Yelp Inc 10-Q for FY2026 Q1

Yelp Inc (YELP)

10-Q 2026-05-08 For: 2026-03-31

Added on May 08, 2026

About this 10-Q

Yelp Inc filed this 10-Q on May 8, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $361.46M; up 0.8% from $358.53M a year earlier
Net income: $17.74M; down 27.3% from net income of $24.39M a year earlier
Diluted EPS: $0.30; down 16.7% from $0.36 a year earlier

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Delaware			20-1854266
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


		Page
Part I.	Financial Information
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Stockholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
Part II.	Other Information
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	110,412	$	216,062
Short-term marketable securities	—		103,290
Accounts receivable (net of allowance for credit losses of $12,844 and $13,782 at March 31, 2026 and December 31, 2025, respectively)	152,211		153,224
Prepaid expenses and other current assets	39,409		42,359
Total current assets	302,032		514,935

Property, equipment and software, net	95,368		91,685
Operating lease right-of-use assets	17,371		16,046
Goodwill	355,625		135,847
Intangibles, net	98,773		49,038

Other non-current assets	144,129		150,927
Total assets	$	1,013,298	$	958,478
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$	155,031	$	158,789
Operating lease liabilities — current	7,063		7,426
Deferred revenue	11,628		5,845
Total current liabilities	173,722		172,060
Revolving credit facility	130,000		—
Operating lease liabilities — long-term	17,861		17,451
Other long-term liabilities	60,626		58,115
Total liabilities	382,209		247,626
Commitments and contingencies (Note 1 1)
Stockholders’ equity:
Preferred stock, undesignated, 10,000 shares authorized, none issued	—		—
Common stock, $0.000001 par value — 200,000 shares authorized, 56,170 and 59,987 shares issued at March 31, 2026 and December 31, 2025, respectively; 55,915 and 59,954 shares outstanding at March 31, 2026 and December 31, 2025, respectively	—		—
Additional paid-in capital	2,041,401		2,010,948
Treasury stock	(6,264)		(999)
Accumulated other comprehensive loss	(9,601)		(7,677)
Accumulated deficit	(1,394,447)		(1,291,420)
Total stockholders’ equity	631,089		710,852
Total liabilities and stockholders’ equity	$	1,013,298	$	958,478


	Three Months Ended March 31,
	2026		2025
Net revenue	$	361,457	$	358,534
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	38,409		34,828
Sales and marketing	153,010		146,284
Product development	77,157		83,905
General and administrative	49,350		51,707
Depreciation and amortization	16,233		12,350

Total costs and expenses	334,159		329,074
Income from operations	27,298		29,460
Other income, net	2,586		5,771
Income before income taxes	29,884		35,231
Provision for income taxes	12,149		10,840
Net income attributable to common stockholders	$	17,735	$	24,391
Net income per share attributable to common stockholders
Basic	$	0.30	$	0.37
Diluted	$	0.30	$	0.36
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic	58,816		65,261
Diluted	59,374		67,324


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Common Stock			Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance as of December 31, 2024	65,792	$	—	$	1,903,598	$	(3,909)	$	(15,431)	$	(1,140,289)	$	743,969

Issuance of common stock upon exercises of employee stock options	12	—		273		—		—		—		273
Issuance of common stock upon vesting of restricted stock units (“RSUs”), net	686	—		—		—		—		—		—

Stock-based compensation (inclusive of capitalized stock-based compensation)	—	—		39,252		—		—		—		39,252
Taxes withheld related to net share settlement of equity awards	—	—		(19,569)		—		—		—		(19,569)
Repurchases of common stock, including excise tax	—	—		—		(62,865)		—		—		(62,865)
Retirement of common stock	(1,747)	—		—		65,194		—		(65,194)		—
Other comprehensive income	—	—		—		—		2,567		—		2,567
Net income	—	—		—		—		—		24,391		24,391
Balance as of March 31, 2025	64,743	$	—	$	1,923,554	$	(1,580)	$	(12,864)	$	(1,181,092)	$	728,018

Balance as of December 31, 2025	59,987	$	—	$	2,010,948	$	(999)	$	(7,677)	$	(1,291,420)	$	710,852
Issuance of common stock upon exercises of employee stock options	427	—		8,726		—		—		—		8,726
Issuance of common stock upon vesting of RSUs, net	621	—		—		—		—		—		—

Stock-based compensation (inclusive of capitalized stock-based compensation)	—	—		31,616		—		—		—		31,616
Taxes withheld related to net share settlement of equity awards	—	—		(9,889)		—		—		—		(9,889)
Repurchases of common stock, including excise tax	—	—		—		(126,027)		—		—		(126,027)
Retirement of common stock	(4,865)	—		—		120,762		—		(120,762)		—
Other comprehensive loss	—	—		—		—		(1,924)		—		(1,924)
Net income	—	—		—		—		—		17,735		17,735
Balance as of March 31, 2026	56,170	$	—	$	2,041,401	$	(6,264)	$	(9,601)	$	(1,394,447)	$	631,089


	March 31, 2026		December 31, 2025
Cash	$	110,412	$	129,476
Cash equivalents	—		86,586
Total cash and cash equivalents	110,412		216,062
Restricted cash	460		227
Total cash, cash equivalents and restricted cash	$	110,872	$	216,289


	December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash equivalents:
U.S. government securities	$	215	$	—	$	—	$	215
Commercial paper	554		—		—		554
Total cash equivalents	769		—		—		769
Short-term marketable securities:
Certificates of deposit	3,662		—		—		3,662
Commercial paper	3,522		—		—		3,522
Corporate bonds	41,248		96		(5)		41,339
Agency bonds	1,240		1		—		1,241
U.S. government securities	53,388		139		(1)		53,526
Total short-term marketable securities	103,060		236		(6)		103,290



Total	$	103,829	$	236	$	(6)	$	104,059












	December 31, 2025
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss


Corporate bonds	$	7,148	$	(5)	$	—	$	—	$	7,148	$	(5)

U.S. government securities	3,608		(1)		—		—		3,608		(1)
Total	$	10,756	$	(6)	$	—	$	—	$	10,756	$	(6)


	December 31, 2025
		Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds		$	57,123	$	—	$	—	$	57,123


U.S. government securities		—		215		—		215
Commercial paper		—		554		—		554
Short-term marketable securities:
Certificates of deposit		—		3,662		—		3,662
Commercial paper		—		3,522		—		3,522
Corporate bonds		—		41,339		—		41,339
Agency bonds		—		1,241		—		1,241
U.S. government securities		—		53,526		—		53,526
Other investments:
Certificates of deposit(1)		—		5,000		—		5,000
Total cash equivalents, short-term marketable securities and other investments		$	57,123	$	109,059	$	—	$	166,182


	March 31, 2026		December 31, 2025
Capitalized website and internal-use software development costs	$	328,042	$	350,883
Leasehold improvements	5,490		10,805
Computer equipment	25,926		26,136
Furniture and fixtures	686		1,048
Other	1,223		1,223
Total	361,367		390,095
Less: accumulated depreciation and amortization	(265,999)		(298,410)
Property, equipment and software, net	$	95,368	$	91,685


	February 2, 2026
Fair value of purchase consideration:
Cash:
Total merger consideration	$	266,797
Holdbacks	4,425
Total purchase consideration	$	271,222

Fair value of net assets acquired:
Cash and cash equivalents	$	3,197
Accounts receivable	410
Prepaid expenses and other current assets	261
Operating lease right-of-use assets	3,184
Goodwill	220,990
Intangibles	55,000
Total assets acquired	283,042
Accounts payable and accrued liabilities	(3,678)
Operating lease liabilities — current	(758)
Deferred revenue	(1,529)
Operating lease liabilities — long-term	(2,353)
Other long-term liabilities(1)	(3,502)
Total liabilities assumed	(11,820)
Net assets acquired	$	271,222


	November 25, 2025
Fair value of purchase consideration:
Cash:
Distributed to RepairPal stockholders	$	63,935
Paid on behalf of RepairPal stockholders	3,812
Holdbacks	12,294
Total purchase consideration	$	80,041

Fair value of net assets acquired:
Cash and cash equivalents	$	1,565
Accounts receivable	3,057
Intangibles	53,600
Goodwill	28,825
Other assets	620
Total assets acquired	87,667
Accounts payable and accrued liabilities	(3,816)
Deferred tax liability	(3,767)
Other liabilities	(43)
Total liabilities assumed	(7,626)
Net assets acquired	$	80,041


	March 31, 2026
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Remaining Life
Business relationships	$	68,918	$	(16,268)	$	52,650	6.9 years
Developed technology	52,309		(13,555)		38,754		3.6 years
Licensing agreements	6,141		(3,614)		2,527		3.9 years

Domain and data licenses	3,337		(3,025)		312		3.4 years
Trademarks	5,877		(1,347)		4,530		7.2 years

Total	$	136,582	$	(37,809)	$	98,773


	December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Remaining Life
Business relationships	$	45,918	$	(13,390)	$	32,528	7.6 years
Developed technology	22,309		(11,494)		10,815		3.3 years
Licensing agreements	6,141		(3,453)		2,688		4.2 years

Domain and data licenses	3,324		(2,999)		325		3.6 years
Trademarks	3,877		(1,195)		2,682		9.8 years

Total	$	81,569	$	(32,531)	$	49,038



Remainder of 2026	$	17,540
2027	20,720
2028	20,325
2029	15,548
2030	6,433
2031	5,654
Thereafter	12,553
Total amortization	$	98,773



Remainder of 2026	$	6,043
2027	8,906
2028	7,008
2029	3,514
2030	964
2031	623
Thereafter	—
Total minimum lease payments	27,058
Less: imputed interest	(2,134)
Present value of lease liabilities	$	24,924


Balance as of December 31, 2025	$	135,847
Goodwill acquired	220,990
Effect of currency translation	(1,212)
Balance as of March 31, 2026	$	355,625


	March 31, 2026		December 31, 2025
Weighted-average remaining lease term (years) — operating leases	3.6		3.7
Weighted-average discount rate — operating leases	4.7	%	4.6	%


	Three Months Ended March 31, 2026
Balance, beginning of period	$	5,845
Less: recognition of deferred revenue from beginning balance	(4,502)
Add: net increase in current period contract liabilities	10,285
Balance, end of period	$	11,628


	March 31, 2026		December 31, 2025
Prepaid expenses	$	22,572	$	17,144
Certificates of deposit	—		5,000

Other current assets	16,837		20,215
Total prepaid expenses and other current assets	$	39,409	$	42,359


	March 31, 2026		December 31, 2025
Deferred tax assets(1)	$	102,401	$	116,090
Deferred contract costs	20,017		19,880
Other non-current assets	21,711		14,957
Total other non-current assets	$	144,129	$	150,927


	March 31, 2026		December 31, 2025
Accounts payable	$	6,872	$	9,791
Employee-related liabilities	101,075		112,539
Accrued sales and marketing expenses	9,847		6,662

Accrued cost of revenue	9,625		9,304


Other accrued liabilities	27,612		20,493
Total accounts payable and accrued liabilities	$	155,031	$	158,789


	Number of Shares (in thousands)	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2025	2,262	$	33.78	1.8	$	4,420

Exercised	(427)	20.47

Outstanding at March 31, 2026	1,835	$	36.87	1.9	$	18,944
Options vested and exercisable at March 31, 2026	1,835	$	36.87	1.9	$	18,944


	Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2025	4,898	$	38.72
Granted	3,869	28.81
Vested(1)	(1,084)	35.87
Canceled	(238)	37.11
Nonvested at March 31, 2026(2)	7,445	$	34.04
Expected to vest at March 31, 2026	7,428	$	34.05


	Three Months Ended March 31,		% Change
	2026	2025
Services	250	261	(4)%
Restaurants, Retail & Other	235	256	(8)%
Total Paying Advertising Locations	485	517	(6)%


	Three Months Ended March 31,						% Change(1)
	2026		2025		$ Change
Condensed Consolidated Statements of Operations Data:
Net revenue by product:
Services	$	233,786	$	231,576	$	2,210	1	%
Restaurants, Retail & Other	98,702		110,425		(11,723)		(11)	%
Total advertising	332,488		342,001		(9,513)		(3)	%

Other	28,969		16,533		12,436		75	%
Total net revenue	361,457		358,534		2,923		1	%
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	38,409		34,828		3,581		10	%
Sales and marketing	153,010		146,284		6,726		5	%
Product development	77,157		83,905		(6,748)		(8)	%
General and administrative	49,350		51,707		(2,357)		(5)	%
Depreciation and amortization	16,233		12,350		3,883		31	%

Total costs and expenses	334,159		329,074		5,085		2	%
Income from operations	27,298		29,460		(2,162)		(7)	%
Other income, net	2,586		5,771		(3,185)		(55)	%
Income before income taxes	29,884		35,231		(5,347)		(15)	%
Provision for income taxes	12,149		10,840		1,309		12	%
Net income attributable to common stockholders	$	17,735	$	24,391	$	(6,656)	(27)	%


Period	Total Number of Shares Purchased(1)	Average Price Paid per Share(2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program
January 1 - January 31, 2026	864	$	29.06	864	$	13,710
February 1 - February 28, 2026	672	$	21.57	672	$	499,216
March 1 - March 31, 2026	3,551	$	24.06	3,551	$	413,787
Total	5,087			5,087


		YELP INC.
Date:	May 8, 2026	/s/ David Schwarzbach
		David Schwarzbach
		Chief Financial Officer
		(Principal Financial and Accounting Officer and Duly Authorized Signatory)


1.	I have reviewed this Quarterly Report on Form 10-Q of Yelp Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:			May 8, 2026

/s/ Jeremy Stoppelman

Jeremy Stoppelman
Chief Executive Officer


1.			The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2026, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

2.			The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.