Yelp Stock Earnings Reports

Key points for investors: Yelp reported Q1 2026 net revenue of $361 million, up 1% year-over-year, net income of $18 million (5% margin, down 27% YoY) and adjusted EBITDA of $79 million (22% margin, down 7% YoY). Services ad revenue was up 1% to $234M while Restaurants, Retail & Other (RR&O) ad revenue declined 11% to $99M. Paying advertising locations fell 6% YoY to ~485k; ad clicks declined 10% YoY while average CPC rose 8%. "Other revenue" grew 75% YoY to a record $29M driven by Hatch, data licensing and DoorDash food-ordering. Product/AI updates accelerated: Yelp launched 35+ features including a Yelp Assistant across all categories (Yelp Assistant now accounts for ~15% of Request‑A‑Quote projects), Yelp Host (AI phone answering) surpassed a 1.5M annual run rate of calls handled in April, and Hatch had a March run‑rate revenue of ~$34M (up 92% YoY). Yelp is expanding data licensing partnerships (announced deals/expansions with OpenAI, Amazon Alexa, Apple Maps, Microsoft Bing, Meta.ai, Yahoo) to distribute Yelp content and drive new revenue/traffic opportunities. Management is reallocating resources to AI-driven revenue streams (targeting a $250M annual run rate in other revenue by end of 2028) while expecting to invest incrementally in 2026 (product, go‑to‑market, marketing), and to realize operational/AI-driven productivity gains that should expand margins over time. Capital allocation: repurchased $125M of shares in Q1 (~12% YoY decline in diluted shares outstanding) with $414M remaining authorization. Outlook: Q2 revenue $363M–$368M; FY revenue $1.455B–$1.475B. Q2 adjusted EBITDA $70M–$75M; FY adjusted EBITDA $310M–$330M (guidance excludes certain Hatch integration payments). Management reiterated uncertainty from macro / advertiser budgets (notably March softness tied to geopolitical events) and is maintaining conservative guidance while investing in long‑term AI initiatives and margin expansion (including a target to reduce stock‑based comp to <6% of revenue by end of 2027).