--- title: "Yelp | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 361.46 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285610133.md" datetime: "2026-05-07T20:17:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285610133.md) - [en](https://longbridge.com/en/news/285610133.md) - [zh-HK](https://longbridge.com/zh-HK/news/285610133.md) --- # Yelp | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 361.46 M 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. #### First Quarter 2026 Financial Highlights **Segment Revenue** Net revenue for Yelp Inc. increased by 1% year over year to $361 million for the first quarter of 2026, compared to $358.534 million in the first quarter of 2025, and was $6 million above the high end of the company’s first quarter outlook range. Advertising revenue from Services businesses increased by 1% year over year to $234 million. Advertising revenue from Restaurant, Retail & Other (RR&O) businesses decreased by 11% year over year to $99 million. Other revenue grew 75% year over year to a record $29 million in the first quarter of 2026, driven by the inclusion of revenue from Hatchify Inc. and significant growth in data licensing and food ordering. **Operational Metrics** Net income decreased from $24.391 million in the prior year to $17.735 million in the first quarter of 2026, reflecting a 5% margin, down from 7% in the first quarter of 2025. Net income was $18 million, a decrease of 27% compared to $24 million in the first quarter of 2025. Adjusted EBITDA decreased 7% year over year to $79.354 million in the first quarter of 2026, down from $84.944 million in the first quarter of 2025, reflecting a 22% margin compared to 24% in the prior year. Adjusted EBITDA was $79 million, a decrease of 7% compared to $85 million in the first quarter of 2025, and was $16 million above the high end of Yelp Inc.’s outlook range. Income from operations was $27.298 million for the first quarter of 2026, a decrease from $29.460 million in the first quarter of 2025. **Operating Costs** Cost of revenue increased to $38.409 million in Q1 2026 from $34.828 million in Q1 2025, representing a 10% increase. Sales and marketing expenses rose to $153.010 million in Q1 2026 from $146.284 million in Q1 2025, an increase of 5%. Product development expenses decreased to $77.157 million in Q1 2026 from $83.905 million in Q1 2025, a decrease of 8%. General and administrative expenses were $49.350 million in Q1 2026, down from $51.707 million in Q1 2025, a decrease of 5%. Depreciation and amortization increased to $16.233 million in Q1 2026 from $12.350 million in Q1 2025, an increase of 31%. Total costs and expenses for the first quarter of 2026 were $334.159 million, up from $329.074 million in the first quarter of 2025, an increase of 2%. Other income, net, was $3 million, down 55% from the first quarter of 2025. Provision for income taxes was $12 million, up 12% from the first quarter of 2025. **Cash Flow** Net cash provided by operating activities was $57.816 million for the first quarter of 2026, a decrease from $97.995 million in the first quarter of 2025. Free cash flow was $45.156 million for the first quarter of 2026, down from $87.464 million in the first quarter of 2025. Net cash used in investing activities was -$167.881 million in Q1 2026, compared to -$12.003 million in Q1 2025. Net cash provided by financing activities was $4.915 million in Q1 2026, compared to net cash used in financing activities of -$81.713 million in Q1 2025. Yelp Inc. ended the quarter with cash and cash equivalents of $110 million. Net borrowings under the credit facility were $130 million at the end of March 2026. **Unique Metrics** Total paying advertising locations decreased by 6% year over year to 485 thousand. Ad clicks decreased by 10% year over year. Average cost-per-click (CPC) increased by 8% year over year. Stock-based compensation (SBC) as a percentage of revenue decreased by two percentage points year over year to 8% in the first quarter. Hatch’s annual run rate revenue exceeded $34 million in March 2026, up 92% year over year and 27% from November 2025. Yelp Host surpassed an annual run rate of 1.5 million calls handled in April, more than doubling from January. In the first quarter, Yelp Inc. repurchased approximately 5.1 million shares at an aggregate cost of $125 million. As of March 31, 2026, $414 million remained under the existing repurchase authorization. **Outlook / Guidance** Yelp Inc. reaffirms its full-year 2026 outlook, expecting Net Revenue in the range of $1.455 billion to $1.475 billion and Adjusted EBITDA in the range of $310 million to $330 million. The company anticipates second quarter 2026 net revenue to be in the range of $363 million to $368 million and adjusted EBITDA to be in the range of $70 million to $75 million. Yelp Inc. is targeting an annual run rate of $250 million in other revenue by the end of 2028 and expects to reduce SBC to less than 6% of revenue by the end of 2027. ### Related Stocks - [YELP.US](https://longbridge.com/en/quote/YELP.US.md) ## Related News & Research - [Yelp (NYSE:YELP) Shares Up 6.5% - Should You Buy?](https://longbridge.com/en/news/286947512.md) - [Yelp (YELP) Expected to Announce Earnings on Thursday](https://longbridge.com/en/news/284742024.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Correction: NextNRG to Host First Quarter 2026 Financial Results Conference Call on May 18, 2026 at 9:00 a.m. ET | NXXT Stock News](https://longbridge.com/en/news/286673001.md)