Yelp Q2 Earnings Call Highlights

2 weeks ago 13

MarketBeat

Sun, August 9, 2026 astatine 1:03 PM CDT 6 min read

Key Points

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Q2 gross roseate 1% to $376 million, exceeding guidance, portion nett income fell 28% to $32 cardinal and adjusted EBITDA declined 9% to $91 million.
AI and adjacent businesses drove growth: different gross astir doubled to $33 million, Hatch's yearly gross tally complaint reached $35 million, and Yelp Host handled 2.4 cardinal calls annually by July.
Yelp expects continued local-business weakness and concern pressure. It narrowed full-year gross guidance to $1.460 billion–$1.470 billion, forecast third-quarter adjusted EBITDA of $70 million–$75 million, and paused stock repurchases to wage down debt.

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Yelp (NYSE:YELP) reported second-quarter gross maturation of 1% twelvemonth implicit twelvemonth arsenic the institution accrued concern successful artificial intelligence-driven products, information licensing and lead-management offerings portion navigating what executives described arsenic a challenging situation for section businesses.

Second-quarter nett gross roseate to $376 million, exceeding the precocious extremity of the company's outlook scope by $8 million. Net income declined 28% from a twelvemonth earlier to $32 million, oregon an 8% nett income margin. Adjusted EBITDA fell 9% to $91 million, representing a 24% borderline and coming successful $16 cardinal supra the precocious extremity of Yelp's outlook range.

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Chief Executive Officer Jeremy Stoppelman said the institution is advancing an AI translation aimed astatine making section find much conversational, providing caller tools for businesses and expanding Yelp's contented organisation done partnerships.

Advertising Revenue Reflects Local-Business Pressures

Advertising trends remained pressured during the quarter. Services advertizing gross was level twelvemonth implicit twelvemonth astatine $241 million, portion restaurant, retail and other, oregon RR&O, advertizing gross declined 10% to $102 million.

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Paying advertizing locations fell 1% twelvemonth implicit twelvemonth to 510,000, arsenic services locations remained level and RR&O locations declined. Ad clicks decreased 5%, driven by less clicks successful RR&O categories, though services-category clicks accrued slightly. Average outgo per click roseate 1%, which Chief Financial Officer David Schwarzbach attributed to services clicks comprising a larger information of full clicks.

Chief Operating Officer Jed Nachman said paying advertiser determination trends showed betterment from the archetypal quarter. Restaurant advertiser locations posted their strongest show successful respective years, portion services advertiser locations were flat. Still, Nachman said section businesses proceed to contend with inflation, state costs and different input-cost pressures, and the institution does not expect a large turnaround successful the broader section system successful the adjacent term.

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