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Yelp (YELP) guidance and outlook

Yelp (YELP) lowered its guidance on Nov 5, 2026: Revenue $1.5B for FY2026. Yelp's 10-Q filed Nov 6, 2026 makes 28 forward-looking statements.

Guidance and outlook

Latest guidance

From the earnings release filed Nov 5, 2026 (8-K on EDGAR).

Forward-looking statements, 10-Q filed Nov 6, 2026

• We expect these adverse conditions to persist in the remainder of 2026, with increased pressure on advertising revenue across categories, driving a modest year-over-year decrease in net revenue in the fourth quarter.
• However, we expect our investments in our strategic initiatives will continue to drive strong growth in other revenue in the fourth quarter.
• As our AI-driven offerings continue to gain traction, we are continuing to target an annual run rate of $250 million in other revenue by the end of 2028.
• We expect expenses will increase modestly in the fourth quarter as we focus our investments in key areas, including Hatch and Yelp Host, which we anticipate will result in a year-over-year decrease in adjusted EBITDA in the fourth quarter.
• We do not expect the exclusion of such user interactions to materially affect this metric.
• For example, a positive change in ad clicks for a given period combined with lower growth or a negative change in average CPC over the same period would indicate that we delivered more ad clicks at lower prices, thereby delivering more value to our advertisers; we would expect this to have a positive impact on retention.
• Conversely, growth in average CPC paired with a negative or lower growth rate in ad clicks would indicate we charged more without delivering more ad clicks; we would expect this to have a negative impact on retention unless we are able to increase the value we deliver through higher performing ad clicks.
• We anticipate net revenue will decrease modestly in the three months ended December 31, 2026 compared to the prior-year period, reflecting the continued economic challenges facing consumers and local businesses and, to a lesser extent, competitive pressures for ad spend in RR&O categories from food ordering and delivery providers.
• However, we expect our strategic initiatives will continue to drive strong growth in other revenue.
• We expect cost of revenue to increase on an absolute dollar basis for the full year 2026 compared to 2025, primarily due to our planned investments in AI capabilities.
• Sales and marketing expenses for the three and nine months ended September 30, 2026 increased compared to the prior-year periods, primarily due to increases of $1.0 million and $12.8 million, respectively, in marketing and advertising costs, driven by our investments in acquiring Services projects, partially offset by decreases in spend for business owner marketing.
• We expect sales and marketing expenses to increase on an absolute dollar basis and as a percentage of revenue for the full year 2026 compared to 2025, primarily due to marketing investments.

Yelp's latest quarter

Questions

Did Yelp raise or lower its guidance?

Yelp (YELP) lowered its guidance on Nov 5, 2026: Revenue $1.5B for FY2026.

What does Yelp expect?

We expect these adverse conditions to persist in the remainder of 2026, with increased pressure on advertising revenue across categories, driving a modest year-over-year decrease in net revenue in the fourth quarter. However, we expect our investments in our strategic initiatives will continue to drive strong growth in other revenue in the fourth quarter. As our AI-driven offerings continue to gain traction, we are continuing to target an annual run rate of $250 million in other revenue by the end of 2028.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.