Yelp Q4 Earnings and Revenues Beat Expectations
Yelp's Strong Earnings Performance
Yelp (YELP) recently reported quarterly earnings of $0.61 per share, which exceeded the Zacks Consensus Estimate of $0.47 per share. This is a slight improvement compared to the earnings of $0.62 per share from the same period last year. The figures provided are adjusted for non-recurring items.
This quarter marked an earnings surprise of +29.10%. A quarter prior, the company was expected to report earnings of $0.47 per share, but it actually achieved $0.61, resulting in a surprise of +29.79%. Over the past four quarters, Yelp has consistently surpassed consensus EPS estimates on all occasions.
As part of the Zacks Internet - Content industry, Yelp generated revenues of $359.99 million for the quarter ending December 2025. This figure surpassed the Zacks Consensus Estimate by 0.50%, although it represents a slight decline from the year-ago revenue of $361.95 million. The company has managed to exceed revenue estimates four times in the last four quarters.
The immediate price movement of Yelp’s stock following the release of these results and future earnings expectations will largely depend on the commentary provided during the earnings call.
Since the start of the year, Yelp shares have declined by approximately 23.6%, while the S&P 500 has seen a gain of 1.4%.
What Lies Ahead for Yelp?
Despite its underperformance relative to the market this year, investors are keenly interested in what the future holds for Yelp. There are no straightforward answers to this question, but one reliable indicator that can help investors assess the situation is the company's earnings outlook. This includes current consensus earnings expectations for the upcoming quarters as well as how these expectations have evolved recently.
Research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track these revisions themselves or use tools like the Zacks Rank, which has a proven track record of leveraging the power of earnings estimate revisions.
Prior to this earnings release, the trend in estimate revisions for Yelp was mixed. While the magnitude and direction of these revisions could change after the company released its latest results, the current status translates into a Zacks Rank #3 (Hold) for the stock. This suggests that the shares are expected to perform in line with the market in the near term.
Investors should keep an eye on how estimates for the coming quarters and the current fiscal year evolve in the days ahead. The current consensus EPS estimate for the next quarter is $0.38, with projected revenues of $360.43 million. For the current fiscal year, the consensus EPS estimate stands at $2.39, with revenues expected to reach $1.5 billion.
It is also important to consider the broader industry outlook, as it can significantly impact the performance of the stock. In terms of the Zacks Industry Rank, the Internet - Content sector is currently among the top 20% of the 250-plus Zacks industries. Research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1.
Another company in the same industry, Shutterstock (SSTK), has not yet released its results for the quarter ending December 2025.
Upcoming Results for Shutterstock
This online marketplace for royalty-free images and videos is anticipated to report quarterly earnings of $1.05 per share in its upcoming report. This represents a year-over-year increase of 56.7%. The consensus EPS estimate for the quarter has remained stable over the last 30 days.
Shutterstock’s revenues are expected to be $252.62 million, reflecting an increase of 0.9% compared to the same quarter last year.
