Yelp Q4 Earnings Beat Expectations but Weak Guidance Pressures Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy YELP?
Source: Fool
- Earnings Beat: Yelp reported Q4 2025 earnings per share of $0.61, exceeding analyst expectations by $0.07, with sales of $359.99 million, surpassing Wall Street's target by $770,000; despite a 0.5% year-over-year sales decline, annual revenue grew approximately 4% to a record $1.46 billion.
- Stock Decline: Despite the strong earnings report, Yelp's stock fell by 8.9%, trading at $20.75 as of 3:45 PM, reflecting investor dissatisfaction with the company's guidance, resulting in a market capitalization of $1.4 billion.
- Weak 2026 Guidance: Yelp's guidance for 2026 projects sales between $1.455 billion and $1.475 billion, indicating flat sales growth compared to last year's mid-single-digit increase, which has dampened market sentiment.
- Declining EBITDA Forecast: Non-GAAP EBITDA is projected to be between $310 million and $330 million, down from $369 million last year; although the company is investing in AI and services to drive growth, meaningful sales growth may not materialize until next year.
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Analyst Views on YELP
Wall Street analysts forecast YELP stock price to rise
7 Analyst Rating
2 Buy
3 Hold
2 Sell
Hold
Current: 22.830
Low
30.00
Averages
33.29
High
40.00
Current: 22.830
Low
30.00
Averages
33.29
High
40.00
About YELP
Yelp Inc. connects consumers with local businesses. The Company's advertising products enable businesses of all sizes to reach a large audience, advertise their products and drive conversion of their services. It offers a range of free and paid advertising products to businesses of all sizes, which include CPC Advertising (Yelp Ads), RepairPal Network and Multi-location Ad Products. Its business page products include Free Business Account, Upgrade Package, Branded Profile, Enhanced Profile, Verified License, Business Highlights, Yelp Connect, Logo and Nearby Jobs. In addition to its advertising products, it also offers features and consumer-interactive tools to facilitate transactions between consumers and the local businesses they find on Yelp. It offers subscription services, licensing payments for access to Yelp data and other non-advertising arrangements. It sells its advertising products online through its Website and Yelp for Business app, and indirectly through partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Yelp Q4 Earnings Beat Expectations but Weak Guidance Pressures Stock
- Earnings Beat: Yelp reported Q4 2025 earnings per share of $0.61, exceeding analyst expectations by $0.07, with sales of $359.99 million, surpassing Wall Street's target by $770,000; despite a 0.5% year-over-year sales decline, annual revenue grew approximately 4% to a record $1.46 billion.
- Stock Decline: Despite the strong earnings report, Yelp's stock fell by 8.9%, trading at $20.75 as of 3:45 PM, reflecting investor dissatisfaction with the company's guidance, resulting in a market capitalization of $1.4 billion.
- Weak 2026 Guidance: Yelp's guidance for 2026 projects sales between $1.455 billion and $1.475 billion, indicating flat sales growth compared to last year's mid-single-digit increase, which has dampened market sentiment.
- Declining EBITDA Forecast: Non-GAAP EBITDA is projected to be between $310 million and $330 million, down from $369 million last year; although the company is investing in AI and services to drive growth, meaningful sales growth may not materialize until next year.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Transaction Overview: CEO Jeremy Stoppelman sold 66,200 shares of Yelp between February 3 and 5, 2026, for approximately $1.7 million, indicating a gradual reduction in his holdings over the past two years, with direct ownership now at 964,827 shares, reflecting a cautious outlook on the company's future.
- Market Performance: The sale was executed at an average price of $25.36 per share, while Yelp's stock closed at $24.10 on February 5, 2026, representing a 39.6% decline over the past year, highlighting market concerns regarding future growth prospects.
- Trading Plan: This stock sale was conducted under a Rule 10b5-1 trading plan adopted in May 2025, aimed at avoiding legal issues related to insider trading, demonstrating Stoppelman's commitment to transparency in his transactions.
- Future Outlook: Despite Yelp achieving a record revenue of $1.5 billion in 2025, the company expects flat sales for 2026, facing competitive pressures from artificial intelligence, prompting investors to carefully assess the company's future investment potential.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Executive Share Sale: Yelp CEO Jeremy Stoppelman sold 66,200 shares between February 3 and 5, 2026, for approximately $1.68 million, representing 6.4% of his holdings, reducing his stake from 1,031,027 to 964,827 shares, indicating a cautious outlook on the company's future.
- Transaction Context: The sale was executed under a Rule 10b5-1 trading plan adopted in May 2025 to avoid insider trading allegations; however, investors should remain vigilant regarding Yelp's upcoming performance to assess its investment viability.
- Dismal Revenue Outlook: Despite achieving a record revenue of $1.5 billion in 2025, Yelp anticipates flat sales for 2026, facing competitive threats from artificial intelligence that could diminish user engagement and long-term growth prospects.
- Market Reaction: Following the disappointing sales outlook, Yelp's stock plummeted to a 52-week low of $20.03 on February 13, 2026, reflecting investor concerns about the company's future, suggesting a cautious approach before making investment decisions based on forthcoming earnings reports.
See More
Yelp CEO Sells 66,200 Shares for $1.7 Million
- Transaction Overview: Yelp CEO Jeremy Stoppelman executed a direct sale of 66,200 shares from February 3 to 5, 2026, generating approximately $1.7 million, indicating a gradual reduction in his holdings.
- Ownership Change: Following this transaction, Stoppelman's direct ownership decreased to 964,827 shares, representing a 30.64% reduction since May 2024, which may reflect a waning confidence in the company's future prospects.
- Market Context: Yelp's stock closed at $24.04 on the transaction date, down 39.6% year-over-year, while the average sale price was $25.36, slightly above the market close, highlighting investor concerns about Yelp's performance.
- Investor Considerations: Although the sale was conducted under a Rule 10b5-1 trading plan, investors should approach Yelp with caution, especially given the company's flat sales outlook for 2026 and potential competition from artificial intelligence.
See More
Yelp Inc. Reports Record Revenue and Strategic AI Initiatives in Q4 2025 Earnings Call
- Revenue Growth: Yelp achieved a net revenue of $1.46 billion in 2025, marking a 4% year-over-year increase, demonstrating the company's ongoing commitment to service and product innovation despite a 6% decline in RR&O category revenue.
- Profitability Improvement: Net income rose to $146 million with a 10% margin, and diluted earnings per share increased by 19% to $2.24, reflecting the company's success in cost control and operational efficiency.
- AI Strategic Initiatives: Management announced plans for 2026 to reconceive the Yelp experience, introduce new AI tools, and expand Yelp Assistant, which are expected to drive customer engagement and revenue growth, particularly in multi-location services.
- Future Outlook: The company anticipates Q1 2026 net revenue between $350 million and $355 million, with full-year guidance set at $1.455 billion to $1.475 billion, and while facing macroeconomic pressures, management remains optimistic about AI-driven growth.
See More
Yelp Scheduled to Announce Q4 Earnings on February 12
- Earnings Announcement Date: Yelp is set to release its Q4 2023 earnings report on February 12 after market close, with consensus EPS estimate at $0.90 and revenue forecast at $359.22 million, reflecting a 0.8% year-over-year decline.
- Performance Expectations: Over the past year, Yelp has only beaten EPS estimates 25% of the time, while it has consistently exceeded revenue expectations 100% of the time, indicating stability in revenue generation.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates, with five downward adjustments, while revenue estimates saw one upward and two downward revisions, suggesting market caution regarding Yelp's future performance.
- Market Reaction: Despite Yelp's strong revenue performance, the declining trend in ad clicks has raised concerns about its valuation, leading analysts to downgrade their ratings, reflecting apprehension about the company's growth prospects.
See More
Yelp Q4 Earnings Beat Expectations but Weak Guidance Pressures Stock
- Earnings Beat: Yelp reported Q4 2025 earnings per share of $0.61, exceeding analyst expectations by $0.07, with sales of $359.99 million, surpassing Wall Street's target by $770,000; despite a 0.5% year-over-year sales decline, annual revenue grew approximately 4% to a record $1.46 billion.
- Stock Decline: Despite the strong earnings report, Yelp's stock fell by 8.9%, trading at $20.75 as of 3:45 PM, reflecting investor dissatisfaction with the company's guidance, resulting in a market capitalization of $1.4 billion.
- Weak 2026 Guidance: Yelp's guidance for 2026 projects sales between $1.455 billion and $1.475 billion, indicating flat sales growth compared to last year's mid-single-digit increase, which has dampened market sentiment.
- Declining EBITDA Forecast: Non-GAAP EBITDA is projected to be between $310 million and $330 million, down from $369 million last year; although the company is investing in AI and services to drive growth, meaningful sales growth may not materialize until next year.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Transaction Overview: CEO Jeremy Stoppelman sold 66,200 shares of Yelp between February 3 and 5, 2026, for approximately $1.7 million, indicating a gradual reduction in his holdings over the past two years, with direct ownership now at 964,827 shares, reflecting a cautious outlook on the company's future.
- Market Performance: The sale was executed at an average price of $25.36 per share, while Yelp's stock closed at $24.10 on February 5, 2026, representing a 39.6% decline over the past year, highlighting market concerns regarding future growth prospects.
- Trading Plan: This stock sale was conducted under a Rule 10b5-1 trading plan adopted in May 2025, aimed at avoiding legal issues related to insider trading, demonstrating Stoppelman's commitment to transparency in his transactions.
- Future Outlook: Despite Yelp achieving a record revenue of $1.5 billion in 2025, the company expects flat sales for 2026, facing competitive pressures from artificial intelligence, prompting investors to carefully assess the company's future investment potential.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Executive Share Sale: Yelp CEO Jeremy Stoppelman sold 66,200 shares between February 3 and 5, 2026, for approximately $1.68 million, representing 6.4% of his holdings, reducing his stake from 1,031,027 to 964,827 shares, indicating a cautious outlook on the company's future.
- Transaction Context: The sale was executed under a Rule 10b5-1 trading plan adopted in May 2025 to avoid insider trading allegations; however, investors should remain vigilant regarding Yelp's upcoming performance to assess its investment viability.
- Dismal Revenue Outlook: Despite achieving a record revenue of $1.5 billion in 2025, Yelp anticipates flat sales for 2026, facing competitive threats from artificial intelligence that could diminish user engagement and long-term growth prospects.
- Market Reaction: Following the disappointing sales outlook, Yelp's stock plummeted to a 52-week low of $20.03 on February 13, 2026, reflecting investor concerns about the company's future, suggesting a cautious approach before making investment decisions based on forthcoming earnings reports.
See More
Yelp CEO Sells 66,200 Shares for $1.7 Million
- Transaction Overview: Yelp CEO Jeremy Stoppelman executed a direct sale of 66,200 shares from February 3 to 5, 2026, generating approximately $1.7 million, indicating a gradual reduction in his holdings.
- Ownership Change: Following this transaction, Stoppelman's direct ownership decreased to 964,827 shares, representing a 30.64% reduction since May 2024, which may reflect a waning confidence in the company's future prospects.
- Market Context: Yelp's stock closed at $24.04 on the transaction date, down 39.6% year-over-year, while the average sale price was $25.36, slightly above the market close, highlighting investor concerns about Yelp's performance.
- Investor Considerations: Although the sale was conducted under a Rule 10b5-1 trading plan, investors should approach Yelp with caution, especially given the company's flat sales outlook for 2026 and potential competition from artificial intelligence.
See More
Yelp Inc. Reports Record Revenue and Strategic AI Initiatives in Q4 2025 Earnings Call
- Revenue Growth: Yelp achieved a net revenue of $1.46 billion in 2025, marking a 4% year-over-year increase, demonstrating the company's ongoing commitment to service and product innovation despite a 6% decline in RR&O category revenue.
- Profitability Improvement: Net income rose to $146 million with a 10% margin, and diluted earnings per share increased by 19% to $2.24, reflecting the company's success in cost control and operational efficiency.
- AI Strategic Initiatives: Management announced plans for 2026 to reconceive the Yelp experience, introduce new AI tools, and expand Yelp Assistant, which are expected to drive customer engagement and revenue growth, particularly in multi-location services.
- Future Outlook: The company anticipates Q1 2026 net revenue between $350 million and $355 million, with full-year guidance set at $1.455 billion to $1.475 billion, and while facing macroeconomic pressures, management remains optimistic about AI-driven growth.
See More
Yelp Scheduled to Announce Q4 Earnings on February 12
- Earnings Announcement Date: Yelp is set to release its Q4 2023 earnings report on February 12 after market close, with consensus EPS estimate at $0.90 and revenue forecast at $359.22 million, reflecting a 0.8% year-over-year decline.
- Performance Expectations: Over the past year, Yelp has only beaten EPS estimates 25% of the time, while it has consistently exceeded revenue expectations 100% of the time, indicating stability in revenue generation.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates, with five downward adjustments, while revenue estimates saw one upward and two downward revisions, suggesting market caution regarding Yelp's future performance.
- Market Reaction: Despite Yelp's strong revenue performance, the declining trend in ad clicks has raised concerns about its valuation, leading analysts to downgrade their ratings, reflecting apprehension about the company's growth prospects.
See More
