Second Quarter 2026 Shareholder Letter

August 6, 2026

yelp-ir.com

Q2 2026 LETTER TO SHAREHOLDERs

Paying Advertising Locations

2Q26

Ad Clicks, y/y

Average CPC, y/y

515k 510k

2Q25

Services

2Q26

RR&O

2Q25

2Q26

2Q25

24%

2Q26

27%

2Q25

8%

2Q26

12%

2Q25

2Q26

2Q25

$91M

$370M $376M $44M $100M

$32M

Adjusted EBITDA¹

Net Income

Net Revenue

• Net revenue was $376 million, up 1% from the second quarter of 2025 and $8 million above the high end of our second quarter outlook range, primarily driven by 98% year-over-year growth in other revenue, partially offset by a 3% year-over-year decrease in advertising revenue.

• Net income was $32 million, or $0.57 per diluted share, compared to net income of $44 million, or $0.67 per diluted share, in the second quarter of 2025. Net income margin decreased three percentage points from the second quarter of 2025 to 8%.

• Adjusted EBITDA¹ was $91 million, a decrease of $9 million, or 9%, compared to the second quarter of 2025 and $16 million above the high end of our outlook range. Adjusted EBITDA margin1 decreased three percentage points from the second quarter of 2025 to 24%.

• Cash provided by operating activities was $76 million during the second quarter, and we ended the quarter with cash and cash equivalents of $94 million.
• In the second quarter, we repurchased 2.0 million shares at an aggregate cost of $50 million.
• We continue to believe in the long-term opportunities ahead and our team's ability to capture them. In 2026, we now expect net revenue to be in the range of $1.460 billion to $1.470 billion and adjusted EBITDA to be in the range of $315 million to $325 million.2

2

Margin

Margin

23

Note: Amounts reported in this letter, including margins, are rounded. The year-over-year percentage changes are calculated based on reported financial statements and metrics and, accordingly, may not recalculate using the rounded amounts presented. Refer to "Key Financial and Operational Metrics" for metric definitions.

Yelp Q2 2026

1 Refer to "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below for further details, including definitions of each "non-GAAP measure" presented, and a reconciliation of the "non-GAAP measures" presented to the most directly comparable measures prepared under generally accepted accounting principles in the United States ("GAAP").

² Yelp has not reconciled its adjusted EBITDA outlook to net income (loss) under GAAP because it does not provide an outlook for GAAP net income (loss) due to the uncertainty and potential variability of other income (expense), net and provision for (benefit from) income taxes, which are reconciling items between adjusted EBITDA and GAAP net income (loss). Because Yelp cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss). For more information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

At the same time, consumers and local businesses continued to face a challenging economic environment. Yelp delivered modest revenue growth in the second quarter, with broad strength in other revenue offsetting softness in advertising revenue. While we anticipate these economic headwinds will persist into the second half of the year, we are encouraged by recent operational trends on Yelp and remain confident that our strategic initiatives will continue to transform Yelp and position us to drive long-term profitable growth.

3

Yelp Q2 2026

23

Adjusted EBITDA decreased by 9% year over year to $91 million, $16 million above the high end of our outlook range, representing a 24% adjusted EBITDA margin.

Underlying our top line results, advertising revenue from Services businesses was flat year over year at $241 million, despite a slight increase in ad clicks in these categories. Advertiser demand remained stable, with both paying advertising locations and average revenue per location¹ flat compared to the second quarter of 2025. Together with increased consumer engagement, this drove a modest decrease in average cost-per-click ("CPC").

4 clicks and average CPC. These results, as well as decreases in both RR&O paying advertising locations and average revenue per location, reflect the

23 challenging operating environment for local businesses in these categories and, to a lesser extent, competitive pressures from food ordering and delivery providers. However, ad clicks, average CPC and paying advertising locations in RR&O improved compared to the first quarter of 2026.

Yelp Q2 2026

1 Services or RR&O advertising revenue divided by Services or RR&O paying advertising locations, respectively, as applicable.

Net Revenue

$370M $376M

2Q25

2Q26

Advertising Revenue

Services

+0%

$241M $241M

2Q25

2Q26

RR&O

-10%

$113M

$102M

2Q25

2Q26

Other Revenue

+98%

$33M

$17M

2Q25

2Q26

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 and other local businesses grow, operate and succeed

• Extend our reach to power local discovery across the AI ecosystem

Through these strategic initiatives, we are transforming key parts of Yelp: the experience, the technology, and the value we provide to consumers and businesses.

5

Yelp Q2 2026

23

We have reconceived how consumers and businesses connect on Yelp by building a conversational user experience that provides answers and enables actions. As we continued to transform the consumer experience on Yelp in the second quarter, we saw encouraging traffic trends overall, with year-over-year improvements in app installs and page views.

The updated Yelp Assistant that we rolled out earlier this year, which works across all categories, is central to the new consumer experience on Yelp. In the second quarter, we saw early positive signs related to user engagement with Yelp Assistant, including repeat usage, as we continued to improve the chatbot's performance and user experience with faster response rates, increased personalization and more complete conversations. In Services categories specifically, Yelp Assistant has been an important driver of project submissions and monetization. In the second quarter, Yelp Assistant generated approximately 10% of

6 working on a number of new partner integrations that will enable users to

23 get more value and take even more actions through Yelp Assistant in both Services and RR&O categories.

Yelp Q2 2026

2 Projects created by users through a Request-a-Quote flow or Yelp Assistant. Year-over-year changes in Request-a-Quote projects are rounded to the nearest multiple of 5%.

Early positive signs of user engagement for Yelp Assistant

Depictions of Yelp's features are provided for illustrative purposes only, and may differ from the actual product.

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 features and product improvements designed to help business owners succeed in a difficult operating environment.

Lastly, we added 16 new languages to Yelp Host, which can automatically detect a caller's language and respond accordingly.

7

23 We are pleased with our recently acquired Hatch business and excited by the considerable opportunity ahead in AI lead management. Hatch has already captured substantial market share, with tens of millions of distinct leads, representing billions of dollars of value, managed for its customers per year.

Hatch annual run rate revenue grew 59% year over year to $35 million in June as we lapped a period of significant growth.4 To accelerate Hatch's roadmap and take advantage of its large growth opportunities, we significantly increased the size of the team in the second quarter. While this resulted in an adjustment period in the quarter, trends improved in July.

Yelp Q2 2026

3 References to the "annual run rate" of certain metrics throughout the letter are calculated by annualizing the metric's results for the indicated period, excluding out-of-period adjustments with respect to revenue figures. For example, we calculate annual run rate based on a metric's results for a given month by multiplying those results by 12, or for a given quarter by multiplying the results by four.

4 Hatch revenue includes overage fees. Growth rates are calculated based on pre-acquisition results that reflect Hatch's internal, unaudited financial records, which have not been audited or reviewed by an independent accounting firm. As such, year-over-year growth rates should be considered approximate and may not be directly comparable to

current-period figures prepared under our accounting policies.

Yelp Host continued to scale

Yelp Host Calls Annual Run Rate

• 3x

2.4M

Jan 2026

July 2026

Hatch annual run rate revenue reached $35M in June

Hatch Annual Run Rate Revenue

+59%4

$35M

June 2025

June 2026

Looking ahead, we are continuing to invest in Hatch's long-term growth by allocating additional resources across product, engineering, sales, and marketing. We plan to further enhance Hatch's voice capabilities, develop even more functionalities for its lead management tools, deepen partner integrations and expand into new verticals. We also believe that there is a significant opportunity to cross-sell Hatch's offerings, which have historically been targeted to mid-market and enterprise businesses, to small and medium-sized customers. We recently began testing an integration in the Yelp for Business platform that connects interested service pros to the Hatch sales team, which quickly drove more than 1,000 new leads. With increased product velocity and added sales headcount that continues to ramp, we are excited by Hatch's growth potential in the year ahead.

8

23

Yelp Q2 2026

For advertisers, we continued to deliver value through improvements to our advertising technology and enhanced ad formats in the second quarter. For example, after implementing whole-page optimization for Services categories on our mobile website, we saw an increase in Services ad clicks from that platform. In addition, building on our previous learnings, we directed leads acquired via paid search to multi-location Services businesses. While still early, we have already seen substantial budget growth from many of these sophisticated advertisers. We are also testing more advanced lead management tools and integrations designed to deliver a comprehensive, full-funnel experience to multi-location businesses.

With increased headcount, the Hatch team accelerated product velocity

As local discovery moves beyond traditional search into new devices, apps and AI-powered interfaces, we believe Yelp is well positioned to serve as an essential partner wherever consumers are making local decisions. In fact, we commissioned a recent study that found Yelp was the most organically cited home services discovery platform by LLMs in the fourth quarter of 2025, receiving 3.4x as many AI citations than the next closest platform.5 Through data licensing and APIs, we are extending the reach of our trusted content to provide consumers with reliable local answers.

Request-a-Quote integration with ChatGPT is coming soon, building on our success with Apple Maps and Yahoo.

Looking ahead, we see substantial opportunity to expand upon our existing

1. agreements and pursue new deals within the AI ecosystem that seamlessly

   23 integrate Yelp's trusted content into experiences off Yelp, particularly among AI-powered local search interfaces.

   
   
   

   Yelp Q2 2026

   5 Based on an analysis that measured the number of times Yelp was cited by ChatGPT, Google Gemini, Perplexity and Google AI Mode in the fourth quarter of 2025, compared to the number of citations received over the same period by five home services discovery platforms (Better Business Bureau, Angi, Thumbtack, HomeAdvisor and Nextdoor). Citations are for the United States only and consist of links to websites that appear in response to AI prompts, regardless of whether the link is clicked. Organic citations do not include ads or native content of the AI search provider.

   Yelp vs. Home Services Competitors -

   Major AI platforms combined5

   Total citations across ChatGPT, Gemini, Perplexity & Google AI Mode

   512.7k

   Yelp Citations

   3.4x

   VS. #2 (BBB)

   Yelp

   BBB

   Angi

   Thumbtack

   HomeAdvisor

   Nextdoor

   ChatGPT now utilizes Yelp ratings and reviews

   
   
   Investing for growth

   In recent years, we have delivered strong profitability through our product-led strategy as we held overall headcount approximately flat. In 2026, we are investing behind high-return areas that we believe will transform Yelp and reaccelerate growth. In particular, we see an opportunity to drive significant growth in our other revenue line, through AI-driven offerings such as Yelp Host, Hatch, and data licensing. As these accretive revenue streams continue to gain traction, we are targeting an annual run rate of $250 million in other revenue by the end of 2028.

   At the same time, we see substantial opportunities to unlock operational efficiencies and increase employee productivity with AI. We've already seen AI tools drive meaningful improvements in product and engineering velocity. We are iterating quickly and bringing sophisticated new products, like Yelp Host, to market faster than ever before. In the short term, we plan to increase our investments in a number of areas. We are providing Hatch with additional resources to accelerate its product roadmap and go-to-market. We also plan to invest modestly in

2. consumer marketing to drive leads to multi-location Services businesses.

   23

   Yelp Q2 2026

   Lastly, stock-based compensation ("SBC") as a percentage of revenue decreased by three percentage points year over year to 7% in the second quarter. We expect that the impact of our efforts to reduce SBC, coupled with continued share repurchases, will stack over time and benefit GAAP profitability in the years to come, particularly earnings per share, which was $0.57 on a diluted basis in the second quarter. We also continue to expect that we will reduce SBC to less than 6% of revenue by the end of 2027.

   
   
   

   We are targeting an annual run rate of $250 million

   Other Revenue Annual Run Rate

   $250M

   $132M

   2Q26

   End of 2028

   Committed to reducing SBC as a percentage of revenue

   Stock-based Compensation Expense, % of Revenue

   11%

   9%

   ~7%

   < 6%

   2024 2025 2026E

   End of 2027

   
   
   Prudent capital allocation

   To create long-term shareholder value, we are evolving our approach to 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 financing, and 3) return more than 50% of our free cash flow6 to shareholders each year through share repurchases.

   To that end, in the second quarter, we repurchased $50 million worth of shares at an average purchase price of $24.92 per share, contributing to a 15% year-over-year reduction in weighted-average diluted shares outstanding. We subsequently repurchased approximately $25 million worth of shares in the third quarter, bringing our total repurchases for the year to approximately $200 million. With $339 million remaining under our repurchase authorization as of July 31, 2026, we have now paused our program as we work to pay down our revolving credit facility. We expect to resume repurchases in 2027.

   In summary,

3. We have made significant progress in transforming Yelp with AI. With early

   23 signs of improvement across a number of key metrics, Yelp's second quarter results reflect continued product momentum. We are confident in our plans for the year and believe that our investments will position us to drive long-term shareholder value.

   David Schwarzbach

   
   
   

   Sincerely,

   
   
   

   Jeremy Stoppelman

   
   
   

   Yelp Q2 2026

   6 Refer to "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below for further details, including the definition of free cash flow.

   Prudent Capital Allocation

   $0.5B ~$2.5B

   $0.5B

   ~$1.5B

   Jul '17 - Nov '22 Feb '24 Feb '26

   Total Repurchase Authorization

   Authorization Date

   Completed as of July 31, 2026 Remaining Authorization

   
   
   Second Quarter 2026 Financial Review Revenue Net revenue was $376 million in the second quarter of 2026, up 1% from the second quarter of 2025 and $8 million above the high end of our second quarter outlook range. Advertising revenue was $342 million in the second quarter of 2026, down 3% from the second quarter of 2025, primarily due to a decrease in revenue from RR&O businesses.

   The decrease in RR&O revenue was driven by a decrease in ad clicks and lower average CPC.

   Other revenue was $33 million in the second quarter of 2026, up 98% from the second quarter of 2025. The increase was primarily due to the addition of revenue from Hatch, as well as increased revenue from our Yelp Places API program and growth in food ordering from our partnership with DoorDash.
4. Net Revenue by Product (In thousands; unaudited)

   Three Months Ended June 30,

   Six Months Ended June 30,

   Yelp Q2 2026

   23

   Net Revenue +1%
   
   

   $370M $376M

   2Q25 2Q26

   	2026	2025		2026	2025
   Net revenue by product:
   Advertising revenue by category:
   Services	$ 240,963	$ 240,802		$ 474,749	$ 472,378
   Restaurants, Retail & Other	101,532	112,895		200,234	223,320
   Total Advertising	342,495	353,697		674,983	695,698
   Other	33,024	16,697		61,993	33,230
   Total net revenue	$ 375,519	$ 370,394		$ 736,976	$ 728,928

   
   
   Operating expenses, net income & adjusted EBITDA Cost of revenue (exclusive of depreciation and amortization) was $42 million in the second quarter of 2026, up 18% from the second quarter of 2025. The increase was primarily driven by higher website infrastructure expenses resulting from maintaining and improving our infrastructure, including the integration of AI products, as well as additional infrastructure expenses due to our acquisition of Hatch. Sales and marketing expenses were $154 million in the second quarter of 2026, up 6% from the second quarter of 2025. The increase was primarily driven by our investments in acquiring Services projects, increased spend in business owner marketing, and higher workplace operating costs primarily due to rent abatement received in the prior-year period that did not recur in the current-year period, as well as other increases that were not individually significant. Sales and marketing employee-related costs remained relatively flat year over year, as additional headcount related to Hatch was offset by lower average headcount in sales and marketing roles excluding Hatch.
5. Product development expenses were $70 million in the second quarter

   23 of 2026, down 10% from the second quarter of 2025. The decrease was primarily driven by lower employee-related costs resulting from lower average headcount, a higher proportion of employee work directed toward infrastructure enhancements (resulting in more costs included in cost of revenue), more employee costs being capitalized, and lower cost of labor, partially offset by the addition of headcount costs related to Hatch.

   General and administrative expenses were $48 million in the second quarter of 2026, up 3% from the second quarter of 2025. The increase was primarily driven by an increase in acquisition and integration costs in connection with our acquisition of Hatch and higher legal costs. These increases were partially offset by a decrease in our provision for credit losses primarily due to lower customer delinquencies.

   Yelp Q2 2026

   Depreciation and amortization expenses were $18 million in the second quarter of 2026, up 47% from the second quarter of 2025. The increase was primarily attributable to higher amortization of intangible assets resulting from the Hatch acquisition, as well as higher capitalized website and internal-use software development costs.
   
   COR % of Revenue

   10%

   11%

   2Q25

   2Q26

   S&M % of Revenue

   39%

   41%

   2Q25

   2Q26

   PD % of Revenue

   21%

   19%

   2Q25

   2Q26

   G&A % of Revenue

   13%

   13%

   2Q25

   2Q26

   D&A % of Revenue

   3%

   5%

   2Q25

   2Q26

   
   
   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 cash, cash equivalents, and marketable securities balances and lower interest rates, as well as higher interest expense related to the credit facility borrowings. Provision for income taxes was $13 million in the second quarter of 2026, down 14% from the second quarter of 2025. The decrease was primarily driven by a decrease in income before income taxes in the current period, partially offset by an increase in the discrete tax expense primarily related to SBC expense. Net income was $32 million in the second quarter of 2026, down 28% from the second quarter of 2025. Net income margin decreased three percentage points from the second quarter of 2025 to 8% in the second

6. quarter of 2026.

23

Margin

Margin

Yelp Q2 2026

At the end of June 2026, we held $94 million in cash and cash equivalents on our condensed consolidated balance sheets, and $100 million in net borrowings under our credit facility.

$44M

$32M

12%

2Q25

8%

2Q26

$100M

$91M

27%

2Q25

24%

2Q26

We anticipate that the challenging economic environment for local businesses 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 strategic initiatives will continue to drive strong growth in other revenue. As a result, we anticipate third quarter net revenue will be in the range of $365 million to $370 million. For the full year, we are narrowing our range and now expect net revenue will be between $1.460 billion and $1.470 billion.

Turning to margin, we expect expenses will increase sequentially in the third quarter as we invest in our AI transformation, Hatch and consumer marketing. As a result, we expect third quarter adjusted EBITDA will be in the range of $70 million to $75 million. For the full year, we are narrowing our range and now expect adjusted EBITDA will be between $315 million and $325 million. For the third quarter and full year, our expected adjusted EBITDA ranges exclude accrued acquisition and integration-related payments for

$1.465B $1.460B-$1.470B

2025 2026E

continuing Hatch employees of approximately $3 million and $12 million, respectively, which we do not believe are indicative of our ongoing operating performance.

$369M

$315M-$325M

15

(Updated)

23 Third Quarter 2026 Full Year 2026

Net revenue $365M to $370M $1.460B to $1.470B

Adjusted EBITDA* $70M to $75M $315M to $325M

2025 2026E

Stock-based compensation expense as a

% of Net revenue

Depreciation and amortization as a % of Net revenue

~6% ~7%

~5% ~5%

Yelp Q2 2026

* Yelp has not reconciled its Adjusted EBITDA outlook to Net income (loss) under GAAP because it does not provide an outlook for GAAP Net income (loss) due to the uncertainty and potential variability of Other income (expense), net and Provision for (benefit from) income taxes, which are reconciling items between Adjusted EBITDA and GAAP Net income (loss). Because Yelp cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure is not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP Net income (loss). For more information regarding the non-GAAP financial measures discussed in this release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.

Yelp Inc. (yelp.com) is a community-driven platform that connects people with great local businesses. Millions rely on Yelp to inform their spending decisions and get things done. By combining authentic human content and AI technologies, including the new Yelp Assistant, Yelp helps people move seamlessly from discovery to taking action, whether it's requesting quotes, making reservations, ordering food, scheduling appointments, or connecting with the right businesses for their needs. Yelp was founded in San Francisco in 2004.

16

Yelp Q2 2026

23

(In thousands; unaudited)

June 30,

2026

December 31,

2025

Current assets:

17

Yelp Q2 2026

23

Three Months Ended June 30,

Six Months Ended June 30,

2026 2025 2026 2025

Cost of revenue¹ 41,776 35,447 80,185 70,275

Product development¹ 70,468 78,362 147,625 162,267

Depreciation and amortization 18,118 12,365 34,351 24,715

Income from operations 43,730 53,290 71,028 82,750

Income before income taxes 44,463 58,985 74,347 94,216

Net income attributable to common stockholders $ 31,652 $ 44,089 $ 49,387 $ 68,480

18

23

¹ Includes stock-based compensation expense as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2026 2025 2026 2025

Cost of revenue $ 1,242 $ 1,070 $ 2,382 $ 2,241

Sales and marketing 6,082 7,295 12,536 14,934

Product development 10,671 17,846 25,381 37,255

General and administrative 7,754 8,564 15,957 17,814

Yelp Q2 2026

Total stock-based compensation $ 25,749 $ 34,775 $ 56,256 $ 72,244

Six Months Ended June 30,

1 Recorded within general and administrative expenses on our condensed consolidated statements of operations.

2 Represents expenses for which we expect to be indemnified in connection with our acquisition of RepairPal. Indemnifiable expenses during the three and six months ended June 30, 2025 consist of expenses recorded in connection with an indemnification obligation assumed in the RepairPal acquisition, for which we were subsequently indemnified through the release of a portion of the RepairPal holdback.

Three Months Ended June 30,

Six Months Ended June 30,

Yelp Q2 2026

³ Acquisition and integration costs during the three and six months ended June 30, 2026 represent costs related to the Hatch acquisition and include accrued acquisition- and integration-related compensation. Acquisition and integration costs during the three and six months ended June 30, 2025 represent costs related to the RepairPal acquisition.

& Other2

Revenue

& Other2

21

23

1 Includes Home, Local, Auto, Professional, Pets, Real Estate, Financial and Event Services categories

2 Includes Restaurants, Shopping, Beauty & Fitness, Health and Other categories

Yelp Q2 2026

3 On a monthly average basis

4 Ad clicks represent user interactions with our pay-for-performance advertising products, including clicks on advertisements on our website and mobile app, clicks on syndicated advertisements on third-party platforms, and Request-a-Quote submissions. Ad clicks do not include user interactions with ads sold through our advertising partnerships.

5 We define Average CPC as revenue from our performance-based ad products - excluding revenue from our advertising partnerships as well as certain revenue adjustments that do not impact the outcome of an auction for an individual ad click, such as refunds - divided by the total number of ad clicks for a given period.

More information about the Company, including the Company's Key Operational and Financial Metrics definitions can be found in the Company's most recent Quarterly or Annual Report filed with the SEC, available at yelp-ir.com or the SEC's website at sec.gov.

This letter and statements made during the above referenced webcast may include information relating to Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow, each of which is a "non-GAAP financial measure."

We define Adjusted EBITDA as net income (loss), adjusted to exclude: provision for (benefit from) income taxes; other income (expense), net; depreciation and amortization;

stock-based compensation expense; and, in certain periods, certain other operating income and expense items, such as expenses for which we expect to be indemnified, acquisition and integration costs, and other items that we deem not to be indicative of our ongoing operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We define Free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property, equipment and software.

Adjusted EBITDA and Free cash flow, which are not prepared under any comprehensive set of accounting rules or

1. principles, have limitations as analytical tools and you should

2. not consider them in isolation or as substitutes for analysis of Yelp's financial results as reported in accordance with GAAP. In particular, Adjusted EBITDA and Free cash flow should not be viewed as substitutes for, or superior to, net income (loss) or net cash provided by (used in) operating activities prepared in accordance with GAAP as measures of profitability or liquidity. Some of these limitations are:

   • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

   • Adjusted EBITDA does not reflect changes in, or cash requirements for, Yelp's working capital needs;

   • Adjusted EBITDA does not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to Yelp;

   • Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;

     Yelp Q2 2026

   • Adjusted EBITDA does not take into account certain other operating income and expense items, such as indemnifiable expenses, acquisition and integration costs, or other costs that management determines are not indicative of our ongoing operating performance;

• Free cash flow does not represent the total residual cash flow available for discretionary purposes because it does not reflect our contractual commitments or obligations; and

• other companies, including those in Yelp's industry, may calculate Adjusted EBITDA and Free cash flow differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow alongside other financial performance measures, including net income (loss), net cash provided by (used in) operating activities and Yelp's other GAAP results.

This letter contains, and statements made during the above-referenced webcast will contain, forward-looking statements relating to, among other things, the future performance of Yelp and its consolidated subsidiaries, that are based on Yelp's current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding: Yelp's expected financial and operational results, including its expectations regarding other revenue growth;

Yelp's plans and ability to drive profitable growth in 2026 and the long term; Yelp's expectations regarding market opportunities, including within the AI ecosystem, and its ability to meaningfully capture them, the drivers of its business performance and the timing of expenses; Yelp's plans for and ability to execute on its strategic initiatives, particularly its AI transformation, as well as the expected results thereof; Yelp's product roadmap, planned investments therein, and expected benefits therefrom; Yelp's integration of Hatch, plans to invest in Hatch and expected results of that investment; Yelp's plans for strategic acquisitions, partner integrations and licensing agreements; Yelp's expectations regarding its ability to achieve operational efficiencies and increases in employee productivity with AI, as well as the benefits thereof; Yelp's plans to reduce SBC expense as a percentage of revenue and the expected timing and benefits therefrom; Yelp's expectations regarding its capital allocation strategy and share repurchase program; and Yelp's expectations with respect to trends that will continue to impact its results of operations.

Yelp's actual results could differ materially from those predicted or implied by such forward-looking statements and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to:

• Adverse macroeconomic conditions - particularly those affecting local economies - and their impact on consumer behavior and advertiser spending;

• Yelp's ability to maintain and expand its advertiser base;

• Yelp's ability to execute on its strategic initiatives, including its AI transformation, and the effectiveness thereof;

• Yelp's ability to maintain and increase traffic to and user engagement on its platform, including its ability to generate, maintain and recommend sufficient content that consumers find relevant, helpful and reliable;

• Yelp's reliance on internet search engines and application marketplaces, certain providers of which offer products and services that compete directly with its products;

• Yelp's ability to successfully manage acquisitions of new businesses, solutions or technologies to successfully integrate those businesses, solutions or technologies,

23 including Hatch, and to monetize such acquired products,

23 solutions or technologies;

• Yelp's ability to continue to effectively operate with a remote work force and attract and retain key talent;

• Yelp's reliance on third-party service providers and strategic partners;

• Competition in, and the rapid evolution of, Yelp's industry;

• Yelp's ability to maintain, protect and enhance its brand; and

  Yelp Q2 2026

• Yelp's ability to maintain the uninterrupted and proper operation of its technology and network infrastructure.

Factors that could cause or contribute to such differences also include, but are not limited to, those factors that could affect Yelp's business, operating results and stock price included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Yelp's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q at yelp-ir.com or the SEC's website at sec.gov.

Undue reliance should not be placed on the forward-looking statements in this letter or the above-referenced webcast, which are based on information available to Yelp on the date hereof. Such forward-looking statements do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof. Yelp assumes no obligation to update such statements.