Yelp Inc. Reports Record Revenue and Strategic AI Initiatives in Q4 2025 Earnings Call
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy YELP?
Source: seekingalpha
- 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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy YELP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on YELP
Wall Street analysts forecast YELP stock price to rise
7 Analyst Rating
2 Buy
3 Hold
2 Sell
Hold
Current: 23.210
Low
30.00
Averages
33.29
High
40.00
Current: 23.210
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 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
Oversold Stocks in Communication Services Sector Present Buying Opportunities
- Buying Opportunity: According to Benzinga Pro, stocks in the communication services sector with an RSI below 30 are considered oversold, presenting potential investment opportunities in undervalued companies.
- RSI Indicator Insight: The Relative Strength Index (RSI) serves as a momentum indicator that compares a stock's strength on up days versus down days, providing traders with insights into potential short-term performance and buy signals.
- Key Oversold Stocks: Major players in this sector, including Douyu International Holdings Ltd (NASDAQ:DOYU), Angi Inc (NASDAQ:ANGI), and Yelp Inc (NYSE:YELP), exhibit RSIs near or below 30, indicating they may be undervalued.
- Market Data Source: This information is sourced from Benzinga APIs, which, while not providing investment advice, offers critical market insights that can assist investors in making more informed decisions.
See More
Yelp (YELP) Acquires Hatch for $270 Million to Boost AI Transformation
- Acquisition Overview: Yelp announced its acquisition of AI-driven customer management platform Hatch for approximately $270 million in cash, with an additional $30 million in employee retention payments over two to three years, highlighting the company's commitment to the AI sector.
- Strategic Importance: CEO Jeremy Stoppelman stated that this acquisition is a significant step in Yelp's AI transformation, aimed at accelerating the strategy to provide powerful new AI tools to local businesses and enhancing its SaaS offerings.
- Hatch Performance Highlights: As of November 2025, Hatch achieved about $25 million in annual recurring revenue, demonstrating its effectiveness in improving customer communication and conversion rates while helping businesses reduce overhead costs.
- Transaction Timeline: Yelp expects the deal to close in early February, at which point Hatch will become a wholly owned subsidiary of Yelp, further integrating its AI solutions to enhance market competitiveness.
See More
Yelp Unveils 2026 Top 100 Restaurants in the U.S., Ci Siamo Takes the Top Spot
- List Announcement: Yelp has released its 2026 Top 100 Restaurants list, with Ci Siamo in New York City taking the top spot for its classic Roman pasta, highlighting strong consumer demand for high-quality dining experiences.
- Regional Distribution: Texas leads the list with 17 restaurants, including seven in Houston, reflecting the vibrant growth of the local dining culture and contributing to economic development in the area.
- Pricing Trends: Approximately 65% of the honorees are priced under $30 per person, indicating a consumer preference for budget-friendly yet high-quality meals, which also promotes diversity in the dining industry.
- Technological Innovation: Yelp has introduced new AI tools, such as Yelp Assistant and Menu Vision, enhancing user dining experiences by making it easier for consumers to discover and choose restaurants, thereby strengthening the platform's competitive edge.
See More
Yelp Now Offers August 2026 Options
Put Contract Overview: The $30.00 put contract for YELP has a bid of 80 cents, allowing investors to buy shares at a cost basis of $29.20, which is a 4% discount from the current price of $31.26. There is a 64% chance the contract may expire worthless, offering a potential 2.67% return on cash commitment.
Call Contract Overview: The $33.00 call contract has a bid of $1.30, and if shares are purchased at $31.26 and the call is sold, it could yield a total return of 9.72% if exercised. There is a 48% chance this contract may also expire worthless, providing a potential 4.16% additional return.
Volatility Insights: The implied volatility for the put contract is 37% and for the call contract is 36%, while the actual trailing twelve-month volatility is calculated at 35%.
YieldBoost Concept: Both the put and call contracts offer a "YieldBoost," with the put providing a 3.96% annualized return if it expires worthless, and the call offering a 6.17% annualized return under similar conditions.
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
Oversold Stocks in Communication Services Sector Present Buying Opportunities
- Buying Opportunity: According to Benzinga Pro, stocks in the communication services sector with an RSI below 30 are considered oversold, presenting potential investment opportunities in undervalued companies.
- RSI Indicator Insight: The Relative Strength Index (RSI) serves as a momentum indicator that compares a stock's strength on up days versus down days, providing traders with insights into potential short-term performance and buy signals.
- Key Oversold Stocks: Major players in this sector, including Douyu International Holdings Ltd (NASDAQ:DOYU), Angi Inc (NASDAQ:ANGI), and Yelp Inc (NYSE:YELP), exhibit RSIs near or below 30, indicating they may be undervalued.
- Market Data Source: This information is sourced from Benzinga APIs, which, while not providing investment advice, offers critical market insights that can assist investors in making more informed decisions.
See More
Yelp (YELP) Acquires Hatch for $270 Million to Boost AI Transformation
- Acquisition Overview: Yelp announced its acquisition of AI-driven customer management platform Hatch for approximately $270 million in cash, with an additional $30 million in employee retention payments over two to three years, highlighting the company's commitment to the AI sector.
- Strategic Importance: CEO Jeremy Stoppelman stated that this acquisition is a significant step in Yelp's AI transformation, aimed at accelerating the strategy to provide powerful new AI tools to local businesses and enhancing its SaaS offerings.
- Hatch Performance Highlights: As of November 2025, Hatch achieved about $25 million in annual recurring revenue, demonstrating its effectiveness in improving customer communication and conversion rates while helping businesses reduce overhead costs.
- Transaction Timeline: Yelp expects the deal to close in early February, at which point Hatch will become a wholly owned subsidiary of Yelp, further integrating its AI solutions to enhance market competitiveness.
See More
Yelp Unveils 2026 Top 100 Restaurants in the U.S., Ci Siamo Takes the Top Spot
- List Announcement: Yelp has released its 2026 Top 100 Restaurants list, with Ci Siamo in New York City taking the top spot for its classic Roman pasta, highlighting strong consumer demand for high-quality dining experiences.
- Regional Distribution: Texas leads the list with 17 restaurants, including seven in Houston, reflecting the vibrant growth of the local dining culture and contributing to economic development in the area.
- Pricing Trends: Approximately 65% of the honorees are priced under $30 per person, indicating a consumer preference for budget-friendly yet high-quality meals, which also promotes diversity in the dining industry.
- Technological Innovation: Yelp has introduced new AI tools, such as Yelp Assistant and Menu Vision, enhancing user dining experiences by making it easier for consumers to discover and choose restaurants, thereby strengthening the platform's competitive edge.
See More
Yelp Now Offers August 2026 Options
Put Contract Overview: The $30.00 put contract for YELP has a bid of 80 cents, allowing investors to buy shares at a cost basis of $29.20, which is a 4% discount from the current price of $31.26. There is a 64% chance the contract may expire worthless, offering a potential 2.67% return on cash commitment.
Call Contract Overview: The $33.00 call contract has a bid of $1.30, and if shares are purchased at $31.26 and the call is sold, it could yield a total return of 9.72% if exercised. There is a 48% chance this contract may also expire worthless, providing a potential 4.16% additional return.
Volatility Insights: The implied volatility for the put contract is 37% and for the call contract is 36%, while the actual trailing twelve-month volatility is calculated at 35%.
YieldBoost Concept: Both the put and call contracts offer a "YieldBoost," with the put providing a 3.96% annualized return if it expires worthless, and the call offering a 6.17% annualized return under similar conditions.
See More
