Yelp Q4 Earnings Beat Expectations but Weak Guidance Pressures Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Should l Buy YELP?
Source: Fool
- Earnings Beat: Yelp reported Q4 2025 earnings per share of $0.61, exceeding analyst expectations by $0.07, with sales of $359.99 million, surpassing Wall Street's target by $770,000; despite a 0.5% year-over-year sales decline, annual revenue grew approximately 4% to a record $1.46 billion.
- Stock Decline: Despite the strong earnings report, Yelp's stock fell by 8.9%, trading at $20.75 as of 3:45 PM, reflecting investor dissatisfaction with the company's guidance, resulting in a market capitalization of $1.4 billion.
- Weak 2026 Guidance: Yelp's guidance for 2026 projects sales between $1.455 billion and $1.475 billion, indicating flat sales growth compared to last year's mid-single-digit increase, which has dampened market sentiment.
- Declining EBITDA Forecast: Non-GAAP EBITDA is projected to be between $310 million and $330 million, down from $369 million last year; although the company is investing in AI and services to drive growth, meaningful sales growth may not materialize until next year.
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Analyst Views on YELP
Wall Street analysts forecast YELP stock price to rise
7 Analyst Rating
2 Buy
3 Hold
2 Sell
Hold
Current: 22.290
Low
30.00
Averages
33.29
High
40.00
Current: 22.290
Low
30.00
Averages
33.29
High
40.00
About YELP
Yelp Inc. connects consumers with local businesses. The Company's advertising products enable businesses of all sizes to reach a large audience, advertise their products and drive conversion of their services. It offers a range of free and paid advertising products to businesses of all sizes, which include CPC Advertising (Yelp Ads), RepairPal Network and Multi-location Ad Products. Its business page products include Free Business Account, Upgrade Package, Branded Profile, Enhanced Profile, Verified License, Business Highlights, Yelp Connect, Logo and Nearby Jobs. In addition to its advertising products, it also offers features and consumer-interactive tools to facilitate transactions between consumers and the local businesses they find on Yelp. It offers subscription services, licensing payments for access to Yelp data and other non-advertising arrangements. It sells its advertising products online through its Website and Yelp for Business app, and indirectly through partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Wendy's Strategic Opportunities: Wendy's stock has fallen 50% over the past year, but trades at less than 10 times forward earnings, potentially attracting shareholder activism or buyout interest; if the 'Project Fresh' turnaround plan succeeds, stock prices may recover.
- Yelp's Value Potential: Yelp's shares have dropped 35% in the past year, trading at under 6 times forward earnings; despite AI threats, its $300 million net cash could fund a significant share buyback or acquisition, making it attractive to potential buyers.
- Market Reaction and Investment Opportunities: Amid macroeconomic pressures, tech and finance stocks have generally declined, but stocks that fell due to company-specific negative news may present rebound opportunities for investors, highlighting the importance of identifying undervalued stocks.
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First Watch Restaurant Group Q4 Earnings Analysis
- Earnings Growth vs. Market Reaction: First Watch Restaurant Group reported a 20% sales growth in Q4, aligning with Wall Street expectations, while its earnings per share of $0.24 tripled analyst forecasts; however, the stock fell 13%, indicating market concerns over the company's conservative guidance.
- Store and Same-Store Sales Performance: The company increased its store count by 11% and achieved a same-store sales growth of 3.6%, managing to deliver a 0.5% growth in same-store traffic amidst weak consumer spending, showcasing its long-term competitive strength.
- Cautious Future Guidance: Management projected revenue growth of only 12% to 14% for 2026, with same-store sales growth expected to be just 1% to 3%, both lower than 2025's performance; CEO Chris Tomasso emphasized the need for caution across the industry regarding future prospects.
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- Negative Market Reaction: Despite strong Q4 performance, the company's conservative guidance for 2026, projecting revenue growth of only 12% to 14% and same-store sales growth of just 1% to 3%, led to a 13% drop in share price post-report, reflecting market unease about future prospects.
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Yelp Q4 Earnings Beat Expectations but Weak Guidance Pressures Stock
- Earnings Beat: Yelp reported Q4 2025 earnings per share of $0.61, exceeding analyst expectations by $0.07, with sales of $359.99 million, surpassing Wall Street's target by $770,000; despite a 0.5% year-over-year sales decline, annual revenue grew approximately 4% to a record $1.46 billion.
- Stock Decline: Despite the strong earnings report, Yelp's stock fell by 8.9%, trading at $20.75 as of 3:45 PM, reflecting investor dissatisfaction with the company's guidance, resulting in a market capitalization of $1.4 billion.
- Weak 2026 Guidance: Yelp's guidance for 2026 projects sales between $1.455 billion and $1.475 billion, indicating flat sales growth compared to last year's mid-single-digit increase, which has dampened market sentiment.
- Declining EBITDA Forecast: Non-GAAP EBITDA is projected to be between $310 million and $330 million, down from $369 million last year; although the company is investing in AI and services to drive growth, meaningful sales growth may not materialize until next year.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Transaction Overview: CEO Jeremy Stoppelman sold 66,200 shares of Yelp between February 3 and 5, 2026, for approximately $1.7 million, indicating a gradual reduction in his holdings over the past two years, with direct ownership now at 964,827 shares, reflecting a cautious outlook on the company's future.
- Market Performance: The sale was executed at an average price of $25.36 per share, while Yelp's stock closed at $24.10 on February 5, 2026, representing a 39.6% decline over the past year, highlighting market concerns regarding future growth prospects.
- Trading Plan: This stock sale was conducted under a Rule 10b5-1 trading plan adopted in May 2025, aimed at avoiding legal issues related to insider trading, demonstrating Stoppelman's commitment to transparency in his transactions.
- Future Outlook: Despite Yelp achieving a record revenue of $1.5 billion in 2025, the company expects flat sales for 2026, facing competitive pressures from artificial intelligence, prompting investors to carefully assess the company's future investment potential.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Executive Share Sale: Yelp CEO Jeremy Stoppelman sold 66,200 shares between February 3 and 5, 2026, for approximately $1.68 million, representing 6.4% of his holdings, reducing his stake from 1,031,027 to 964,827 shares, indicating a cautious outlook on the company's future.
- Transaction Context: The sale was executed under a Rule 10b5-1 trading plan adopted in May 2025 to avoid insider trading allegations; however, investors should remain vigilant regarding Yelp's upcoming performance to assess its investment viability.
- Dismal Revenue Outlook: Despite achieving a record revenue of $1.5 billion in 2025, Yelp anticipates flat sales for 2026, facing competitive threats from artificial intelligence that could diminish user engagement and long-term growth prospects.
- Market Reaction: Following the disappointing sales outlook, Yelp's stock plummeted to a 52-week low of $20.03 on February 13, 2026, reflecting investor concerns about the company's future, suggesting a cautious approach before making investment decisions based on forthcoming earnings reports.
See More
Undervalued Stocks Amid Market Decline
- PayPal's Rebound Potential: PayPal shares plummeted in early February due to disappointing results and CEO change, now trading at a high single-digit forward P/E, attracting acquisition rumors that could draw new buyers and boost stock prices.
- Wendy's Strategic Opportunities: Wendy's stock has fallen 50% over the past year, but trades at less than 10 times forward earnings, potentially attracting shareholder activism or buyout interest; if the 'Project Fresh' turnaround plan succeeds, stock prices may recover.
- Yelp's Value Potential: Yelp's shares have dropped 35% in the past year, trading at under 6 times forward earnings; despite AI threats, its $300 million net cash could fund a significant share buyback or acquisition, making it attractive to potential buyers.
- Market Reaction and Investment Opportunities: Amid macroeconomic pressures, tech and finance stocks have generally declined, but stocks that fell due to company-specific negative news may present rebound opportunities for investors, highlighting the importance of identifying undervalued stocks.
See More
First Watch Restaurant Group Q4 Earnings Analysis
- Earnings Growth vs. Market Reaction: First Watch Restaurant Group reported a 20% sales growth in Q4, aligning with Wall Street expectations, while its earnings per share of $0.24 tripled analyst forecasts; however, the stock fell 13%, indicating market concerns over the company's conservative guidance.
- Store and Same-Store Sales Performance: The company increased its store count by 11% and achieved a same-store sales growth of 3.6%, managing to deliver a 0.5% growth in same-store traffic amidst weak consumer spending, showcasing its long-term competitive strength.
- Cautious Future Guidance: Management projected revenue growth of only 12% to 14% for 2026, with same-store sales growth expected to be just 1% to 3%, both lower than 2025's performance; CEO Chris Tomasso emphasized the need for caution across the industry regarding future prospects.
- Unique Operating Model and Employee Satisfaction: First Watch operates exclusively from 7 a.m. to 2:30 p.m., utilizing a single shift, which enhances employee satisfaction, as evidenced by its ranking on Glassdoor's 2026 Best Places to Work in Consumer Services, highlighting its operational advantages.
See More
First Watch Reports 20% Revenue Growth in Q4 but Shares Drop 13%
- Significant Revenue Growth: First Watch achieved a 20% revenue increase in Q4, surpassing Wall Street expectations, with earnings per share of $0.24, tripling analyst forecasts, indicating strong growth potential in a competitive market.
- Negative Market Reaction: Despite strong Q4 performance, the company's conservative guidance for 2026, projecting revenue growth of only 12% to 14% and same-store sales growth of just 1% to 3%, led to a 13% drop in share price post-report, reflecting market unease about future prospects.
- Slower Store Expansion: First Watch's store count grew by 11% over the past year, but the forecast for 2026 indicates a slowdown to 9% growth, contrasting sharply with historical double-digit increases, which may undermine investor confidence in the company's long-term growth trajectory.
- Unique Operating Model: Operating from 7 a.m. to 2:30 p.m. with a single shift enhances employee satisfaction and efficiency, evidenced by First Watch's ranking on Glassdoor's 2026 Best Places to Work in Consumer Services, further solidifying its market position.
See More
Yelp Q4 Earnings Beat Expectations but Weak Guidance Pressures Stock
- Earnings Beat: Yelp reported Q4 2025 earnings per share of $0.61, exceeding analyst expectations by $0.07, with sales of $359.99 million, surpassing Wall Street's target by $770,000; despite a 0.5% year-over-year sales decline, annual revenue grew approximately 4% to a record $1.46 billion.
- Stock Decline: Despite the strong earnings report, Yelp's stock fell by 8.9%, trading at $20.75 as of 3:45 PM, reflecting investor dissatisfaction with the company's guidance, resulting in a market capitalization of $1.4 billion.
- Weak 2026 Guidance: Yelp's guidance for 2026 projects sales between $1.455 billion and $1.475 billion, indicating flat sales growth compared to last year's mid-single-digit increase, which has dampened market sentiment.
- Declining EBITDA Forecast: Non-GAAP EBITDA is projected to be between $310 million and $330 million, down from $369 million last year; although the company is investing in AI and services to drive growth, meaningful sales growth may not materialize until next year.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Transaction Overview: CEO Jeremy Stoppelman sold 66,200 shares of Yelp between February 3 and 5, 2026, for approximately $1.7 million, indicating a gradual reduction in his holdings over the past two years, with direct ownership now at 964,827 shares, reflecting a cautious outlook on the company's future.
- Market Performance: The sale was executed at an average price of $25.36 per share, while Yelp's stock closed at $24.10 on February 5, 2026, representing a 39.6% decline over the past year, highlighting market concerns regarding future growth prospects.
- Trading Plan: This stock sale was conducted under a Rule 10b5-1 trading plan adopted in May 2025, aimed at avoiding legal issues related to insider trading, demonstrating Stoppelman's commitment to transparency in his transactions.
- Future Outlook: Despite Yelp achieving a record revenue of $1.5 billion in 2025, the company expects flat sales for 2026, facing competitive pressures from artificial intelligence, prompting investors to carefully assess the company's future investment potential.
See More
Yelp CEO Jeremy Stoppelman Sells 66,200 Shares
- Executive Share Sale: Yelp CEO Jeremy Stoppelman sold 66,200 shares between February 3 and 5, 2026, for approximately $1.68 million, representing 6.4% of his holdings, reducing his stake from 1,031,027 to 964,827 shares, indicating a cautious outlook on the company's future.
- Transaction Context: The sale was executed under a Rule 10b5-1 trading plan adopted in May 2025 to avoid insider trading allegations; however, investors should remain vigilant regarding Yelp's upcoming performance to assess its investment viability.
- Dismal Revenue Outlook: Despite achieving a record revenue of $1.5 billion in 2025, Yelp anticipates flat sales for 2026, facing competitive threats from artificial intelligence that could diminish user engagement and long-term growth prospects.
- Market Reaction: Following the disappointing sales outlook, Yelp's stock plummeted to a 52-week low of $20.03 on February 13, 2026, reflecting investor concerns about the company's future, suggesting a cautious approach before making investment decisions based on forthcoming earnings reports.
See More
