YELP · Yelp Inc.

Yelp Inc. delivered Q1 2026 results with net revenue of $361 million, a 1% year-over-year increase that exceeded the high end of guidance by $6 million. Growth was propelled by robust 75% expansion in other revenue to a record $29 million, incorporating contributions from the February acquisition of Hatchify Inc. (Hatch) and advances in data licensing and food ordering via partnerships like DoorDash. Services advertising revenue edged up 1% to $234 million on stable advertiser demand and higher average revenue per location, despite a dip in paying ad locations. Conversely, Restaurant, Retail & Other (RR&O) advertising fell 11% to $99 million amid reduced ad clicks and economic pressures on local businesses, compounded by competition from delivery platforms. Total paying advertising locations declined 6% to 485k, while average CPC rose 8% due to stronger RR&O pricing. Net income dropped to $18 million (5% margin) from $24 million, reflecting higher costs including stock-based compensation and acquisition-related expenses. Adjusted EBITDA of $79 million (22% margin) beat expectations but declined 7% YoY. Balance sheet shows cash at $110 million post-share repurchases of $125 million (5.1 million shares) and net investing outflow from $264 million Hatch acquisition, partly funded by $165 million revolving credit facility drawdown (net $130 million outstanding). Management reaffirmed FY2026 outlook for net revenue $1.455-1.475 billion and Adjusted EBITDA $310-330 million, targeting $250 million other revenue run-rate by 2028. CEO Jeremy Stoppelman highlighted AI transformation progress with 35+ product updates, including expanded Yelp Assistant across categories (15% of Request-a-Quote projects) and Yelp Host scaling to 1.5 million calls annual run-rate. CFO David Schwarzbach noted opportunities in scaling Yelp Host, Hatch (ARR $34 million in March, +92% YoY), and data licensing amid local economic challenges.