Yelp Inc.

Yelp closed 2025 with a soft fourth quarter: net revenue slipped 1% year over year to $360 million (though $2 million above the midpoint), net income fell 10% to $38 million, and adjusted EBITDA dropped 15% to $86 million at a 24% margin as investment stepped up. RR&O revenue tumbled 12% to $107 million while services advertising growth slowed to 3% at $231 million, signaling macro softness spilling beyond restaurants and retail. For the full year, net revenue rose 4% to $1.46 billion with diluted EPS up 19% to $2.24 and record free cash flow of $324 million, aided by other revenue up 17% (accelerating to roughly 30% in the fourth quarter) on data licensing, including a new OpenAI agreement and the closed acquisition of Hatch. Management introduced 2026 guidance of $1.455 billion to $1.475 billion in net revenue and $310 million to $330 million in adjusted EBITDA, the lower profitability outlook reflecting increased spending on its AI transformation, paid traffic, and Hatch. Alongside a 22% reduction in diluted share count since 2021, the board authorized an additional $500 million for buybacks.