AI-extracted from the 10-Q filed 2026-08-07 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Yelp's Q2 revenue grew 1% YoY to $375.5M despite 3% advertising decline, offset by 98% surge in other revenue driven by Hatch acquisition and data licensing partnerships.
Biggest Revenue Drivers
Advertising$342.5M-3% YoY
Decline driven by lower ad clicks and pricing in Restaurants, Retail & Other, partially offset by Services growth.
Other revenue$33.0M+98% YoY
Growth driven by Hatch acquisition, Yelp Places API program expansion, and DoorDash partnership food ordering.
Biggest Revenue Drivers
Total revenue: $375.5M+1% YoY
Advertising$342.5M-3% YoY
Decline driven by lower ad clicks and pricing in Restaurants, Retail & Other, partially offset by Services growth.
Within Advertising
Services advertising$241.0MFlat YoY
Slight increases in Services ad clicks partially offset by lower average CPC.
Restaurants, Retail & Other advertising$101.5M-10% YoY
Decline in ad clicks and average CPC reflects challenging operating environment for local businesses.
Other revenue$33.0M+98% YoY
Growth driven by Hatch acquisition, Yelp Places API program expansion, and DoorDash partnership food ordering.
Largest Expense Items
Sales and marketing$153.6M+6% YoY
Increased marketing costs for Services project acquisition and business owner marketing, plus higher workplace costs.
Cost of revenue$41.8M+18% YoY
Higher infrastructure expenses for AI products and Hatch integration, partially offset by lower advertising fulfillment costs.
Depreciation and amortization$18.1M+47% YoY
Increase from intangible asset amortization ($4.2M) and higher capitalized software costs ($2.1M) from Hatch acquisition.
General and administrative$47.9M+3% YoY
Hatch acquisition and integration costs of $3.5M and higher legal costs, offset by lower credit loss provisions.
Margins: Operating income declined 18% YoY to $43.7M despite flat revenue, with operating margin compressing to 11.6% from 14.4%, driven by Hatch integration costs, higher depreciation from acquired intangibles, and increased marketing investments. Adjusted EBITDA margin declined to 24% from 27% due to acquisition integration and increased strategic investments.
Watch Items from the Filing
Advertising revenue declining 3% YoY with RR&O category down 10%; company expects further slight YoY revenue decrease in Q3 2026 due to 'continued economic challenges facing consumers and local businesses.'
Hatch acquisition integration costs of $7.9M in six months; company committed to additional $30M in employee compensation over 2-3 years and targeting $35M annual run rate revenue by June 2026.
Ad clicks declined 5% YoY in Q2 and 8% YoY in six months; paying advertising locations decreased 1% YoY in Q2, reflecting weakness particularly in RR&O categories.
Drawn $100M on $325M credit facility as of June 30, 2026; company pausing share repurchases through remainder of 2026 to prioritize debt repayment from $94.1M cash position.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Gibbs Robert LaneDirectorGrant or award · Jun 5, 2026
Green LoganDirectorGrant or award · Jun 5, 2026
Irvine Diane MDirectorGrant or award · Jun 5, 2026
About YELP INC (YELP): stock profile, AI score and financials
YELP INC (YELP) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores YELP at 55.4/100 on a composite quality score built from its SEC filings, placing it at rank #1,245 of 2,925 stocks — the top half of the AI-ranked universe. YELP scores in the top quartile across balance sheet strength (90.3), earnings quality (75.6). Areas of concern include institutional flow (27.9) and revenue growth (36.2), which score below median versus the broader universe. Shareholder dilution risk is elevated at 16.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), YELP INC reports quarterly revenue of $375.5M, net income of $31.7M, an operating margin of 11.7%. Top institutional holders of YELP by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, DIMENSIONAL FUND ADVISORS, based on the most recent SEC filings. YELP trades on the NYSE exchange and files with the SEC under CIK 1345016. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate YELP daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for YELP INC directly from SEC EDGAR.