Yelp(NYSE) YELP

Yelp connects people with local businesses like restaurants and home services. It provides customer reviews to help with everyday spending decisions. Businesses pay for digital ads to reach this ready-to-buy audience.

The Ad-Driven Local Marketplace

• Advertising Products: Cost-per-click (CPC) ads where businesses pay only when users click their search results; accounted for 95% of revenue in 2025.
• Business Page Upgrades: Paid features like ad removal, verified trade licenses, and project portfolios that help businesses stand out on profile pages.
• Management Tools: Subscription software including guest management for restaurants and artificial intelligence (AI) tools to track and contact potential customers.
• Data Licensing: Paid access to business information for other companies through application programming interfaces (APIs), which allow different software systems to connect.

Growing Beyond Simple Searches

• Acquired Hatchify Inc. (Hatch) to add AI-powered lead management tools for businesses in the services industry.
• Integrated with DoorDash to allow users to order food for pickup or delivery directly through the platform.
• Partnered with Grubhub to provide consumers with food delivery and pickup services.
• Signed licensing agreements with Apple, Audi AG, and BMW to put business content into maps and vehicle dashboards.

Human Reviews and Machine Logic

Yelp uses a mix of automated software and human moderation to evaluate over 300 million reviews for reliability. Its proprietary auction system uses machine learning to place ads efficiently based on consumer traffic and business budgets.

Tracking Recent Performance

• Revenue reached $360 million in Q4 2025, down 0.5% from Q4 2024.
• Net income hit $37.8 million in Q4 2025, down 10.5% from the previous year.
• Operating income for Q4 2025 reached $48.9 million, up 95.4% compared to Q4 2023.
• Free cash flow hit $71.6 million in Q4 2025, up 19.4% from Q4 2024.

Final Verdict

Yelp has moved from a review site into a digital platform that automates how businesses and consumers connect. Its current strategy prioritizes AI to manage customer leads and improve local search results.