YELP INC (NYSE:YELP) Q3 2025 Earnings: EPS Beats Estimates, Revenue Edges Past Forecasts

YELP INC (NYSE:YELP reported financial results for the third quarter of 2025, delivering a performance that narrowly surpassed analyst revenue expectations while demonstrating solid profitability. The company's earnings per share notably exceeded consensus estimates, though the initial market reaction in after-hours trading showed a negative trend.

Financial Performance Versus Estimates

The company reported quarterly revenue of $376.0 million, which represents a 4.4% increase compared to the same period last year. This figure slightly exceeded the analyst consensus estimate of $375.7 million. The performance indicates steady, albeit modest, top-line growth in a challenging macroeconomic environment.

On the profitability front, Yelp delivered stronger results relative to expectations. The company reported GAAP earnings per share of $0.61, significantly surpassing the analyst consensus estimate of $0.5266 by approximately 16%. This earnings beat reflects effective cost management and operational efficiency.

Key financial metrics from the quarter include:

• Revenue: $376.0 million (actual) vs. $375.7 million (estimate)
• GAAP EPS: $0.61 (actual) vs. $0.5266 (estimate)
• Net Income: $39.3 million for the quarter
• Year-to-Date Net Income: $107.8 million, showing improvement over the $90.6 million reported for the same period in 2024

Market Reaction and Price Action

Despite the earnings beat, the market reaction was negative in after-hours trading, with the stock declining approximately 3%. This reaction suggests that investors may have been expecting stronger revenue growth or may be concerned about broader market conditions affecting the advertising sector. The stock had shown relative stability in the weeks leading up to the earnings announcement, with minimal movement over the past month.

Strategic Initiatives and Management Commentary

The earnings release highlighted the company's continued focus on its product-led strategy with significant investments in artificial intelligence. CEO Jeremy Stoppelman emphasized the rollout of more than 35 new features and updates during the quarter, including the expansion of Yelp Assistant and AI-powered call answering services Yelp Host and Yelp Receptionist.

Chief Financial Officer David Schwarzbach noted that the company delivered "record net revenue and strong profitability in the third quarter," with Services continuing to drive business performance despite persistent macro challenges. Management expressed confidence that strategic investments in AI transformation and disciplined expense management position the company well for long-term growth.

Balance Sheet and Capital Allocation

Yelp maintained a strong financial position with $231.1 million in cash and cash equivalents as of September 30, 2025. The company continued its shareholder return program, repurchasing $203.5 million worth of common stock during the quarter. This aggressive buyback activity has contributed to the improved earnings per share metrics.

Forward Outlook

While the press release contained forward-looking statements regarding the company's ability to drive long-term growth and shareholder value, it did not provide specific quantitative guidance for the fourth quarter or full-year 2025 that could be directly compared to analyst estimates. The absence of specific guidance may have contributed to the cautious market reaction following the earnings announcement.

For more detailed earnings information and future estimates, readers can review additional data on the earnings estimates page for YELP.

Disclaimer: This article provides financial analysis based on publicly available information and is not intended as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.