Revenue: As of FY2026 Q1, the actual value is USD 361.46 M, beating the estimate of USD 353.46 M.EPS: As of FY2026 Q1, the actual value is USD 0.3, beating the estimate of USD 0.2637.EBIT: As of FY2026 Q1, the actual value is USD 26.66 M.<h4>Net Revenue</h4><ul><li>Total net revenue for the three months ended March 31, 2026, was $361.5 million, an increase of 1% from $358.5 million in the prior-year period.<ul><li>Advertising Revenue:</li><li>Total advertising revenue for the three months ended March 31, 2026, decreased by 3% year over year to $332.5 million, from $342.0 million in the prior-year period.</li><li>Services advertising revenue was $233.8 million, up 1% from $231.6 million in the prior-year period.</li><li>Restaurants, Retail &amp; Other (RR&amp;O) advertising revenue was $98.7 million, down 11% from $110.4 million in the prior-year period.</li><li>Other Revenue:</li><li>Other revenue for the three months ended March 31, 2026, increased by 75% year over year to $29.0 million, from $16.5 million in the prior-year period.</li></ul></li></ul><h4>Operational Metrics</h4><ul><li>Net Income:<ul><li>Net income attributable to common stockholders for the three months ended March 31, 2026, was $17.7 million, a -27% change from $24.4 million in the prior-year period.</li></ul></li><li>Adjusted EBITDA:<ul><li>Adjusted EBITDA for the three months ended March 31, 2026, was $79.4 million, compared to $84.9 million in the prior-year period.</li><li>Adjusted EBITDA margin was 22% for the three months ended March 31, 2026, compared to 24% in the prior-year period.</li></ul></li><li>Costs and Expenses:<ul><li>Cost of revenue (exclusive of depreciation and amortization) increased by 10% to $38.4 million for the three months ended March 31, 2026, from $34.8 million in the prior-year period.</li><li>Sales and marketing expenses increased by 5% to $153.0 million for the three months ended March 31, 2026, from $146.3 million in the prior-year period.</li><li>Product development expenses decreased by -8% to $77.2 million for the three months ended March 31, 2026, from $83.9 million in the prior-year period.</li><li>General and administrative expenses decreased by -5% to $49.4 million for the three months ended March 31, 2026, from $51.7 million in the prior-year period.</li><li>Depreciation and amortization increased by 31% to $16.2 million for the three months ended March 31, 2026, from $12.4 million in the prior-year period.</li></ul></li><li>Income from Operations:<ul><li>Income from operations for the three months ended March 31, 2026, was $27.3 million, a -7% change from $29.5 million in the prior-year period.</li></ul></li><li>Other Income, Net:<ul><li>Other income, net for the three months ended March 31, 2026, was $2.6 million, a -55% change from $5.8 million in the prior-year period.</li></ul></li><li>Provision for Income Taxes:<ul><li>Provision for income taxes for the three months ended March 31, 2026, was $12.1 million, a 12% change from $10.8 million in the prior-year period.</li></ul></li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities:<ul><li>Net cash provided by operating activities for the three months ended March 31, 2026, was $57.8 million, compared to $98.0 million in the prior-year period.</li></ul></li><li>Net Cash Used in Investing Activities:<ul><li>Net cash used in investing activities for the three months ended March 31, 2026, was - $167.9 million, compared to - $12.0 million in the prior-year period.</li></ul></li><li>Net Cash Provided by (Used in) Financing Activities:<ul><li>Net cash provided by financing activities for the three months ended March 31, 2026, was $4.9 million, compared to net cash used of - $81.7 million in the prior-year period.</li></ul></li><li>Free Cash Flow:<ul><li>Free cash flow for the three months ended March 31, 2026, was $45.2 million, compared to $87.5 million in the prior-year period.</li></ul></li></ul><h4>Unique Metrics</h4><ul><li>Ad Clicks:<ul><li>Ad Clicks decreased by -10% for the three months ended March 31, 2026, compared to a -3% decrease in the prior-year period.</li></ul></li><li>Average CPC:<ul><li>Average CPC increased by 8% for the three months ended March 31, 2026, compared to a 9% increase in the prior-year period.</li></ul></li><li>Paying Advertising Locations:<ul><li>Total Paying Advertising Locations were 485 thousand for the three months ended March 31, 2026, a -6% decrease from 517 thousand in the prior-year period.</li><li>Services Paying Advertising Locations were 250 thousand, a -4% decrease from 261 thousand in the prior-year period.</li><li>Restaurants, Retail &amp; Other Paying Advertising Locations were 235 thousand, a -8% decrease from 256 thousand in the prior-year period.</li></ul></li></ul><h4>Future Outlook and Strategy</h4>Yelp Inc. expects revenue to increase sequentially in the second quarter of 2026 due to continued strength in other revenue, but anticipates a year-over-year decrease in net revenue due to persistent economic challenges affecting consumers and local businesses, while targeting an annual run rate of $250 million in other revenue by the end of 2028. Expenses are projected to increase sequentially in the second quarter due to investments in AI transformation and increased marketing spend, which is expected to result in a year-over-year decrease in adjusted EBITDA for the quarter, although strong growth in adjusted EBITDA margin is anticipated over the next several years through top-line efforts and AI-driven operational efficiencies. The company’s board of directors authorized a $500.0 million increase to its stock repurchase program in February 2026, bringing the total authorized amount to $2.45 billion since 2017, with $413.8 million remaining available as of March 31, 2026, and $388.7 million remaining available as of May 1, 2026, alongside material cash requirements for working capital, anticipated stock repurchases, and the $271.2 million acquisition of Hatchify Inc. completed on February 2, 2026.

Yelp | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 361.46 M