Yelp Inc. Reports Record Revenue and AI Investment Plans

Yelp's financial performance in 2025 showcased resilience and strategic execution amid a challenging economic landscape. The company achieved net revenue of $1.46 billion, a 4% increase year-over-year, surpassing the midpoint of the revised guidance provided in November 2025. This figure, however, fell slightly short of earlier projections from February 2025, which aimed higher by $13 million.

The company's net income rose 10% to $146 million, reflecting a solid 10% net income margin. Earnings per share (EPS) also saw a commendable 19% growth, reaching $2.24. Adjusted EBITDA grew by 3% to $369 million, representing a 25% adjusted EBITDA margin. David Schwarzbach, Yelp's Chief Financial Officer, emphasized that these results underscore the potential of Yelp's product-led strategy, which balances disciplined execution with growth initiatives.

A significant contributor to Yelp's success was its advertising revenue from services, which reached a record $948 million, marking an 8% increase year-over-year. However, advertising revenue from the Restaurants, Retail & Other (RR&O) segments saw a decline of 6%, totaling $444 million.

Despite an overall reduction in total paying advertising locations by 3%, the average revenue per location hit an all-time high. Meanwhile, ad clicks experienced a 7% decrease compared to 2024, attributable to lower consumer demand amid economic uncertainties.

On the consumer side, Yelp's user-generated content continued to grow robustly. In 2025, users contributed 22 million new reviews, bringing the total to 330 million, a 7% increase from the previous year. This engagement highlights Yelp's commitment to enhancing user experience and trust in its platform.

Looking ahead, Yelp plans to continue its focus on innovation and AI integration. The company has set its sights on net revenue for 2026 in the range of $1.455 billion to $1.475 billion, with anticipated adjusted EBITDA between $310 million and $330 million. CEO Jeremy Stoppelman emphasized the strategic shift towards making Yelp more conversational and action-oriented, particularly through the recent acquisition of Hatch and a partnership with OpenAI.

These initiatives reflect Yelp's ambition to leverage AI tools to help businesses operate more efficiently and to enhance local discovery across the AI ecosystem.

Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss its fourth-quarter and full-year financial results as well as its outlook for 2026. Investors and interested parties can access the webcast on the Yelp Investor Relations website.

Yelp's strong financial performance in 2025, coupled with its commitment to AI transformation, positions the company for future growth. As it navigates the evolving landscape of digital advertising and local business engagement, Yelp stands poised to enhance its offerings and drive shareholder value in the coming years.