Yelp Q4 Revenue Flat at $360M; 2026 EBITDA Guidance 10.8% Below Forecast
Yelp reported flat Q4 revenue of $360 million, matching estimates, but non-GAAP EPS of $0.89 missed expectations by 1.3%. The company forecast 2026 EBITDA of $320 million, 10.8% below analysts’ $358.8 million consensus, as operating margin fell to 13.6% while AI investments and the Hatch acquisition drive higher expenses.
1. Q4 Financial Results
Yelp reported Q4 CY2025 revenue of $360 million, flat year-on-year and in line with analyst estimates, while non-GAAP EPS of $0.89 per share fell short of the $0.90 consensus. Adjusted EBITDA reached $85.7 million, representing a 23.8% margin and a 5.8% beat on profitability.
2. 2026 Guidance and Margin Pressure
For fiscal 2026, management guided to $320 million in EBITDA at the midpoint, 10.8% below the $358.8 million analysts anticipated, and forecast operating margin to decline to 13.6% from 14.8% a year earlier. The cautious outlook reflects persistent weakness in restaurant and retail advertising, with management expecting continued pressure on revenue growth.
3. AI Initiatives and Hatch Acquisition
Yelp is accelerating investments in AI, rolling out over 55 new features including the Yelp Assistant chatbot, which has driven a 400% increase in quote requests. The recent acquisition of Hatch, an AI lead management platform, is aimed at enhancing SaaS offerings for service professionals but will increase operating expenses in the near term.