Yelp's top-line growth has stalled to 0.8% year-over-year as of 2026Q1, while operating margins remain constrained by SG&A expenses consuming over 56% of quarterly revenue.
| 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 % | 2.09% | 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 | 162.41M | 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 | 1.31B | 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 % | 88.94% | 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 | 1.12B | 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 | 778.65M | 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 | 306.94M | 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 | 187.67M | 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 % | 12.79% | 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 | 243.35M | 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 % | 16.58% | 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 % | 7.3% | 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) | 55.68M | 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 | 201.41M | 204.03M | 151.04M | 79.04M | 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 | 11.05M | 0 | 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 | 11.05M | 0 | 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 | 11.01M | 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 | 198.68M | 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 % | 13.54% | 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 | 59.74M | 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 % | 30.07% | 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 | 138.94M | 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 % | 9.47% | 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 % | -2.9% | 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) | 138.94M | 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) | 2.34 | 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 % | 4.81% | 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 | 59.37M | 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 | 58.82M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Search engine traffic dependency
According to recent quarterly filings, Yelp's revenue growth has decelerated significantly, reaching a nominal 0.8% year-over-year increase in 2026Q1, which highlights the company's struggle to maintain momentum in a competitive digital advertising environment that increasingly favors broader, AI-integrated search platforms over specialized review-based directories.
The consistent decline in revenue growth rates from double-digit levels in 2023 suggests that the core advertising model is reaching a saturation point. Investors should monitor whether this deceleration reflects a structural shift in small business marketing budgets or merely a temporary cyclical downturn in local service demand.
As reported in financial statements, Yelp maintains a robust gross margin profile, consistently hovering near 90% despite a notable dip to 84.9% in 2026Q1, which suggests that the underlying digital delivery model remains highly efficient even as top-line growth faces significant headwinds.
The high gross margin underscores the inherent scalability of the platform's digital infrastructure, which requires minimal incremental cost to serve additional traffic. However, the recent compression warrants investigation into whether this represents a permanent increase in content-related costs or an anomaly in service delivery expenses.
Based on Yelp's reported figures, the company's operating margin remains heavily pressured by substantial SG&A expenses, which consumed over 56% of revenue in 2026Q1, indicating that the firm's reliance on a labor-intensive sales force continues to limit its ability to scale profitability alongside revenue.
The persistent high level of SG&A relative to revenue suggests that the company has yet to achieve the desired transition toward a self-serve advertising model. This cost structure appears to be a structural drag on operating income, leaving the firm vulnerable to any further deceleration in top-line growth.
Data from recent income statements reveals that stock-based compensation remains a material component of the company's expense structure, often exceeding $30 million per quarter, which suggests that reported net income may overstate the true cash-generating capacity of the business for common shareholders.
The reliance on equity-based incentives appears to be a significant factor in reconciling the gap between GAAP net income and operational cash flow. Analysts should carefully adjust for these non-cash charges to determine the underlying profitability of the core advertising business without the dilutive impact of management compensation.
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.