The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 9.9x | 20.8x | Top tier | |
Growth | 39 | 2.1% | 6.1% | Bottom tier | |
Quality | 94 | 21.1% | 6.6% | Top tier | |
Safety | 86 | 0.2x | 0.7x | Top tier | |
Capital Return | 63 | — | 2.02% | Around median | |
Momentum | 23 | -30.8% | 4.1% | Bottom tier | |
Sentiment | 42 | 7 | 3 | Around median |
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 Inc. (YELP) is a leading platform that connects consumers with local businesses by offering trusted user-generated reviews and recommendations. The company generates its revenue primarily from advertising sales to local businesses seeking to increase their visibility on the platform, alongside other revenue streams including transactions, data licensing to major digital platforms, and AI-powered solutions. The company is currently facing a challenging macroeconomic environment impacting local advertising budgets, prompting management to accelerate the pace of its AI transition to diversify revenue streams and increase operational efficiency.
In the first quarter of 2026, Yelp recorded net revenue of $361.5 million, a slight increase of 1% year-over-year, exceeding the upper limit of the company's guidance by $6 million. Net income for the quarter was $17.7 million, representing a 5% net income margin, and a 27% decrease compared to the same quarter of the previous year. Adjusted EBITDA reached $79 million, representing a 22% margin and exceeding the upper limit of guidance by $15 million.
At the segment level, Services Ad revenue reached approximately $234 million, up 1% year-over-year, while Restaurants, Retail, and Other (RR&O) ad revenue decreased by 11% to $99 million due to weak consumer demand. In contrast, the Other revenue segment achieved exceptional growth of 75% to reach a record $29 million, driven by the integration of the newly acquired Hatch, growth in data licensing, and the DoorDash partnership for food ordering.
Yelp Inc. shares are currently trading within a 52-week range of $19.6 to $35.99, with a market capitalization of approximately $1.3 billion. Analyst consensus indicates a general recommendation of Neutral with an average price target of $27.5 per share, with a high target of $30 and a low target of $24. Based on these estimates, the stock is trading close to the analysts' average price target, reflecting caution regarding the pace of traditional advertising growth versus promising growth opportunities in AI and data licensing fields.
Figures in the text are as of 2026-06-24; the live price is shown at the top of the page.
Yelp announced the signing of a new data licensing agreement with OpenAI that allows the latter to use Yelp's high-quality human review content to power its AI-based services and train its models. This partnership aims to enhance the reach of the Yelp brand and provide backlinks for consumers to drive additional traffic to the platform in the long term. Although the partnership is still in its early stages and the details of data integration at OpenAI are not yet fully complete, it represents a key pillar of Yelp's strategy in licensing data to tech giants such as Apple, Amazon, and Meta.
Yelp acquired Hatch in February 2026 to enhance lead management solutions for service businesses on its platform. This acquisition has shown highly robust initial results, with Hatch's annualized revenue run-rate surpassing $34 million in March 2026, representing a 92% year-over-year growth. Yelp is currently investing additional resources in engineering, product development, and marketing teams to support Hatch's rapid growth as part of its plan to reach $250 million in Other revenue by the end of 2028.
The Yelp Host service is an AI-powered phone answering system dedicated to restaurants, which has achieved significant success, with its annualized run-rate surpassing 1.5 million processed calls in April 2026, more than double the rate recorded in January. Yelp estimates the total addressable market opportunity for this service in the United States at over $1 billion, and the company plans to enhance its features soon to include the ability to place food orders directly over the phone. This innovative product helps attract a wide segment of restaurants that do not have dedicated staff to answer calls, opening a promising new revenue channel for the company.
Automated analysis for informational purposes only — not investment advice.
Yelp expects second-quarter 2026 revenue to range between $363 million and $368 million, with adjusted EBITDA between $70 million and $75 million. For the full year of 2026, the company maintained its revenue guidance in a range of $1.455 billion to $1.475 billion, and adjusted EBITDA in a range of $310 million to $330 million. These cautious expectations reflect the ongoing macroeconomic challenges facing local businesses, as well as the impact of slowing advertising budgets observed in March due to geopolitical tensions.
The first quarter of 2026 saw a 6% year-over-year decline in the number of paying advertising locations to 485,000, alongside a 10% decrease in total ad clicks due to weak demand in the restaurant and retail categories. However, the company managed to partially offset this decline by increasing the average cost-per-click (CPC) by 8% as advertiser demand outpaced consumer demand. Yelp continues to focus on improving AI-powered advertising tools to raise the return on investment for advertisers, helping to maintain the stability of overall advertising revenue, which reached $333 million in the first quarter.