Yelp YELP 0.67% stock is moving lower today on the heels of the company's recent fourth-quarter report. The company's share price was down 8.9% as of 3:45 p.m. ET.
After yesterday's market close, Yelp published its fourth-quarter and full-year 2025 results. Despite Q4 sales and earnings beating Wall Street's targets, the stock is getting hit with a big pullback due to underwhelming guidance.
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Yelp posted sales and earnings beats in Q4
Yelp reported earnings per share of $0.61 for last year's fourth quarter, beating the average analyst estimate by $0.07. Meanwhile, sales came in at $359.99 million, beating the average Wall Street target by $0.77 million. Despite a 0.5% year-over-year sales decline in Q4, revenue for the year was up roughly 4% and reached a record $1.46 billion.
NYSE: YELP
Key Data Points
Investors aren't happy with Yelp's guidance for 2026
Yelp is guiding for sales to come in between $1.455 billion and $1.475 billion this year. On the heels of last year's mid-single-digit sales growth, management is basically modeling for sales to be flat this year. Meanwhile, non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to be between $310 million and $330 million -- down from $369 million last year. Yelp is spending to turn artificial intelligence and services into bigger growth drivers, but it looks like investors may have to wait until next year before the investments translate into meaningful sales growth.
