| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 10.1x | 17.8x | Top tier | |
Growth | 34 | 1.5% | 7.1% | Bottom tier | |
Quality | 96 | 14.9% | 4.5% | Top tier | |
Safety | 84 | 0.1x | 2.6x | Top tier | |
Capital Return | 66 | — | 2.12% | Around median | |
Momentum | 29 | -14.2% | 2.9% | Bottom tier | |
Sentiment | 39 | 7 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Yelp operates a local discovery platform that connects consumers with restaurants, service providers, and local businesses through ratings, reviews, and request-a-quote tools. Most of its revenue comes from advertising, while other expanding sources include Yelp Host for answering restaurant calls, Hatch for lead management, food ordering, and data licensing to partners such as OpenAI, Apple, and Yahoo.
In fiscal Q2 2026, revenue was $375.5 million according to EDGAR data, up 1% year over year, while net income was $31.7 million and earnings per share were $0.57. Management stated that the net income margin was 8%, while adjusted earnings before interest, taxes, depreciation, and amortization were $91 million at a 24% margin, but declined 9% year over year, while net income declined 28% year over year.
The revenue mix remained heavily dependent on advertising: Services advertising revenue was $241 million and remained flat year over year, while Restaurants, Retail & Other advertising revenue declined 10% to $102 million. In contrast, Other revenue rose 98% to a record $33 million, driven by the inclusion of Hatch revenue and growth in data licensing and food ordering, but it still represented only about 9% of quarterly revenue.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $27.33, within a range of $24 to $30, against a neutral consensus. The average target sits within the 52-week range of $19.60 to $34.49, while even the highest target of $30 remains below the top of that range, reflecting caution toward advertising stagnation and investment pressure on fiscal Q3 2026 earnings despite growth in AI-powered businesses. The available information does not support a price-to-earnings-based valuation, so the available valuation assessment depends on the neutral target range and the ability of Other revenue to offset the slowdown in the core advertising business.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue was $375.5 million, up 1% year over year, and exceeded the high end of management's previous guidance by $8 million. Net income was $31.7 million and earnings per share were $0.57, while the net income margin was 8%. The most notable driver was the 98% increase in Other revenue to $33 million, supported by Hatch, data licensing, and food ordering, while Services advertising remained flat and Restaurants, Retail & Other advertising declined 10%.
Other revenue reached a record $33 million in fiscal Q2 2026, up 98% year over year. Management is targeting an annual revenue run rate of $250 million for this category by the end of 2028, driven by Yelp Host, Hatch, and data licensing. However, advertising still represented about 91% of quarterly revenue, so diversification has not yet reached a scale sufficient to offset any significant decline in the core business.
In July 2026, Yelp Host reached an annualized run rate equivalent to 2.4 million calls, more than three times its January 2026 level. The product added 16 languages, an OpenTable integration, and food ordering through point-of-sale systems, expanding its use among restaurants. Hatch, which Yelp acquired in February 2026, reached an annual revenue run rate of $35 million in June 2026, up 59%, but the expansion of its team caused an adjustment period during the quarter.
Yelp ratings and reviews began appearing within the relevant local discovery experience in ChatGPT during fiscal Q2 2026, with links directing users back to Yelp. The rollout of the Request-a-Quote integration also began, which is important because Services represents the majority of the company's revenue. Management said on August 6, 2026 that the channel remains early and that sufficient data on conversion rates was not yet available, so its future economic value remains unproven.
Services advertising revenue was $241 million in fiscal Q2 2026 and remained flat year over year, while Restaurants, Retail & Other advertising declined 10% to $102 million. Total paying advertising locations declined 1% to 510 thousand locations, and ad clicks fell 5%. Management expects the difficult economic environment for local businesses to persist through the remainder of fiscal 2026, pressuring advertising revenue across categories.
Management expects revenue of between $365 million and $370 million in fiscal Q3 2026, compared with revenue of $375.5 million in the previous quarter. It expects adjusted earnings before interest, taxes, depreciation, and amortization of between $70 million and $75 million, versus $91 million in fiscal Q2 2026, due to increased investment. For the full fiscal 2026, it expects revenue of between $1.460 billion and $1.470 billion and adjusted earnings before interest, taxes, depreciation, and amortization of between $315 million and $325 million.
