Abstract
Yelp will release its fiscal fourth-quarter 2025 results on February 12, 2026 Post Market, with investors watching revenue, margin trends, and adjusted EPS guidance alongside any commentary on ad demand and product initiatives.
Market Forecast
Consensus for Yelp’s current quarter points to total revenue of USD 358.70 million, an adjusted EPS of USD 0.65, and EBIT of USD 42.71 million, implying year-over-year growth of 2.48% for revenue and 22.80% for adjusted EPS. Based on last quarter’s mix, gross profit margin is expected to remain elevated near platform norms, while net profit margin should reflect operating discipline; year-over-year data is embedded in EPS and EBIT forecasts.
Advertising remains the primary revenue driver, with product enhancements aimed at yield and advertiser retention supporting steady momentum into the quarter. The most promising segment is performance ads and self-serve advertising tools within the Advertising unit, which continue to attract small and mid-sized businesses seeking measurable ROI; the last reported advertising revenue was USD 357.35 million with underlying stability and improving sales execution.
Last Quarter Review
Yelp’s previous quarter delivered revenue of USD 376.04 million, a gross profit margin of 90.35%, GAAP net profit attributable to the parent company of USD 39.32 million, a net profit margin of 10.46%, and adjusted EPS of USD 0.61, with year-over-year growth of 4.36% for revenue and 8.93% for adjusted EPS.
A key highlight was EBIT of USD 52.89 million, which outpaced internal estimates and reflected ongoing cost control and operating leverage. Main business performance centered on Advertising with USD 357.35 million in revenue, supported by continued adoption of monetization tools and healthy retention, while Other Services contributed USD 18.69 million, reinforcing ancillary growth.
Current Quarter Outlook
Advertising
Advertising is Yelp’s core business and the primary determinant of quarterly performance. The forecast calls for revenue of USD 358.70 million and EBIT of USD 42.71 million, underpinned by stable demand from local businesses and continued optimization of ad products. Recent execution around campaign measurement, bidding efficiency, and self-serve funnels has supported advertiser ROI, a crucial lever for retention and budget expansion during mixed macro conditions. The key watch items this quarter include pricing discipline, click-through efficiency, and any commentary on coverage expansion within services categories that typically scale in the first half of the calendar year.
Performance Ads and Self-Serve Tools
Within Advertising, performance-oriented products and self-serve tools are positioned to capture incremental budgets from small and mid-sized businesses that prioritize measurable returns. Enhanced conversion tracking and simplified onboarding have lowered friction, improving lead quality and enabling advertisers to calibrate spend more confidently. The segment benefits from Yelp’s ability to surface high-intent consumers and from product iteration that raises inventory yield. The quarter’s upside hinges on how effectively Yelp balances paid placements with user experience while driving advertiser satisfaction indicators such as retention and lifetime value.
Stock Price Drivers
Share performance around earnings will likely hinge on revenue growth durability, margin trajectory, and EPS cadence. Investors will parse signals on expense management versus product investment, especially after last quarter’s EBIT performance exceeded estimates. Commentary on the health of local ad demand, churn trends, and the pace of conversion improvements will be pivotal, as will any update to FY guidance ranges and cohort behavior among new versus mature advertisers. Execution on automation and analytics in sales processes may also influence views on operating leverage into subsequent quarters.
Analyst Opinions
Across recent institutional commentary, the majority view is cautiously positive, emphasizing stable local ad demand, disciplined expense control, and incremental benefits from product optimization driving EPS resilience. Analysts point to the last quarter’s EBIT outperformance relative to estimates and expect near-term margins to remain supported by operational efficiency initiatives. Several well-followed firms highlight retention improvements and conversion tracking enhancements as supportive of forecasted EPS growth of 22.80% year over year, while noting that top-line expansion of 2.48% still requires vigilant execution. The consensus tilt anticipates in-line to modestly better results, with focus on guidance tone and visibility into advertiser cohort momentum.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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