YE (YELP) Earnings Date & Reports

Key Takeaways

• Yelp Inc. is expected to report third-quarter 2026 results after the market close on November 5, 2026.
• Management has guided third-quarter net revenue to a range of $365 million to $370 million, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $70 million to $75 million.
• Wall Street consensus calls for revenue of roughly $372 million and adjusted earnings per share (EPS) near $0.44 to $0.46, slightly above the midpoint of company guidance on the top line.
• Investors will watch whether fast-growing AI products such as Yelp Assistant, Yelp Host, and Hatch can offset softening advertising demand in Restaurants, Retail & Other (RR&O) categories.
• The stock has been under pressure since its August report, leaving expectations and sentiment cautious heading into the print.

Earnings Context and Why It Matters

Yelp's third-quarter report arrives at a pivotal moment in the company's effort to reshape itself from a business-reviews platform into an AI-powered local services marketplace. Advertising revenue, its core business, has been softening, while newer "other revenue" streams tied to AI and data licensing have been growing rapidly. In the second quarter, other revenue jumped 98% year over year to a record $33 million, yet advertising revenue still declined 3%. This earnings preview matters because it will reveal whether the company's AI transformation is translating into durable, monetizable growth—or whether rising AI-related spending is simply pressuring margins before the benefits materialize.

Earnings Expectations

For the third quarter of 2026, Yelp has guided net revenue to between $365 million and $370 million, with adjusted EBITDA expected to land between $70 million and $75 million as expenses rise sequentially on investments in its AI transformation, Hatch, and consumer marketing. Consensus analyst estimates sit at roughly $372 million in revenue—above the guidance midpoint—with adjusted EPS near $0.44 to $0.46.

These figures compare against a year-ago quarter in which Yelp reported revenue of about $376 million, meaning the top line is expected to be roughly flat to slightly lower year over year. For full-year 2026, management narrowed its revenue outlook to $1.460 billion to $1.470 billion and its adjusted EBITDA outlook to $315 million to $325 million. Key metrics to watch include paying advertising locations, ad clicks, average cost per click (CPC), and the growth trajectory of other revenue.

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Market Reaction and Investor Sentiment

Sentiment heading into Yelp's third-quarter report is cautious. The stock has drifted lower since its August earnings release, and analysts have taken a more guarded stance—JPMorgan initiated coverage with an Underweight rating and a $19 price target in September, reflecting skepticism about near-term advertising trends. Historically, Yelp shares have shown notable post-earnings volatility, with the stock's reaction depending heavily on whether AI-driven momentum can offset advertising weakness. Key risk factors include continued declines in RR&O advertising, margin compression from elevated AI and marketing spend, and any signal that Hatch's growth trajectory is decelerating.

Forward Outlook and Key Factors to Monitor

Following the third-quarter report, investors should focus on several forward-looking signals. First, watch the direction of advertising revenue, particularly whether RR&O categories stabilize after a 10% year-over-year decline in the second quarter. A sustained improvement in ad clicks and paying advertising locations would signal that the core business is finding its footing.

Second, monitor the scaling of AI products. Yelp Assistant generated roughly 10% of Request-a-Quote projects in the second quarter, and Yelp Host reached a 2.4 million annual call run rate in July. Whether these tools convert engagement into revenue will be central to the growth narrative.

Third, track Hatch's progress after a period of rapid team expansion. Management has indicated that investments weighed on near-term results but improved trends in July, so investors will look for confirmation that the adjustment period has passed.

Finally, keep an eye on margin trajectory and capital allocation. Yelp paused its share repurchase program to reduce revolving-credit borrowings, and the company's ability to balance AI investment with profitability will shape both guidance and investor confidence into 2027.

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