At a glance
Yelp Inc is worth $999.5M, about 8 times its fiscal 2025 earnings. Revenue grew 3.7% to $1.46B in fiscal 2025, with 9.9% kept as profit; over 5 years it has grown 10.9% a year. It pays no dividend; it spent $1.20B buying back its shares over FY2021–FY2025. The stock returned −43.3% over the past year with dividends reinvested and −14.1% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 58.3% in the 2020 crash (S&P 500: 33.7%) and 27.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 2 months after the lows.
The business in plain English
Yelp runs a website and app where consumers look up local businesses, from restaurants to auto repair shops, and read ratings and reviews. Its platform holds more than 300 million ratings and reviews written by users over the company's 20-plus years. That trusted content draws a large audience, and Yelp earns money by selling advertising to the businesses those people are searching for.
Advertising made up 95% of revenue in 2025, when total revenue was about $1.46 billion. Most ad revenue comes from Yelp Ads, which are priced per click: a business pays each time someone clicks its ad, and an automated auction sets the price. Businesses also pay for page upgrades, such as removing competitor ads from their own page, and auto repair shops pay fees to join the RepairPal network.
Yelp groups revenue by the kind of business it serves. Services businesses, such as home and local services, supplied about $948 million, or 64.7% of 2025 revenue. Restaurants, Retail & Other supplied about $444 million, or 30.3%, and the remaining 5% came from other sources. Yelp is expanding beyond ads with AI tools, including its purchase of Hatch, an AI lead-management platform for Services businesses, and plans more deals licensing its review content to AI companies.
Price history
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YELP -43.3% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Services | $947.6M | 64.7% |
| Restaurants, Retail & Other | $443.7M | 30.3% |
| Other | $73.7M | 5% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $375.5M, up 1.4% from a year earlier, and net income was $31.7M (-28.2%).
- For fiscal 2025, revenue was $1.46B (+3.7% year over year; +10.9% a year from FY2020 to FY2025) with a 9.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +10.9% good |
|---|---|
| Operating margin | 12.6% watch |
| Free cash flow margin | 22.1% good |
| Return on equity (FY2025) | 20.5% good |
| Return on assets (FY2025) | 15.2% good |
| Cash and investments | $94.1M (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $872.9M | $-19.4M | $144.7M |
| FY2021 | $1.03B | $39.7M | $184.4M |
| FY2022 | $1.19B | $36.3M | $160.3M |
| FY2023 | $1.34B | $99.2M | $279.4M |
| FY2024 | $1.41B | $132.8M | $248.5M |
| FY2025 | $1.46B | $145.6M | $323.7M |
Valuation snapshot
| Market value | $999.5M |
|---|---|
| P/E ratio | 8.2 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Yelp’s market value went from $2.99B at the end of 2016 to $999.5M on Oct 28, 2026, down 67%; since the end of 2025 it is down 47%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $999.5M | -46.5% |
| 2025 | $1.87B | -26.6% |
| 2024 | $2.55B | -21.4% |
| 2023 | $3.24B | +70.1% |
| 2022 | $1.91B | -28.0% |
| 2021 | $2.65B | +9.5% |
| 2020 | $2.42B | -1.1% |
| 2019 | $2.45B | -15.9% |
| 2018 | $2.91B | -16.4% |
| 2017 | $3.48B | +16.3% |
| 2016 | $2.99B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| YELP price data to Oct 28, 2026 | -39.4% | -43.3% | -23.4% | -14.1% | -5.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -39.4% |
| 2025 | -21.5% |
| 2024 | -18.3% |
| 2023 | +73.2% |
| 2022 | -24.6% |
| 2021 | +10.9% |
| 2020 | -6.2% |
| 2019 | -0.5% |
| 2018 | -16.6% |
| 2017 | +10.0% |
| 2016 | +32.4% |
| 2015 | -47.4% |
| 2014 | -20.6% |
| 2013 | +265.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 45.6% over that stretch · deepest drop along the way 58.3%, back to its old high 10.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6% over that stretch · deepest drop along the way 27.6%, back to its old high 2.4 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 14 sales ($2.1M), 14 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jul 2, 2026 | Carmen Amara Chief People Officer | sell (plan) | $627K |
| Jun 1, 2026 | Christine Barone Director | sell (plan) | $356K |
| Jun 30, 2026 | Joseph R Nachman Chief Operating Officer | sell (plan) | $225K |
| Aug 21, 2026 | David A Schwarzbach Chief Financial Officer | sell (plan) | $204K |
| Oct 21, 2026 | David A Schwarzbach Chief Financial Officer | sell (plan) | $150K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14% | Sep 30, 2025 |
| Vanguard Portfolio Management | 6.81% | Sep 30, 2026 |
| Dimensional Fund Advisors LP | 5.7% | Jun 30, 2026 |
| LSV ASSET MANAGEMENT | 5.1% | Jun 30, 2026 |
| Vanguard Capital Management | 4.94% | Sep 30, 2026 |
ETFs with the most weight in YELP
| PSCU Invesco S&P SmallCap Utilities & Communication Services ETF | 3.55% |
| GRPZ Invesco S&P SmallCap 600 GARP ETF | 1.25% |
| SOCL Global X Social Media ETF | 1% |
| FSCS First Trust SMID Capital Strength ETF | 0.96% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.92% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.9% |
| VLLU Harbor AlphaEdge Large Cap Value ETF | 0.75% |
| SEIS SEI Select Small Cap ETF | 0.73% |
What could go wrong
- Nearly all revenue comes from advertising. Advertising made up 95% of revenue in 2025. If local businesses decide Yelp ads do not pay off compared with other options, revenue falls directly, with little else to cushion it.
- Restaurant and retail advertisers keep pulling back. Ad revenue from Restaurants, Retail & Other businesses fell 6% in 2025, and paying ad locations fell 3%. Yelp expects these businesses' tough conditions to persist and hurt results in 2026.
- Services demand is softening too. Services businesses supplied 64.7% of 2025 revenue. As consumers delayed or scaled down services projects, demand from these advertisers was weaker than usual and fell from the third to the fourth quarter.
- Reliance on search engines that also compete. Yelp relies on search engines and app stores to send it visitors, and some of those companies offer competing products. If Yelp's links appear less prominently, traffic and ad revenue could drop.
- AI could reshape how people find businesses. As local search shifts to AI chatbots and new devices, Yelp is betting on its own AI products and data licensing. The 10-K warns these plans may not succeed or deliver expected benefits.
- Flat traffic and reliance on user reviews. Yelp's value rests on reliable, user-written reviews that draw visitors. Consumer traffic did not grow in 2025, and fewer visits or weaker content would mean fewer ads shown and less value for advertisers.
Recent events
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Other company announcement
- Major agreement signed; New debt or financial obligation
- Quarterly results released
For income and retirement investors
Yelp pays no dividend, and its 10-K for 2025 says it does not plan to pay one for the foreseeable future. That means no regular income: any return depends on the share price rising. Yelp instead returns cash through share repurchases, which reduce the number of shares outstanding. It spent about $1.2 billion on repurchases from fiscal 2021 through 2025, and the share count fell 26.2% between August 2021 and July 31, 2026. In February 2026 the board authorized another $500 million.
The shares have fallen hard in downturns. In the 2020 COVID crash they dropped 58.3% between February 20 and March 18, 2020, and took about 10 months to recover. In the 2022 bear market (a market decline of 20% or more), they fell 27.6% by May 24, 2022, then recovered by August 5. As of October 28, 2026, the price was down 43.3% over one year. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Yelp make money?
Mostly from advertising. Ads sold to businesses supplied 95% of Yelp's roughly $1.46 billion in revenue in 2025. The main product is Yelp Ads, charged per click, with prices set by an automated auction. Businesses also pay for page upgrades, such as hiding competitor ads on their own page. By customer type, Services businesses supplied 64.7% of 2025 revenue and Restaurants, Retail & Other supplied 30.3%.
Does Yelp pay a dividend?
No. Yelp pays no dividend, and its 10-K filed February 27, 2026 says it does not plan to pay one for the foreseeable future. It returns cash through share repurchases instead, spending about $1.2 billion from fiscal 2021 through 2025, including about $291 million in 2025. In February 2026 the board authorized another $500 million. Investors who rely on their holdings for regular income would receive none from this stock.
Is Yelp profitable?
Yes. In 2025 Yelp earned net income of about $145.6 million on revenue of about $1.46 billion, a net margin of 9.9%. Diluted earnings per share were $2.24, compared with a loss of $0.27 per share in 2020. Free cash flow, the cash left after operating costs and capital spending, was about $324 million. Growth has slowed: revenue rose 3.7% in 2025, and net income fell 28.2% year over year in the quarter ended June 30, 2026.
How has Yelp stock performed?
It has lost value over most periods measured. As of October 28, 2026, the shares were down 43.3% over one year, 55% over three years and 53% over five years. Over roughly 14.7 years of trading history the price was down 1.9% in total, and its worst peak-to-trough fall was 85.3%. At that price, the shares traded at about 8.2 times 2025 earnings, a low price-to-earnings ratio (share price divided by yearly earnings per share) that often reflects investor doubts about growth.
What is Yelp doing with AI?
Yelp is building AI into products for both consumers and businesses. Its 2026 roadmap, set out in the 10-K, includes a fuller version of Yelp Assistant, an AI chatbot meant to take users from searching to acting, such as hiring a business. It acquired Hatch, an AI lead-management platform for Services businesses, to add subscription revenue beyond advertising. It also plans more deals to license its review content to AI search providers. The 10-K warns that its AI efforts may not deliver the expected benefits.