Yelp (YELP) Q3 2026 earnings summary

Executive summary

• Q3 net revenue was $370.9M, down 1% YoY; net income was $34.6M and adjusted EBITDA was $92.3M, down 6%.

• AI-led products and data licensing supported strong other-revenue growth as challenging local-market conditions weighed on advertising.

Financial highlights

• Q3 revenue was $1M above the high end of guidance; diluted EPS was $0.63 versus $0.61, while operating income was $48.9M versus $52.9M.

• 9M revenue was $1.108B versus $1.105B; net income was $83.9M versus $107.8M and adjusted EBITDA was $263.1M versus $283.5M.

• 9M operating cash flow was $233.6M and free cash flow was $190.8M, versus $287.5M and $251.4M, respectively.

Outlook and guidance

• Q4 net revenue guidance is $347M-$352M; FY2026 guidance is $1.455B-$1.460B.

• Q4 adjusted EBITDA guidance is $57M-$62M; FY2026 guidance narrowed to $320M-$325M.

• Q4 expenses are expected to rise modestly, with investment focused on Hatch and Yelp Host; local ad-market challenges are expected to persist.

• Other revenue target remains a $250M annual run rate by end-2028; Q3 run rate was $136M, up 82%. A $30.5M Q4 tax benefit is expected, with no adjusted EBITDA impact.