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Jun 30
Yelp Q2 2025 Earnings Report
Yelp reported its second quarter 2025 results, showcasing increased revenue and profitability driven by solid execution of its product-led strategy and AI initiatives.
Key Takeaways
Yelp delivered a strong second quarter in 2025, achieving record net revenue of $370 million, a 4% increase year-over-year. Net income grew by 16% to $44 million, with an expanded net income margin of 12%. Adjusted EBITDA also saw significant growth, rising 10% to $100 million, reflecting a 27% margin. The company highlighted encouraging momentum from its AI initiatives, including Yelp Assistant and Yelp Host, and maintained a disciplined financial approach despite a moderating macroeconomic environment.
Net Revenue reached a record $370 million, marking a 4% year-over-year increase.
Net Income increased by 16% year-over-year to $44 million, with a 12% net income margin.
Adjusted EBITDA grew 10% year-over-year to $100 million, achieving a 27% margin.
The company is seeing encouraging momentum from its AI initiatives, including Yelp Assistant and Yelp Host.
Yelp
Yelp
Forward Guidance
Yelp has narrowed its full-year 2025 net revenue outlook and adjusted EBITDA outlook, reflecting a disciplined financial approach while continuing to invest in its product-led strategy.
Positive Outlook
- Narrows range of 2025 Net Revenue outlook to $1.465 billion to $1.475 billion.
- Narrows Adjusted EBITDA outlook to $350 million to $360 million.
- Continued confidence in product innovation and focus on Services to drive long-term shareholder value.
- Disciplined financial approach expected to drive financial performance.
- Ongoing momentum from AI initiatives like Yelp Assistant and Yelp Host.
Challenges Ahead
- Overall growth moderated amid an uncertain macroeconomic environment.
- Macroeconomic uncertainty, including inflation, interest rates, and labor issues, could affect consumer behavior and advertiser spending.
- Ability to maintain and expand advertiser base, especially if turnover worsens or demand degrades, is a risk.
- Limited operating history in an evolving industry poses a challenge.
- Ability to generate and maintain sufficient high-quality content from users is crucial for future performance.