Yelp Delivers Record Net Revenue in 2025 Accelerating Investment in AI Transformation
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
gaap financial
forward looking statements regulatory
2025 Net Revenue reached a record of
2025 Net Income up
2025 Adjusted EBITDA increased
Expects 2026 Net Revenue in the range of
Announces agreement with OpenAI
“Yelp delivered record net revenue and strong profitability in 2025, driven by growth in Services and product innovation, with more than 55 new features and updates introduced in the year,” said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. “Looking ahead, we are making Yelp more conversational and action-oriented for consumers, while helping businesses grow and operate more efficiently with new AI tools, underscored by our recent acquisition of Hatch. We are also extending the reach of our trusted content to power local discovery across the AI ecosystem, and we recently signed an agreement with OpenAI. We enter 2026 focused on driving growth by investing in our AI transformation.”
“Our 2025 results reflect both disciplined execution and the margin potential of our product-led strategy,” said David Schwarzbach, Yelp's chief financial officer. “Net income increased
2025 Key Business Highlights
Yelp's focus on Services and product innovation drove 2025 results:
-
Net revenue increased by
4% year over year to a record$1.46 billion $2 million $13 million -
Net income increased by
10% year over year to$146 million 10% net income margin. -
Adjusted EBITDA grew by
3% year over year to$369 million $7 million $17 million 25% adjusted EBITDA margin.1 -
In Services, advertising revenue increased
8% year over year to a record$948 million -
Advertising revenue from Restaurants, Retail & Other (“RR&O”) businesses decreased by
6% year over year to$444 million -
With a decrease in RR&O paying advertising locations offsetting growth in Services paying advertising locations, total paying advertising locations for the year decreased by
3% , while average revenue per location reached an annual record. -
Ad clicks for the year decreased
7% from 2024, driven primarily by lower consumer demand due to economic uncertainties and, to a lesser extent, reduced spend on paid project acquisition in 2025 compared to 2024. -
Average cost per click increased
10% year over year, reflecting growth in advertiser demand in our Services categories and lower overall consumer demand. -
On the consumer side of our business, Yelp continued to grow our trusted review content through contributions from our large user base. Yelp users contributed 22 million new reviews in 2025, resulting in 330 million cumulative reviews, up
7% from the prior year.
Outlook
The company expects 2026 Net Revenue will be in the range of
Quarterly Conference Call
Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss the fourth quarter and full year 2025 financial results and outlook for the first quarter and full year 2026. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website.
______________________________ |
1 See “Non-GAAP Financial Measures” for the definitions of Adjusted EBITDA and Adjusted EBITDA margin, as well as reconciliations of Adjusted EBITDA to Net income (loss) and Adjusted EBITDA margin to Net income (loss) margin, in each case the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in |
2 Yelp has not reconciled its Adjusted EBITDA outlook to GAAP Net income (loss) because it does not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other income, net and Provision for (benefit from) income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because Yelp cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss). For more information regarding the non-GAAP financial measures discussed in this release, please see “Non-GAAP Financial Measures” below. |
About Yelp
Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in
Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.
Forward Looking Statements
This press release contains forward-looking statements relating to, among other things, Yelp’s future performance, including its expected financial results for 2026, its expectations regarding its AI transformation, changes to its product offerings and its ability to drive shareholder value over the long term, that are based on its current expectations, forecasts and assumptions that involve risks and uncertainties.
Yelp’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:
- macroeconomic uncertainty — including related to labor and supply chain issues, inflation and recessionary concerns, interest rates and tariffs — and its effect on consumer behavior, user activity and advertiser spending;
- Yelp’s ability to maintain and expand its base of advertisers, particularly if advertiser turnover substantially worsens and/or consumer demand significantly degrades;
- Yelp’s ability to realize the anticipated benefits of its acquisition of Hatch;
- Yelp’s ability to drive continued growth through its strategic initiatives;
- Yelp’s ability to continue to operate effectively with a primarily remote work force and attract and retain key talent;
- Yelp’s limited operating history in an evolving industry; and
- Yelp’s ability to generate and maintain sufficient high-quality content from its users.
Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp’s business, operating results and stock price included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yelp’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.
YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
216,062 |
|
|
$ |
217,325 |
|
Short-term marketable securities |
|
103,290 |
|
|
|
100,581 |
|
Accounts receivable, net |
|
153,224 |
|
|
|
155,325 |
|
Prepaid expenses and other current assets |
|
42,359 |
|
|
|
43,648 |
|
Total current assets |
|
514,935 |
|
|
|
516,879 |
|
Property, equipment and software, net |
|
91,685 |
|
|
|
75,669 |
|
Operating lease right-of-use assets |
|
16,046 |
|
|
|
24,112 |
|
Goodwill |
|
135,847 |
|
|
|
130,980 |
|
Intangibles, net |
|
49,038 |
|
|
|
58,787 |
|
Other non-current assets |
|
150,927 |
|
|
|
177,140 |
|
Total assets |
$ |
958,478 |
|
|
$ |
983,567 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
158,789 |
|
|
$ |
131,322 |
|
Operating lease liabilities — current |
|
7,426 |
|
|
|
20,679 |
|
Deferred revenue |
|
5,845 |
|
|
|
2,973 |
|
Total current liabilities |
|
172,060 |
|
|
|
154,974 |
|
Operating lease liabilities — long-term |
|
17,451 |
|
|
|
22,470 |
|
Other long-term liabilities |
|
58,115 |
|
|
|
62,154 |
|
Total liabilities |
|
247,626 |
|
|
|
239,598 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
2,010,948 |
|
|
|
1,903,598 |
|
Treasury stock |
|
(999 |
) |
|
|
(3,909 |
) |
Accumulated other comprehensive loss |
|
(7,677 |
) |
|
|
(15,431 |
) |
Accumulated deficit |
|
(1,291,420 |
) |
|
|
(1,140,289 |
) |
Total stockholders’ equity |
|
710,852 |
|
|
|
743,969 |
|
Total liabilities and stockholders’ equity |
$ |
958,478 |
|
|
$ |
983,567 |
|
YELP INC. |
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
(In thousands, except per share data) |
|||||||||||
(Unaudited) |
|||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
Net revenue |
$ |
359,989 |
|
$ |
361,952 |
|
$ |
1,464,955 |
|
$ |
1,412,064 |
|
|
|
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
|
|
|
|
||||
Cost of revenue(1) |
|
36,033 |
|
|
33,270 |
|
|
142,596 |
|
|
123,684 |
Sales and marketing(1) |
|
150,471 |
|
|
143,263 |
|
|
592,107 |
|
|
585,978 |
Product development(1) |
|
73,284 |
|
|
74,937 |
|
|
313,688 |
|
|
325,992 |
General and administrative(1) |
|
38,464 |
|
|
45,487 |
|
|
181,951 |
|
|
184,958 |
Depreciation and amortization |
|
12,851 |
|
|
11,566 |
|
|
50,092 |
|
|
40,407 |
Total costs and expenses |
|
311,103 |
|
|
308,523 |
|
|
1,280,434 |
|
|
1,261,019 |
Income from operations |
|
48,886 |
|
|
53,429 |
|
|
184,521 |
|
|
151,045 |
Other income, net |
|
2,692 |
|
|
6,638 |
|
|
19,508 |
|
|
31,915 |
Income before income taxes |
|
51,578 |
|
|
60,067 |
|
|
204,029 |
|
|
182,960 |
Provision for income taxes |
|
13,782 |
|
|
17,847 |
|
|
58,429 |
|
|
50,110 |
Net income attributable to common stockholders |
$ |
37,796 |
|
$ |
42,220 |
|
$ |
145,600 |
|
$ |
132,850 |
|
|
|
|
|
|
|
|
||||
Net income per share attributable to common stockholders |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.62 |
|
$ |
0.64 |
|
$ |
2.30 |
|
$ |
1.97 |
Diluted |
$ |
0.61 |
|
$ |
0.62 |
|
$ |
2.24 |
|
$ |
1.88 |
|
|
|
|
|
|
|
|
||||
Weighted-average shares used to compute net income per share attributable to common stockholders |
|
|
|
|
|
|
|
||||
Basic |
|
61,047 |
|
|
66,083 |
|
|
63,334 |
|
|
67,415 |
Diluted |
|
62,018 |
|
|
67,989 |
|
|
65,090 |
|
|
70,611 |
|
|
|
|
|
|
|
|
||||
(1) Includes stock-based compensation expense as follows: |
|||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
Cost of revenue |
$ |
797 |
|
$ |
1,110 |
|
$ |
4,035 |
|
$ |
5,209 |
Sales and marketing |
|
5,939 |
|
|
7,531 |
|
|
27,925 |
|
|
33,436 |
Product development |
|
14,856 |
|
|
18,436 |
|
|
68,718 |
|
|
85,510 |
General and administrative |
|
7,276 |
|
|
7,720 |
|
|
33,315 |
|
|
34,038 |
Total stock-based compensation |
$ |
28,868 |
|
$ |
34,797 |
|
$ |
133,993 |
|
$ |
158,193 |
YELP INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
Year Ended December 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Operating Activities |
|
|
|
||||
Net income |
$ |
145,600 |
|
|
$ |
132,850 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
50,092 |
|
|
|
40,407 |
|
Provision for credit losses |
|
43,271 |
|
|
|
45,614 |
|
Stock-based compensation |
|
133,993 |
|
|
|
158,193 |
|
Amortization of right-of-use assets |
|
10,398 |
|
|
|
15,094 |
|
Deferred income taxes |
|
25,073 |
|
|
|
(24,920 |
) |
Amortization of deferred contract cost |
|
27,943 |
|
|
|
24,854 |
|
Asset impairment |
|
— |
|
|
|
5,914 |
|
Write-off of website and internal use software |
|
3,339 |
|
|
|
2,583 |
|
Other adjustments, net |
|
(491 |
) |
|
|
(4,995 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(41,872 |
) |
|
|
(51,033 |
) |
Prepaid expenses and other assets |
|
(27,113 |
) |
|
|
(24,314 |
) |
Operating lease liabilities |
|
(20,926 |
) |
|
|
(39,230 |
) |
Accounts payable, accrued liabilities and other liabilities |
|
22,722 |
|
|
|
4,798 |
|
Net cash provided by operating activities |
|
372,029 |
|
|
|
285,815 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Purchases of marketable securities — available-for-sale |
|
(80,245 |
) |
|
|
(94,304 |
) |
Sales and maturities of marketable securities — available-for-sale |
|
78,530 |
|
|
|
123,094 |
|
Purchases of other investments |
|
(700 |
) |
|
|
(2,500 |
) |
Maturities of other investments |
|
5,000 |
|
|
|
— |
|
Acquisition, net of cash received |
|
— |
|
|
|
(66,199 |
) |
Purchases of property, equipment and software |
|
(48,353 |
) |
|
|
(37,347 |
) |
Other investing activities |
|
114 |
|
|
|
(10 |
) |
Net cash used in investing activities |
|
(45,654 |
) |
|
|
(77,266 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Proceeds from issuance of common stock for employee stock-based plans |
|
19,665 |
|
|
|
20,790 |
|
Taxes paid related to the net share settlement of equity awards |
|
(56,889 |
) |
|
|
(73,411 |
) |
Repurchases of common stock |
|
(290,949 |
) |
|
|
(250,899 |
) |
Excise tax paid on net stock repurchases |
|
(1,218 |
) |
|
|
(282 |
) |
Payment of issuance costs for credit facility |
|
(656 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(330,047 |
) |
|
|
(303,802 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
2,279 |
|
|
|
(1,067 |
) |
|
|
|
|
||||
Change in cash, cash equivalents and restricted cash |
|
(1,393 |
) |
|
|
(96,320 |
) |
Cash, cash equivalents and restricted cash — Beginning of period |
|
217,682 |
|
|
|
314,002 |
|
Cash, cash equivalents and restricted cash — End of period |
$ |
216,289 |
|
|
$ |
217,682 |
|
Non-GAAP Financial Measures
This press release and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which the Securities and Exchange Commission has defined as a “non-GAAP financial measure.”
We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as, asset impairment charges, expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, or other costs that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.
Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or principles, have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Yelp’s financial results as reported in accordance with generally accepted accounting principles in
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp’s working capital needs;
- Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;
- Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
- Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as impairment charges, expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, or other costs that management determines are not indicative of ongoing operating performance;
- Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and
- other companies, including those in Yelp’s industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures.
Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp’s other GAAP results.
The following is a reconciliation of net income to Adjusted EBITDA, as well as the calculation of net income margin and Adjusted EBITDA margin, for each of the periods indicated (in thousands, except percentages; unaudited):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Reconciliation of Net Income to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
37,796 |
|
|
$ |
42,220 |
|
|
$ |
145,600 |
|
|
$ |
132,850 |
|
Provision for income taxes |
|
13,782 |
|
|
|
17,847 |
|
|
|
58,429 |
|
|
|
50,110 |
|
Other income, net(1) |
|
(2,692 |
) |
|
|
(6,638 |
) |
|
|
(19,508 |
) |
|
|
(31,915 |
) |
Depreciation and amortization |
|
12,851 |
|
|
|
11,566 |
|
|
|
50,092 |
|
|
|
40,407 |
|
Stock-based compensation |
|
28,868 |
|
|
|
34,797 |
|
|
|
133,993 |
|
|
|
158,193 |
|
Asset impairment(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,914 |
|
Expenses related to acquired indemnification obligation, net(2)(3) |
|
(4,920 |
) |
|
|
— |
|
|
|
35 |
|
|
|
— |
|
Acquisition and integration costs(2) |
|
— |
|
|
|
1,266 |
|
|
|
539 |
|
|
|
1,266 |
|
Fees related to shareholder activism(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,168 |
|
Adjusted EBITDA |
$ |
85,685 |
|
|
$ |
101,058 |
|
|
$ |
369,180 |
|
|
$ |
357,993 |
|
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
359,989 |
|
|
$ |
361,952 |
|
|
$ |
1,464,955 |
|
|
$ |
1,412,064 |
|
Net income margin |
|
10 |
% |
|
|
12 |
% |
|
|
10 |
% |
|
|
9 |
% |
Adjusted EBITDA margin |
|
24 |
% |
|
|
28 |
% |
|
|
25 |
% |
|
|
25 |
% |
(1) |
Includes the release of a |
|
(2) |
Recorded within general and administrative expenses on our Condensed Consolidated Statements of Operations. |
|
(3) |
The three months ended December 31, 2025 reflects the release of a portion of the RepairPal holdback to indemnify us for certain expenses in prior periods. The year ended December 31, 2025 reflects the released holdback amount offsetting the associated expenses. |
The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
84,482 |
|
|
$ |
70,973 |
|
|
$ |
372,029 |
|
|
$ |
285,815 |
|
Purchases of property, equipment and software |
|
(12,217 |
) |
|
|
(11,010 |
) |
|
|
(48,353 |
) |
|
|
(37,347 |
) |
Free cash flow |
$ |
72,265 |
|
|
$ |
59,963 |
|
|
$ |
323,676 |
|
|
$ |
248,468 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash used in investing activities |
$ |
(7,677 |
) |
|
$ |
(42,826 |
) |
|
$ |
(45,654 |
) |
|
$ |
(77,266 |
) |
|
|
|
|
|
|
|
|
||||||||
Net cash used in financing activities |
$ |
(92,268 |
) |
|
$ |
(70,795 |
) |
|
$ |
(330,047 |
) |
|
$ |
(303,802 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260212812443/en/
Investor Relations Contact:
Joshua Willis
ir@yelp.com
Press Contact:
Amber Albrecht
press@yelp.com
Source: Yelp Inc.
