Yelp’s Q2 performance drew a positive market reaction, reflecting the company’s ability to outperform Wall Street’s revenue and profitability expectations despite a challenging environment for local businesses. Management attributed the quarter’s results to accelerating growth in AI-driven offerings such as Yelp Host and Hatch, as well as robust demand for data licensing partnerships. CEO Jeremy Stoppelman highlighted that product improvements, particularly in AI-powered tools, contributed to increased consumer engagement and higher project submissions in the Services category. Early gains in app installs and page views further supported traffic growth, offsetting persistent softness in core ad revenue segments.
Is now the time to buy YELP? Find out in our full research report (it’s free for active Edge members).
Yelp (YELP) Q2 CY2026 Highlights:
- Revenue: $375.5 million vs analyst estimates of $367 million (1.4% year-on-year growth, 2.3% beat)
- Adjusted EPS: $0.95 vs analyst estimates of $0.78 (22.1% beat)
- Adjusted EBITDA: $91.43 million vs analyst estimates of $74.09 million (24.3% margin, 23.4% beat)
- The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint
- EBITDA guidance for the full year is $320 million at the midpoint, in line with analyst expectations
- Operating Margin: 11.6%, down from 14.4% in the same quarter last year
- Market Capitalization: $1.28 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Yelp’s Q2 Earnings Call
- Alex (Goldman Sachs) asked about the strategic investments in Hatch and the margin outlook for Other revenue. CFO David Schwarzbach explained that while near-term margins will be lower due to higher investment, the long-term profile should resemble other subscription businesses.
- Sergio Segura (KeyBanc) questioned the economic impact of data licensing partnerships like ChatGPT. CEO Jeremy Stoppelman responded that while it is early for direct traffic impact, these arrangements are expected to drive both user return and new leads.
- Zachary Witaszek (Baird) inquired about cross-selling opportunities between Yelp Host and advertising. Stoppelman noted positive early synergies but said it is too early to assess the impact on ad revenue.
- Nitin Bansal (Bank of America) sought clarity on the changes in paid lead acquisition strategy for multi-location Services advertisers. COO Jed Nachman explained the shift toward a more targeted approach to drive scale with larger clients.
- Kishan Patel (Raymond James) asked about traffic tailwinds from Google algorithm updates versus AI overview headwinds. Stoppelman indicated Yelp benefited from Google’s focus on user-generated content, resulting in improved organic traffic.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will closely monitor (1) the scaling and monetization pace of Yelp’s AI-driven products like Host and Hatch, (2) the performance and revenue contribution of new data licensing partnerships, and (3) trends in paying advertising locations, especially in the Services and restaurant categories. Execution on operational efficiency and sustaining organic traffic growth will also be important indicators.
Yelp currently trades at $23.45, down from $25.04 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.