Yelp(US:YELP)2025-11-07 21:18Financial Performance - Net revenue for Q3 2025 was $376,038,000, representing a 4.7% increase from $360,344,000 in Q3 2024[28]. - Net income attributable to common stockholders for Q3 2025 was $39,324,000, compared to $38,440,000 in Q3 2024, marking a 2.3% increase[31]. - Basic net income per share increased to $0.62 in Q3 2025 from $0.57 in Q3 2024, a rise of 8.8%[28]. - Operating income for Q3 2025 was $52,885,000, compared to $46,652,000 in Q3 2024, reflecting a 13.0% increase[28]. - Comprehensive income for Q3 2025 was $38,631,000, compared to $42,039,000 in Q3 2024, a decrease of 8.5%[31]. - Total net revenue for the three months ended September 30, 2025 was $376.0 million, an increase of 4.7% from $360.3 million in 2024[110]. - The Company generated $1.1 billion in total net revenue for the nine months ended September 30, 2025, compared to $1.05 billion in 2024, marking a 5.2% increase[110]. - Net income for the nine months ended September 30, 2025, was $107,804 thousand, an increase of 18.5% compared to $90,630 thousand for the same period in 2024[39]. Assets and Liabilities - Total current assets increased to $550,298,000 as of September 30, 2025, up from $516,879,000 at the end of 2024, reflecting a growth of 6.4%[26]. - Total liabilities rose to $256,731,000 as of September 30, 2025, compared to $239,598,000 at the end of 2024, indicating a 7.1% increase[26]. - Total stockholders' equity decreased to $733,153,000 as of September 30, 2025, down from $743,969,000 at the end of 2024, a decline of 1.4%[26]. - Cash and cash equivalents increased to $231,071,000 as of September 30, 2025, up from $217,325,000 at the end of 2024, a growth of 6.0%[26]. - The fair value of cash equivalents and marketable securities as of September 30, 2025, was $199,406,000, compared to $213,374,000 as of December 31, 2024, indicating a decrease of about 6.5%[59]. - The total short-term marketable securities as of September 30, 2025, were valued at $102,482,000, compared to $100,581,000 as of December 31, 2024, indicating an increase of about 1.9%[55]. Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2025, was $287,547 thousand, up from $214,842 thousand in 2024, reflecting a 33.8% increase[39]. - Free cash flow for the nine months ended September 30, 2025, was $251.4 million, an increase from $188.5 million in 2024, indicating improved cash generation capabilities[166]. - The company reported a net cash used in investing activities of $37,977 thousand for the nine months ended September 30, 2025, compared to $34,440 thousand in 2024[39]. Stock Repurchase and Compensation - The company repurchased common stock amounting to $203,450 thousand during the nine months ended September 30, 2025, compared to $188,399 thousand in the same period of 2024[39]. - The Company's board authorized a stock repurchase program of up to $1.95 billion, with $127.3 million remaining available as of September 30, 2025[91]. - During the nine months ended September 30, 2025, the Company repurchased 5,843,952 shares for an aggregate purchase price of $203.4 million[92]. - Stock-based compensation for the nine months ended September 30, 2025, was $105,125 thousand, a decrease of 16.5% from $123,396 thousand in 2024[39]. - The aggregate fair value of RSUs and PRSUs that vested during the nine months ended September 30, 2025 was $111.5 million, compared to $139.8 million for the same period in 2024[96]. Acquisitions and Investments - The company acquired RepairPal, Inc. for a total purchase consideration of $80,000,000, with the acquisition aimed at expanding its offerings in the auto services advertising vertical[63][64]. - The total purchase consideration for the acquisition of RepairPal was $80,041,000, with cash distributed to RepairPal stockholders amounting to $63,935,000[67]. - Goodwill increased from $130,980,000 as of December 31, 2024, to $135,683,000 as of September 30, 2025, reflecting a measurement period adjustment and currency translation effects[70]. Revenue and Advertising - Advertising revenue for the Services category for the nine months ended September 30, 2025 was $716.2 million, up from $654.3 million in 2024, indicating a growth of 9.5%[110]. - Advertising revenue from Services businesses increased by 7% year over year in Q3 2025, driven by growth in home and auto services categories[117]. - Total advertising revenue for the three months ended September 30, 2025, was $357.4 million, up 4% from $344.4 million in the same period of 2024[127]. Tax and Legal Matters - The provision for income taxes for the nine months ended September 30, 2025 was $44.6 million, an increase from $32.3 million for the same period in 2024[16][32]. - The Company reached a preliminary agreement to settle the CIPA Action for $15.0 million, expected to be partially funded by insurance proceeds[80]. - The Company entered into a five-year $125.0 million senior secured revolving credit facility on April 28, 2023, with an accordion option allowing for an increase of up to $250.0 million[86]. Operational Insights - The company launched two AI-powered call answering services, Yelp Host and Yelp Receptionist, to enhance advertiser value and improve consumer experience[117]. - The company continues to invest in product innovation to drive revenue growth initiatives amid an uncertain macroeconomic environment[116]. - The company expects net revenue and adjusted EBITDA to decrease sequentially in Q4 2025 due to macroeconomic uncertainties and typical seasonality in Services[116].