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Dec 31, 2025
Yelp Q4 2025 Earnings Report
Yelp reported record net revenue and strong profitability in Q4 2025, driven by growth in Services and product innovation.
Key Takeaways
Yelp Inc. announced record net revenue and strong profitability for the fourth quarter and full year ended December 31, 2025. The company achieved record net revenue of $359.989 million for the quarter and $1.46 billion for the full year, with net income up 10% to $146 million for the full year. This performance was driven by growth in Services and product innovation, including over 55 new features and updates. Yelp is accelerating investment in AI transformation, highlighted by the acquisition of Hatch and an agreement with OpenAI.
Net revenue reached a record of $359.989 million in Q4 2025, up 4% year over year.
Net income for Q4 2025 was $37.796 million, representing a 10% net income margin.
Adjusted EBITDA grew by 3% year over year to $85.685 million in Q4 2025, representing a 24% adjusted EBITDA margin.
Services advertising revenue increased 8% year over year to a record $948 million for the full year, driving overall growth.
Revenue by Segment
Forward Guidance
Yelp expects 2026 Net Revenue to be in the range of $1.455 billion to $1.475 billion and Adjusted EBITDA in the range of $310 million to $330 million, as the company continues to invest in its AI transformation.
Positive Outlook
- Continued investment in AI transformation is expected to drive future growth.
- Agreement with OpenAI extends the reach of trusted content across the AI ecosystem.
- Focus on making Yelp more conversational and action-oriented for consumers.
- New AI tools are expected to help businesses grow and operate more efficiently.
- Disciplined investment strategy aims to drive long-term shareholder value.
Challenges Ahead
- Expected 2026 Net Revenue range ($1.455 billion to $1.475 billion) is slightly below the 2025 record of $1.46 billion at the lower end.
- Expected 2026 Adjusted EBITDA range ($310 million to $330 million) is lower than the 2025 Adjusted EBITDA of $369 million.
- Economic uncertainties could continue to impact consumer demand and advertiser spending.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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