Yelp (YELP) Q1 2026 earnings summary

Executive summary

• Net revenue grew 1% year-over-year to $361 million, exceeding guidance, with a net income margin of 5% and adjusted EBITDA margin of 22%.

• Over 35 new AI-driven features, including a cross-category Yelp Assistant, were launched.

• Significant progress in AI transformation, with strong growth in data licensing and partner ecosystem.

• Local businesses faced a challenging economic environment, impacting advertising metrics.

• Expanded partnerships and integrations, including DoorDash, Vagaro, Zocdoc, and OpenAI.

Financial highlights

• Net revenue: $361 million, up 1% year-over-year and $6 million above guidance.

• Net income: $18 million, down 27% year-over-year, 5% margin.

• Adjusted EBITDA: $79 million, down 7% year-over-year, 22% margin, $15 million above guidance.

• Services ad revenue: $234 million, up 1% year-over-year; RR&O ad revenue: $99 million, down 11%.

• Other revenue: $29 million, up 75% year-over-year, driven by Hatch, data licensing, and food ordering.

Outlook and guidance

• Q2 net revenue expected between $363 million and $368 million.

• Full-year net revenue expected between $1.455 billion and $1.475 billion.

• Q2 adjusted EBITDA expected between $70 million and $75 million.

• Full-year adjusted EBITDA expected between $310 million and $330 million, excluding Hatch-related payments.

• Targeting $250 million annual run rate in other revenue by end of 2028.