Yelp Delivers Record Net Revenue in 2025 Accelerating Investment in AI Transformation

2/12/26 4:05:00 PM ET

$YELP

Other Consumer Services

Consumer Discretionary

Get the next $YELP alert in real time by email

2025 Net Revenue reached a record of $1.46 billion

2025 Net Income up 10% to $146 million

2025 Adjusted EBITDA increased 3% to $369 million¹

Expects 2026 Net Revenue in the range of $1.455 billion to $1.475 billion and Adjusted EBITDA²in the range of $310 million to $330 million

Announces agreement with OpenAI

Yelp Inc. (NYSE:YELP), the company that connects people with great local businesses, today posted its financial results for the fourth quarter and full year ended Dec. 31, 2025 in the Shareholder Letter available on its Investor Relations website at yelp-ir.com.

"Yelp delivered record net revenue and strong profitability in 2025, driven by growth in Services and product innovation, with more than 55 new features and updates introduced in the year," said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. "Looking ahead, we are making Yelp more conversational and action-oriented for consumers, while helping businesses grow and operate more efficiently with new AI tools, underscored by our recent acquisition of Hatch. We are also extending the reach of our trusted content to power local discovery across the AI ecosystem, and we recently signed an agreement with OpenAI. We enter 2026 focused on driving growth by investing in our AI transformation."

"Our 2025 results reflect both disciplined execution and the margin potential of our product-led strategy," said David Schwarzbach, Yelp's chief financial officer. "Net income increased 10% year over year to $146 million, representing a 10% net income margin, and earnings per share grew 19% to $2.24. Services advertising revenue continued to drive overall growth, increasing 8% year over year to a record $948 million, amid a challenging environment for local businesses, particularly in restaurants, retail and other categories. Other revenue also accelerated significantly, up 17% year over year, driven by growth in transactions, SaaS subscriptions, and data licensing. Looking ahead, we remain committed to disciplined investment in our AI transformation to drive long-term shareholder value."

2025 Key Business Highlights

Yelp's focus on Services and product innovation drove 2025 results:

Net revenue increased by 4% year over year to a record $1.46 billion, $2 million above the midpoint of the updated range Yelp provided in November 2025 and $13 million below the midpoint of the initial range we provided in February 2025.
Net income increased by 10% year over year to $146 million, representing a 10% net income margin.
Adjusted EBITDA grew by 3% year over year to $369 million, $7 million above the midpoint of the updated range the company provided in November 2025 and $17 million above the midpoint of the initial range provided in February 2025, representing a 25% adjusted EBITDA margin.¹
In Services, advertising revenue increased 8% year over year to a record $948 million.
Advertising revenue from Restaurants, Retail & Other ("RR&O") businesses decreased by 6% year over year to $444 million.
With a decrease in RR&O paying advertising locations offsetting growth in Services paying advertising locations, total paying advertising locations for the year decreased by 3%, while average revenue per location reached an annual record.
Ad clicks for the year decreased 7% from 2024, driven primarily by lower consumer demand due to economic uncertainties and, to a lesser extent, reduced spend on paid project acquisition in 2025 compared to 2024.
Average cost per click increased 10% year over year, reflecting growth in advertiser demand in our Services categories and lower overall consumer demand.
On the consumer side of our business, Yelp continued to grow our trusted review content through contributions from our large user base. Yelp users contributed 22 million new reviews in 2025, resulting in 330 million cumulative reviews, up 7% from the prior year.

Outlook

The company expects 2026 Net Revenue will be in the range of $1.455 billion to $1.475 billion as Yelp continues to invest in its AI transformation. The company also expects 2026 Adjusted EBITDA² will be in the range of $310 million to $330 million.

Quarterly Conference Call

Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss the fourth quarter and full year 2025 financial results and outlook for the first quarter and full year 2026. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website.

______________________________

¹ See "Non-GAAP Financial Measures" for the definitions of Adjusted EBITDA and Adjusted EBITDA margin, as well as reconciliations of Adjusted EBITDA to Net income (loss) and Adjusted EBITDA margin to Net income (loss) margin, in each case the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles in the United States ("GAAP").

² Yelp has not reconciled its Adjusted EBITDA outlook to GAAP Net income (loss) because it does not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other income, net and Provision for (benefit from) income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because Yelp cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss). For more information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" below.

About Yelp

Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions of people rely on Yelp for useful and trusted local business information, reviews and photos to help inform their spending decisions. As a one-stop local platform, Yelp helps consumers easily discover, connect and transact with businesses across a broad range of categories by making it easy to request a quote for a service, book a table at a restaurant, and more. Yelp was founded in San Francisco in 2004.

Yelp intends to make future announcements of material financial and other information through its Investor Relations website. Yelp will also, from time to time, disclose this information through press releases, filings with the Securities and Exchange Commission, conference calls, or webcasts, as required by applicable law.

Forward Looking Statements

This press release contains forward-looking statements relating to, among other things, Yelp's future performance, including its expected financial results for 2026, its expectations regarding its AI transformation, changes to its product offerings and its ability to drive shareholder value over the long term, that are based on its current expectations, forecasts and assumptions that involve risks and uncertainties.

Yelp's actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:

macroeconomic uncertainty — including related to labor and supply chain issues, inflation and recessionary concerns, interest rates and tariffs — and its effect on consumer behavior, user activity and advertiser spending;
Yelp's ability to maintain and expand its base of advertisers, particularly if advertiser turnover substantially worsens and/or consumer demand significantly degrades;
Yelp's ability to realize the anticipated benefits of its acquisition of Hatch;
Yelp's ability to drive continued growth through its strategic initiatives;
Yelp's ability to continue to operate effectively with a primarily remote work force and attract and retain key talent;
Yelp's limited operating history in an evolving industry; and
Yelp's ability to generate and maintain sufficient high-quality content from its users.

Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp's business, operating results and stock price included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Yelp's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q at yelp-ir.com or the SEC's website at sec.gov.

YELP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	December 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	216,062		$	217,325
Short-term marketable securities		103,290			100,581
Accounts receivable, net		153,224			155,325
Prepaid expenses and other current assets		42,359			43,648
Total current assets		514,935			516,879
Property, equipment and software, net		91,685			75,669
Operating lease right-of-use assets		16,046			24,112
Goodwill		135,847			130,980
Intangibles, net		49,038			58,787
Other non-current assets		150,927			177,140
Total assets	$	958,478		$	983,567

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	158,789		$	131,322
Operating lease liabilities — current		7,426			20,679
Deferred revenue		5,845			2,973
Total current liabilities		172,060			154,974
Operating lease liabilities — long-term		17,451			22,470
Other long-term liabilities		58,115			62,154
Total liabilities		247,626			239,598

Stockholders' equity:
Preferred stock		—			—
Common stock		—			—
Additional paid-in capital		2,010,948			1,903,598
Treasury stock		(999	)		(3,909	)
Accumulated other comprehensive loss		(7,677	)		(15,431	)
Accumulated deficit		(1,291,420	)		(1,140,289	)
Total stockholders' equity		710,852			743,969
Total liabilities and stockholders' equity	$	958,478		$	983,567

YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended December 31,				Year Ended December 31,
		2025		2024		2025		2024
Net revenue	$	359,989	$	361,952	$	1,464,955	$	1,412,064

Costs and expenses:
Cost of revenue⁽¹⁾		36,033		33,270		142,596		123,684
Sales and marketing⁽¹⁾		150,471		143,263		592,107		585,978
Product development⁽¹⁾		73,284		74,937		313,688		325,992
General and administrative⁽¹⁾		38,464		45,487		181,951		184,958
Depreciation and amortization		12,851		11,566		50,092		40,407
Total costs and expenses		311,103		308,523		1,280,434		1,261,019
Income from operations		48,886		53,429		184,521		151,045
Other income, net		2,692		6,638		19,508		31,915
Income before income taxes		51,578		60,067		204,029		182,960
Provision for income taxes		13,782		17,847		58,429		50,110
Net income attributable to common stockholders	$	37,796	$	42,220	$	145,600	$	132,850

Net income per share attributable to common stockholders
Basic	$	0.62	$	0.64	$	2.30	$	1.97
Diluted	$	0.61	$	0.62	$	2.24	$	1.88

Weighted-average shares used to compute net income per share attributable to common stockholders
Basic		61,047		66,083		63,334		67,415
Diluted		62,018		67,989		65,090		70,611

⁽¹⁾ Includes stock-based compensation expense as follows:
	Three Months Ended December 31,				Year Ended December 31,
		2025		2024		2025		2024
Cost of revenue	$	797	$	1,110	$	4,035	$	5,209
Sales and marketing		5,939		7,531		27,925		33,436
Product development		14,856		18,436		68,718		85,510
General and administrative		7,276		7,720		33,315		34,038
Total stock-based compensation	$	28,868	$	34,797	$	133,993	$	158,193

YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Year Ended December 31,
		2025			2024
Operating Activities
Net income	$	145,600		$	132,850
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		50,092			40,407
Provision for credit losses		43,271			45,614
Stock-based compensation		133,993			158,193
Amortization of right-of-use assets		10,398			15,094
Deferred income taxes		25,073			(24,920	)
Amortization of deferred contract cost		27,943			24,854
Asset impairment		—			5,914
Write-off of website and internal use software		3,339			2,583
Other adjustments, net		(491	)		(4,995	)
Changes in operating assets and liabilities:
Accounts receivable		(41,872	)		(51,033	)
Prepaid expenses and other assets		(27,113	)		(24,314	)
Operating lease liabilities		(20,926	)		(39,230	)
Accounts payable, accrued liabilities and other liabilities		22,722			4,798
Net cash provided by operating activities		372,029			285,815

Investing Activities
Purchases of marketable securities — available-for-sale		(80,245	)		(94,304	)
Sales and maturities of marketable securities — available-for-sale		78,530			123,094
Purchases of other investments		(700	)		(2,500	)
Maturities of other investments		5,000			—
Acquisition, net of cash received		—			(66,199	)
Purchases of property, equipment and software		(48,353	)		(37,347	)
Other investing activities		114			(10	)
Net cash used in investing activities		(45,654	)		(77,266	)

Financing Activities
Proceeds from issuance of common stock for employee stock-based plans		19,665			20,790
Taxes paid related to the net share settlement of equity awards		(56,889	)		(73,411	)
Repurchases of common stock		(290,949	)		(250,899	)
Excise tax paid on net stock repurchases		(1,218	)		(282	)
Payment of issuance costs for credit facility		(656	)		—
Net cash used in financing activities		(330,047	)		(303,802	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash		2,279			(1,067	)

Change in cash, cash equivalents and restricted cash		(1,393	)		(96,320	)
Cash, cash equivalents and restricted cash — Beginning of period		217,682			314,002
Cash, cash equivalents and restricted cash — End of period	$	216,289		$	217,682

Non-GAAP Financial Measures

This press release and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which the Securities and Exchange Commission has defined as a "non-GAAP financial measure."

We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income, net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as, asset impairment charges, expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, or other costs that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.

Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or principles, have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Yelp's financial results as reported in accordance with generally accepted accounting principles in the United States ("GAAP"). In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. Some of these limitations are:

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp's working capital needs;
Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;
Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as impairment charges, expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, or other costs that management determines are not indicative of ongoing operating performance;
Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and
other companies, including those in Yelp's industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp's other GAAP results.

The following is a reconciliation of net income to Adjusted EBITDA, as well as the calculation of net income margin and Adjusted EBITDA margin, for each of the periods indicated (in thousands, except percentages; unaudited):

	Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025			2024
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	37,796		$	42,220		$	145,600		$	132,850
Provision for income taxes		13,782			17,847			58,429			50,110
Other income, net⁽¹⁾		(2,692	)		(6,638	)		(19,508	)		(31,915	)
Depreciation and amortization		12,851			11,566			50,092			40,407
Stock-based compensation		28,868			34,797			133,993			158,193
Asset impairment⁽²⁾		—			—			—			5,914
Expenses related to acquired indemnification obligation, net⁽²⁾⁽³⁾		(4,920	)		—			35			—
Acquisition and integration costs⁽²⁾		—			1,266			539			1,266
Fees related to shareholder activism⁽²⁾		—			—			—			1,168
Adjusted EBITDA	$	85,685		$	101,058		$	369,180		$	357,993

Net revenue	$	359,989		$	361,952		$	1,464,955		$	1,412,064
Net income margin		10	%		12	%		10	%		9	%
Adjusted EBITDA margin		24	%		28	%		25	%		25	%

⁽¹⁾		Includes the release of a $3.1 million reserve related to a one-time payroll tax credit in the year ended December 31, 2024.
⁽²⁾		Recorded within general and administrative expenses on our Condensed Consolidated Statements of Operations.
⁽³⁾		The three months ended December 31, 2025 reflects the release of a portion of the RepairPal holdback to indemnify us for certain expenses in prior periods. The year ended December 31, 2025 reflects the released holdback amount offsetting the associated expenses.

The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):

	Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025			2024
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Net cash provided by operating activities	$	84,482		$	70,973		$	372,029		$	285,815
Purchases of property, equipment and software		(12,217	)		(11,010	)		(48,353	)		(37,347	)
Free cash flow	$	72,265		$	59,963		$	323,676		$	248,468

Net cash used in investing activities	$	(7,677	)	$	(42,826	)	$	(45,654	)	$	(77,266	)

Net cash used in financing activities	$	(92,268	)	$	(70,795	)	$	(330,047	)	$	(303,802	)

View source version on businesswire.com: https://www.businesswire.com/news/home/20260212812443/en/

Investor Relations Contact:

Joshua Willis

[email protected]

Press Contact:

Amber Albrecht

[email protected]

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Yelp Delivers Record Net Revenue in 2025 Accelerating Investment in AI Transformation

2/12/26 4:05:00 PM ET

$YELP

Other Consumer Services

Consumer Discretionary

Get the next $YELP alert in real time by email

2025 Net Revenue reached a record of $1.46 billion

2025 Net Income up 10% to $146 million

2025 Adjusted EBITDA increased 3% to $369 million¹

Expects 2026 Net Revenue in the range of $1.455 billion to $1.475 billion and Adjusted EBITDA²in the range of $310 million to $330 million

Announces agreement with OpenAI

2025 Key Business Highlights

Yelp's focus on Services and product innovation drove 2025 results:

Net revenue increased by 4% year over year to a record $1.46 billion, $2 million above the midpoint of the updated range Yelp provided in November 2025 and $13 million below the midpoint of the initial range we provided in February 2025.
Net income increased by 10% year over year to $146 million, representing a 10% net income margin.
Adjusted EBITDA grew by 3% year over year to $369 million, $7 million above the midpoint of the updated range the company provided in November 2025 and $17 million above the midpoint of the initial range provided in February 2025, representing a 25% adjusted EBITDA margin.¹
In Services, advertising revenue increased 8% year over year to a record $948 million.
Advertising revenue from Restaurants, Retail & Other ("RR&O") businesses decreased by 6% year over year to $444 million.
With a decrease in RR&O paying advertising locations offsetting growth in Services paying advertising locations, total paying advertising locations for the year decreased by 3%, while average revenue per location reached an annual record.
Ad clicks for the year decreased 7% from 2024, driven primarily by lower consumer demand due to economic uncertainties and, to a lesser extent, reduced spend on paid project acquisition in 2025 compared to 2024.
Average cost per click increased 10% year over year, reflecting growth in advertiser demand in our Services categories and lower overall consumer demand.
On the consumer side of our business, Yelp continued to grow our trusted review content through contributions from our large user base. Yelp users contributed 22 million new reviews in 2025, resulting in 330 million cumulative reviews, up 7% from the prior year.

Outlook

Quarterly Conference Call

______________________________

About Yelp

Forward Looking Statements

macroeconomic uncertainty — including related to labor and supply chain issues, inflation and recessionary concerns, interest rates and tariffs — and its effect on consumer behavior, user activity and advertiser spending;
Yelp's ability to maintain and expand its base of advertisers, particularly if advertiser turnover substantially worsens and/or consumer demand significantly degrades;
Yelp's ability to realize the anticipated benefits of its acquisition of Hatch;
Yelp's ability to drive continued growth through its strategic initiatives;
Yelp's ability to continue to operate effectively with a primarily remote work force and attract and retain key talent;
Yelp's limited operating history in an evolving industry; and
Yelp's ability to generate and maintain sufficient high-quality content from its users.

YELP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	December 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	216,062		$	217,325
Short-term marketable securities		103,290			100,581
Accounts receivable, net		153,224			155,325
Prepaid expenses and other current assets		42,359			43,648
Total current assets		514,935			516,879
Property, equipment and software, net		91,685			75,669
Operating lease right-of-use assets		16,046			24,112
Goodwill		135,847			130,980
Intangibles, net		49,038			58,787
Other non-current assets		150,927			177,140
Total assets	$	958,478		$	983,567

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	158,789		$	131,322
Operating lease liabilities — current		7,426			20,679
Deferred revenue		5,845			2,973
Total current liabilities		172,060			154,974
Operating lease liabilities — long-term		17,451			22,470
Other long-term liabilities		58,115			62,154
Total liabilities		247,626			239,598

Stockholders' equity:
Preferred stock		—			—
Common stock		—			—
Additional paid-in capital		2,010,948			1,903,598
Treasury stock		(999	)		(3,909	)
Accumulated other comprehensive loss		(7,677	)		(15,431	)
Accumulated deficit		(1,291,420	)		(1,140,289	)
Total stockholders' equity		710,852			743,969
Total liabilities and stockholders' equity	$	958,478		$	983,567

YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended December 31,				Year Ended December 31,
		2025		2024		2025		2024
Net revenue	$	359,989	$	361,952	$	1,464,955	$	1,412,064

Costs and expenses:
Cost of revenue⁽¹⁾		36,033		33,270		142,596		123,684
Sales and marketing⁽¹⁾		150,471		143,263		592,107		585,978
Product development⁽¹⁾		73,284		74,937		313,688		325,992
General and administrative⁽¹⁾		38,464		45,487		181,951		184,958
Depreciation and amortization		12,851		11,566		50,092		40,407
Total costs and expenses		311,103		308,523		1,280,434		1,261,019
Income from operations		48,886		53,429		184,521		151,045
Other income, net		2,692		6,638		19,508		31,915
Income before income taxes		51,578		60,067		204,029		182,960
Provision for income taxes		13,782		17,847		58,429		50,110
Net income attributable to common stockholders	$	37,796	$	42,220	$	145,600	$	132,850

Net income per share attributable to common stockholders
Basic	$	0.62	$	0.64	$	2.30	$	1.97
Diluted	$	0.61	$	0.62	$	2.24	$	1.88

Weighted-average shares used to compute net income per share attributable to common stockholders
Basic		61,047		66,083		63,334		67,415
Diluted		62,018		67,989		65,090		70,611

⁽¹⁾ Includes stock-based compensation expense as follows:
	Three Months Ended December 31,				Year Ended December 31,
		2025		2024		2025		2024
Cost of revenue	$	797	$	1,110	$	4,035	$	5,209
Sales and marketing		5,939		7,531		27,925		33,436
Product development		14,856		18,436		68,718		85,510
General and administrative		7,276		7,720		33,315		34,038
Total stock-based compensation	$	28,868	$	34,797	$	133,993	$	158,193

YELP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Year Ended December 31,
		2025			2024
Operating Activities
Net income	$	145,600		$	132,850
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		50,092			40,407
Provision for credit losses		43,271			45,614
Stock-based compensation		133,993			158,193
Amortization of right-of-use assets		10,398			15,094
Deferred income taxes		25,073			(24,920	)
Amortization of deferred contract cost		27,943			24,854
Asset impairment		—			5,914
Write-off of website and internal use software		3,339			2,583
Other adjustments, net		(491	)		(4,995	)
Changes in operating assets and liabilities:
Accounts receivable		(41,872	)		(51,033	)
Prepaid expenses and other assets		(27,113	)		(24,314	)
Operating lease liabilities		(20,926	)		(39,230	)
Accounts payable, accrued liabilities and other liabilities		22,722			4,798
Net cash provided by operating activities		372,029			285,815

Investing Activities
Purchases of marketable securities — available-for-sale		(80,245	)		(94,304	)
Sales and maturities of marketable securities — available-for-sale		78,530			123,094
Purchases of other investments		(700	)		(2,500	)
Maturities of other investments		5,000			—
Acquisition, net of cash received		—			(66,199	)
Purchases of property, equipment and software		(48,353	)		(37,347	)
Other investing activities		114			(10	)
Net cash used in investing activities		(45,654	)		(77,266	)

Financing Activities
Proceeds from issuance of common stock for employee stock-based plans		19,665			20,790
Taxes paid related to the net share settlement of equity awards		(56,889	)		(73,411	)
Repurchases of common stock		(290,949	)		(250,899	)
Excise tax paid on net stock repurchases		(1,218	)		(282	)
Payment of issuance costs for credit facility		(656	)		—
Net cash used in financing activities		(330,047	)		(303,802	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash		2,279			(1,067	)

Change in cash, cash equivalents and restricted cash		(1,393	)		(96,320	)
Cash, cash equivalents and restricted cash — Beginning of period		217,682			314,002
Cash, cash equivalents and restricted cash — End of period	$	216,289		$	217,682

Non-GAAP Financial Measures

although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp's working capital needs;
Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;
Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
Adjusted EBITDA does not take into account any income or costs that management determines are not indicative of ongoing operating performance, such as impairment charges, expenses related to acquired indemnification obligations, acquisition and integration costs and fees related to shareholder activism, or other costs that management determines are not indicative of ongoing operating performance;
Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and
other companies, including those in Yelp's industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures.

	Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025			2024
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	37,796		$	42,220		$	145,600		$	132,850
Provision for income taxes		13,782			17,847			58,429			50,110
Other income, net⁽¹⁾		(2,692	)		(6,638	)		(19,508	)		(31,915	)
Depreciation and amortization		12,851			11,566			50,092			40,407
Stock-based compensation		28,868			34,797			133,993			158,193
Asset impairment⁽²⁾		—			—			—			5,914
Expenses related to acquired indemnification obligation, net⁽²⁾⁽³⁾		(4,920	)		—			35			—
Acquisition and integration costs⁽²⁾		—			1,266			539			1,266
Fees related to shareholder activism⁽²⁾		—			—			—			1,168
Adjusted EBITDA	$	85,685		$	101,058		$	369,180		$	357,993

Net revenue	$	359,989		$	361,952		$	1,464,955		$	1,412,064
Net income margin		10	%		12	%		10	%		9	%
Adjusted EBITDA margin		24	%		28	%		25	%		25	%

⁽¹⁾		Includes the release of a $3.1 million reserve related to a one-time payroll tax credit in the year ended December 31, 2024.
⁽²⁾		Recorded within general and administrative expenses on our Condensed Consolidated Statements of Operations.
⁽³⁾		The three months ended December 31, 2025 reflects the release of a portion of the RepairPal holdback to indemnify us for certain expenses in prior periods. The year ended December 31, 2025 reflects the released holdback amount offsetting the associated expenses.

The following is a reconciliation of net cash provided by operating activities to Free cash flow for each of the periods indicated (in thousands; unaudited):

	Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025			2024
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
Net cash provided by operating activities	$	84,482		$	70,973		$	372,029		$	285,815
Purchases of property, equipment and software		(12,217	)		(11,010	)		(48,353	)		(37,347	)
Free cash flow	$	72,265		$	59,963		$	323,676		$	248,468

Net cash used in investing activities	$	(7,677	)	$	(42,826	)	$	(45,654	)	$	(77,266	)

Net cash used in financing activities	$	(92,268	)	$	(70,795	)	$	(330,047	)	$	(303,802	)

View source version on businesswire.com: https://www.businesswire.com/news/home/20260212812443/en/

Investor Relations Contact:

Joshua Willis

[email protected]

Press Contact:

Amber Albrecht

[email protected]

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Recent Analyst Ratings for

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10/13/2025	$45.00	In-line → Outperform	Evercore ISI
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