Why Yelp Stock Is Sinking Today
Key Points
Yelp posted a substantial earnings beat and narrowly exceeded sales expectations in Q4.
The company's forward guidance disappointed investors.
- 10 stocks we like better than Yelp ›
Yelp (NYSE: YELP) stock is moving lower today on the heels of the company's recent fourth-quarter report. The company's share price was down 8.9% as of 3:45 p.m. ET.
After yesterday's market close, Yelp published its fourth-quarter and full-year 2025 results. Despite Q4 sales and earnings beating Wall Street's targets, the stock is getting hit with a big pullback due to underwhelming guidance.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Yelp posted sales and earnings beats in Q4
Yelp reported earnings per share of $0.61 for last year's fourth quarter, beating the average analyst estimate by $0.07. Meanwhile, sales came in at $359.99 million, beating the average Wall Street target by $0.77 million. Despite a 0.5% year-over-year sales decline in Q4, revenue for the year was up roughly 4% and reached a record $1.46 billion.
Investors aren't happy with Yelp's guidance for 2026
Yelp is guiding for sales to come in between $1.455 billion and $1.475 billion this year. On the heels of last year's mid-single-digit sales growth, management is basically modeling for sales to be flat this year. Meanwhile, non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to be between $310 million and $330 million -- down from $369 million last year. Yelp is spending to turn artificial intelligence and services into bigger growth drivers, but it looks like investors may have to wait until next year before the investments translate into meaningful sales growth.
Should you buy stock in Yelp right now?
Before you buy stock in Yelp, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Yelp wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,108!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,145,980!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 13, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
