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Yelp Q3 revenue slightly beats estimates

By Reuters News


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


Reuters Recommended Reads

  • Nov 4 - Snap Q3 revenue misses estimates; to replace DAU with MAU metric

  • Nov 2 - Roku Q3 revenue beats estimates on advertising, subscription growth

  • Nov 4 - HubSpot Q3 revenue beats estimates driven by subscription growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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