Yelp reported fourth‑quarter 2025 results that included a revenue of $359.99 million, a 1% year‑over‑year decline to $360 million, and a net income of $38 million, down 10% from the same quarter a year earlier. Adjusted EBITDA fell 15% to $86 million, and earnings per share of $0.61 beat the consensus estimate of $0.47 by $0.14, a 29.8% beat. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin services advertising, which offset the decline in the Restaurants, Retail & Other segment.
Services advertising revenue grew 2.9% year‑over‑year to $231 million, while the Restaurants, Retail & Other segment saw an 11.6% decline to $107 million, reflecting persistent macro‑economic headwinds and reduced advertiser demand. Other revenue, which includes data licensing and SaaS subscriptions, jumped 33% to $22 million, underscoring the growing importance of non‑advertising streams.
Full‑year 2025 figures show net revenue of $1.46 billion, up 4% from the prior year, and net income of $146 million. Adjusted EBITDA rose 3% to $369 million. Services advertising revenue reached a record $948 million, an 8% increase, while other revenue grew 17% year‑over‑year. The mix shift toward services and the expansion of AI‑powered tools helped maintain profitability despite the RR&O slowdown.
For 2026, Yelp guided net revenue to a range of $1.455 billion to $1.475 billion, essentially flat to slightly negative growth compared with 2025. Adjusted EBITDA guidance of $310 million to $330 million is lower than the 2025 level, reflecting higher investments in AI transformation, paid‑traffic acquisition, and the integration of the Hatch acquisition. Management’s cautious outlook signals concern about near‑term macro conditions while maintaining confidence in the long‑term AI strategy.
Investors focused on the tepid guidance, noting that the flat revenue outlook and lower EBITDA target highlight margin pressure from increased AI spending and the ongoing integration of Hatch. Analysts highlighted the company’s strong earnings beat but cautioned that the guidance suggests a slowdown in advertising demand and continued headwinds in the RR&O segment.
"Yelp delivered record net revenue and strong profitability in 2025, driven by our focus on services and accelerated pace of product innovation." – Jeremy Stoppelman, Co‑Founder, CEO & Director
"The acquisition of Hatch is an important step forward in Yelp's AI transformation, accelerating our strategy to bring powerful new AI tools to local businesses." – Jeremy Stoppelman, Co‑Founder, CEO & Director
"We expect many of the same trends that characterized 2025 to persist into 2026, continuing to negatively impact advertising revenue for the year." – David Schwarzbach, Chief Financial Officer
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