Yelp (YELP) Q3 2026 Earnings Call Transcript
Yelp (YELP) reported Q3 2026 net revenue of $371M, down 1% YoY, with net income at $35M, down 12% YoY. Services ad revenue fell 2% YoY, while other revenue surged 82% YoY to $34M, driven by AI products like Yelp Assistant and Hatch. The company expects Q4 net revenue between $347M-$352M and adjusted EBITDA between $57M-$62M, with full-year net revenue now projected at $1.455B-$1.46B.
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue trends and guidance, shaping short‑term price action.
Market read
First‑time disclosure of quarterly results and guidance makes this a high‑impact earnings event for traders.
What to watch
Strong 82% growth in other revenue and expanding AI products may offset ad decline over the longer term.
Background
Yelp presented its Q3 2026 earnings call, highlighting mixed ad performance, rapid growth in AI-driven offerings, and updated guidance.
Ticker impact
Q3 2026 net revenue $371M (down 1% YoY) and Q4 guidance of $347M-$352M disclosed for the first time.
downward pressure as investors price in lower revenue and earnings.
Revenue fell short of expectations and guidance signals slower growth, prompting sell pressure.
Market effects
AI-driven local services may face mixed sentiment, affecting other ad-tech and local search firms.
U.S. internet services sector could see slight pullback.
Limited to U.S. equity markets; no broader macro impact.
Counterpoint
AI initiatives could drive future upside if adoption accelerates faster than revenue decline suggests.
Key entities
- companyYelp
U.S. online local business review platform (ticker YELP).
