | 10.67 | 18.61% | ― | 1.50% | -6.82% | |
69 Neutral | $1.01B | 9.13 | 12.80% | ― | 8.00% | 991.05% | |
66 Neutral | $885.88M | -29.52 | -7.27% | ― | 9.79% | 53.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
52 Neutral | $196.70M | -0.85 | -25.18% | ― | -8.83% | -554.39% |
* Communication Services Sector Average
YELP
Yelp
22.51
-8.78
-28.06%
ANGI
Angi
4.67
-12.88
-73.39%
EVER
EverQuote
24.82
1.67
7.21%
TBLA
Taboola.com
3.77
0.42
12.54%
NXDR
Nextdoor Holdings
2.32
0.27
13.17%
Yelp Corporate Events
Executive/Board ChangesShareholder Meetings
Yelp Shareholders Back Directors, Auditor and Executive Pay
Positive
Jun 10, 2026
On June 5, 2026, Yelp held its annual meeting via live audio webcast, where stockholders elected nine directors to serve until the 2027 annual meeting, with each nominee receiving strong majority support. The slate included Fred D. Anderson Jr., C...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.