Yelp (YELP) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 811.27K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.57
• Revenue Growth: 5.37%
• EPS Growth: 13.08%
• Country: US
• Employees: 5,116
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.67
• Shares Outstanding: 63,060,654
• 10 Day Avg. Volume: 551,828
• 30 Day Avg. Volume: 811,275
• PEG Ratio: 0.52
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 7.65
• 1Y Price Target: $35.49
• Price Target Upside: 7.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $38.00 ▲(15.22% Upside)

Yelp's strong financial performance and strategic focus on AI initiatives are significant strengths, contributing to a solid overall score. While technical indicators are mixed and valuation is reasonable, challenges such as declining RR&O revenue and macroeconomic uncertainties temper the outlook.

Positive Factors

AI Initiatives Growth

Yelp's focus on AI initiatives, such as the AI search API and Yelp Assistant, positions the company for future growth by enhancing user engagement and service efficiency, potentially leading to increased revenue streams.

Strong Financial Performance

Yelp's strong financial performance, marked by increased net income and EBITDA, reflects operational efficiency and profitability, providing a solid foundation for long-term growth and shareholder value.

Robust Cash Flow

Yelp's strong cash flow generation supports its ability to invest in growth opportunities, manage debt, and return capital to shareholders, enhancing financial stability and strategic flexibility.

Negative Factors

Decline in RR&O Revenue

The decline in RR&O revenue highlights challenges in key segments due to macroeconomic pressures and competition, potentially impacting Yelp's overall revenue growth and market position.

Decrease in Advertising Locations

A decrease in advertising locations suggests challenges in maintaining advertiser engagement, which could affect Yelp's advertising revenue and market share in the long term.

Macroeconomic Uncertainties

Macroeconomic uncertainties pose risks to Yelp's revenue growth, as they can lead to reduced advertising budgets and consumer spending, affecting the company's financial performance and strategic planning.

Yelp Business Overview & Revenue Model

Company Description

Yelp Inc. is a technology company that operates a platform providing user-generated reviews and recommendations for various local businesses, primarily in the hospitality, restaurant, and service sectors. Founded in 2004, Yelp enables consumers to search for businesses based on location, read reviews, view photos, and access information such as hours and contact details. The platform also offers advertising solutions for businesses to enhance their visibility and attract customers.

How the Company Makes Money

Yelp generates revenue primarily through advertising services sold to local businesses, which can create enhanced business profiles, promote their listings, and access additional marketing tools. Key revenue streams include cost-per-click (CPC) advertising, where businesses pay Yelp each time a user clicks on their ad, and premium services like Yelp Ads, which allow businesses to appear prominently in search results. Additionally, Yelp offers a subscription service called Yelp Waitlist, which helps restaurants manage reservations and customer flow. Significant partnerships with third-party services, such as delivery platforms and payment processors, also contribute to Yelp's earnings by enhancing the value of its offerings to both consumers and businesses.

Yelp Financial Statement Overview

Summary

Yelp exhibits strong financial performance with significant revenue growth, high profitability margins, and a stable balance sheet. The company has effectively managed its debt levels while enhancing its return on equity. Cash flow metrics indicate robust cash generation capabilities.

Income Statement

Yelp has demonstrated strong revenue growth with a TTM growth rate of 93%, significantly higher than previous years. The company maintains high gross profit margins above 90%, indicating efficient cost management. Net profit margin has improved to 10.28% TTM, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, indicating operational efficiency improvements.

Balance Sheet

Yelp's balance sheet is robust with a low debt-to-equity ratio of 0.041 TTM, indicating low leverage and financial stability. The return on equity has improved to 20.17% TTM, showcasing effective use of equity to generate profits. The equity ratio remains strong, reflecting a solid capital structure. However, the total debt has decreased, which is positive for financial health.

Cash Flow

Yelp's cash flow position is strong with a positive free cash flow growth rate of 5.52% TTM. The operating cash flow to net income ratio is healthy at 2.11, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.87 TTM suggests effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.45B	1.41B	1.34B	1.19B	1.03B	872.93M
Gross Profit	1.32B	1.29B	1.22B	1.09B	953.74M	815.75M
EBITDA	257.41M	206.55M	149.31M	163.27M	143.46M	-11.42M
Net Income	149.14M	132.85M	99.17M	36.35M	39.67M	-19.42M
Balance Sheet
Total Assets	980.17M	983.57M	1.01B	1.02B	1.05B	1.15B
Cash, Cash Equivalents and Short-Term Investments	301.12M	327.91M	446.40M	410.62M	489.78M	606.80M
Total Debt	30.58M	43.15M	87.30M	126.33M	168.22M	200.10M
Total Liabilities	233.77M	239.60M	265.19M	305.60M	299.21M	300.41M
Stockholders Equity	746.40M	743.97M	749.53M	710.32M	751.32M	854.53M
Cash Flow
Free Cash Flow	284.97M	248.47M	279.43M	160.33M	184.37M	138.57M
Operating Cash Flow	329.30M	285.81M	306.28M	192.31M	212.66M	176.70M
Investing Cash Flow	-80.84M	-77.27M	-54.68M	-126.14M	-27.65M	248.36M
Financing Cash Flow	-304.97M	-303.80M	-246.78M	-237.53M	-300.49M	-21.05M

Yelp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YELP, the sentiment is Positive. The current price of 32.98 is above the 20-day moving average (MA) of 32.58, above the 50-day MA of 31.99, and below the 200-day MA of 34.94, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 38.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YELP.

Yelp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	―	$2.08B	14.92	20.13%	―	5.37%	13.08%
EVER	―	$786.49M	17.35	34.34%	―	92.91%	―
TBLA	―	$1.06B	97.28	1.40%	―	12.01%	―
ANGI	―	$588.42M	11.08	5.86%	―	-15.79%	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IAC	―	$2.58B	―	-8.49%	―	-23.79%	-138.59%
NXDR	―	$755.16M	―	-14.27%	―	9.65%	56.50%

Yelp Corporate Events

Yelp Expands Board with New Independent Director

On August 19, 2025, Yelp Inc. expanded its Board of Directors by appointing Logan Green as an independent director, increasing the board size from eight to nine members. This strategic move is expected to enhance the company’s governance and potentially influence its future direction, with Mr. Green set to receive standard compensation and indemnification as part of his role.

The most recent analyst rating on (YELP) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Yelp stock, see the YELP Stock Forecast page.

Yelp Inc. Earnings Call: AI Drives Growth Amid Challenges

Yelp Inc. recently held its earnings call, revealing a mixed sentiment with record net revenue and strong profitability driven by AI-powered product enhancements and growth in services revenue. However, the company faces challenges with declining RR&O revenue, a decrease in paying advertising locations, and macroeconomic uncertainties. Despite these hurdles, Yelp’s strategic focus on AI and data licensing offers promising potential for future growth.

Yelp Inc. Reports Strong Q2 2025 Financial Results

Yelp Inc., a community-driven platform, connects people with local businesses through reviews and photos, primarily operating in the online advertising industry. In its second quarter of 2025, Yelp reported a 4% increase in net revenue to $370 million, surpassing its outlook. The company also saw a 16% rise in net income to $44 million, with an adjusted EBITDA of $100 million, reflecting a 10% increase from the previous year. Key drivers included growth in advertising revenue from services businesses and strategic AI-powered updates.