Revenue growth has stalled at 1.4% YoY in 2026Q2, while operating margin contracted to 11.6% from 14.8% in 2024Q4, with SBC of $56.3M exceeding net income of $31.7M.
Yelp Inc. (YELP) annual income statement — 16-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Sales/Revenue | 1.47B | 1.46B | 1.41B | 1.34B | 1.19B | 1.03B | 872.93M | 1.01B | 942.77M | 846.81M | 713.07M | 549.71M | 377.54M | 232.99M | 137.57M | 83.28M | 47.73M |
| Revenue Growth % | 1.5% | 3.75% | 5.61% | 12.03% | 15.67% | 18.2% | -13.93% | 7.58% | 11.33% | 18.76% | 29.72% | 45.6% | 62.04% | 69.36% | 65.18% | 74.49% | - |
| Cost of Goods Sold | 168.74M | 142.6M | 123.68M | 114.23M | 105.7M | 78.1M | 57.19M | 62.41M | 57.87M | 70.52M | 60.36M | 51.02M | 24.38M | 16.56M | 9.93M | 5.93M | 3.14M |
| COGS % of Revenue | - | 9.73% | 8.76% | 8.54% | 8.86% | 7.57% | 6.55% | 6.15% | 6.14% | 8.33% | 8.47% | 9.28% | 6.46% | 7.11% | 7.22% | 7.12% | 6.57% |
| Gross Profit | 1.3B | 1.32B | 1.29B | 1.22B | 1.09B | 953.74M | 815.75M | 951.78M | 884.9M | 776.29M | 652.71M | 498.7M | 353.15M | 216.43M | 127.64M | 77.35M | 44.59M |
| Gross Margin % | 88.54% | 90.27% | 91.24% | 91.46% | 91.14% | 92.43% | 93.45% | 93.85% | 93.86% | 91.67% | 91.53% | 90.72% | 93.54% | 92.89% | 92.78% | 92.88% | 93.43% |
| Gross Profit Growth % | - | 2.64% | 5.36% | 12.41% | 14.06% | 16.92% | -14.29% | 7.56% | 13.99% | 18.93% | 30.88% | 41.21% | 63.17% | 69.56% | 65.01% | 73.46% | - |
| Operating Expenses | 1.13B | 1.14B | 1.14B | 1.14B | 1.03B | 922.23M | 854.54M | 916.27M | 859M | 761.3M | 654.23M | 520.02M | 342.1M | 224.57M | 145.14M | 93.53M | 54.1M |
| OpEx % of Revenue | - | 77.67% | 80.54% | 85.55% | 86.25% | 89.38% | 97.89% | 90.34% | 91.11% | 89.9% | 91.75% | 94.6% | 90.61% | 96.39% | 105.51% | 112.3% | 113.34% |
| Selling, General & Admin | 789.15M | 774.06M | 770.94M | 769.04M | 679.03M | 590.04M | 567.51M | 636.48M | 603.88M | 544.32M | 480.33M | 382.63M | 259.32M | 174.88M | 117.45M | 77.7M | 45.21M |
| SG&A % of Revenue | - | 52.84% | 54.6% | 57.52% | 56.89% | 57.18% | 65.01% | 62.76% | 64.05% | 64.28% | 67.36% | 69.61% | 68.69% | 75.06% | 85.37% | 93.3% | 94.71% |
| Research & Development | 299.05M | 313.69M | 325.99M | 332.57M | 305.56M | 276.47M | 232.56M | 230.44M | 212.32M | 175.79M | 138.55M | 107.79M | 65.18M | 38.24M | 20.47M | 11.59M | 6.56M |
| R&D % of Revenue | - | 21.41% | 23.09% | 24.87% | 25.6% | 26.79% | 26.64% | 22.72% | 22.52% | 20.76% | 19.43% | 19.61% | 17.26% | 16.41% | 14.88% | 13.91% | 13.74% |
| Other Operating Expenses | 2M | 50.09M | 40.41M | 42.18M | 44.85M | 55.72M | 54.47M | 49.36M | 14.11M | 4.86M | 1.69M | 386K | 221K | -407K | -226K | 4.24M | 2.33M |
| Operating Income | 178.11M | 185.06M | 151.04M | 79.04M | 58.35M | 31.51M | -38.8M | 35.51M | 25.9M | 179.49M | -4.98M | -21.32M | 11.06M | -8.82M | -18.77M | -16.17M | -9.51M |
| Operating Margin % | 12.09% | 12.63% | 10.7% | 5.91% | 4.89% | 3.05% | -4.44% | 3.5% | 2.75% | 21.2% | -0.7% | -3.88% | 2.93% | -3.79% | -13.64% | -19.42% | -19.92% |
| Operating Income Growth % | - | 22.52% | 91.09% | 35.46% | 85.17% | 181.23% | -209.25% | 37.12% | -85.57% | 3704.84% | 76.65% | -292.82% | 225.34% | 52.98% | -16.04% | -70.11% | - |
| EBITDA | 258.78M | 245.55M | 206.55M | 149.31M | 154.84M | 126.54M | 11.81M | 84.87M | 68.7M | 220.68M | 30.37M | 8.28M | 28.65M | 2.63M | -11.54M | -11.93M | -7.17M |
| EBITDA Margin % | 17.57% | 16.76% | 14.63% | 11.17% | 12.97% | 12.26% | 1.35% | 8.37% | 7.29% | 26.06% | 4.26% | 1.51% | 7.59% | 1.13% | -8.39% | -14.33% | -15.03% |
| EBITDA Growth % | 8.14% | 18.88% | 38.33% | -3.57% | 22.37% | 971.07% | -86.08% | 23.53% | -68.87% | 626.72% | 266.75% | -71.1% | 988.49% | 122.8% | 3.28% | -66.38% | - |
| D&A (Non-Cash Add-back) | 80.67M | 60.49M | 55.5M | 70.27M | 96.49M | 95.02M | 50.61M | 49.36M | 42.81M | 41.2M | 35.35M | 29.6M | 17.59M | 11.46M | 7.22M | 4.24M | 2.33M |
| EBIT | 184.16M | 204.03M | 182.96M | 105.08M | 66.78M | 31.55M | -34.93M | 35.51M | 25.9M | 16.21M | -3.29M | -21.32M | 11.06M | -9.23M | -17.5M | -10.24M | -9.51M |
| Net Interest Income | 7.6M | 13.8M | 20.92M | 19.57M | 5.76M | 0 | 2.27M | 13.33M | 13.8M | 4.19M | 1.72M | 622K | 375K | 62K | 51K | 13K | 30K |
| Interest Income | 7.6M | 13.8M | 20.92M | 19.57M | 5.76M | 0 | 2.27M | 13.33M | 13.8M | 4.19M | 1.72M | 622K | 375K | 62K | 51K | 13K | 30K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 6.05M | 18.97M | 31.91M | 26.04M | 8.43M | 2.2M | 3.67M | 14.26M | 14.11M | 167.87M | -4.72M | 386K | 221K | -407K | -226K | -395K | 15K |
| Pretax Income | 184.16M | 204.03M | 182.96M | 105.08M | 66.78M | 33.72M | -35.13M | 49.77M | 40.01M | 184.35M | -3.29M | -20.94M | 11.28M | -9.23M | -18.99M | -16.57M | -9.49M |
| Pretax Margin % | 12.5% | 13.93% | 12.96% | 7.86% | 5.6% | 3.27% | -4.02% | 4.91% | 4.24% | 21.77% | -0.46% | -3.81% | 2.99% | -3.96% | -13.8% | -19.89% | -19.88% |
| Income Tax | 57.65M | 58.43M | 50.11M | 5.91M | 30.43M | -5.95M | -15.7M | 8.89M | -15.34M | 31.49M | 1.39M | 11.96M | -25.19M | 838K | 122K | 102K | 75K |
| Effective Tax Rate % | 31.31% | 28.64% | 27.39% | 5.62% | 45.57% | -17.66% | 44.7% | 17.86% | -38.35% | 17.08% | -42.16% | -57.13% | -223.34% | -9.08% | -0.64% | -0.62% | -0.79% |
| Net Income | 126.51M | 145.6M | 132.85M | 99.17M | 36.35M | 39.67M | -19.42M | 40.88M | 55.35M | 152.86M | -4.67M | -32.9M | 36.47M | -10.07M | -19.11M | -16.67M | -9.57M |
| Net Margin % | 8.59% | 9.94% | 9.41% | 7.42% | 3.05% | 3.84% | -2.23% | 4.03% | 5.87% | 18.05% | -0.65% | -5.99% | 9.66% | -4.32% | -13.89% | -20.01% | -20.04% |
| Net Income Growth % | -15.18% | 9.6% | 33.96% | 172.85% | -8.38% | 304.24% | -147.51% | -26.14% | -63.79% | 3373.19% | 85.81% | -190.2% | 462.27% | 47.32% | -14.67% | -74.24% | - |
| Net Income (Continuing) | 126.51M | 145.6M | 132.85M | 99.17M | 36.35M | 39.67M | -19.42M | 40.88M | 55.35M | 153M | -4.67M | -32.9M | 36.47M | -10.07M | -19.11M | -16.67M | -9.57M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.27 | 2.24 | 1.88 | 1.35 | 0.50 | 0.50 | -0.27 | 0.52 | 0.62 | 1.75 | -0.06 | -0.44 | 0.48 | -0.15 | -0.35 | -0.72 | -0.63 |
| EPS Growth % | -5.88% | 19.15% | 39.26% | 170% | 0% | 285.19% | -151.92% | -16.13% | -64.57% | 2992.56% | 86.25% | -191.67% | 420% | 57.14% | 51.39% | -14.29% | - |
| EPS (Basic) | - | 2.30 | 1.97 | 1.43 | 0.51 | 0.53 | -0.27 | 0.55 | 0.62 | 1.87 | -0.06 | -0.44 | 0.51 | -0.15 | -0.35 | -0.72 | -0.63 |
| Diluted Shares Outstanding | 55.73M | 65.09M | 70.61M | 73.6M | 73.4M | 78.62M | 73M | 77.97M | 88.71M | 87.17M | 77.19M | 74.68M | 76.71M | 65.69M | 54.15M | 23.28M | 15.29M |
| Basic Shares Outstanding | 55.3M | 63.33M | 67.42M | 69.22M | 70.87M | 74.22M | 73M | 74.63M | 88.71M | 81.6M | 77.19M | 74.68M | 71.94M | 65.67M | 54.15M | 23.28M | 15.29M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying YELP stock.
For fiscal year 2025, Yelp Inc. (YELP) reported total revenue of $1.46B. This represents a 2969.2% increase compared to $47.7M in 2010.
Yelp Inc. (YELP) is profitable, generating $145.6M in net income for the fiscal year ending 2025 with a net profit margin of 9.9%.
Yelp Inc. (YELP) reported an operating income of $185.1M, resulting in an operating profit margin of 12.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Yelp Inc. (YELP) generated $1.32B in gross profit for the year, representing a gross profit margin of 90.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth stagnation
Metrics are mathematically derived from official filings.
Growth Stalls Near Zero
Yelp's revenue growth has decelerated to 1.4% year-over-year in 2026Q2, down from 5.9% in 2024Q2, indicating a maturing core business with limited expansion.
The sequential trend shows a clear slowdown: from 6.5% growth in 2024Q1 to 0.8% in 2026Q1 and 1.4% in 2026Q2, with a slight dip in 2025Q4. This suggests that Yelp is struggling to find new growth drivers, possibly due to market saturation or increased competition. The deceleration appears structural rather than cyclical, as it persists across multiple quarters.
Gross Margin Resilience Amidst Cost Pressures
Gross margin remains high at 88.9% in 2026Q2, though it has slipped from 91.8% in 2024Q1, reflecting modest cost inflation in service delivery.
The gross margin decline of nearly 300 basis points over the period suggests that Yelp is experiencing rising costs of revenue, possibly due to increased traffic acquisition costs or infrastructure investments. However, the absolute level remains strong and above peers like IAC and TRIP, indicating that Yelp retains pricing power in its core listings business. Investors should monitor whether this erosion continues or stabilizes.
Operating Leverage Fades as Costs Outpace Revenue
Operating margin contracted to 11.6% in 2026Q2 from 14.8% in 2024Q4, as SG&A and R&D expenses grew faster than revenue, indicating negative operating leverage.
While revenue grew only 1.4% year-over-year in 2026Q2, SG&A increased from $188.8M in 2024Q4 to $201.4M, and R&D from $74.9M to $70.5M (though R&D declined). The combined operating expenses have outpaced revenue growth, compressing operating income. This suggests that Yelp is investing heavily in sales and marketing or product development without commensurate revenue gains, which may be a deliberate strategy to defend market share but is currently diluting profitability.
SBC Distorts Reported Earnings
Stock-based compensation totaled $56.3M in 2026Q2, exceeding net income of $31.7M, implying that reported earnings are significantly overstated on a cash basis.
The high SBC relative to net income suggests that a substantial portion of Yelp's reported profitability is non-cash in nature. When adjusting for SBC, the company's cash earnings are much lower, which may concern investors seeking sustainable cash generation. The volatility in SBC (e.g., $0 in 2025Q4) also adds noise to quarterly comparisons, warranting careful analysis of underlying cash profitability.
SG&A Dominates Cost Structure
SG&A is the largest expense line, at $201.4M in 2026Q2, representing over 50% of revenue, while R&D has been trimmed to $70.5M, indicating a focus on cost control.
SG&A has remained relatively flat around $190-202M over the past year, despite revenue stagnation, suggesting that Yelp is maintaining its sales and marketing spend to support growth. R&D has declined from $91.2M in 2024Q1 to $70.5M in 2026Q2, which may indicate a shift in priorities or efficiency gains. The stability of SG&A as a percentage of revenue (around 55%) implies that Yelp has limited ability to cut costs without impacting its competitive position.
Stagnation Could Signal Structural Decline
With revenue growth near zero and operating margins compressing, Yelp may be facing a structural slowdown as competition from Google and AI-driven alternatives intensifies.
The data shows a clear trend of decelerating growth and margin pressure, which could be interpreted as Yelp losing relevance in the local search market. The high SBC and low cash conversion further undermine the quality of earnings. If revenue growth does not reaccelerate, the company may struggle to justify its current valuation, especially as peers like GOOGL grow at 15% with higher margins. Short-sellers might argue that Yelp's business model is being disrupted, and the financials support this concern.