Yelp(YELP) - 2025 Q3 - Quarterly Results

Financial Performance - Net Revenue for Q3 2025 increased by 4% year over year to a record $376 million[1] - Net Income for Q3 2025 increased by 2% year over year to $39 million, reflecting a 10% margin[1] - Adjusted EBITDA for Q3 2025 decreased by 3% year over year to $98 million, reflecting a 26% margin[1] - Net income for the three months ended September 30, 2025, was $38,440,000, with a net income margin of 10%[20] - Adjusted EBITDA for the same period was $101,364,000, resulting in an Adjusted EBITDA margin of 26%[20] - Total net revenue for the three months ended September 30, 2025, was $360,344,000, compared to $376,038,000 for the same period in 2024[20] - The company reported strong profitability despite ongoing macro challenges, with Services driving business performance[2] Financial Outlook - The company updated its 2025 Net Revenue outlook to a range of $1.460 billion to $1.465 billion[1] - The 2025 Adjusted EBITDA outlook was updated to a range of $360 million to $365 million[1] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2025, was $287.547 million, compared to $214.842 million for the same period in 2024[15] - Free cash flow for the three months ended September 30, 2025, was $118,937,000, compared to $92,535,000 for the same period in 2024, reflecting a year-over-year increase of 28.7%[20] - Net cash provided by operating activities for the three months ended September 30, 2025, was $131,518,000, up from $102,298,000 in the prior year[20] - Total current assets as of September 30, 2025, were $550.298 million, up from $516.879 million at the end of 2024[11] - Total liabilities as of September 30, 2025, were $256.731 million, compared to $239.598 million at the end of 2024[11] - Net cash used in financing activities for the nine months ended September 30, 2025, was $237,779,000[20] Expenses - The company recorded depreciation and amortization expenses of $9,326,000 for the three months ended September 30, 2025[20] - Stock-based compensation expense for the three months ended September 30, 2025, was $39,472,000[20] - The company expects to be indemnified for certain expenses related to the RepairPal acquisition, which will be excluded from Adjusted EBITDA calculations[20] Product Development - The rollout of over 35 new features and updates, including AI-powered services, is part of the company's product-led strategy[2]