Yelp Reports Record 2025 Results, Authorizes $500M Buyback, but Forecasts Slight 2026 Revenue Decline
YELP is trading near its 52-week low of $19.6 (14% above the low).
Summary
Yelp reported record 2025 revenue and net income, alongside a $270M acquisition and a $500M buyback authorization, but issued negative guidance for 2026 revenue, expecting a slight decline.
Key Events · Earnings and Guidance · YELP
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Record 2025 Financial Performance
Yelp reported record annual revenue of $1.46 billion, up 4% year-over-year, and net income of $145.6 million, up 10% year-over-year, for the fiscal year ended December 31, 2025. Adjusted EBITDA also increased to $369.2 million.
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Strategic Acquisition of Hatchify Inc.
The company completed the acquisition of Hatchify Inc. on February 2, 2026, for approximately $270 million in cash, plus $30 million in retention packages. This acquisition aims to advance Yelp's AI transformation and expand its subscription offerings for Services businesses.
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Significant Share Repurchase Authorization
On February 10, 2026, the Board authorized a $500.0 million increase to the existing stock repurchase program, bringing the total authorized repurchases since inception to $2.45 billion. As of February 17, 2026, $513.7 million remained available for future repurchases.
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Negative 2026 Revenue Outlook
Yelp anticipates a slight year-over-year decline in revenue for both the first quarter and the full year 2026. This is attributed to increased investments in AI and Hatch operations, coupled with continued challenging operating environments for local businesses, particularly in the Restaurants, Retail & Other categories.
Analysis · YELP · Trade & Services
Yelp's 2025 annual report confirms record revenue of $1.46 billion and net income of $145.6 million, driven by strong performance in its Services advertising categories. The company also detailed the recently announced $270 million acquisition of Hatchify Inc. to boost AI capabilities and subscription offerings, and a substantial $500 million increase to its share repurchase program. However, the filing provides a cautious outlook for 2026, forecasting a slight year-over-year decline in revenue and increased expenses due to ongoing AI investments and challenging macroeconomic conditions, particularly impacting its Restaurants, Retail & Other categories. This comprehensive annual report provides the full audited details of these significant past and forward-looking events, which were partially disclosed in earlier 8-K filings.
At the time of this filing, YELP was trading at $22.29 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $19.60 to $41.22. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.