Yelp Q3 revenue slightly beats estimates
Overview
US online reviews platform's Q3 revenue declined 1% yr/yr but slightly beat analyst expectations
Adjusted EBITDA for Q3 beat analyst expectations, despite a 6% yr/yr decrease
Net income for Q3 fell to $35 mln, with a 9% margin
Outlook
Yelp sees 2026 net revenue of $1.455 bln to $1.460 bln
Company expects 2026 adjusted EBITDA of $320 mln to $325 mln
Yelp expects consumers and local businesses to face a challenging economic environment
Result Drivers
OTHER REVENUE GROWTH - Co said other revenue rose 82% yr/yr, helping offset pressure on advertising revenue
AI INITIATIVES - Co said new AI features and updates, including a more personalized Yelp Assistant, contributed to business traction
DATA LICENSING - Co said demand for local content in the AI ecosystem supported growth in data licensing revenue
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $370.92 mln | $368.88 mln (10 Analysts) |
Q3 Net Income | $34.55 mln | ||
Q3 Adjusted EBITDA | Beat | $92 mln | $74.65 mln (10 Analysts) |
Q3 Operating Income | $48.89 mln | ||
Q3 Pretax Profit | $50.24 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Yelp Inc. is $25.22, about 14.4% above its November 4 closing price of $22.05
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)