📊 YELP Key Takeaways
Is Yelp Inc. (YELP) a Good Investment?
Yelp demonstrates adequate financial stability with a fortress balance sheet and positive free cash flow generation, but the business fundamentals are concerning. Anemic revenue growth of 3.7% combined with razor-thin net margins of 4.9% and poor capital efficiency (ROE 2.8%, ROA 1.8%) indicate a mature, low-return business with limited upside.
Yelp Inc. Key Strengths (YELP)
- Fortress balance sheet with minimal leverage (0.03x Debt/Equity) and $110.4M cash
- Positive free cash flow of $45.2M with strong 12.5% FCF margin demonstrates cash generation capability
- EPS growing at 19.1% YoY, showing operational leverage and cost discipline despite slow revenue growth
- Capital-light business model requiring only $12.7M CapEx annually
- Healthy liquidity position with 1.74x current ratio
YELP Stock Risks: Yelp Inc. Investment Risks
- Slow revenue growth of 3.7% YoY indicates limited market expansion and maturity
- Net profit margin of 4.9% is critically low, leaving minimal buffer for cost inflation or competitive pressure
- Operating margin of 7.6% suggests operational inefficiency or intense competition compressing returns
- Abysmal capital efficiency with ROE of 2.8% and ROA of 1.8% indicates poor deployment of shareholder capital
- 27 insider Form 4 filings in 90 days may signal management uncertainty about business trajectory
Key Metrics to Watch
- Revenue growth acceleration - must exceed 5% to signal meaningful market traction
- Operating margin expansion - critical to reach double-digit levels to improve capital efficiency
- Return on Equity trajectory - need sustained improvement from 2.8% baseline
- Free cash flow sustainability - monitor if FCF generation remains positive amid growth pressures
- Insider transaction patterns - watch for changes in insider buying/selling sentiment
Yelp Inc. (YELP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Yelp Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
YELP Profit Margin, ROE & Profitability Analysis
YELP vs Services Sector: How Yelp Inc. Compares
How Yelp Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Yelp Inc. Stock Overvalued? YELP Valuation Analysis 2026
Based on fundamental analysis, Yelp Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Yelp Inc. Balance Sheet: YELP Debt, Cash & Liquidity
YELP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Yelp Inc.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.35 reflects profitable operations.
YELP Revenue Growth, EPS Growth & YoY Performance
YELP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $358.5M | $17.7M | $0.30 |
| Q3 2025 | $360.3M | $38.4M | $0.56 |
| Q2 2025 | $357.0M | $38.0M | $0.54 |
| Q1 2025 | $332.8M | $14.2M | $0.20 |
| Q3 2024 | $345.1M | $38.4M | $0.56 |
| Q2 2024 | $337.1M | $13.6M | $0.19 |
| Q1 2024 | $312.4M | -$1.2M | $-0.02 |
| Q3 2023 | $308.9M | $9.1M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Yelp Inc. Dividends, Buybacks & Capital Allocation
YELP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Yelp Inc. (CIK: 0001345016)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779481086.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779480959.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779480879.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779480822.xml | View → |
| May 22, 2026 | 4 | xslF345X06/wk-form4_1779480666.xml | View → |
❓ Frequently Asked Questions about YELP
What is the AI rating for YELP?
Yelp Inc. (YELP) has an AI grade of C with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are YELP's key strengths?
Claude: Fortress balance sheet with minimal leverage (0.03x Debt/Equity) and $110.4M cash. Positive free cash flow of $45.2M with strong 12.5% FCF margin demonstrates cash generation capability.
What are the risks of investing in YELP?
Claude: Slow revenue growth of 3.7% YoY indicates limited market expansion and maturity. Net profit margin of 4.9% is critically low, leaving minimal buffer for cost inflation or competitive pressure.
What is YELP's revenue and growth?
Yelp Inc. reported revenue of $361.5M.
Does YELP pay dividends?
Yelp Inc. does not currently pay dividends.
Where can I find YELP SEC filings?
Official SEC filings for Yelp Inc. (CIK: 0001345016) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is YELP's EPS?
Yelp Inc. has a diluted EPS of $0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is YELP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Yelp Inc. has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is YELP stock overvalued or undervalued?
Valuation metrics for YELP: ROE of 2.8% (sector avg: 16%), net margin of 4.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is YELP's AI grade for 2026?
Our dual AI analysis gives Yelp Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is YELP's free cash flow?
Yelp Inc.'s operating cash flow is $57.8M, with capital expenditures of $12.7M. FCF margin is 12.5%.
How does YELP compare to other Services stocks?
Vs Services sector averages: Net margin 4.9% (avg: 10%), ROE 2.8% (avg: 16%), current ratio 1.74 (avg: 1.5).