Yelp, Inc. (YELP)
NYSECommunication ServicesInternet Content & InformationSnapshot 2026-09-04
$21.66-2.21%
Close 2026-09-04 · 1-day change
NYSECommunication ServicesInternet Content & InformationSnapshot 2026-09-04
Broken: Primary pillar broken — Cash flow from operations recovers toward $90M+: OCF $57.8M vs $90M target.
Yelp connects consumers with local businesses and has stable revenue near $1.46 billion for 2026. The company trades cheaply with a PE of 9.4 versus peers at 18.3. Analysts expect modest revenue growth of about 2% next year. Yelp’s free cash flow yield is strong at 18%, supporting operations and potential returns.
Yelp’s revenue growth is very slow, only about 1% year over year recently. Operating income and cash flow from operations have declined, showing cost and efficiency challenges. Management’s key goals to grow revenue and improve income are behind schedule. The stock price already reflects a cautious outlook with a 9% drawdown from highs.
The market prices Yelp about 45% below our fair value near $48, reflecting modest 2% revenue growth expectations. Our fair value is well above the Street median, signaling a more optimistic view on recovery and profitability than consensus.
Breaks if: Cash from operations remains below $70M next 4 quarters
Breaks if: Operating income falls below $25M next 4 quarters
Breaks if: YoY revenue growth falls below 1% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a long-term thesis on a company that is working to transform its business through AI and improve revenue growth. The current state reflects a stable management team and strong recent financial performance, but elevated risks remain due to sector headwinds.
The market seems to have priced in a cheap valuation compared to peers, with a notable expectations gap. The current valuation suggests that investors are not overly optimistic about future growth, reflecting a justified stance given the recent performance.
Management is focused on driving AI transformation and increasing net revenue growth, which has shown modest results so far. However, there are challenges with adjusted EBITDA margins, indicating mixed performance in financial health.
The future of Yelp's performance hinges on the broader Communication Services sector. If major players like GOOGL, GOOG, and META continue to perform well, it could provide a tailwind for Yelp. Conversely, any negative shifts in these companies could pose risks to Yelp's growth trajectory.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the company's growth outlook. However, the CEO's recent share sales raise concerns about leadership confidence.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: PE ratio rises above 15x without earnings growth
In the next 1 to 3 years, Yelp's success will depend on its ability to execute its AI strategy and navigate sector challenges. Not investment advice.