YE (YELP) Earnings Date & Reports

Key Takeaways

• Yelp is scheduled to report Q2 2026 results on August 6, 2026, after market close, covering the quarter ended June 30, 2026.
• Consensus revenue estimates stand at approximately $367 million, near the midpoint of management's guidance range of $363 million to $368 million.
• Analysts expect EPS of roughly $0.36, a sharp decline from $0.67 in the year-ago quarter, reflecting ongoing investment in AI initiatives and a challenging advertising environment.
• Investors are closely watching "other revenue" growth — which surged 75% year-over-year in Q1 — driven by the Hatch acquisition, data licensing deals with major AI platforms, and food ordering partnerships.
• Core advertising metrics remain under pressure, with paying advertising locations declining 6% year-over-year and ad clicks down 10% in Q1, trends likely to persist in Q2.
• Full-year 2026 guidance was maintained in May, with revenue expected between $1.455 billion and $1.475 billion and adjusted EBITDA between $310 million and $330 million.

Earnings Context and Why It Matters

Yelp's upcoming second-quarter report lands at a pivotal moment for the company. The local business review platform is navigating a multi-year transformation, pivoting from a purely advertising-driven model toward AI-powered revenue streams including data licensing, conversational AI tools, and transaction-based services. The Q1 2026 report revealed a stark divide: Services advertising grew modestly while Restaurant, Retail & Other (RR&O) ad revenue fell 11% year-over-year. Meanwhile, "other revenue" — encompassing data licensing to partners like OpenAI, Amazon Alexa, and Apple Maps, along with the recently acquired Hatch platform — hit a record $29 million. This quarter will test whether that momentum can continue to counterbalance advertising headwinds in a persistently tough macroeconomic climate for local businesses.

Earnings Expectations

For the second quarter of fiscal 2026, Yelp management guided net revenue to a range of $363 million to $368 million, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) between $70 million and $75 million. That adjusted EBITDA range excludes approximately $4 million in Hatch acquisition and integration-related payments. Wall Street consensus aligns with the midpoint: analysts project revenue near $367 million and earnings per share around $0.36, according to data from MarketBeat and TipRanks.

These figures represent a notable year-over-year contraction. In Q2 2025, Yelp posted revenue of $370.4 million and diluted EPS of $0.67, with adjusted EBITDA of $100 million at a 27% margin. The expected decline reflects several converging pressures: a continued reduction in paying advertising locations (down to 485,000 in Q1 2026 from 515,000 a year earlier), a 10% drop in ad clicks, and increased spending on AI product development and marketing. On a positive note, Yelp has a strong track record of exceeding its own guidance. In Q1 2026, net revenue of $361 million came in $6 million above the high end of the outlook range, and adjusted EBITDA of $79 million beat by $16 million. Investors will watch for a similar pattern — and for any updates to the full-year forecast.

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Market Reaction and Investor Sentiment

Heading into the August 6 release, sentiment around Yelp shares is cautious. The stock has historically posted sharp moves around earnings — following the Q1 2026 report on May 7, shares fell roughly 5%, and after Q4 2025 results in February, the stock dropped over 8%. These reactions reflect a market that has grown wary of decelerating advertising growth, even when headline results exceed expectations. Key risks heading into this report include further deterioration in RR&O advertising — which has been pressured by competition from food delivery platforms and broader consumer caution — and the possibility that management narrows or trims full-year guidance. On the flip side, any upside surprise in other revenue, particularly from Hatch or data licensing, could shift the narrative. The company's aggressive share repurchase program, which retired $125 million in stock during Q1 alone at an average price of $24.58, may also provide a floor for investor confidence.

Forward Outlook and Key Factors to Monitor

Beyond the Q2 headline numbers, investors should focus on several strategic themes that will shape Yelp's trajectory through the remainder of 2026 and beyond.

First, the "other revenue" category demands close attention. Yelp has set an ambitious target of reaching a $250 million annual revenue run rate in this segment by the end of 2028 — more than double the $116 million annualized rate achieved in Q1 2026. Progress will hinge on three growth engines: transaction revenue from food ordering (up 88% year-over-year in Q1 via the DoorDash partnership), data licensing agreements with AI platforms (including OpenAI, Meta AI, and Microsoft Bing), and the Hatch platform, which exited March with an annualized run rate exceeding $34 million. Any upward revision to the 2028 target or acceleration in quarterly run rates would signal that Yelp's AI strategy is gaining traction faster than expected.

Second, the core advertising business remains the dominant revenue driver and cannot be ignored. Services advertising has been the relative bright spot, growing 1% in Q1, while RR&O continues to bleed. Watch for any stabilization in paying advertising locations or ad click volumes, which would indicate that the worst of the local business spending slowdown may be passing. Conversely, further declines could pressure management to accelerate the pivot away from ad dependency.

Third, margin trajectory will be scrutinized. Yelp expects stock-based compensation (SBC) to decline to below 6% of revenue by the end of 2027, down from 8% in Q1 2026. Combined with the ongoing share repurchase program — $414 million remaining on the authorization as of March 31 — disciplined capital allocation could support earnings per share even if revenue growth remains muted. Investors should also monitor operating expense trends as Yelp balances AI investments with its commitment to expanding adjusted EBITDA margins over the long term.

Finally, broader macroeconomic conditions for local businesses — from interest rates to consumer spending patterns — will continue to influence Yelp's near-term performance. Management has been transparent about expecting a challenging environment to persist throughout 2026, making execution on the AI transformation all the more critical.

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