Yelp Inc. Reports Robust First Quarter 2026 Results Amid AI Transformation

In the first quarter of 2026, Yelp reported net revenue of $361 million. This figure not only meets expectations but also surpasses the high end of the company's previous outlook. The adjusted EBITDA margin stood at an impressive 22%, marking a noteworthy achievement in profitability despite ongoing pressures faced by local economies.

David Schwarzbach, Yelp's Chief Financial Officer, highlighted the company's success in diversifying its revenue streams. Notably, revenue from other sources surged 75% year over year, reaching a record $29 million. Schwarzbach remarked, “While local economies remained pressured, we see a significant opportunity to drive growth in other revenue by scaling Yelp Host, Hatch, and data licensing.” The company has set ambitious goals, targeting an annual run rate of $250 million in other revenue by the end of 2028.

Yelp's co-founder and CEO, Jeremy Stoppelman, emphasized the company's commitment to advancing its AI transformation in the first quarter. He noted, “We continued to accelerate Yelp's AI transformation in the first quarter.” Stoppelman expressed optimism about the company’s progress towards reconceiving Yelp around answers and actions. He mentioned the rollout of over 35 new product updates and features, including the newly launched Yelp Assistant, which now operates across all categories.

The company's initiatives are aimed at enhancing the user experience while providing local businesses with innovative tools to thrive in a challenging operating environment. Stoppelman cited the strong product momentum, traction from Hatch and Yelp Host, and a growing partner ecosystem as key drivers of confidence in Yelp's strategic direction and long-term profitable growth trajectory.

As Yelp moves forward, the focus on scaling its new revenue streams—particularly through Yelp Host, Hatch, and data licensing—positions the company for sustained growth. The management team is optimistic about these developments and their potential to bolster Yelp's market presence.

In light of these results, Yelp will host a live webcast at 2 p.m. Pacific Time to discuss the first quarter financial results and provide an outlook for the second quarter and full year of 2026. Investors and analysts can access the Q&A session on the Yelp Investor Relations website, with a replay available shortly after the event.

Yelp's first quarter results for 2026 reflect a resilient company that is not only navigating economic challenges but also positioning itself at the forefront of technological innovation through AI. With a strong financial performance, ambitious future goals, and a commitment to enhancing its platform, Yelp appears well-equipped to continue its growth journey and further strengthen its connection with local businesses and consumers alike.