YELP

Yelp’s Q2 performance drew a positive market reaction, reflecting the company’s ability to outperform Wall Street’s revenue and profitability expectations despite a challenging environment for local businesses. Management attributed the quarter’s results to accelerating growth in AI-driven offerings such as Yelp Host and Hatch, as well as robust demand for data licensing partnerships. CEO Jeremy Stoppelman highlighted that product improvements, particularly in AI-powered tools, contributed to increased consumer engagement and higher project submissions in the Services category. Early gains in app installs and page views further supported traffic growth, offsetting persistent softness in core ad revenue segments. Is now the time to buy YELP? Find out in our full research report (it’s free). Revenue: $375.5 million vs analyst estimates of $367 million (1.4% year-on-year growth, 2.3% beat) Adjusted EPS: $0.95 vs analyst estimates of $0.78 (22.1% beat) Adjusted EBITDA: $91.43 million vs analyst estimates of $74.09 million (24.3% margin, 23.4% beat) The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint EBITDA guidance for the full year is $320 million at the midpoint, in line with analyst expectations Operating Margin: 11.6%, down from 14.4% in the same quarter last year Market Capitalization: $1.28 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Alex (Goldman Sachs) asked about the strategic investments in Hatch and the margin outlook for Other revenue. CFO David Schwarzbach explained that while near-term margins will be lower due to higher investment, the long-term profile should resemble other subscription businesses. Sergio Segura (KeyBanc) questioned the economic impact of data licensing partnerships like ChatGPT. CEO Jeremy Stoppelman responded that while it is early for direct traffic impact, these arrangements are expected to drive both user return and new leads. Zachary Witaszek (Baird) inquired about cross-selling opportunities between Yelp Host and advertising. Stoppelman noted positive early synergies but said it is too early to assess the impact on ad revenue. Nitin Bansal (Bank of America) sought clarity on the changes in paid lead acquisition strategy for multi-location Services advertisers. COO Jed Nachman explained the shift toward a more targeted approach to drive scale with larger clients. Kishan Patel (Raymond James) asked about traffic tailwinds from Google algorithm updates versus AI overview headwinds. Stoppelman indicated Yelp benefited from Google’s focus on user-generated content, resulting in improved organic traffic. In coming quarters, the StockStory team will closely monitor (1) the scaling and monetization pace of Yelp’s AI-driven products like Host and Hatch, (2) the performance and revenue contribution of new data licensing partnerships, and (3) trends in paying advertising locations, especially in the Services and restaurant categories. Execution on operational efficiency and sustaining organic traffic growth will also be important indicators. Yelp currently trades at $23.45, down from $25.04 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Director of Investor Relations - Kate Krieger Chief Executive Officer - Jeremy Stoppelman Chief Financial Officer - David Schwarzbach Chief Operating Officer - Jed Nachman Operator: Hello, everyone. Thank you for your patience and for joining us. Welcome to Yelp Incorporated's second quarter 2026 earnings conference call. [Operator Instructions] I will now hand the conference over to Kate Krieger, Director of Investor Relations. Kate, please go ahead. Kate Krieger: Good afternoon, everyone, and thanks for joining us on Yelp's second quarter 2026 earnings conference call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stoppelman; Chief Financial Officer, David Schwarzbach; and Chief Operating Officer, Jed Nachman. We published a shareholder letter on our Investor Relations website and with the SEC and hope everyone had a chance to read it. We'll provide some brief opening comments and then turn to your questions. Now I'll read our safe harbor statement. We'll make certain statements today that are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. In addition, we are subject to a number of risks that may significantly impact our business and financial results. Please refer to our SEC filings, as well as our shareholder letter, for a more detailed description of the risk factors that may affect our results. During our call today, we may discuss adjusted EBITDA, adjusted EBITDA margin, and free cash flow, which are non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles. In our shareholder letter released this afternoon and in our filings with the SEC, each of which is posted on our Investor Relations website, you will find additional disclosures regarding these non-GAAP financial measures, as well as a historical reconciliation of GAAP net income or loss to adjusted EBITDA, a calculation of net income margin and adjusted EBITDA margin, and a historical reconciliation of GAAP cash flows from operating activities to free cash flow. And with that, I will turn the call over to Jeremy. Jeremy Stoppelman: Thanks, Kate, and welcome, everyone. Yelp continued to advance its AI transformation in the second quarter. Our team made local discovery more conversational, delivered new tools to help businesses succeed, and expanded the reach of our trusted content through new partnerships. We are pleased by the progress of our initiatives and the meaningful signs of improvement that emerge across several key metrics. At the same time, consumers and local businesses have continued to face a challenging economic environment. Second quarter net revenue increased by 1% year-over-year to $376 million with a net income margin of 8% and an adjusted EBITDA margin of 24%. Underlying our top-line results, Services ad revenue was flat year-over-year, and RR&O ad revenue decreased by 10% year-over-year. We've increased our focus on growing a number of AI-driven revenue streams this year, which contributed to Other revenue growth accelerating from the first quarter to 98% year-over-year. On the consumer side of our business, we saw encouraging traffic trends in the quarter with improvements in app installs and page views. Moving to our product initiatives, we have reconceived how consumers and businesses connect on Yelp through a conversational experience that provides answers and enables actions. Central to this updated experience, the new Yelp Assistant, which works across all categories, demonstrated early positive signs in user engagement. In the Services category specifically, Yelp Assistant has been an important driver of project submissions and monetization, contributing to overall project growth of approximately 10% year-over-year. We are delivering AI tools that help service pros and other local businesses grow, operate, and succeed. For advertisers, we improved our advertising technology and ad formats. We also directed leads acquired via paid search to multi-location Services advertisers, which contributed to substantial budget growth from these customers over the first half of the year. Our team continued to scale Yelp Host, our AI-powered call answering service for restaurants, which reached an annual run rate of 2.4 million calls handled in July, more than tripling from January. We recently rolled out a number of updates to the product, including 16 new languages and an integration with OpenTable that enables consumers to book and manage reservations automatically via Yelp Host. We also significantly expanded Yelp Host's market opportunity by adding food ordering functionality with full point-of-sale integration, which enables restaurants to take phone orders for pickup without added fees. We accelerated our strategy in this area for Services businesses through the acquisition of Hatch in February. Hatch annual run rate revenue grew 59% year-over-year to $35 million in June as we lapped a period of significant growth. To accelerate Hatch's roadmap, we significantly increased the size of the team in Q2. While this resulted in an adjustment period in the quarter, we saw improved trends in July. Looking ahead, we see a considerable opportunity in AI lead management. With increased product velocity and added sales headcount that continues to ramp, we're excited by Hatch's growth potential in the year ahead. Lastly, we are extending our reach to power local discovery across the AI ecosystem through data licensing. In the second quarter, we saw robust demand for our licensing products, including from our partnership with OpenAI. Yelp ratings and reviews recently began powering ChatGPT's local experience in relevant categories. Request-a-Quote integration with ChatGPT is coming soon, building on our success with Apple Maps and Yahoo. In summary, we continue to make significant progress transforming Yelp with AI in the second quarter. We are confident in our plans for the year and believe that our initiatives will position us to drive profitable growth over the long term. With that, I'll turn it over to David. David Schwarzbach: Thanks, Jeremy. Turning to our second quarter results. Net revenue increased by 1% year-over-year to $376 million, $8 million above the high end of our outlook range. Net income decreased by 28% year-over-year to $32 million, representing an 8% margin. Adjusted EBITDA decreased by 9% year-over-year to $91 million, $16 million above the high end of our outlook range, representing a 24% margin. As Jeremy mentioned, local businesses have faced a challenging operating environment, which is reflected in our advertising metrics for the quarter. Services ad revenue was flat year-over-year at $241 million, while RR&O ad revenue decreased by 10% year-over-year to $102 million. Flat Services locations and a decrease in our RR&O locations resulted in an overall decline of 1% year-over-year in paying advertising locations to 510,000. Ad clicks declined by 5% year-over-year in the quarter, driven by fewer clicks in our RR&O categories, partially offset by a slight increase in Services categories. Average CPC increased by 1% as Services ad clicks comprised a greater portion of total ad clicks compared to the prior year period. Moving to Other revenue, Other revenue increased by 98% year-over-year to a record $33 million. This strong growth was driven by the inclusion of revenue generated by Hatch, as well as significant growth in revenue from data licensing and food ordering. Turning to expenses. In 2026, we're investing behind high-return areas that we believe will transform Yelp. In particular, we see a significant opportunity in Other revenue through AI-driven offerings such as Yelp Host, Hatch, and data licensing. As these accretive revenue streams continue to gain traction, we are targeting an annual run rate of $250 million in Other revenue by the end of 2028. At the same time, we see substantial opportunities to unlock operational efficiencies and increase employee productivity with AI. We've already seen AI tools drive meaningful improvements in product and engineering velocity. We are iterating quickly and bringing new products like Yelp Host to market faster than ever before. In the short term, we plan to increase our investments in a number of areas. We are providing Hatch with additional resources to accelerate their product roadmap and go-to-market. We also expect to continue to invest in consumer marketing to drive leads to multi-location Services businesses. We reduced stock-based compensation expense as a percentage of revenue by 3 percentage points year-over-year to 7% in the second quarter. We also continue to expect that we will reduce stock-based compensation expense to less than 6% of revenue by the end of 2027. To create long-term shareholder value, we are evolving our approach to capital allocation. We plan to invest in future growth, pursue strategic acquisitions through a combination of cash and financing, and return more than 50% of free cash flow to shareholders each year through share repurchases. To that end, in the second quarter, we repurchased $15 million worth of shares at an average price of $24.92 per share, contributing to a 15% year-over-year reduction in diluted shares outstanding. We subsequently repurchased approximately $25 million worth of shares in the third quarter, bringing our total repurchases for the year to approximately $200 million. We have now paused our program as we work to pay down our revolving credit facility. With $339 million remaining under our existing authorization at present, we expect to resume repurchases in 2027. Turning to our outlook, we anticipate that the challenging economic environment for local businesses will persist for the remainder of the year and continue impacting advertising revenue across categories. At the same time, we expect our investments in our strategic initiatives will continue to drive strong growth in Other revenue. As a result, we anticipate third quarter net revenue will be in the range of $365 million to $370 million. For the full year, we are narrowing our range and now expect net revenue will be between $1.460 billion and $1.470 billion. Turning to margin, we expect expenses will increase sequentially in the third quarter as we invest in our AI transformation, Hatch, and consumer marketing. As a result, we expect third quarter adjusted EBITDA will be in the range of $70 million to $75 million. For the full year, we are narrowing our range and now expect adjusted EBITDA will be between $315 million and $325 million. In closing, with early signs of improvement across a number of key metrics, Yelp's second quarter results reflect continued product momentum as we invest in our AI transformation. We continue to believe in the opportunities ahead and our ability to create long-term shareholder value. With that, operator, please open up the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Eric Sheridan with Goldman Sachs. Unknown Analyst: This is Alex on for Eric. Maybe just wanted to dig into a little bit of some of the investments you're making behind the Other revenue push here and specifically for Hatch. What are some of the investments, whether it's product development, go-to-market that you plan to make to support that and what are the potential differences in structural margins going forward between that revenue stream and your core advertising? David Schwarzbach: Alex, thanks for the question. We are investing in Hatch. We're investing across the board, both in go-to-market as well as product and engineering. Really, when we acquired Hatch in February, it was a startup, and now we obviously want to scale operations there. So we're bringing a lot of folks, as well as process and metrics to the go-to-market side. And we were able to deliver quite a few product improvements throughout the course of the second quarter. We obviously think that there is a significant market opportunity here, and we absolutely want to go after it. In terms of over the longer term, the margin profile for this business we expect can be similar to other subscription businesses. In the near term, though, we definitely want to continue to invest to scale and, again, to capture market opportunity. Operator: Your next question comes from the line of Sergio Segura with KeyBanc. Sergio Segura: Maybe one on data licensing and the ChatGPT Request-a-Quote integration that's coming up. I'm just curious how you think about it longer term, how you believe Yelp captures most of the economic value from AI? Is it driving users back to the Yelp ecosystem, generating the leads to these platforms, or licensing the content and data, just how you view all those opportunities? Jeremy Stoppelman: Sergio, thanks for the question. We're really excited about working with OpenAI, obviously. It has a big consumer footprint with ChatGPT. You can now see our integration starting to happen there. It's still kind of the first inning, but you can see ratings, it links back to Yelp. You can see review snippets, and those also can link back to Yelp. And in fact, we just started to see rolling Request-a-Quote, and Services represents a huge majority of our revenue. So having that interconnectivity, I think, is pretty exciting. It's super early days in terms of traffic impact, but we see this as a potentially significant distribution channel over time. We do have a history here in licensing our data and cooperating with other big players. For example, our data can be found in places like Amazon, DuckDuckGo, and Bing. Apple has been obviously a huge partner that we've worked with for a long time. And when our content shows up there, I think it's a win-win. We meet consumers wherever they're at. There's often ways to get back to Yelp. So it's both an opportunity to merchandise and remind consumers of Yelp, but also can deliver some meaningful traffic back. And so we see the opportunity with these AI players to be quite similar, and we're thinking about it much in the same way. Sergio Segura: Maybe just a follow-up on that. Anything notable to call out on differences in quality or conversion of these leads coming through these AI platforms versus other performance channels? Jeremy Stoppelman: I think it's quite early to really have a strong opinion on that. You know, the way that it's being merchandised is just kind of at the bare minimum, as you can see. And I don't think that's the eventual steady state. But I really haven't seen any data on conversions, just because it's just been starting more recently. I mean, I guess separately, on the overall -- speaking of overall traffic, we did note some consumer tailwinds and good things happening. And so just to highlight, that's coming from a variety of places. Some of it is our great work the product team has done on SEO, as well as driving more downloads, which is exciting because, of course, downloads are more of a direct relationship with consumers. It's a great way to discover and utilize Yelp. And we did see some gains from our partner network. Again, we've been licensing data for quite some time. This is folks that are not in the AI LLM search space, but in working with our partners, we were able to drive some more traffic. And then we also saw some positive changes on the algorithmic side for Google, where we've seen they've started to really lean into user-generated content in a big way, I think, because of the onslaught of spam and low-quality content. And so that's benefited us as well. Operator: Your next question comes from the line of Colin Sebastian with Baird. Zachary Witaszek: This is Zach on for Colin. I guess on your success with the Yelp Host, have you found any early success cross-selling the ads product with it so far? And how might it be able to open the door to other new or expanded partnerships? Jeremy Stoppelman: This is Jeremy here. I'd say we're very excited about Host. Homegrown product that we started from scratch a little over a year ago, and we're now at a 2.4 million call run rate, it's about tripled from January this year. We've also just launched OpenTable integration, which is exciting. So people can call in and make changes to reservations. Obviously, it works with Yelp Guest Manager, which is our front-of-house product, but we're opening up to the rest of the ecosystem there, which is exciting. And then food ordering we've recently added. And so that's great for restaurants. Obviously, it takes a lot of time to take down food orders, but also for taking in orders primarily through food delivery services, that can really add up a lot of fees and expenses in getting that food out. Whereas food orders coming in over the phone is just pickup and it comes without a commission. So our restaurants really love that. On the ad side, we do have a group that is a dedicated group to working with restaurant partners. And so they're selling Yelp Guest Manager, they're selling Yelp ads, they're selling Yelp Host. And so we do see some positive synergies there. It's early days. I don't think it's really changed the game for us on the restaurant ad side, but I do think having a really compelling product that is delivering for restaurants is certainly a step in the right direction and gives us some opportunity to have those conversations. Operator: Your next question comes from the line of Nitin Bansal with Bank of America. Nitin Bansal: You mentioned that you resumed acquiring leads through paid search. So can you help us understand what has changed versus prior efforts? And what gives you confidence that this time the strategy will have the intentional impact and will drive incremental advertising budgets to Yelp? Joseph Nachman: This is Jed. I can take that question. Yes, we have certainly experimented in the past on buying leads for the overall ecosystem. I think the difference now is that we're specifically targeting multi-location Services businesses. We've talked about that opportunity for a while now. And they're obviously able to commit a lot of budget if you're able to drive leads. And our ability to go out and source quality leads from the broader ecosystem just enforces and allows us to kind of get through more budget. And ultimately, these businesses are looking for scale. They want the ability to buy a ton of leads that make a difference. And so we've been very targeted in the way that we go out and do that and are really confident in the ROAS of that spend for our customers. So that's the big difference between when we've been doing it in the past. Nitin Bansal: If I can ask one more, there was a healthy acceleration in the paying advertising locations, both on the Services side and the RR&O side. Can you, like, help us understand what contributed to that? How should we think about the future locations growth and the monetization implications for your ad business given that you lowered the upper end of the revenue guide by $5 million? Joseph Nachman: Yes. Overall, we did see encouraging trends on the paying advertising location side on restaurants. We saw kind of the best performance that we've seen from a PAL perspective in a few years on the Services side. We stayed flat on the PAL side. Overall, PALs were down 1% year-over-year, which is a big improvement over Q1. And so, we see that as early signs of encouragement there. There is certainly a lag, and these local businesses continue to face macroeconomic pressures. You look at the impact of inflation, higher gas costs, input costs all around the board, and -- so we don't expect any massive trajectory turn in terms of the broader local economy, but it is certainly encouraging to see our traffic trends as well as the paying advertising location trends. And we have a long pipeline that will continue to kind of drive. But over the long term, we believe we can impact both paying advertising locations, the number, as well as the ARPU. Operator: Your next question comes from the line of Kishan Patel with Raymond James. Kishan Patel: This is Kishan Patel on for Josh Beck. Can you elaborate on the tailwinds in Google traffic post the May and June core updates as some internet peers have noted AI overview-related traffic headwinds? And if you could delineate between paid marketing versus organic tailwinds? Jeremy Stoppelman: This is Jeremy. Yes, certainly, we've been monitoring folks as they talk about what's going on in the space with AI overviews and traffic patterns, and it does seem that we've bucked the trend. I think our area has been different when it comes to AI overviews. Our categories that we get a lot of traffic in are highly monetizable. And while you do occasionally see AI overviews, they're usually not right at the top. And so I think there's some element of Google trying to preserve its own revenue there that is a bit protective. From a paid traffic standpoint, largely we are organically driven. We do have some limited paid traffic that we try to optimize, and we've talked about some of that with multi-location and so forth, but it's relatively de minimis in terms of overall traffic impact. Really, it's organic sort of. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Yelp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Yelp wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Yelp (YELP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Yelp Inc. YELP reported second-quarter 2026 earnings of 57 cents per share, declining 14.9% year over year. The Zacks Consensus Estimate for the bottom line is pegged at 32 cents per share. Yelp’s second-quarter net revenues increased 1.4% year over year to $375.5 million and surpassed the consensus mark of $366 million. The top-line performance benefited from rapid growth in other revenues, while advertising revenues remained pressured. Other revenues jumped 98% year over year to $33 million, supported by Hatch, data licensing and food ordering. Advertising revenues declined 3% year over year to $342.5 million. Services advertising revenues were essentially flat at $241 million compared with $240.8 million in the year-ago quarter, as advertiser demand remained stable despite a difficult environment for local businesses. Restaurants, Retail & Other advertising revenues fell 10% to $101.5 million from $112.9 million. Lower ad clicks and average cost per click hurt the category, while weaker paying advertising locations and average revenue per location also weighed on performance. Yelp Inc. price-consensus-eps-surprise-chart | Yelp Inc. Quote Total paying advertising locations decreased 1% year over year to 510,000. Ad clicks declined 5%, primarily because of weakness in Restaurants, Retail & Other categories, while average cost per click increased 1% as higher-priced Services clicks represented a larger share of total clicks. Management noted improving trends compared with the first quarter. Restaurants, Retail & Other ad clicks, average cost per click and paying advertising locations improved sequentially, while overall consumer traffic benefited from better app installs and page views. Yelp Assistant continued to gain traction as the company reshaped its consumer experience around conversational search. The product generated roughly 10% of Request-a-Quote projects in the second quarter and helped drive overall project growth of about 10% year over year. Yelp Host reached a 2.4-million annual run rate for calls handled in July, more than tripling from January. Meanwhile, Hatch annual run rate revenues increased 59% year over year to $35 million in June. Yelp is adding product, engineering, sales and marketing resources to expand Hatch’s AI voice and lead-management capabilities. Total costs and expenses increased 4.6% year over year to $331.8 million. The cost of revenues rose 17.9% to $41.8 million, reflecting higher infrastructure expenses tied partly to AI products and Hatch. Sales and marketing expenses jumped 6.2% to $153.6 million. Product development expenses declined 10.1% to $70.5 million, while general and administrative expenses increased 3.3% to $47.9 million. Adjusted EBITDA fell 9% to $91 million, and the adjusted EBITDA margin contracted to 24% from 27% a year earlier. Yelp ended the second quarter with $94.1 million in cash and cash equivalents and $100 million in borrowings under its revolving credit facility. It generated operating cash flow of $75.8 million and free cash flow of $61.1 million in the second quarter. The company repurchased $50 million of shares during the quarter at an average price of $24.92. It subsequently bought back roughly $25 million of shares in the third quarter, bringing 2026 repurchases to about $200 million, before pausing the program to reduce revolving-credit borrowings. For the third quarter, Yelp expects net revenues between $365 million and $370 million. Adjusted EBITDA is projected between $70 million and $75 million as expenses rise sequentially on investments in its AI transformation, Hatch and consumer marketing. For 2026, management narrowed its net revenue outlook to $1.460-$1.470 billion from $1.455-$1.475 billion previously. The adjusted EBITDA range was narrowed to $315-$325 million from $310-$330 million. Yelp continues to target a $250-million annual run rate for other revenues by the end of 2028 as AI-driven offerings and data licensing scale. Yelp currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are Lumentum LITE, Applied Materials AMAT and Analog Devices ADI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Shares of Lumentum have surged 141.5% year to date. The Zacks Consensus Estimate for LITE’s fiscal 2026 earnings is pegged at $8.19 per share, up by 5 cents over the past 30 days, indicating an increase of 297.6% year over year. Shares of Applied Materials have jumped 109.8% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.17 per share, up by 3 cents over the past seven days, suggesting a rise of 29.2% year over year. Analog Devices shares have rallied 43.8% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, implying an increase of 59.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yelp Inc. (YELP) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Yelp Inc.? Here are five stocks we like better. Q2 revenue rose 1% to $376 million, exceeding guidance, while net income fell 28% to $32 million and adjusted EBITDA declined 9% to $91 million. AI and adjacent businesses drove growth: other revenue nearly doubled to $33 million, Hatch’s annual revenue run rate reached $35 million, and Yelp Host handled 2.4 million calls annually by July. Yelp expects continued local-business weakness and investment pressure. It narrowed full-year revenue guidance to $1.460 billion–$1.470 billion, forecast third-quarter adjusted EBITDA of $70 million–$75 million, and paused share repurchases to pay down debt. 3 hot mid-caps set to report Q3 earnings Yelp (NYSE:YELP) reported second-quarter revenue growth of 1% year over year as the company increased investment in artificial intelligence-driven products, data licensing and lead-management offerings while navigating what executives described as a challenging environment for local businesses. Second-quarter net revenue rose to $376 million, exceeding the high end of the company’s outlook range by $8 million. Net income declined 28% from a year earlier to $32 million, or an 8% net income margin. Adjusted EBITDA fell 9% to $91 million, representing a 24% margin and coming in $16 million above the high end of Yelp’s outlook range. → No Hangover: Revisiting Microsoft One Week After Earnings Are Dividend-Paying Office REITs Finally Staging A Comeback? Chief Executive Officer Jeremy Stoppelman said the company is advancing an AI transformation aimed at making local discovery more conversational, providing new tools for businesses and expanding Yelp’s content distribution through partnerships. Advertising trends remained pressured during the quarter. Services advertising revenue was flat year over year at $241 million, while restaurant, retail and other, or RR&O, advertising revenue declined 10% to $102 million. → MarketBeat Week in Review – 08/03 - 08/07 Paying advertising locations fell 1% year over year to 510,000, as services locations remained flat and RR&O locations declined. Ad clicks decreased 5%, driven by fewer clicks in RR&O categories, though services-category clicks increased slightly. Average cost per click rose 1%, which Chief Financial Officer David Schwarzbach attributed to services clicks comprising a larger portion of total clicks. Chief Operating Officer Jed Nachman said paying advertiser location trends showed improvement from the first quarter. Restaurant advertiser locations posted their strongest performance in several years, while services advertiser locations were flat. Still, Nachman said local businesses continue to contend with inflation, gas costs and other input-cost pressures, and the company does not expect a major turnaround in the broader local economy in the near term. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Other revenue increased 98% year over year to a record $33 million. The growth reflected contributions from Hatch, Yelp’s lead-management business acquired in February, as well as growth in data licensing and food-order revenue. Hatch’s annual revenue run rate reached $35 million in June, up 59% year over year. Stoppelman said Yelp significantly expanded the Hatch team during the second quarter to accelerate the product roadmap, though the expansion created what he described as an adjustment period during the quarter. The company saw improved trends in July. Schwarzbach said Yelp is investing in Hatch across product, engineering and go-to-market functions as it seeks to scale what had been a startup operation. He said the company believes Hatch’s longer-term margin profile could resemble that of other subscription businesses, though Yelp intends to continue investing in the near term to pursue the market opportunity. Yelp is targeting an annual run rate of $250 million in other revenue by the end of 2028. Schwarzbach said the company views AI-driven offerings, including Yelp Host, Hatch and data licensing, as important contributors to that objective. Yelp Host, the company’s AI-powered call-answering service for restaurants, reached an annual run rate of 2.4 million calls handled in July, more than tripling from January. The company added support for 16 new languages and introduced an OpenTable integration that allows callers to book and manage reservations automatically through Yelp Host. Yelp also added food-ordering functionality with point-of-sale integration, enabling restaurants to take pickup orders by phone without added fees. Stoppelman said the product has created positive synergies with Yelp’s restaurant sales efforts, which include Yelp Ads and Yelp Guest Manager, although he said it remains early and Yelp Host has not materially changed the company’s restaurant advertising business. On the consumer side, Stoppelman said Yelp saw improvements in app installs and page views. Yelp Assistant, its conversational product across local categories, showed early positive engagement trends. In services, the assistant contributed to approximately 10% year-over-year growth in project submissions, according to the company. Yelp also said its ratings and reviews began powering ChatGPT’s local experience in relevant categories through its OpenAI partnership. A Request a Quote integration with ChatGPT is expected to launch soon. Stoppelman said the relationship could become a meaningful distribution channel over time, though he characterized traffic and conversion data from the integration as too early to assess. He said Yelp has also benefited from product work on search engine optimization, higher app downloads, partner-network traffic and what he described as positive Google algorithmic changes favoring user-generated content. Yelp’s paid traffic activity is relatively limited compared with its overall organic traffic, he said. Yelp expects the difficult environment for local businesses to continue through the remainder of the year, weighing on advertising revenue across categories. For the third quarter, the company forecast net revenue of $365 million to $370 million and adjusted EBITDA of $70 million to $75 million. For the full year, Yelp narrowed its revenue outlook to $1.460 billion to $1.470 billion and its adjusted EBITDA outlook to $315 million to $325 million. The company expects expenses to increase sequentially in the third quarter as it invests in its AI strategy, Hatch and consumer marketing. Yelp repurchased $15 million of stock in the second quarter at an average price of $24.92 per share and approximately $25 million more in the third quarter, bringing year-to-date repurchases to about $200 million. The company said it has paused repurchases to pay down its revolving credit facility and expects to resume buybacks in 2027. Yelp had $339 million remaining under its existing repurchase authorization. Yelp is a digital platform that connects consumers with local businesses through user-generated reviews, ratings and multimedia content. The company's flagship offerings include the Yelp website and mobile applications for iOS and Android, where users can search for and discover restaurants, shops, service providers and other points of interest. In addition to crowd-sourced reviews and photographs, Yelp provides business profile pages featuring hours, contact information, menus and direct messaging capabilities. Yelp generates revenue primarily through advertising services sold to small and medium-sized enterprises. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yelp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 1% revenue growth to a strategic pivot toward AI-driven revenue streams, which helped offset a 10% decline in RR&O ad revenue. The 'Other' revenue segment grew 98% year-over-year, driven by the integration of Hatch, data licensing partnerships, and the scaling of the Yelp Host AI call-answering service. Operational performance in the Services category remained resilient with flat year-over-year revenue, supported by a 10% increase in project growth fueled by the new conversational Yelp Assistant. Management noted that while the macroeconomic environment remains pressured for local businesses due to inflation and input costs, consumer traffic trends improved through better app installs and SEO performance. The acquisition of Hatch is being positioned as a cornerstone for a new AI lead management category, despite a brief adjustment period in Q2 following a significant team expansion. Strategic data licensing, including a new partnership with OpenAI, is viewed as a win-win distribution channel that meets consumers across the AI ecosystem while driving traffic back to Yelp. Management expects the challenging economic environment for local businesses to persist through the remainder of 2026, impacting advertising revenue across all categories. The company is targeting an annual run rate of $250 million in Other revenue by the end of 2028, predicated on the continued scaling of Yelp Host, Hatch, and data licensing. Q3 guidance assumes a sequential increase in expenses as the company ramps investments in AI transformation, Hatch's go-to-market strategy, and consumer marketing for multi-location services. Capital allocation will prioritize paying down the revolving credit facility in the near term, with a plan to resume share repurchases in 2027 while maintaining a target to return over 50% of free cash flow to shareholders. Management projects stock-based compensation expense will decrease to less than 6% of revenue by the end of 2027, driven by operational efficiencies and AI-enhanced productivity. The acquisition of Hatch in February added $35 million in annual run rate revenue as of June, though management noted a temporary 'adjustment period' in Q2 due to rapid headcount growth. Yelp Host reached a run rate of 2.4 million calls handled in July, tripling its January volume, signaling a rapid shift in how the company monetizes restaurant operations beyond traditional ads. A 15% year-over-year reduction in diluted shares outstanding was achieved through aggressive repurchases totaling approximately $200 million year-to-date before the program was paused. Management highlighted a shift in Google's search algorithms toward user-generated content as a tailwind that helped Yelp 'buck the trend' of AI-related traffic headwinds seen by peers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is investing across go-to-market, product, and engineering to scale Hatch from a startup to a mature operation. Over the long term, Hatch is expected to mirror the margin profile of other subscription businesses, though near-term focus remains on scaling to capture market opportunity. The OpenAI partnership is viewed as a significant distribution channel that merchandises Yelp content and provides a path for consumers to return to the Yelp platform. Management noted it is too early to provide data on lead conversion quality from AI platforms, but the integration of 'Request-a-Quote' is a key upcoming milestone for monetization. Unlike past broad-based efforts, current paid search investments specifically target multi-location Services businesses that require high lead volume and scale. Management expressed confidence in the Return on Ad Spend (ROAS) for these customers, which is driving substantial budget growth from large-scale advertisers. Yelp has seen organic traffic benefits from recent Google updates that prioritize high-quality user-generated content to combat low-quality AI-generated spam. Management believes Yelp's highly monetizable categories are somewhat protected from AI overviews as Google seeks to preserve its own advertising revenue in those segments.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yelp Inc (NYSE:YELP) delivered strong Q2 2026 results, with revenue and adjusted EBITDA exceeding the high end of its guidance range. The company saw continued growth in its advertising revenue, driven by improved ad products and increased advertiser engagement. Yelp Inc (NYSE:YELP) reported solid growth in its services categories, particularly in home and local services, which remain a key strategic focus. The company's investments in AI and machine learning are enhancing ad targeting and improving the relevance of recommendations, leading to better user engagement. Yelp Inc (NYSE:YELP) maintained a healthy balance sheet with strong free cash flow generation, allowing for continued share repurchases and investment in growth initiatives. Yelp Inc (NYSE:YELP) experienced a slowdown in brand advertising revenue, which was partially offset by performance advertising but remains a headwind. The company faces ongoing macroeconomic uncertainty, which could pressure discretionary spending by small and medium-sized businesses on advertising. Yelp Inc (NYSE:YELP) noted increased competition from larger platforms and niche players, which could impact its ability to attract and retain advertisers. The company's international expansion efforts are still in early stages and have not yet contributed meaningfully to overall revenue growth. Yelp Inc (NYSE:YELP) saw a slight decline in average revenue per advertiser (ARPA) in certain segments due to a shift toward lower-tier ad packages. Warning! GuruFocus has detected 7 Warning Signs with MARA. Is YELP fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the drivers behind the strong revenue growth and how much of it was impacted by the timing of the Easter holiday? A: CFO David Schwarzbach explained that the revenue growth was broad-based, with particular strength in the Services and Restaurants categories. He noted that while the Easter shift had a minor impact on the quarter's phasing, the underlying demand trends remained robust, and the company saw strong advertising revenue growth across both multi-location and local advertisers. Q: What is the company's outlook for the second half of 2026, and how are you thinking about the impact of macroeconomic uncertainty on your advertising spend? A: CEO Jeremy Stoppelman stated that while the company remains cautious about the macro environment, they have not seen a significant pullback in advertiser demand. He highlighted that Yelp's value proposition for small and medium-sized businesses remains strong, and they are focused on executing their product roadmap to drive continued growth, with Q3 revenue guidance reflecting a continuation of current trends. Q: Can you elaborate on the progress of your AI initiatives, specifically the AI-powered review insights and how they are being adopted by consumers? A: Jeremy Stoppelman detailed that the AI-powered review insights feature, which summarizes the key themes from reviews, has seen strong adoption and positive feedback. He noted that this feature is driving increased engagement and time spent on the platform, and they are now expanding its use to more categories and integrating it into the ad product to improve conversion rates for advertisers. Q: The take rate for multi-location advertisers seems to be increasing. What is driving this, and is there more room for growth? A: David Schwarzbach attributed the increase in take rate to a combination of higher ad pricing, improved ad relevance, and the successful rollout of new ad formats like the enhanced profile ads. He indicated that there is still significant headroom for growth as they continue to improve the ROI for advertisers and introduce more self-serve tools for this segment. Q: Could you discuss the performance of the Restaurants category and the impact of the new "Request a Quote" feature on the Services category? A: Jeremy Stoppelman noted that the Restaurants category saw a return to growth, driven by improved monetization and product enhancements. For the Services category, the "Request a Quote" feature has been a key growth driver, increasing lead quality and volume, which has led to higher advertiser spend and retention rates. Q: How is the company balancing its investments in new products with the goal of expanding operating margins? A: David Schwarzbach explained that the company is maintaining a disciplined approach to investment, focusing on high-ROI projects like AI and self-serve advertising. He reaffirmed the long-term target of reaching 35% adjusted EBITDA margin, stating that the current investments are laying the groundwork for sustainable, efficient growth without sacrificing near-term profitability. Q: Can you provide an update on the competitive landscape, particularly regarding Google's recent changes to local search results? A: Jeremy Stoppelman addressed the competitive dynamics, stating that Yelp continues to differentiate itself through its unique content and community. He mentioned that while Google's changes are something they monitor, Yelp's traffic and engagement metrics remain stable, and they are seeing success in winning back advertisers who are seeking a more transparent and effective platform. Q: What are the key drivers behind the improvement in net revenue retention, and how sustainable is this trend? A: David Schwarzbach attributed the improvement in net revenue retention to better onboarding processes, improved ad targeting, and the success of the sales team in upselling higher-value products. He expressed confidence that these improvements are structural and will continue to benefit the company as they scale their sales and product efforts. Q: Could you break down the revenue contribution from the recently launched "Yelp Audiences" product and its early performance? A: Jeremy Stoppelman described "Yelp Audiences" as an early-stage opportunity that is gaining traction with national brands. He noted that while it is still a small contributor to overall revenue, the feedback from advertisers has been very positive, and they are investing in expanding its capabilities to capture a larger share of the brand advertising budget. Q: How is the company thinking about capital allocation, given the strong free cash flow generation? A: David Schwarzbach reiterated the company's commitment to returning capital to shareholders through share repurchases. He stated that the board has authorized an additional $250 million buyback program, reflecting their confidence in the business's cash flow generation and their belief that the current share price does not fully reflect the company's long-term growth potential. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Revenue increased by 1% year over year to $376 million Net Income decreased from the prior year to $32 million, reflecting an 8% margin Adjusted EBITDA1 decreased 9% year over year to $91 million, reflecting a 24% margin Narrows outlook range of 2026 Net Revenue to $1.460 billion to $1.470 billion; and 2026 Adjusted EBITDA to $315 million to $325 million2 SAN FRANCISCO, August 06, 2026--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today posted its financial results for the second quarter ended June 30, 2026 in the Shareholder Letter available on its Investor Relations website at yelp-ir.com. "Yelp’s AI transformation continued to gain momentum in the second quarter, with encouraging signs across several key metrics and Other revenue nearly doubling year over year," said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. "We are seeing the benefits of our strategic initiatives take shape. Yelp Assistant drove early positive signs in engagement, Yelp Host scaled rapidly, and Hatch accelerated their product roadmap. At the same time, our trusted content is powering local discovery for ChatGPT and other AI partners. While headwinds for local businesses persist, I’m confident we are building a stronger Yelp, transformed with AI, that is well-positioned to drive long-term profitable growth." "In the second quarter, Yelp delivered net revenue of $376 million, $8 million above the high end of our outlook range," said David Schwarzbach, Yelp's chief financial officer. "Other revenue accelerated from the first quarter, increasing 98% year over year to a record $33 million. We are continuing to invest in our strategic initiatives to create shareholder value over the long term, even as consumers and local businesses navigate a challenging economic environment." Quarterly Conference Call Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss the second quarter financial results and outlook for the third 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. About Yelp Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content with AI technologies, including Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it’s requesting quotes from service pros, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. 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 the full year 2026, its expectations regarding its AI transformation as well as its investments in and benefits from strategic initiatives, changes to its product offerings, the implications of trends in its key metrics and its ability to drive long-term profitable growth, 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: Adverse macroeconomic conditions — particularly those affecting local economies — and their impact on consumer behavior and advertiser spending; Yelp’s ability to maintain and expand its advertiser base; Yelp’s ability to execute on its strategic initiatives, including its AI transformation, and the effectiveness thereof; Yelp's ability to maintain and increase traffic to and user engagement on its platform, including its ability to generate, maintain and recommend sufficient content that consumers find relevant, helpful and reliable; Yelp’s reliance on internet search engines and application marketplaces, certain providers of which offer products and services that compete directly with its products; Yelp’s ability to successfully manage acquisitions of new businesses, solutions or technologies, to successfully integrate those businesses, solutions or technologies, including Hatch, and to monetize such acquired products, solutions or technologies; Yelp’s ability to continue to effectively operate with a remote work force and attract and retain key talent; Yelp’s reliance on third-party service providers and strategic partners; Competition in, and the rapid evolution of, Yelp’s industry; Yelp’s ability to maintain, protect and enhance its brand; and Yelp’s ability to maintain the uninterrupted and proper operation of its technology and network infrastructure. 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 and Quarterly Report on Form 10-Q at yelp-ir.com or the SEC’s website at sec.gov. 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 (expense), net; depreciation and amortization; stock-based compensation expense; and, in certain periods, certain other income and expense items, such as expenses for which we expect to be indemnified, acquisition and integration costs and other items 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 certain income and expense items, such as indemnifiable expenses, acquisition and integration costs 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): View source version on businesswire.com: https://www.businesswire.com/news/home/20260806543061/en/ Contacts Investor Relations Contact:Kate [email protected] Press Contact:Amber [email protected]

Yelp (YELP) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +93.75%. A quarter ago, it was expected that this online business reviews company would post earnings of $0.26 per share when it actually produced earnings of $0.36, delivering a surprise of +38.46%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Yelp, which belongs to the Zacks Internet - Content industry, posted revenues of $375.52 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.74%. This compares to year-ago revenues of $370.39 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Yelp shares have lost about 15.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While Yelp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Yelp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $372.56 million in revenues for the coming quarter and $1.79 on $1.46 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Content is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Similarweb (SMWB), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This digital intelligence company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Similarweb's revenues are expected to be $75.5 million, up 6.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yelp Inc. (YELP) : Free Stock Analysis Report Similarweb Ltd. (SMWB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Yelp (YELP) reported $375.52 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.4%. EPS of $0.62 for the same period compares to $0.67 a year ago. The reported revenue represents a surprise of +2.74% over the Zacks Consensus Estimate of $365.52 million. With the consensus EPS estimate being $0.32, the EPS surprise was +93.75%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Yelp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Paying Advertising Locations: 510 thousand versus the two-analyst average estimate of 386 thousand. Paying Advertising Locations - Restaurants, Retail & Other: 251 thousand versus the two-analyst average estimate of 234.5 thousand. Paying Advertising Locations - Services: 259 thousand compared to the 251.5 thousand average estimate based on two analysts. Net revenue- Advertising: $342.5 million compared to the $336.62 million average estimate based on three analysts. The reported number represents a change of -3.2% year over year. Net revenue- Other services: $33.02 million versus $28.9 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +97.8% change. Net revenue- Advertising revenue- Services: $240.96 million compared to the $240.03 million average estimate based on two analysts. The reported number represents a change of +0.1% year over year. Net revenue- Advertising revenue- Restaurants, Retail & Other: $101.53 million compared to the $97.42 million average estimate based on two analysts. The reported number represents a change of -10.1% year over year. View all Key Company Metrics for Yelp here>>> Shares of Yelp have returned +0.6% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yelp Inc. (YELP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Yelp stock has had a tough run over the past few years, yet the current valuation checks suggest the market may now be pricing it on the cheap side rather than baking in excessive optimism. Over the last 3 years, Yelp shareholders have seen the share price fall 44.1%, which sets the stage for a possible disconnect between sentiment and what the fundamentals may support. The recent content licensing agreement with OpenAI can support the case for stronger monetisation of Yelp's data over time. However, there is still a risk that competition in local search and AI assisted discovery limits how much value the company ultimately captures from such partnerships. Yelp scores highly on valuation checks, with 5 out of 6 tests pointing to the broader checks leaning cheap rather than expensive. The issue now is whether Yelp's current share price already reflects a cautious outlook or if investors are still discounting the stock more than its fundamentals appear to warrant. Find out why Yelp's -27.7% return over the last year is lagging behind its peers. The P/E ratio is a useful lens for Yelp because earnings remain a central driver of how investors weigh this kind of established internet platform business. Yelp currently trades on a P/E of 9.9x, which sits below the Interactive Media and Services industry average of 15.6x and the broader peer group around 38.6x. That gap suggests investors are applying a clear discount to Yelp relative to many other online platforms with earnings in the sector. The fair P/E ratio derived from the broader checks is 14.7x, which is higher than Yelp's current 9.9x. Despite the recent OpenAI content licensing agreement helping sentiment around the stock, the current multiple still prices Yelp at a discount to both the tailored fair ratio and to typical industry levels. On this framework, the market appears to be building in a cautious view of the business compared with what the earnings multiple model implies. On the P/E multiple alone, Yelp stock currently appears undervalued relative to both its fair ratio and sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Yelp valuation puzzle leaves off. They spell out which assumptions about future growth, margins and earnings would need to hold for the stock to be worth materially more or materially less than today's price, and they sit on the Community page. Each Narrative is framed as a thesis about Yelp's fair value that can be revisited over time so you can see how the underlying reasoning holds up as the business progresses. Yelp sits at the center of two very different community views on how much AI, product upgrades and mounting competition really matter for the stock. Bull case: 5% undervalued Read the full Bull Case to see why Yelp could be undervalued Bear case: 20% overvalued Read the full Bear Case to see why Yelp could be overvalued Do you think there's more to the story for Yelp? Head over to our Community to see what others are saying! Yelp screens as undervalued on earnings, with the current P/E sitting below both its tailored fair ratio and sector benchmarks, so the market is clearly pricing in a cautious outlook. The broader valuation checks look supportive, but they still leave room for the possibility that this discount reflects concern about competitive pressure in local search and AI assisted discovery. What matters most from here is whether Yelp can translate partnerships like the OpenAI agreement and ongoing product work into durable earnings power, rather than seeing its position eroded. This would determine whether the current discount is an opportunity or a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include YELP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]