📊 YELP Key Takeaways
Is Yelp Inc. (YELP) a Good Investment?
Yelp demonstrates exceptional financial health with fortress-like balance sheet, outstanding free cash flow generation (22.1% FCF margin), and exceptional capital efficiency (20.5% ROE, 15.2% ROA). The 9.6% net income growth and 19.1% EPS growth indicate strong operational leverage despite modest 3.7% revenue growth, reflecting a mature, cash-generative business with disciplined capital management.
Why Buy Yelp Inc. Stock? YELP Key Strengths
- Outstanding free cash flow generation at $323.7M with 22.1% FCF margin, significantly exceeding net margin
- Exceptional returns on capital: 20.5% ROE and 15.2% ROA demonstrate superior capital efficiency
- Fortress balance sheet with minimal leverage (0.02x D/E), substantial cash position ($216.1M), and 2.99x current ratio
- EPS growth (19.1% YoY) substantially outpacing revenue growth (3.7% YoY), indicating operational leverage and disciplined capital allocation
- Net income growing 9.6% YoY while maintaining healthy 9.9% net margin and 12.6% operating margin
YELP Stock Risks: Yelp Inc. Investment Risks
- Slowing revenue growth at 3.7% YoY suggests limited organic growth trajectory and potential market saturation
- Service sector cyclicality exposure (SIC 7200) creates vulnerability to economic downturns
- Operating margin of 12.6% is moderate, indicating possible competitive pressures or limited pricing power in core business
- Heavy reliance on subscription and advertising model concentration risk
Key Metrics to Watch
- Revenue growth acceleration and year-over-year comparability trends
- Operating margin expansion or contraction amid cost pressures
- Free cash flow sustainability and capital allocation decisions
Yelp Inc. (YELP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.99x current ratio provides a solid financial cushion.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $298.9M | $7.1M | $0.10 |
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
❓ Frequently Asked Questions about YELP
What is the AI rating for YELP?
Yelp Inc. (YELP) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are YELP's key strengths?
Claude: Outstanding free cash flow generation at $323.7M with 22.1% FCF margin, significantly exceeding net margin. Exceptional returns on capital: 20.5% ROE and 15.2% ROA demonstrate superior capital efficiency.
What are the risks of investing in YELP?
Claude: Slowing revenue growth at 3.7% YoY suggests limited organic growth trajectory and potential market saturation. Service sector cyclicality exposure (SIC 7200) creates vulnerability to economic downturns.
What is YELP's revenue and growth?
Yelp Inc. reported revenue of $1.5B.
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 $2.24.
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 rating reflects both perspectives for balanced insights.
Is YELP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Yelp Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is YELP stock overvalued or undervalued?
Valuation metrics for YELP: ROE of 20.5% (sector avg: 16%), net margin of 9.9% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy YELP stock in 2026?
Our dual AI analysis gives Yelp Inc. a combined BUY rating 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 $372.0M, with capital expenditures of $48.4M. FCF margin is 22.1%.
How does YELP compare to other Services stocks?
Vs Services sector averages: Net margin 9.9% (avg: 10%), ROE 20.5% (avg: 16%), current ratio 2.99 (avg: 1.5).