Yelp falls as FY revenue forecast falls short of estimates
YELP•Yelp shares fell 6.7% after the company forecast FY2026 net revenue of $1.455 billion to $1.460 billion, below analysts’ $1.466 billion estimate. Third-quarter revenue declined 1% year over year to $371 million, topping estimates of $369 million.
1. Annual outlook misses estimates
Yelp forecast FY2026 net revenue of $1.455 billion to $1.460 billion, below analysts’ mean estimate of $1.466 billion even at the high end of the range. CFO David Schwarzbach said consumers and local businesses are expected to face a “challenging economic environment.”
2. Costs weigh on demand
Third-quarter revenue fell 1% year over year to $371 million, above analysts’ estimate of $369 million. COO Jed Nachman said elevated labor and fuel costs are weighing on local businesses’ advertising demand, while some customers are choosing to “repair rather than replace” larger home-services projects.
