Yelp 2025 Q2 Earnings Strong Performance as Net Income Surges 15.9%

Yelp reported its fiscal 2025 Q2 earnings on Aug 7, 2025. The results beat expectations with a 3.7% revenue increase and a 15.9% surge in net income. The company also narrowed its 2025 net revenue guidance to between $1.465 billion and $1.475 billion.

Revenue

Yelp reported total revenue of $370.39 million in 2025 Q2, representing a 3.7% increase compared to $357.02 million in the same period of 2024. This growth reflects continued strength in its core services, although no further segment-level revenue details were provided.

Earnings/Net Income

Yelp's earnings per share (EPS) rose to $0.69 in 2025 Q2, a 23.2% increase from $0.56 in 2024 Q2. Net income for the quarter reached $44.09 million, a 15.9% increase compared to $38.04 million in the prior year. This marked a new record high for Q2 net income, the highest in 15 years. Yelp's performance in profitability demonstrates strong execution and expanding margins.

Price Action

The stock price of Yelp edged down 0.70% during the latest trading day, 0.73% over the most recent full trading week, and 1.33% month-to-date, reflecting mixed investor sentiment.

Post Earnings Price Action Review

Following the earnings release, a strategy of buying Yelp shares after a revenue beat and selling after 30 days resulted in a -26.27% return, significantly underperforming the benchmark of 74.32% over the same period. The strategy’s compound annual growth rate (CAGR) was -6.27%, with a Sharpe ratio of -0.27, indicating poor risk-adjusted performance. The maximum drawdown of 0.00% highlighted the high-risk nature of the trade, suggesting a challenging post-earnings environment for investors.

CEO Commentary

Jeremy Stoppelman, CEO of Yelp, emphasized the company's solid execution of its product-led strategy, noting encouraging momentum from AI initiatives like Yelp Assistant and the live testing of Yelp Host. He expressed confidence in Yelp’s focus on Services and product innovation to deliver long-term shareholder value. CFO David Schwarzbach highlighted record net revenue and strong profitability, with net income and adjusted EBITDA margins expanding by one and two percentage points, respectively, despite a moderated growth rate in an uncertain macroeconomic environment. The leadership stressed disciplined financial management and continued investment in product-led growth as key drivers of future performance.

Guidance

Yelp narrowed its 2025 net revenue outlook to a range of $1.465 billion to $1.475 billion and provided an Adjusted EBITDA outlook of $350 million to $360 million. The company chose not to provide a GAAP net income outlook due to uncertainty around certain financial items. Forward-looking statements included expectations for continued execution of product-led growth, disciplined financial management, and long-term shareholder value, while acknowledging risks from macroeconomic uncertainty, advertiser retention, and content generation.

Additional News

Over the past three weeks, Yelp remained focused on strategic product innovation and AI development, with no significant M&A activity or C-level changes reported. The company has not announced any new stock buybacks or dividend policies during this period. The leadership has emphasized the importance of disciplined financial management and long-term growth initiatives rather than short-term capital return strategies. As macroeconomic conditions remain uncertain, Yelp continues to prioritize execution on its core services and AI-powered tools such as Yelp Assistant and Yelp Host, which are currently in active testing phases.