Yelp FY 2025 earnings snapshot

Yelp (YELP) closed FY 2025 with fourth quarter revenue of US$360.0 million and basic EPS of US$0.62, alongside net income of US$37.8 million, setting the tone for a year in which trailing twelve month revenue reached about US$1.5 billion and EPS came in at US$2.30. Over the past six quarters, the company has seen quarterly revenue move between US$358.5 million and US$376.0 million, while basic EPS ranged from US$0.37 to US$0.69, giving you a clear line of sight on how earnings have trended into the latest print. With a trailing net profit margin of 9.9% and a multi year earnings growth record, the latest results point to a business that is converting revenue to profit at a steady clip.

See our full analysis for Yelp.

With the headline numbers on the table, the next step is to set them against the most common stories you hear about Yelp, and see which narratives the fresh results back up and which ones they challenge.

Margins edge up despite mixed quarters

• On a trailing basis, Yelp earned US$145.6 million of net income on US$1.5b of revenue, giving a 9.9% net margin versus 9.4% in the prior year. Quarterly net income over the last six quarters ranged between US$24.4 million and US$44.1 million.
• Supporters of the bullish view point to that 9.9% margin and five year earnings growth of 43.3% per year as signs that profit quality is solid. However, the latest year’s 9.6% earnings growth is well below that long term pace, which means the track record backs the bulls on profitability but not on the idea of continuously rapid growth.

Growth forecasts slower than the market

• Consensus forecasts in the data suggest earnings growth of about 8.6% per year and revenue growth of about 2.2% per year, both below the cited US market averages, even though trailing twelve month revenue is around US$1.5b and earnings are US$145.6 million.
• Bears argue that structural headwinds in core categories and heavy competition could keep Yelp on a slower growth path. The combination of 2.2% expected annual revenue growth with earnings growth below the previous 43.3% five year rate gives some numerical backing to that cautious stance, even as the business remains profitable.

If you are weighing those risks, it can help to see how skeptics frame the long term trade off between slower growth and steady profits: 🐻 Yelp Bear Case

Low P/E and wide gap to DCF value

• Yelp trades on a trailing P/E of 8.9x at a share price of US$20.98, below the industry average of 10.5x and peer average of 15.4x, and well under a DCF fair value of US$89.26 cited in the data.
• Fans of the bullish narrative argue that multi year earnings growth of 43.3% per year and an improved 9.9% margin are not fully reflected in that 8.9x P/E. The large gap between US$20.98 and the US$89.26 DCF fair value supports their view that the market is pricing in far more modest outcomes than the historical earnings record would suggest.

If you are curious how those growth ideas turn into a full story about upside, the bullish case lays it out clearly: 🐂 Yelp Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Yelp on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to test your own view against the data, shape that into a clear thesis, and Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Yelp.

See What Else Is Out There

Yelp’s slower forecast earnings and revenue growth, alongside cautious views on its long term pace, may leave you wanting ideas with a stronger upside story.

If that makes you wonder where expectations and price look more aligned, take a few minutes to scan our 56 high quality undervalued stocks and see which names stand out right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.