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Yelp Reports Third Quarter 2025 Results

Net Revenue increased by 4% year over year to a record $376 million

Net Income increased by 2% year over year to $39 million, reflecting a 10% margin

Adjusted EBITDA decreased 3% year over year to $98 million, reflecting a 26% margin1

Updates ranges of 2025 Net Revenue outlook to $1.460 billion to $1.465 billion and 2025 Adjusted
EBITDA2 outlook to $360 million to $365 million

SAN FRANCISCO--(BUSINESS WIRE)--November 6, 2025--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today announced its financial results for the third quarter ended September 30, 2025 in the Q3 2025 Shareholder Letter available on its Investor Relations website at yelp-ir.com.

“Our third quarter results reflect continued execution against our product-led strategy,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “With the recent rollout of more than 35 new features and updates, including the expansion of Yelp Assistant and our AI-powered call answering services Yelp Host and Yelp Receptionist, we are accelerating Yelp’s transformation with AI. We believe our trusted human-generated content, combined with new AI capabilities, position us well to capture the significant opportunities ahead. Looking forward, I’m confident in our ambitious roadmap and ability to drive long-term shareholder value.”

“Yelp delivered record net revenue and strong profitability in the third quarter,” said David Schwarzbach, Yelp’s chief financial officer. “While macro challenges persisted, Services continued to drive our business performance. We believe our strategic investments in our AI transformation and disciplined expense management position us well to deliver long-term growth.”

Quarterly Conference Call

Yelp will host a live Q&A session today at 2:00 p.m. Pacific Time to discuss its third quarter financial results and outlook for the fourth quarter and full year 2025. 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 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, the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States (“GAAP”).
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 San Francisco in 2004.
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 2025, its ability to capture the significant opportunities ahead, its expectations regarding its ambitious roadmap, including strategic investments in Yelp’s AI transformation and disciplined expense management, and its ability to drive long-term growth and shareholder value, 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 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 and Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov.

Investor Relations Contact:
Kate Krieger
ir@yelp.com

Press Contact:
Amber Albrecht
press@yelp.com



YELP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30,
2025		December 31,
2024
Assets
Current assets:
Cash and cash equivalents$231,071 $217,325 
Short-term marketable securities102,482 100,581 
Accounts receivable, net
153,481 155,325 
Prepaid expenses and other current assets63,264 43,648 
Total current assets550,298 516,879 
Property, equipment and software, net89,763 75,669 
Operating lease right-of-use assets17,550 24,112 
Goodwill135,683 130,980 
Intangibles, net51,491 58,787 
Other non-current assets145,099 177,140 
Total assets$989,884 $983,567 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities$168,552 $131,322 
Operating lease liabilities — current8,447 20,679 
Deferred revenue7,120 2,973 
Total current liabilities184,119 154,974 
Operating lease liabilities — long-term18,953 22,470 
Other long-term liabilities53,659 62,154 
Total liabilities256,731 239,598 
Stockholders’ equity:
Common stock
— — 
Additional paid-in capital1,982,069 1,903,598 
Treasury stock(2,579)(3,909)
Accumulated other comprehensive loss(7,832)(15,431)
Accumulated deficit(1,238,505)(1,140,289)
Total stockholders’ equity
733,153 743,969 
Total liabilities and stockholders’ equity
$989,884 $983,567 





YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Net revenue$376,038 $360,344 $1,104,966 $1,050,112 
Costs and expenses:
Cost of revenue(1)
36,288 32,382 106,563 90,414 
Sales and marketing(1)
150,740 144,631 441,636 442,715 
Product development(1)
78,137 77,748 240,404 251,055 
General and administrative(1)
45,462 49,605 143,487 139,471 
Depreciation and amortization12,526 9,326 37,241 28,841 
Total costs and expenses323,153 313,692 969,331 952,496 
Income from operations52,885 46,652 135,635 97,616 
Other income, net5,350 7,231 16,816 25,277 
Income before income taxes58,235 53,883 152,451 122,893 
Provision for income taxes18,911 15,443 44,647 32,263 
Net income attributable to common stockholders$39,324 $38,440 $107,804 $90,630 
Net income per share attributable to common stockholders
Basic$0.62 $0.57 $1.68 $1.34 
Diluted$0.61 $0.56 $1.63 $1.27 
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic63,025 67,219 64,136 67,862 
Diluted64,216 69,163 65,975 71,109 
(1) Includes stock-based compensation expense as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Cost of revenue$997 $1,301 $3,238 $4,099 
Sales and marketing7,052 8,588 21,986 25,905 
Product development16,607 20,887 53,862 67,074 
General and administrative8,225 8,696 26,039 26,318 
Total stock-based compensation$32,881 $39,472 $105,125 $123,396 



YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
20252024
Operating Activities
Net income$107,804 $90,630 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization37,241 28,841 
Provision for credit losses34,155 35,111 
Stock-based compensation105,125 123,396 
Amortization of right-of-use assets8,834 11,363 
Deferred income taxes29,829 (17,408)
Amortization of deferred contract cost17,963 18,604 
Asset impairment— 5,914 
Other adjustments, net2,523 (2,717)
Changes in operating assets and liabilities:
Accounts receivable(33,013)(44,095)
Prepaid expenses and other assets(32,692)(14,302)
Operating lease liabilities(18,284)(29,333)
Accounts payable, accrued liabilities and other liabilities28,062 8,838 
Net cash provided by operating activities287,547 214,842 
Investing Activities
Purchases of marketable securities — available-for-sale(60,987)(89,251)
Sales and maturities of marketable securities — available-for-sale59,782 83,380 
Purchases of other investments(700)(2,500)
Purchases of property, equipment and software(36,136)(26,337)
Other investing activities64 268 
Net cash used in investing activities(37,977)(34,440)
Financing Activities
Proceeds from issuance of common stock for employee stock-based plans12,295 13,436 
Taxes paid related to the net share settlement of equity awards(46,624)(58,044)
Repurchases of common stock(203,450)(188,399)
Net cash used in financing activities(237,779)(233,007)
Effect of exchange rate changes on cash, cash equivalents and restricted cash2,016 580 
Change in cash, cash equivalents and restricted cash13,807 (52,025)
Cash, cash equivalents and restricted cash — Beginning of period217,682 314,002 
Cash, cash equivalents and restricted cash — End of period$231,489 $261,977 



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 impairment charges, expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, and other items 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 the United States (“GAAP”). In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. Some of these limitations are:

•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 certain income and expense items, 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
September 30,		Nine Months Ended
September 30,
2025202420252024
Reconciliation of Net Income to Adjusted EBITDA:
Net income$39,324 $38,440 $107,804 $90,630 
Provision for income taxes18,911 15,443 44,647 32,263 
Other income, net(1)
(5,350)(7,231)(16,816)(25,277)
Depreciation and amortization12,526 9,326 37,241 28,841 
Stock-based compensation32,881 39,472 105,125 123,396 
Asset impairment(2)
— 5,914 — 5,914 
Expenses related to acquired indemnification obligation(2)(3)
(226)— 4,955 — 
Acquisition and integration costs(2)
— — 539 — 
Fees related to shareholder activism(2)
— — — 1,168 
Adjusted EBITDA$98,066 $101,364 $283,495 $256,935 
Net revenue$376,038 $360,344 $1,104,966 $1,050,112 
Net income margin10 %11 %10 %9 %
Adjusted EBITDA margin26 %28 %26 %24 %
(1) Includes the release of a $3.1 million reserve related to a one-time payroll tax credit in the nine months ended September 30, 2024.
(2) Recorded within general and administrative expenses on our condensed consolidated statements of operations.
(3) Represents expenses recorded in connection with an indemnification obligation assumed in the RepairPal acquisition, which we do not consider to be part of our ongoing operations. Amounts reflect the reversal of certain expenses recorded in prior periods as a result of the negotiated reduction of such expenses during the three months ended September 30, 2025. We expect to be indemnified for such expenses and will also exclude any such amounts from Adjusted EBITDA.
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
September 30,
Nine Months Ended
September 30,
2025202420252024
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Net cash provided by operating activities$131,518 $102,298 $287,547 $214,842 
Purchases of property, equipment and software(12,581)(9,763)(36,136)(26,337)
Free cash flow$118,937 $92,535 $251,411 $188,505 
Net cash used in investing activities$(11,357)$(11,394)$(37,977)$(34,440)
Net cash used in financing activities$(86,197)$(82,596)$(237,779)$(233,007)