Yelp Inc (YELP) AI Stock Analysis

Yelp Inc. connects consumers with local businesses across the United States and globally. Its platform covers categories such as restaurants, shopping, beauty, fitness, health, home services, auto care, and financial services. Yelp monetizes through cost-per-click search advertising, multi-location ad products, and business listing page products. It also provides consumer and business services including Yelp Reservations and Yelp Waitlist for seating management. Yelp Knowledge provides data analytics to businesses, while Yelp Fusion offers enterprise APIs. In addition, the company partners with Grubhub to facilitate food ordering for pickup and delivery.

Yelp grew annual revenue from $1.03B in FY2021 to $1.46B in FY2025, representing a 5-year revenue CAGR of 10.9%. However, revenue growth decelerated from 18.2% in FY2021 to 3.7% in FY2025. Operating margin expanded over the period from 3.1% in FY2021 to 12.6% in FY2025, helping net income increase from $39.7M to $145.6M. Over the trailing twelve months, revenue was $1.47B with a profit margin of 8.6% and operating margin of 12.7%. In the latest quarter ended June 30, 2026, revenue increased 1.4% year-over-year, while quarterly earnings declined 14.9%.

As of June 30, 2026, Yelp held $94.1M in cash and short-term investments alongside total debt of $123.3M, resulting in net debt of $29.2M. The company reported a current ratio of 1.75 and a debt-to-equity ratio of 0.19 against shareholders' equity of $644.5M. In FY2025, Yelp generated operating cash flow of $371.4M and free cash flow of $323.0M. Capital expenditures were $48.4M, while the company directed $292.2M toward share buybacks, reducing its share count by 26.7% over 5 years.

At $19.88 per share, Yelp trades at a trailing P/E of 9.6x and a forward P/E of 14.7x, compared to medians of 16.2x and 14.1x for its US-listed Communication Services peers. Its EV/EBITDA multiple is 4.2x versus the peer median of 10.0x, and its price-to-sales ratio stands at 0.7x compared to the peer median of 0.8x. Over the past year, the stock fell 39.1%, underperforming the SPY benchmark gain of 16.8%, and is down 49.9% over five years compared to an 83.0% gain for the index.

Wall Street coverage includes 2 Strong Buy, 0 Buy, 6 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target of $24.00 sits 20.7% above the last close of $19.88. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.47B and an EPS decline of 21.1% to $1.77. For the following fiscal year, 8 analysts project EPS of $2.48 on revenue of $1.51B. Yelp has beaten EPS expectations in 3 of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of Yelp Inc (YELP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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