Yelp Q4 EPS Beats 13.9% While FY Revenue Guidance Misses by 2.8%
Yelp posted flat Q4 revenue of $360 million, matching the $359.6 million consensus, and delivered GAAP EPS of $0.61, a 13.9% beat, while adjusted EBITDA reached $85.7 million at a 23.8% margin. Full-year 2026 revenue guidance midpoint of $1.47 billion fell 2.8% below forecasts and EBITDA guidance lagged expectations.
1. Q4 Performance Highlights
Yelp generated Q4 net revenue of $360 million, flat year-over-year and in line with estimates, delivered GAAP EPS of $0.61 (13.9% above consensus) and produced adjusted EBITDA of $85.7 million at a 23.8% margin.
2. Full-Year Guidance Shortfall
Management set full-year 2026 revenue guidance midpoint at $1.47 billion, 2.8% below analyst expectations, and forecast adjusted EBITDA of $320 million at midpoint, trailing the $357.5 million consensus.
3. 2025 Record Revenue and AI Investment
During 2025, Yelp achieved record net revenue driven by growth in Services and introduced over 55 new product features, accelerating investment in AI-driven tools and platform enhancements.
4. Market Reaction and Outlook
Shares declined more than 6% following the report, reflecting investor concerns over guidance shortfalls and slowing revenue growth as the company balances profitability with strategic AI investments.