Yelp Reports Record $370M Q2 Revenue Driven by AI Services Growth

Yelp Inc. reported strong second quarter 2025 financial results, with net revenue reaching a record $370 million, marking a 4% year-over-year increase and surpassing analyst expectations. The company’s net income rose 16% to $44 million, or $0.67 per diluted share, beating earnings estimates by nearly 40%, driven primarily by growth in advertising revenue from its Services businesses, including contributions from the recently acquired RepairPal. Despite a 7% decline in ad clicks, average cost-per-click increased by 11%, reflecting robust advertiser demand, particularly in Home and Auto Services sectors, while advertising revenue from Restaurant and Retail categories faced declines due to competitive pressures. Yelp continues to invest in AI and product innovation, such as the Yelp Assistant chatbot and booking integration with RepairPal, to enhance advertiser value and operational efficiency amid ongoing macroeconomic uncertainties. The company repurchased approximately 1.9 million shares during the quarter and reaffirmed its 2025 full-year revenue guidance of around $1.47 billion, with adjusted EBITDA expected between $350 million and $360 million. Overall, Yelp demonstrated disciplined cost management, margin expansion, and steady cash flow generation, although revenue growth showed signs of slowing compared to prior quarters.