Yelp (Y9L) AI Stock Analysis

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Yelp

(Frankfurt:Y9L)

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Action:N/A

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Positive Factors

Low leverage and financial flexibilityVery low leverage and substantial deleveraging give Yelp financial flexibility to withstand weaker local advertising conditions. A manageable debt burden preserves capacity to invest in product development, pursue acquisitions, and return capital without placing excessive pressure on operating cash flow.

Negative Factors

Persistent local advertising pressureAdvertising remains Yelp’s core revenue engine, so declines across both major advertising categories directly pressure the company’s primary monetization model. Management expects difficult conditions to persist, indicating that weaker local-business demand may remain a fundamental constraint over the next several quarters.

Yelp (Y9L) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 1.10B
Dividend Yield: ―
Average Volume (3M): 34
Price to Earnings (P/E): 9.6
Beta (1Y): 0.30
Revenue Growth: -4.89%
EPS Growth: -12.43%
Country: Germany
Employees: 5,168
Sector: Communication Services
Sector Strength: 60
Industry: Internet Content & Information

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 se...

Yelp Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:-7.38%|Next Earnings Date:Feb 18, 2027

Earnings Call SentimentPositive

The call was broadly positive on Yelp's AI transformation, with strong growth in other revenue, rapid scaling of Yelp Host, continued Hatch momentum, significant product releases, internal productivity gains, and an improved full-year EBITDA outlook. These positives were partly offset by declining total revenue, net income, adjusted EBITDA, advertising revenue, ad clicks, and paying advertising locations, along with management's expectation that macroeconomic pressure on local advertising will persist into the fourth quarter.

Positive Updates

AI Transformation and Product Expansion

Yelp advanced its AI transformation in the third quarter, rolling out more than 30 new features and updates and making substantial advances in its AI voice offerings.

Negative Updates

Revenue and Profit Declines

Third-quarter net revenue decreased 1% year-over-year to $371 million. Net income decreased 12% year-over-year to $35 million, and adjusted EBITDA decreased 6% year-over-year to $92 million.

Company Guidance

The company expects the challenging economic environment for consumers and local businesses to persist in the fourth quarter, with increased pressure on advertising revenue across categories, while investments and strategic initiatives drive strong growth in other revenue; fourth quarter net revenue is expected in the range of $347 million-$352 million, full-year net revenue between $1.455 billion and $1.46 billion, fourth quarter adjusted EBITDA in the range of $57 million-$62 million, and full-year adjusted EBITDA between $320 million and $325 million, with expenses modestly higher in the fourth quarter and a tax benefit of approximately $30 million; Yelp is targeting an annual run rate of $250 million of other revenue by the end of 2028, expects SBC will be below 6% of revenue in the fourth quarter, plans to return more than 50% of free cash flow to shareholders each year through share repurchases, and expects to resume repurchases in 2027, subject to market and economic conditions, as well as business requirements.

Yelp Risk Analysis

Yelp disclosed 1 risk factors in its most recent earnings report. Yelp reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Yelp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

DE:Y9L against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	73Outperform	$3.57T	15.26	42.62%	0.29%	22.21%	89.60%
DASH	66Neutral	$77.72B	70.78	10.39%	―	35.03%	20.28%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	57Neutral	$789.04M	-43.31	-4.41%	―	12.26%	70.96%
ANGI	56Neutral	$274.03M	-1.11	-28.64%	―	-8.39%	-865.16%
GRPN	45Neutral	$512.88M	-57.90	13.38%	―	0.79%	93.91%

* Communication Services Sector Average

Performance Comparison

DE:Y9L and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:Y9L	Yelp Inc	18.02	-6.78	-27.34%
ANGI	Angi Inc.	6.33	-4.51	-41.61%
GOOGL	Alphabet Inc. Class A	298.70	23.01	8.35%
GRPN	Groupon	12.21	-6.33	-34.14%
DASH	Doordash, Inc.	172.58	-34.38	-16.61%
NXDR	Nextdoor Holdings, Inc.	2.05	0.39	23.49%

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.

Yelp AI Stock Analysis