Yelp (YELP) has wrapped up FY 2025 with fourth quarter revenue of US$360.0 million and basic EPS of US$0.62, alongside trailing twelve month revenue of about US$1.5 billion and EPS of US$2.30. Over the last six quarters, quarterly revenue has moved from US$360.3 million in Q3 2024 to a range of US$358.5 million to US$376.0 million through 2025. Basic EPS tracked between US$0.37 and US$0.69 over the same stretch, setting up a picture of earnings power that investors can now weigh against modest reported revenue growth and improving net margins. Taken together, the latest numbers present a business where profitability metrics matter as much as top line progress.

See our full analysis for Yelp.

With the headline figures on the table, the next step is to set these results against the most common narratives around Yelp to see which storylines the numbers support and which they call into question.

Net margin at 9.9% while revenue growth stays modest

• Over the last 12 months, Yelp generated about US$1.5b of revenue with net income of US$145.6 million, which works out to a 9.9% net margin alongside trailing revenue growth of 1.6% per year.
• What stands out against the bullish view is that, while bulls focus on AI tools and new services as long term growth drivers, the recent 1.6% revenue growth and 9.9% margin mean the business is currently adding profitability mainly through efficiency rather than fast top line expansion.
  • Bullish arguments around AI workflows and B2B data licensing point to potential high margin streams, yet the latest year still shows revenue growing at a modest rate versus the US market forecast of 11.4%.
  • At the same time, net margin running just under 10% and 9.6% earnings growth show a profitable base that gives bulls some support for the idea that incremental revenue from new tools could drop through to earnings if it materializes.

Bullish investors pointing to AI led optionality may want to see how these steady but modest numbers stack up against the full upside case for Yelp by reading the 🐂 Yelp Bull Case

P/E of 10.9x versus peers above 20x

• Yelp trades on a trailing P/E of 10.9x, compared with a peer average of 31.1x and an industry average of 20.1x, while a DCF fair value of US$75.48 sits well above the current share price of US$28.50.
• Consensus narrative suggests solid fundamentals with some growth questions, and the current multiples plus the DCF fair value gap underline that the market is paying a much lower price for each US$ of Yelp earnings than for many competitors.
  • With trailing earnings up 9.6% over the past year and a five year earnings CAGR of 43.3%, the P/E discount and the DCF fair value of US$75.48 together frame a wide range between what the numbers-based model implies and what the market is currently pricing in.
  • Analyst targets referenced in the dataset cluster around US$25.63, so the US$28.50 market price sits only modestly above that, which contrasts with the far higher DCF fair value and highlights how different valuation approaches can point to very different outcomes.

Slower forecast growth backs cautious views

• Forecasts in the data point to revenue growth of 1.6% per year and earnings growth of 0.4% per year, both below broader US market expectations, while analysts also expect margins to move from 9.9% to a range around 8.9% to 9.7% depending on the scenario.
• Bears argue that rising AI powered search and large platform competition will keep growth subdued, and the slower forecast revenue and earnings figures line up with that concern even though recent trailing earnings still grew 9.6%.
  • The bearish narrative highlights pressure on restaurant, retail and other advertisers, and the modest forecast growth rates support the idea that these segments could limit how much Yelp expands even if the company remains profitable.
  • At the same time, the expectation that earnings in some scenarios edge down from US$145.6 million today to around US$137.1 million by 2029, despite ongoing share repurchases, shows why more cautious investors focus on growth risk rather than the current profitability alone.

Skeptical readers who focus on these slower growth forecasts can see how that caution is framed in more detail in the bearish case for Yelp through the 🐻 Yelp Bear 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.

Seen enough numbers to get a feel for the mood around Yelp, but still on the fence about what it all means for you as an investor? To explore the specific positives supporting the optimistic view, take a closer look at the 3 key rewards

See What Else Is Out There

Yelp’s modest 1.6% revenue growth, forecast earnings growth of 0.4% per year, and slightly lower projected margins together point to limited growth momentum.

If that slow growth profile leaves you wanting more, compare it with companies screening as 51 high quality undervalued stocks to quickly focus on stocks where pricing may better reflect their potential.

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.