# YELP INC (YELP) Informational only - not investment advice. CIK: 0001345016 SIC: 7200 Services-Personal Services SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 72](/major-group/72/) > [SIC 7200 Services-Personal Services](/industry/7200/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1345016 Filing source: https://www.sec.gov/Archives/edgar/data/1345016/000134501626000019/yelp-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001345016-26-000019 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001345016.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,464,955,000 USD | 2025 | verified | | Net income | 145,600,000 USD | 2025 | verified | | Assets | 958,478,000 USD | 2025 | verified | | Free cash flow | 323,676,000 USD | 2025 | computed | | Net margin | 9.94% | 2025 | computed | | Operating margin | 12.60% | 2025 | computed | | Revenue YoY | +3.75% | 2025 | computed | | ROE | 20.48% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1464955000 | USD | 2025 | 2026-02-27 | | Net income | 145600000 | USD | 2025 | 2026-02-27 | | Assets | 958478000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001345016.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 716,063,000 | 850,847,000 | 942,773,000 | 1,014,194,000 | 872,933,000 | 1,031,839,000 | 1,193,506,000 | 1,337,062,000 | 1,412,064,000 | 1,464,955,000 | | Net income | -1,711,000 | 152,995,000 | 55,350,000 | 40,881,000 | -19,424,000 | 39,671,000 | 36,347,000 | 99,173,000 | 132,850,000 | 145,600,000 | | Operating income | -2,020,000 | 179,622,000 | 25,897,000 | 35,511,000 | -38,795,000 | 31,514,000 | 58,353,000 | 79,043,000 | 151,045,000 | 184,521,000 | | Diluted EPS | -0.02 | 1.76 | 0.62 | 0.52 | -0.27 | 0.50 | 0.50 | 1.35 | 1.88 | 2.24 | | Operating cash flow | 126,900,000 | 167,647,000 | 160,187,000 | 204,782,000 | 176,701,000 | 212,655,000 | 192,309,000 | 306,280,000 | 285,815,000 | 372,029,000 | | Capital expenditures | 22,994,000 | 30,245,000 | 44,972,000 | 37,522,000 | 32,002,000 | 28,282,000 | 31,979,000 | 26,847,000 | 37,347,000 | 48,353,000 | | Share buybacks | 0.00 | 12,556,000 | 187,382,000 | 481,011,000 | 24,396,000 | 262,928,000 | 200,006,000 | 199,999,000 | 250,899,000 | 290,949,000 | | Assets | 885,206,000 | 1,225,601,000 | 1,175,563,000 | 1,070,700,000 | 1,154,947,000 | 1,050,528,000 | 1,015,922,000 | 1,014,723,000 | 983,567,000 | 958,478,000 | | Liabilities | 78,020,000 | 116,904,000 | 100,045,000 | 315,709,000 | 300,413,000 | 299,210,000 | 305,598,000 | 265,189,000 | 239,598,000 | 247,626,000 | | Stockholders' equity | 816,138,000 | 1,108,697,000 | 1,075,518,000 | 754,991,000 | 854,534,000 | 751,318,000 | 710,324,000 | 749,534,000 | 743,969,000 | 710,852,000 | | Cash and cash equivalents | 272,201,000 | 547,850,000 | 332,764,000 | 170,281,000 | 595,875,000 | 479,783,000 | 306,379,000 | 313,911,000 | 217,325,000 | 216,062,000 | | Free cash flow | 103,906,000 | 137,402,000 | 115,215,000 | 167,260,000 | 144,699,000 | 184,373,000 | 160,330,000 | 279,433,000 | 248,468,000 | 323,676,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | -0.24% | 17.98% | 5.87% | 4.03% | -2.23% | 3.84% | 3.05% | 7.42% | 9.41% | 9.94% | | Operating margin | -0.28% | 21.11% | 2.75% | 3.50% | -4.44% | 3.05% | 4.89% | 5.91% | 10.70% | 12.60% | | Return on equity | -0.21% | 13.80% | 5.15% | 5.41% | -2.27% | 5.28% | 5.12% | 13.23% | 17.86% | 20.48% | | Return on assets | -0.19% | 12.48% | 4.71% | 3.82% | -1.68% | 3.78% | 3.58% | 9.77% | 13.51% | 15.19% | | Liabilities / equity | 0.10 | 0.11 | 0.09 | 0.42 | 0.35 | 0.40 | 0.43 | 0.35 | 0.32 | 0.35 | | Current ratio | 9.29 | 10.60 | 13.25 | 3.98 | 4.98 | 3.93 | 3.26 | 3.55 | 3.34 | 2.99 | ## As-reported value updates 5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/YELP/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001345016.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.13 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.02 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.21 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 345,122,000 | 58,216,000 | 0.79 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 342,376,000 | 27,406,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 332,752,000 | 14,154,000 | 0.20 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 357,016,000 | 38,036,000 | 0.54 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 360,344,000 | 38,440,000 | 0.56 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 361,952,000 | 42,220,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 358,534,000 | 24,391,000 | 0.36 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 370,394,000 | 44,089,000 | 0.67 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 376,038,000 | 39,324,000 | 0.61 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 359,989,000 | 37,796,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 361,457,000 | 17,735,000 | 0.30 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 375,519,000 | 31,652,000 | 0.57 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from YELP's latest 10-K: [/company/YELP/business/](/company/YELP/business/). ## Risk Factors Verbatim Item 1A Risk Factors from YELP's latest 10-K: [/company/YELP/risk-factors/](/company/YELP/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1345016/000134501626000066/yelp-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-07 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report. This discussion contains forward-looking statements that reflect our plans, estimates and beliefs, and involve risks and uncertainties. Our actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those discussed in the section titled “Risk Factors” included under Part I, Item 1A in our Annual Report. See “Special Note Regarding Forward-Looking Statements” in this Quarterly Report. Overview As one of the best known Internet brands in the United States, Yelp is a trusted local resource for consumers and a partner in success for businesses of all sizes. Consumers trust us for the more than 300 million ratings and reviews available on our platform of businesses across a broad range of categories, while businesses advertise with us to reach our large audience of what we believe are purchase-oriented and generally affluent consumers. We generate substantially all of our revenue from the sale of performance-based advertising products, which our advertising platform matches to individual consumers through auctions priced on a cost-per-click (“CPC”) basis. In the three months ended June 30, 2026, our net revenue was $375.5 million, up 1% from the three months ended June 30, 2025, and we recorded net income of $31.7 million and adjusted EBITDA of $91.4 million. In the six months ended June 30, 2026, our net revenue was $737.0 million, up 1% from the six months ended June 30, 2025, and we recorded net income of $49.4 million and adjusted EBITDA of $170.8 million. For information on how we define and calculate adjusted EBITDA, and a reconciliation of this non-GAAP financial measure to net income, see “Non-GAAP Financial Measures” below. In the second quarter of 2026, we continued to make progress transforming Yelp with artificial intelligence (“AI”) through our strategic investments in product innovation: •Reconceive Yelp Around Answers and Actions. As we continued to transform the consumer experience on Yelp in the second quarter, we saw encouraging traffic trends, with year-over-year improvements in app installs and page views. As we improved the tool’s performance and user experience with features like faster response rates and increased personalization, we observed positive signs related to user engagement, including repeat usage. In Services categories, continued adoption of Yelp Assistant drove approximately 10% of all Request-a-Quote projects1 in the second quarter, contributing to overall Request-a-Quote project growth of approximately 10% year over year. •Deliver AI Tools that Help Businesses Grow, Operate and Succeed. In the second quarter, we continued to scale Yelp Host, our AI-powered call answering service for restaurants, which reached an annual run rate2 of 2.4 million calls handled in July 2026, more than tripling from January 2026. We recently expanded Yelp Host’s capabilities through the addition of food ordering functionality with point-of-sale integration, which allows restaurants to take phone pickup orders without commission fees, as well as through our recently announced integration with OpenTable, which enables customers to book, modify and cancel reservations within Yelp Host. Hatch has also demonstrated continued progress since we acquired it in February 2026, with annual run rate revenue of approximately $35 million in June 2026. With increased product and engineering resources, the Hatch team made progress against their roadmap in the second quarter, shipping conversational analytics, outbound voice, enhancements to Google Local Services Ads and ServiceTitan integrations, and several optimizations to the core voice model. •Extend Our Reach to Power Local Discovery Across the AI Ecosystem. Demand for our data licensing products was robust in the second quarter, including from our partnership with OpenAI, contributing to strong growth in other revenue. Yelp ratings and reviews recently began powering ChatGPT’s local experience in relevant categories. Building on our success with Apple Maps and Yahoo, we also expect Request-a-Quote integration with ChatGPT to launch in the coming weeks. In the second quarter, broad strength in other revenue drove modest year-over-year net revenue growth as the economic environment facing consumers and local businesses continued to be challenging. We expect these adverse conditions to persist and continue impacting advertising revenue across categories in the third quarter, driving a slight year-over-year decrease in net 1 Projects created by users through a Request-a-Quote flow or Yelp Assistant. 2 References to the “annual run rate” of certain metrics included in this Quarterly Report are calculated by annualizing the metric’s results for the indicated period, excluding out-of-period adjustments with respect to revenue figures. For example, we calculate annual run rate based on a metric’s results for a given month by multiplying those results by 12, or for a given quarter by multiplying the results by four. 27 Table of Contents revenue. As our other revenue streams continue to gain traction, we are continuing to target an annual run rate of $250 million in other revenue by the end of 2028. We expect expenses will increase sequentially in the third quarter as we invest in our AI transformation, provide Hatch with additional resources to accelerate its product roadmap and go-to-market strategy, and invest in consumer marketing, which we anticipate will result in a year-over-year decrease in adjusted EBITDA in the third quarter. Key Metrics We regularly review a number of metrics, including the key metrics set forth below, to evaluate our business, measure our performance, identify trends in our business, prepare financial projections and make strategic decisions. Ad Clicks and Average CPC The amount of revenue we generate from our pay-for-performance advertising products is determined by the number of ad clicks we deliver to advertisers and the price we charge for each ad click. Ad clicks represent user interactions with our pay-for-performance advertising products, including clicks on advertisements on our website and mobile app, clicks on syndicated advertisements on third-party platforms and Request-a-Quote submissions, among others. Ad clicks include only user interactions that we are able to track directly, and therefore do not include user interactions with ads sold through our advertising partnerships. We do not expect the exclusion of such user interactions to materially affect this metric. We report the year-over-year percentage change in ad clicks as a measure of our success in monetizing more of our consumer activity and delivering more value to advertisers. Average CPC is calculated as revenue from our performance-based ad products — excluding certain revenue adjustments that do not impact the outcome of an auction for an individual ad click, such as refunds, as well as revenue from our advertising partnerships — divided by the total number of ad clicks for a given period. Average CPC represents the average amount we charge advertisers for each ad click. We believe that ad clicks and average CPC together reflect one of the most significant dynamics affecting our advertising revenue performance: the interplay of advertiser demand and consumer activity. At the level of an auction for an individual ad click, advertiser demand — consisting of advertiser budgets and the number of advertisers competing to purchase the ad click — intersects with the supply of consumer activity — consisting of the predicted levels of relevant consumer traffic and engagement — to determine CPC, with higher advertiser demand putting upward pressure on the CPC and higher consumer activity putting downward pressure on the CPC. In aggregate, advertiser demand consists of the number of business locations advertising with us (which we refer to as paying advertising locations, as discussed below) and the aggregate budget they allocate to purchasing our advertising products. Aggregate monetizable consumer activity depends on the levels of consumer traffic and engagement with our ads, the numbers of locations where we can display ads and other monetizable features, and our click-through rate, which is the ratio of ad clicks to the number of times the ads were displayed to consumers. The relative strengths of these factors in aggregate are reflected in average CPC. Ad clicks and average CPC also provide important insight into the value we deliver to advertisers, which we believe is a significant factor in our ability to retain both revenue and customers. For example, a positive change in ad clicks for a given period combined with lower growth or a negative change in average CPC over the same period would indicate that we delivered more ad clicks at lower prices, thereby delivering more value to our advertisers; we would expect this to have a positive impact on retention. Conversely, growth in average CPC paired with a negative or lower growth rate in ad clicks would indicate we charged more without delivering more ad clicks; we would expect this to have a negative impact on retention unless we are able to increase the value we deliver through higher performing ad clicks. The following table presents year-over-year changes in our ad clicks and average CPC for the periods presented (each expressed as a percentage): [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["Ad Clicks","(5)%","","(7)%","","(8)%","","(5)%"],["Average CPC","1%","","11%","","4%","","10%"]] [[/GREPCENT_TABLE]] Ad clicks decreased year over year in the three and six months ended June 30, 2026, primarily due to decreases in Restaurants, Retail & Other (“RR&O”) ad clicks, partially offset by slight increases in Services ad clicks. 28 Table of Contents Average CPC increased in the three and six months ended June 30, 2026, primarily as a result of Services ad clicks, which generally have higher CPCs than RR&O clicks, comprising a greater portion of total ad clicks compared to the prior year, partially offset by modest decreases in average CPC in Services categories resulting from relatively stable advertiser demand together with increased consumer engagement. These trends reflect the economic uncertainties facing consumers, the challenging operating environment for local businesses and, to a lesser extent, competitive pressures in RR&O categories from food ordering and delivery providers. Advertising Revenue by Category We generate advertising revenue from the sale of our advertising products — including business page upgrades and performance-based advertising in search results and elsewhere on our platform — to businesses of all sizes, from single-location local businesses to multi-location national businesses (“Yelp Ads”). Advertising revenue also includes revenue generated from the resale of our advertising products by certain partners and monetization of advertising inventory through third-party ad networks, as well as revenue generated from RepairPal. To reflect our strategic focus on creating two differentiated experiences on Yelp, we provide a breakdown of our advertising revenue attributable to businesses in two high-level category groupings: Services and RR&O. Our Services categories consist of home, local, auto, professional, pets, events, real estate and financial services. Our RR&O categories consist of restaurants, shopping, beauty & fitness, health and other. Refer to “Results of Operations — Net Revenue” below for furt [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1345016/000134501626000019/yelp-20251231.htm Complete FY 2025 MD&A: /company/YELP/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing elsewhere in this Annual Report. This discussion contains forward-looking statements that reflect our plans, estimates and beliefs, and involve risks and uncertainties. Our actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those discussed in the section titled “Risk Factors” included under Part I, Item 1A and elsewhere in this Annual Report. See “Special Note Regarding Forward-Looking Statements” in this Annual Report. The following section also includes information regarding 2025 and 2024 and year-over-year comparisons between these periods. A full discussion of 2023 items and year-over-year comparisons between 2024 and 2023 can be found in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. Overview As one of the best known Internet brands in the United States, Yelp is a trusted local resource for consumers and a partner in success for businesses of all sizes. Consumers trust us for the more than 300 million ratings and reviews available on our platform of businesses across a broad range of categories, while businesses advertise with us to reach our large audience of what we believe are purchase-oriented and generally affluent consumers. We generate substantially all of our revenue from the sale of performance-based advertising products, which our advertising platform matches to individual consumers through auctions priced on a CPC basis. In the year ended December 31, 2025, our net revenue was $1.46 billion, up 4% from the year ended December 31, 2024, and we recorded net income of $145.6 million and adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”) of $369.2 million. For information on how we define and calculate adjusted EBITDA and a reconciliation of this non-GAAP financial measure to net income, see “—Non-GAAP Financial Measures” below. In 2025, we delivered record annual revenue and profitable growth through the consistent execution of our product-led strategic initiatives and prudent capital allocation: Lead in Services •Services continued to drive our performance in 2025, with advertising revenue from businesses in these categories up 8% year over year to a record $948 million, led by growth in our Auto Services and Home Services categories. Advertising revenue from our Auto Services category includes revenue generated by RepairPal, which we acquired in November 2024 and which contributed significantly to growth in Services advertising revenue in 2025. •Request-A-Quote projects1 increased by approximately 5% year over year in 2025, or by approximately 15% excluding projects acquired through our paid search initiative, driven by improvements to the flow and increased adoption of Yelp Assistant. •We enhanced Yelp Assistant by incorporating AI-powered photo recognition, which evaluates photos uploaded by consumers to help identify and better understand their project needs, and by enabling it to remember important details and preferences from previously submitted projects. Drive Advertiser Value •We continued to invest in business-focused products and improving the business owner experience across categories in 2025. We launched two AI-powered call answering services, Yelp Host and Yelp Receptionist, for restaurants and service pros, respectively. These solutions combine LLMs with our high-quality data to provide smarter, more human-like AI voice answering services tailored with information specific to each individual business. Since its roll out in the third quarter of 2025, Yelp Host has answered more than 190,000 calls, handling thousands of reservations for restaurant customers per month. •For SMB advertisers, we began providing budget recommendations, billing optimizations and competitive insights in the business owner dashboard. We also launched Co-branded Showcase Ads, which enable brand advertisers to promote their local business partners alongside a customized offer or message with an image or video on Yelp. Off Yelp, we continued to expand local advertiser reach through a variety of partnerships, including by leveraging on-Yelp search intent to surface relevant Yelp ads to users on other platforms such as Facebook and Bing. 1 Projects created by users through a Request-a-Quote flow or Yelp Assistant. Year-over-year changes in Request-a-Quote projects are rounded to the nearest multiple of 5%. 45 Table of Contents Transform the Consumer Experience •In 2025, we announced more than 55 new products and features designed to improve the consumer experience, many powered by AI. We introduced natural language and voice capabilities for search, AI-powered business and review highlights, and Popular Offerings, a feature that highlights the most frequently mentioned services items or experiences across more than 100 business categories. •We expanded Yelp Assistant to business pages in RR&O categories and added hundreds of thousands of new restaurants for food ordering and delivery through our preferred partnership with DoorDash. •To make it easier for consumers to schedule appointments with auto repair shops, we integrated RepairPal’s booking system into the Yelp experience. Prudent Capital Allocation •We held headcount approximately flat year over year in 2025. Stock-based compensation as a percentage of revenue decreased by two percentage points year over year to 9% in 2025, and to less than 8% for the month of December 2025. •As of December 31, 2025, we had repurchased nearly $2.0 billion of our outstanding common stock. Together with our reduction in stock-based compensation, total outstanding shares (including unissued shares underlying outstanding equity awards) decreased by approximately 8 million shares, or about 10%, in 2025. We believe that we are positioned to deliver long-term durable growth by executing consistently against our 2026 strategic initiatives, and we plan to increase our investments in 2026 to capitalize on this opportunity. As we enter 2026, we expect that our expenses will increase from the fourth quarter of 2025 to the first quarter of 2026, primarily reflecting a seasonal increase in expenses from payroll taxes and benefits, as well as for the full year 2026 compared to 2025 as we invest in our AI transformation, in paid traffic acquisition and to support Hatch operations. We also expect that the challenging operating environment will continue for RR&O businesses and, to a lesser extent, Services businesses, which will continue to negatively impact advertising revenue. As a result, we anticipate that revenue in the first quarter of 2026 will be down slightly year over year and revenue in the full year 2026 may be slightly down year over year. We also expect first quarter revenue to be slightly down sequentially, reflecting seasonal trends. Factors Affecting Our Performance Conditions in Local Economies. Many businesses in the United States, particularly in our RR&O categories but increasingly in Services categories as well, have faced challenging operating environments amid widespread economic uncertainties in recent years, including labor shortages, supply chain issues, inflation and recessionary concerns, and higher interest rates, which have been exacerbated by changes to U.S. tariff policy and immigration enforcement priorities. These challenging conditions have had, and we expect them to continue to have, a significant adverse impact on our business and results of operations. For example, adverse economic conditions have had, and we expect them to continue to have, a negative impact on the ability and willingness of advertisers to spend on our products and services, as has been the case for RR&O businesses, which have experienced protracted operating challenges. Many of the challenges facing local economies are also impacting consumers. Changes in consumer behavior due to adverse economic conditions have also had, and may continue to have, a negative impact on our business. This negative impact is both direct — through reduced consumer traffic to our platform, which impacts the number of ads we are able to show as well as the value of those ads to businesses — and indirect — as consumers reduce their spending in local economies, compounding challenges for local businesses and further negatively impacting their willingness to spend on our products and services. For example, as adverse conditions in local economies persisted through 2025, they increasingly impacted our Services categories as consumers forwent, delayed or scaled down services projects; as a result, demand from Services businesses for our products and services was more muted than typical through the third quarter and decreased sequentially in the fourth quarter. Although it is not possible for us to predict the remaining duration of the ongoing adverse conditions facing local economies or the duration or magnitude of any resulting adverse impact on our business, we expect the current challenging operating conditions to continue in 2026 and negatively impact our advertising revenue. Investment in Growth. In 2026, we plan to invest in our strategic initiatives to reconceive Yelp around answers and actions, deliver AI tools that help service pros and other local businesses grow, operate and succeed, and extend our reach to power local delivery across the AI ecosystem. These initiatives will require substantial investments that may not prioritize short-term financial results, depend on our ability to develop innovative, relevant and useful products in a timely manner, and involve 46 Table of Contents significant risks and uncertainties. For example, new products and initiatives may fail to generate sufficient revenue, operating margin or other value to justify the investments we made in them, which is a particular risk for new products and initiatives that are unproven or that are outside of our historical core business, such as our plans to expand our use of AI throughout our platform and business operations. While we believe these initiatives will ultimately drive revenue growth, our investments in them will increase our operating expenses, and any increase in revenue resulting from these product innovations will likely trail the increase in expenses. Our Ability to Attract, Retain and Engage Consumers. We generate substantially all of our revenue based on our users’ engagement with the ads that we display. Because traffic to and user engagement on our platform together determine the number of ads we are able to show, affect the value of those ads to businesses and support the content creation that drives further traffic, our ability to attract, retain and engage visitors on our platform is critical to our business and financial success. While we believe our largest growth opportunity will be to monetize a greater portion of our existing traffic, rather than to grow traffic generally, we are also investing in a broad set of consumer initiatives to support the long-term growth of our traffic and business. Our Ability to Attract and Retain Advertisers. Our revenue growth is driven by our ability to attract and retain advertising customers. To do so, we must deliver tailored advertising products at a competitive price in a highly competitive market. A substantial portion of our advertisers have the ability to cancel their advertising campaigns at any time. Their decisions to renew depend on the degree of satisfaction with our products as well as a number of factors that are [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/YELP/mda/fy2025/ All MD&A years: /company/YELP/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/YELP/mda/fy2024/): filed 2025-02-27; accession 0001345016-25-000007 (https://www.sec.gov/Archives/edgar/data/1345016/000134501625000007/yelp-20241231.htm) - [FY 2023 MD&A](/company/YELP/mda/fy2023/): filed 2024-02-27; accession 0001345016-24-000009 (https://www.sec.gov/Archives/edgar/data/1345016/000134501624000009/yelp-20231231.htm) - [FY 2022 MD&A](/company/YELP/mda/fy2022/): filed 2023-02-24; accession 0001345016-23-000009 (https://www.sec.gov/Archives/edgar/data/1345016/000134501623000009/yelp-20221231.htm) - [FY 2021 MD&A](/company/YELP/mda/fy2021/): filed 2022-02-28; accession 0001345016-22-000026 (https://www.sec.gov/Archives/edgar/data/1345016/000134501622000026/yelp-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7200 Services-Personal Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/YELP.md · JSON record: /company/YELP.json · verified financials: /company/YELP/financials.json / /company/YELP/financials.csv · machine TOC for the whole site: /llms.txt