Yelp Inc 10-Q for FY2026 Q3

Yelp Inc (YELP)

10-Q 2026-11-06 For: 2026-09-30

Added on November 06, 2026

About this 10-Q

Yelp Inc filed this 10-Q on November 6, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Yelp reported $370.9 million of net revenue and $34.6 million of net income for the quarter ended September 30, 2026. Other revenue grew, but advertising revenue fell 6%, and the company expects a modest year-over-year net revenue decrease in the fourth quarter. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $370.92M; down 1.4% from $376.04M a year earlier
Net income: $34.55M; down 12.1% from net income of $39.32M a year earlier
Diluted EPS: $0.63; up 3.3% from $0.61 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	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38
Part II.	Other Information
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signatures


	September 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	119,840	$	216,062
Short-term marketable securities	—		103,290
Accounts receivable (net of allowance for credit losses of $11,796 and $13,782 at September 30, 2026 and December 31, 2025, respectively)	151,465		153,224
Prepaid expenses and other current assets	42,504		42,359
Total current assets	313,809		514,935

Property, equipment and software, net	105,541		91,685
Operating lease right-of-use assets	14,744		16,046
Goodwill	353,354		135,847
Intangibles, net	86,413		49,038

Other non-current assets	128,877		150,927
Total assets	$	1,002,738	$	958,478
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$	159,875	$	158,789
Operating lease liabilities — current	7,479		7,426
Deferred revenue	10,673		5,845
Total current liabilities	178,027		172,060
Revolving credit facility	75,000		—
Operating lease liabilities — long-term	14,090		17,451
Other long-term liabilities	63,696		58,115
Total liabilities	330,813		247,626
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, undesignated, 10,000 shares authorized, none issued	—		—
Common stock, $0.000001 par value — 200,000 shares authorized, 54,472 and 59,987 shares issued at September 30, 2026 and December 31, 2025, respectively; 54,472 and 59,954 shares outstanding at September 30, 2026 and December 31, 2025, respectively	—		—
Additional paid-in capital	2,091,958		2,010,948
Treasury stock	—		(999)
Accumulated other comprehensive loss	(10,054)		(7,677)
Accumulated deficit	(1,409,979)		(1,291,420)
Total stockholders’ equity	671,925		710,852
Total liabilities and stockholders’ equity	$	1,002,738	$	958,478


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net revenue	$	370,919	$	376,038	$	1,107,895	$	1,104,966
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	42,158		36,288		122,343		106,563
Sales and marketing	151,500		150,740		458,072		441,636
Product development	64,655		78,137		212,280		240,404
General and administrative	46,344		45,462		143,559		143,487
Depreciation and amortization	17,369		12,526		51,720		37,241

Total costs and expenses	322,026		323,153		987,974		969,331
Income from operations	48,893		52,885		119,921		135,635
Other income, net	1,351		5,350		4,670		16,816
Income before income taxes	50,244		58,235		124,591		152,451
Provision for income taxes	15,692		18,911		40,652		44,647
Net income attributable to common stockholders	$	34,552	$	39,324	$	83,939	$	107,804
Net income per share attributable to common stockholders
Basic	$	0.64	$	0.62	$	1.49	$	1.68
Diluted	$	0.63	$	0.61	$	1.48	$	1.63
Weighted-average shares used to compute net income per share attributable to common stockholders
Basic	54,393		63,025		56,155		64,136
Diluted	54,787		64,216		56,765		65,975


☑			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 June 30, 2025	63,841	—		$	1,958,370	$	(1,044)	$	(7,139)	$	(1,203,783)	$	746,404
Issuance of common stock upon exercises of employee stock options	14	—		272		—		—		—		272
Issuance of common stock upon vesting of restricted stock units (“RSUs”), net	536	—		—		—		—		—		—
Issuance of common stock for employee stock purchase plan	—	—		—		—		—		—		—
Stock-based compensation (inclusive of capitalized stock-based compensation)	—	—		34,998		—		—		—		34,998
Taxes withheld related to net share settlement of equity awards	—	—		(11,571)		—		—		—		(11,571)
Repurchases of common stock, including excise tax	—	—		—		(75,581)		—		—		(75,581)
Retirement of common stock	(2,250)	—		—		74,046		—		(74,046)		—
Other comprehensive loss	—	—		—		—		(693)		—		(693)
Net income	—	—		—		—		—		39,324		39,324
Balance as of September 30, 2025	62,141	$	—	$	1,982,069	$	(2,579)	$	(7,832)	$	(1,238,505)	$	733,153

Balance as of June 30, 2026	55,098	$	—	$	2,073,762	$	(2,868)	$	(9,814)	$	(1,416,553)	$	644,527

Issuance of common stock upon vesting of RSUs, net	447	—		—		—		—		—		—

Stock-based compensation (inclusive of capitalized stock-based compensation)	—	—		25,234		—		—		—		25,234
Taxes withheld related to net share settlement of equity awards	—	—		(7,038)		—		—		—		(7,038)
Repurchases of common stock, including excise tax	—	—		—		(25,110)		—		—		(25,110)
Retirement of common stock	(1,073)	—		—		27,978		—		(27,978)		—
Other comprehensive loss	—	—		—		—		(240)		—		(240)
Net income	—	—		—		—		—		34,552		34,552
Balance as of September 30, 2026	54,472	$	—	$	2,091,958	$	—	$	(10,054)	$	(1,409,979)	$	671,925


	September 30, 2026		December 31, 2025
Cash	$	119,840	$	129,476
Cash equivalents	—		86,586
Total cash and cash equivalents	119,840		216,062
Restricted cash	538		227
Total cash, cash equivalents and restricted cash	$	120,378	$	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


	September 30, 2026		December 31, 2025
Capitalized website and internal-use software development costs	$	360,118	$	350,883
Leasehold improvements	5,404		10,805
Computer equipment	23,768		26,136
Furniture and fixtures	678		1,048
Other	1,211		1,223
Total	391,179		390,095
Less: accumulated depreciation and amortization	(285,638)		(298,410)
Property, equipment and software, net	$	105,541	$	91,685


	February 2, 2026
Fair value of purchase consideration:
Cash:
Total merger consideration	$	266,797
Holdbacks	3,784
Total purchase consideration	$	270,581

Fair value of net assets acquired:
Cash and cash equivalents	$	3,197
Accounts receivable	426
Prepaid expenses and other current assets	195
Operating lease right-of-use assets	3,184
Goodwill	219,306
Intangibles	55,000
Total assets acquired	281,308
Accounts payable and accrued liabilities	(2,585)
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	(10,727)
Net assets acquired	$	270,581


	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


	September 30, 2026
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Remaining Life
Business relationships	$	68,918	$	(22,499)	$	46,419	6.8 years
Developed technology	52,309		(18,928)		33,381		3.1 years
Licensing agreements	6,141		(3,937)		2,204		3.4 years

Domain and data licenses	3,337		(3,072)		265		2.9 years
Trademarks	5,877		(1,733)		4,144		6.8 years

Total	$	136,582	$	(50,169)	$	86,413


	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	$	5,180
2027	20,720
2028	20,325
2029	15,548
2030	6,433
2031	5,654
Thereafter	12,553
Total amortization	$	86,413



Remainder of 2026	$	2,201
2027	8,890
2028	6,993
2029	3,498
2030	946
2031	611
Thereafter	—
Total minimum lease payments	23,139
Less: imputed interest	(1,570)
Present value of lease liabilities	$	21,569


Balance as of December 31, 2025	$	135,847
Goodwill acquired	219,306
Effect of currency translation	(1,799)
Balance as of September 30, 2026	$	353,354


	September 30, 2026		December 31, 2025
Weighted-average remaining lease term (years) — operating leases	3.1		3.7
Weighted-average discount rate — operating leases	4.7	%	4.6	%


	Nine Months Ended September 30, 2026
Balance, beginning of period	$	5,845
Less: recognition of deferred revenue from beginning balance	(5,071)
Add: net increase in current period contract liabilities	9,899
Balance, end of period	$	10,673


	September 30, 2026		December 31, 2025
Prepaid expenses	$	20,608	$	17,144
Certificates of deposit	—		5,000

Other current assets	21,896		20,215
Total prepaid expenses and other current assets	$	42,504	$	42,359


	September 30, 2026		December 31, 2025
Deferred tax assets(1)	$	84,454	$	116,090
Deferred contract costs	19,902		19,880
Other non-current assets	24,521		14,957
Total other non-current assets	$	128,877	$	150,927


	September 30, 2026		December 31, 2025
Accounts payable	$	7,518	$	9,791
Employee-related liabilities	112,618		112,539


Accrued cost of revenue	10,000		9,304


Other accrued liabilities	29,739		27,155
Total accounts payable and accrued liabilities	$	159,875	$	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
Canceled	(14)	27.73
Outstanding at September 30, 2026	1,821	$	36.94	1.4	$	—
Options vested and exercisable at September 30, 2026	1,821	$	36.94	1.4	$	—


	Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2025	4,898	$	38.72
Granted	4,131	28.58
Vested(1)	(2,692)	34.33
Canceled	(889)	35.71
Nonvested at September 30, 2026(2)	5,448	$	33.68
Expected to vest at September 30, 2026(2)	5,411	$	33.74


	Three Months Ended September 30,		% Change	Nine Months Ended September 30,		% Change
	2026	2025		2026	2025
Services	248	258	(4)%	252	260	(3)%
Restaurants, Retail & Other	261	254	3%	249	255	(2)%
Total Paying Advertising Locations	509	512	(1)%	501	515	(3)%


	Three Months Ended September 30,						% Change(1)		Nine Months Ended September 30,
	2026		2025		$ Change				2026		2025		$ Change		% Change(1)
Condensed Consolidated Statements of Operations Data:
Net revenue by product:
Services	$	238,241	$	243,805	$	(5,564)	(2)	%	$	712,990	$	716,183	$	(3,193)	—	%
Restaurants, Retail & Other	98,757		113,547		(14,790)		(13)	%	298,991		336,867		(37,876)		(11)	%
Total advertising	336,998		357,352		(20,354)		(6)	%	1,011,981		1,053,050		(41,069)		(4)	%

Other	33,921		18,686		15,235		82	%	95,914		51,916		43,998		85	%
Total net revenue	370,919		376,038		(5,119)		(1)	%	1,107,895		1,104,966		2,929		—	%
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below)	42,158		36,288		5,870		16	%	122,343		106,563		15,780		15	%
Sales and marketing	151,500		150,740		760		1	%	458,072		441,636		16,436		4	%
Product development	64,655		78,137		(13,482)		(17)	%	212,280		240,404		(28,124)		(12)	%
General and administrative	46,344		45,462		882		2	%	143,559		143,487		72		—	%
Depreciation and amortization	17,369		12,526		4,843		39	%	51,720		37,241		14,479		39	%

Total costs and expenses	322,026		323,153		(1,127)		—	%	987,974		969,331		18,643		2	%
Income from operations	48,893		52,885		(3,992)		(8)	%	119,921		135,635		(15,714)		(12)	%
Other income, net	1,351		5,350		(3,999)		(75)	%	4,670		16,816		(12,146)		(72)	%
Income before income taxes	50,244		58,235		(7,991)		(14)	%	124,591		152,451		(27,860)		(18)	%
Provision for income taxes	15,692		18,911		(3,219)		(17)	%	40,652		44,647		(3,995)		(9)	%
Net income attributable to common stockholders	$	34,552	$	39,324	$	(4,772)	(12)	%	$	83,939	$	107,804	$	(23,865)	(22)	%


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
July 1 - July 31, 2026	955	$	26.14	955	$	338,710
August 1 - August 31, 2026	—	$	—	—	$	338,710
September 1 - September 30, 2026	—	$	—	—	$	338,710
Total	955			955


		YELP INC.
Date:	November 6, 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:			November 6, 2026

/s/ Jeremy Stoppelman

Jeremy Stoppelman
Chief Executive Officer


1.			The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 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.