Yelp Inc (YELP)

Price$21.51Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkThe low earnings and cash multiples offer upside despite falling core advertising.

About 55 million shares imply a market value near $1.17 billion. The latest four reported quarters produced $126.5 million of net income and roughly $297 million of free cash flow, meaning cash left after running and investing in the business. That is about nine times earnings and four times free cash flow. June cash of $94 million almost matched $100 million of revolving borrowings. Even treating roughly $118 million of stock-based pay as a cash-like cost leaves a low multiple, supporting Undervalued.

Big pictureProfit growth has stalled as local advertising weakens and new products absorb investment.

Revenue climbed from $873 million in 2020 to $1.46 billion in 2025, while operating income improved from a $39 million loss to a $185 million profit. Momentum has since weakened. Second-quarter 2026 revenue grew only 1%; advertising fell 3%, including a roughly 10% decline from restaurants, retail and other categories. Management expects 2026 revenue to remain near 2025’s level and its adjusted earnings measure to fall from $369 million to $315-$325 million. Exposure to local-business spending makes this slowdown partly cyclical.

Business strengthRecurring cash generation supports the business, though recent spending reduced its safety cushion.

Operating cash flow remained positive in every supplied year and reached $372 million in 2025; after $48 million of long-term investment spending, free cash flow was about $324 million. June 2026 current assets exceeded current liabilities by $126 million, although the Hatch acquisition and repurchases left cash roughly level with revolving borrowings. Yelp spent $291 million on buybacks in 2025 and about $200 million through July 2026, sharply reducing shares. However, substantial employee stock awards create dilution, and buybacks were later paused so debt could be repaid.

What could change the storyFaster new-product growth could unlock value, while continued advertising losses could erase it.

The bull case is measurable: other revenue nearly doubled to $33 million in the second quarter, Hatch reached a $35 million annual revenue pace, and Yelp targets a $250 million annual pace for other revenue by the end of 2028. The bear case is that ad clicks fell 5%, advertising revenue declined 3%, and quarterly net income dropped 28% as costs rose. Yelp also paid $271 million for Hatch, creating $220 million of goodwill. The valuation requires durable earnings, disciplined acquisitions and no prolonged collapse in advertising.

AI: News

Second-quarter slowdownQuarterly revenue edged higher, but weaker advertising and profits exposed the transition’s cost.

On August 6, Yelp reported second-quarter revenue of $376 million, up 1% and $8 million above its own forecast ceiling. Other revenue rose 98%, but advertising fell 3% and net income declined 28% to $32 million. Management narrowed full-year revenue guidance to $1.460-$1.470 billion and adjusted earnings guidance to $315-$325 million. The mixed result shows that newer products are growing quickly but remain too small to offset weaker advertising and increased technology spending.

ChatGPT content dealLicensing Yelp’s local data to ChatGPT creates a new revenue path and wider distribution.

On July 23, Axios reported that Yelp was licensing reviews, ratings, photos and business information to OpenAI for use in ChatGPT’s local recommendations. Financial terms were not disclosed. Separate market reporting said the shares rose about 8% in early trading, reflecting enthusiasm rather than proven economics. The agreement could turn conversational search from a traffic threat into a paid distribution channel, but investors still need evidence that licensing and quote requests generate meaningful, recurring profit.

Voice tools upgradedNew voice technology may improve Yelp’s paid business tools, but customer economics remain unproven.

On September 10, Yelp integrated OpenAI’s GPT-Live-1 voice model into Yelp Host and Hatch. The tools can handle interruptions, background speech and multiple languages while booking restaurant reservations or service appointments. Yelp said Host had processed more than one million calls since its October 2025 launch, but disclosed no revenue or retention figures. Shares rose roughly 2% that day; the timing suggests an association, not proof of causation. Durable value depends on businesses paying for these tools and remaining customers.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$1.46B	$1.41B	$1.34B	$1.19B	$1.03B	$872.9M	$1.01B	$942.8M	$850.8M	$716.1M	$549.7M	$377.5M	$233.0M	$137.6M	$83.3M	$47.7M
Gross profit	$1.32B	$1.29B	$1.22B	$1.09B	$953.7M	$815.7M	$951.8M	$884.9M	$780.3M	$655.7M	$498.7M	$353.2M	$216.4M	$127.6M	$77.4M	$44.6M
Gross margin	90.27%	91.24%	91.46%	91.14%	92.43%	93.45%	93.85%	93.86%	91.71%	91.57%	90.72%	93.54%	92.89%	92.78%	92.88%	93.43%
Research & development	$297.8M	$310.5M	$320.6M	$294.5M	$265.2M	$230.1M	$225.5M	$205.8M	$171.2M	$133.1M	$104.7M	$65.2M	$38.2M	$20.5M	$11.6M	$6.6M
Operating expenses	$1.28B	$1.26B	$1.26B	$1.14B	$1.00B	$911.7M	$978.7M	$916.9M	$671.2M	$718.1M	$571.0M	$366.5M	$241.8M	$156.3M	$99.5M	$57.2M
Operating income	$184.5M	$151.0M	$79.0M	$58.4M	$31.5M	−$38.8M	$35.5M	$25.9M	$179.6M	−$2.0M	−$21.3M	$11.1M	−$8.8M	−$18.8M	−$16.2M	−$9.5M
Operating margin	12.60%	10.70%	5.91%	4.89%	3.05%	−4.44%	3.50%	2.75%	21.11%	−0.28%	−3.88%	2.93%	−3.79%	−13.64%	−19.42%	−19.92%
EBITDA	$234.6M	$191.5M	$121.2M	$103.2M	$87.2M	$11.8M	$84.9M	$68.7M	$220.8M	$33.3M	$8.3M	$28.6M	$2.6M	−$11.5M	−$11.9M	−$7.2M
EBITDA margin	16.02%	13.56%	9.07%	8.65%	8.45%	1.35%	8.37%	7.29%	25.95%	4.65%	1.51%	7.59%	1.13%	−8.39%	−14.33%	−15.03%
Net income	$145.6M	$132.8M	$99.2M	$36.3M	$39.7M	−$19.4M	$40.9M	$55.4M	$153.0M	−$1.7M	−$32.9M	$36.5M	−$10.1M	−$19.1M	−$16.7M	−$9.6M
Net profit margin	9.94%	9.41%	7.42%	3.05%	3.84%	−2.23%	4.03%	5.87%	17.98%	−0.24%	−5.98%	9.66%	−4.32%	−13.89%	−20.01%	−20.04%
Basic EPSper basic share	$2.30	$1.97	$1.43	$0.51	$0.53	-$0.27	$0.55	$0.66	$1.87	-$0.02	-$0.44	$0.51	-$0.15	-$0.35	-$1.10	-$2.84
Diluted EPSper diluted share	$2.24	$1.88	$1.35	$0.50	$0.50	-$0.27	$0.52	$0.62	$1.76	-$0.02	-$0.44	$0.48	-$0.15	-$0.35	-$1.10	-$2.84

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

17.57%of listed shares

BlackRock, Inc.9.66M shares · Jun 30, 2026

View holders

Top 20 reported holders of YELP
Holder	% owned
BlackRock, Inc.	17.57%9.66M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	7.58%4.16M shares
DIMENSIONAL FUND ADVISORS LP	5.71%3.14M shares
LSV ASSET MANAGEMENT	5.05%2.78M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.30%2.36M shares
STATE STREET CORP	4.12%2.26M shares
ACADIAN ASSET MANAGEMENT LLC	3.95%2.17M shares
AMERICAN CENTURY COMPANIES INC	3.38%1.86M shares
GEODE CAPITAL MANAGEMENT, LLC	3.36%1.85M shares
Allianz Asset Management GmbH	2.74%1.51M shares
FMR LLC	2.29%1.26M shares
MORGAN STANLEY	2.28%1.25M shares
JUPITER ASSET MANAGEMENT LTD	2.17%1.19M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.90%1.04M shares
GOLDMAN SACHS GROUP INC	1.80%991.38K shares
Stoppelman Jeremy	≈1.71%938.93K shares
Optimus Prime Fund Management Co., Ltd.	1.55%850K shares
RENAISSANCE TECHNOLOGIES LLC	1.54%844.23K shares
MILLENNIUM MANAGEMENT LLC	1.52%833.7K shares
Man Group plc	1.48%815.31K shares

Percentages use 54.98M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)106$29.21M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 5, 2026Form 4 · 10b5-1	Amara CarmenChief People Officer	SellCommon Stock	1.0K	$24.00	$24.0K	130.7K
Jun 1, 2026Form 4 · 10b5-1	Barone ChristineDirector	SellCommon Stock	15.5K	$22.95	$355.9K	15.9K
Jun 1, 2026Form 4 · 10b5-1	Amara CarmenChief People Officer	SellCommon Stock	500	$22.84	$11.4K	131.7K
May 21, 2026Form 4 · 10b5-1	Amara CarmenChief People Officer	SellCommon Stock	500	$22.35	$11.2K	132.2K
May 1, 2026Form 4 · 10b5-1	Saldanha CraigChief Product Officer	SellCommon Stock	1.2K	$28.17	$33.8K	266.6K

Review ownership filings at SEC.gov ↗

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