Yelp’s second-quarter revenue topped guidance but net income fell 28% year-over-year due to higher AI and product investments.
Yelp reported second-quarter revenue of $376 million, up 1% year-over-year and $8 million above the high end of its guidance. Net income declined 28% to $32 million, while adjusted EBITDA fell 9% to $91 million, exceeding expectations by $16 million.
The company cited growth in AI-driven products and adjacent businesses, with other revenue nearly doubling to $33 million and Hatch’s annual revenue run rate reaching $35 million. Yelp Host handled 2.4 million calls annually by July. However, executives warned of continued weakness in local businesses and investment pressures.
Yelp narrowed its full-year revenue guidance to $1.460 billion–$1.470 billion and forecast third-quarter adjusted EBITDA of $70 million–$75 million. The company paused share repurchases to focus on debt reduction.