Slide 1: Q2 2026 Letter to Shareholders
August 6, 2026 yelp-ir.com Q2 2026 Letter to Shareholders
Slide 2: Second Quarter 2026 Financial Highlights
Second Quarter 2026 Financial Highlights > Net revenue was $376 million, up 1% from the second quarter > Cash provided by operating activities was $76 of 2025 and $8 million above the high end of our second quarter million during the second quarter, and we ended outlook range, primarily driven by 98
Slide 3: Dear fellow shareholders
Dear fellow shareholders, Yelp continued to advance its AI transformation in the second quarter, as our team made local discovery more conversational, delivered tools to help businesses succeed, and expanded the reach of our trusted content through new partnerships. We are pleased by the progress of
Slide 4: Q2 Results
Q2 Results Net revenue increased by 1% year over year to $376 million, $8 million Net Revenue above the high end of our outlook range. Net income decreased by 28% +1% year over year to $32 million, representing an 8% net income margin. $370M $376M Adjusted EBITDA decreased by 9% year over year to $9
Slide 5: Initiatives to drive long-term, profitable growth
Initiatives to drive long-term, profitable growth In 2026, we are continuing to invest in Yelp’s AI transformation, guided by three areas of strategic focus designed to deliver growth through product innovation: > Reconceive Yelp around answers and actions > Deliver AI tools that help service pros an
Slide 6: Reconceive Yelp around answers and actions
Reconceive Yelp around answers and actions We have reconceived how consumers and businesses connect on Yelp by Early positive signs of user building a conversational user experience that provides answers and engagement for Yelp Assistant enables actions. As we continued to transform the consumer exp
Slide 7: Deliver AI tools that help service pros and other local businesses grow, operate and succeed
Deliver AI tools that help service pros and other local businesses grow, operate and succeed Our investments in advertising technology and tools that deliver value to businesses have helped us to attract and retain new customers. We made progress against these efforts in the second quarter, with new
Slide 8: With increased headcount, the Hatch team accelerated product velocity
With increased product and engineering resources, the Hatch team made progress against its roadmap in the second quarter, accelerating development of its AI voice offering. For example, we recently shipped conversational analytics, outbound voice, enhancements to our Google Local Services Ads and Ser
Slide 9: Extend our reach to power local discovery across the AI ecosystem
Yelp vs. Home Services Competitors — Extend our reach to power local discovery across the AI ecosystem Major AI platforms combined5 As local discovery moves beyond traditional search into new devices, apps Total citations across ChatGPT, Gemini, Perplexity & Google AI Mode and AI-powered interfaces,
Slide 10: Investing for growth
Investing for growth In recent years, we have delivered strong profitability through our We are targeting an annual run rate of $250 million product-led strategy as we held overall headcount approximately flat. In 2026, we are investing behind high-return areas that we believe will Other Revenue Annua
Slide 11: Prudent capital allocation
Prudent capital allocation To create long-term shareholder value, we are evolving our approach to Prudent Capital Allocation capital allocation for this year and beyond. We plan to: 1) invest in future growth, 2) pursue strategic acquisitions through a combination of cash and $0.5B ~$2.5B 6 financing
Slide 12: Second Quarter 2026 Financial Review
Second Quarter 2026 Financial Review Revenue Net revenue was $376 million in the second quarter of 2026, up 1% from the second Net Revenue quarter of 2025 and $8 million above the high end of our second quarter outlook range. +1% $370M $376M Advertising revenue was $342 million in the second quarter
Slide 13: Operating expenses, net income & adjusted EBITDA
Operating expenses, net income & adjusted EBITDA Cost of revenue (exclusive of depreciation and amortization) was $42 COR % of Revenue million in the second quarter of 2026, up 18% from the second quarter of 2025. The increase was primarily driven by higher website infrastructure 10% 11% expenses re
Slide 14: Net income and adjusted EBITDA margin
Total costs and expenses were $332 million in the second quarter of 2026, up 5% from the second quarter of 2025. Other income, net was $1 million in the second quarter of 2026, down 87% from the second quarter of 2025. The decrease was driven by lower interest income as a result of lower average cas
Slide 15: Business Outlook
Business Outlook We anticipate that the challenging economic environment for local businesses Net Revenue Outlook will persist for the remainder of the year and continue impacting advertising revenue across categories. At the same time, we expect our investments in our $1.465B $1.460B-$1.470B strate
Slide 16: Quarterly Earnings Webcast
Quarterly Earnings Webcast Yelp will host a live webcast today at 2:00 p.m. PT to discuss the second quarter 2026 financial results and outlook for the third quarter and full year 2026. The webcast can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be
Slide 17: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (In thousands; unaudited) June 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 94,142 $ 216,062 Short-term marketable securities — 103,290 Accounts receivable, net 157,720 153,224 Prepaid expenses and other current assets 41,639 42,
Slide 18: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (In thousands, except per share data; unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Net revenue $ 375,519 $ 370,394 $ 736,976 $ 728,928 Costs and expenses: Cost of revenue¹ 41,776 35,447 80,185 70,275 Sales and ma
Slide 19: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (In thousands; unaudited) Six Months Ended June 30, 2026 2025 Operating Activities Net income $ 49,387 $ 68,480 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 34,351 24,715 Provision for
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except percentages; unaudited) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Reconciliation of Net Income to Adjusted EBITDA: Net income $ 31,652 $ 44,089 $ 49,387 $ 68,480 Provision for income taxes 12,
Slide 21: Key Financial and Operational Metrics
Key Financial and Operational Metrics (In thousands, except for percentages; unaudited) 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Advertising Revenue by Category Services1 $200,274 $206,178 $203,140 $203,288 $222,955 $228,009 $224,840 $231,576 $240,802 $243,805 $231,381 $233,7
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures > Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does This letter and statements made during the above not reflect our contractual commitments or obligations; referenced webcast may include information relating
Slide 23: Forward-looking statements
Yelp’s actual results could differ materially from those Factors that could cause or contribute to such differences predicted or implied by such forward-looking statements and also include, but are not limited to, those factors that could reported results should not be considered as an indication of a