Yelp 2025 Q3 Earnings Record Net Income of $39.32 Million Marks 15-Year High

Yelp Inc. (YELP) reported fiscal 2025 Q3 earnings on Nov 8, 2025, . , reflecting cautious optimism amid macroeconomic pressures. Despite outperforming Wall Street on earnings and revenue, the stock fell sharply post-announcement, underscoring investor concerns over revised guidance.

Revenue

, driven by robust advertising growth. , bolstered by the RepairPal Network integration. , reflecting strong advertiser demand, while the Restaurants, Retail & . , completing the net revenue picture.

Earnings/Net Income

, . , . Yelp’s disciplined cost management and AI-driven ad optimizations underpin these gains.

Post-Earnings Price Action Review

, , . The sharp decline followed the company’s downward revision of full-year revenue guidance, which fell below analyst expectations. While Q3 results exceeded estimates, investors fixated on the trimmed outlook, signaling potential growth challenges. , , reflects market skepticism about Yelp’s ability to sustain competitive advantages despite AI innovations.

CEO Commentary

CEO emphasized “sustainable growth in local advertising and user engagement” as key drivers, while acknowledging macroeconomic headwinds. Strategic priorities include accelerating for personalized search and expanding partnerships with regional SMBs. Fano expressed cautious optimism, noting operational efficiency and innovation as long-term value drivers.

Guidance

, .

Additional News

Yelp announced a strategic partnership with DoorDash to expand delivery access, integrating DoorDash’s network for 500,000+ U.S. restaurants. The company also unveiled over 35 AI-powered features, including Yelp Assistant and Menu Vision, to enhance user engagement and ad efficiency. Additionally, Yelp’s Q3 earnings beat expectations, with revenue growth driven by Services segment strength, though the Restaurants, Retail & Other division faced macroeconomic challenges.

Yelp’s expanded AI capabilities and strategic alliances aim to strengthen its local commerce ecosystem, but persistent advertiser demand softness and competitive pressures remain key risks. The company’s focus on AI-driven personalization and operational efficiency positions it to navigate near-term uncertainties, though investors await clarity on sustaining long-term growth.

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