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Sep 30
Yelp Q3 2025 Earnings Report
Yelp reported its third quarter 2025 financial results, showcasing record net revenue and strong profitability.
Key Takeaways
Yelp delivered a strong third quarter in 2025, achieving record net revenue of $376 million, a 4% increase year-over-year. Net income also grew by 2% to $39 million, representing a 10% margin. Despite macro challenges, the company's Services segment continued to drive business performance, supported by strategic investments in AI transformation and disciplined expense management.
Net Revenue reached a record $376 million, increasing 4% year-over-year.
Net Income rose by 2% year-over-year to $39 million, achieving a 10% net income margin.
Adjusted EBITDA was $98 million, reflecting a 26% margin, a 3% decrease year-over-year.
The company updated its full-year 2025 Net Revenue outlook to $1.460 billion to $1.465 billion and Adjusted EBITDA outlook to $360 million to $365 million.
Yelp
Yelp
Forward Guidance
Yelp updated its full-year 2025 financial outlook, projecting increased net revenue and adjusted EBITDA, driven by continued execution of its product-led strategy and AI transformation.
Positive Outlook
- Updated 2025 Net Revenue outlook to $1.460 billion to $1.465 billion, indicating continued growth.
- Updated 2025 Adjusted EBITDA outlook to $360 million to $365 million, reflecting strong profitability expectations.
- Continued execution against its product-led strategy, including the rollout of over 35 new features and updates.
- Expansion of Yelp Assistant and AI-powered call answering services (Yelp Host and Yelp Receptionist) to accelerate AI transformation.
- Confidence in an ambitious roadmap and ability to drive long-term shareholder value through strategic investments and disciplined expense management.
Challenges Ahead
- Macroeconomic uncertainty, including labor and supply chain issues, inflation, and recessionary concerns, could affect consumer behavior and advertiser spending.
- Potential for advertiser turnover to worsen or consumer demand to significantly degrade.
- Challenges in maintaining and expanding its base of advertisers.
- Risks associated with operating effectively with a primarily remote workforce and attracting/retaining key talent.
- Limited operating history in an evolving industry and the ability to generate and maintain high-quality user content.