Yelp(US:YELP)2026-02-12 21:09Financial Performance - 2025 net revenue reached a record of $1.46 billion, representing a 4% year-over-year increase[8] - Net income increased by 10% year over year to $146 million, achieving a net income margin of 10%[8] - Adjusted EBITDA grew by 3% year over year to $369 million, with an adjusted EBITDA margin of 25%[8] - Services advertising revenue increased by 8% year over year to a record $948 million[8] - Other revenue accelerated significantly, up 17% year over year, driven by growth in transactions, SaaS subscriptions, and data licensing[2] - Net income for the year ended December 31, 2025, increased to $145.6 million from $132.85 million in 2024, representing a growth of approximately 9.5%[16] - Adjusted EBITDA for the year ended December 31, 2025, was $357.99 million, slightly down from $369.18 million in 2024, indicating a decrease of about 3%[21] - The company reported a net revenue of $1.41 billion for the year ended December 31, 2025, down from $1.46 billion in 2024, a decrease of approximately 3.6%[21] - The net income margin for the year ended December 31, 2025, was 9%, compared to 10% in 2024, indicating a slight decline in profitability[21] - The Adjusted EBITDA margin for the year ended December 31, 2025, was 25%, consistent with the margin reported in 2024[21] Cash Flow and Financing - Free cash flow for the year ended December 31, 2025, reached $323.68 million, up from $248.47 million in 2024, reflecting an increase of approximately 30.2%[21] - Net cash provided by operating activities for the year ended December 31, 2025, was $372.03 million, compared to $285.82 million in 2024, marking a significant increase of about 30.2%[16] - Cash, cash equivalents, and restricted cash at the end of the period were $216.29 million, a slight decrease from $217.68 million at the beginning of the period[16] - The company utilized $330.05 million in financing activities during the year ended December 31, 2025, compared to $303.80 million in 2024, reflecting an increase of about 8.6%[16] - The company experienced a net cash used in investing activities of $45.65 million for the year ended December 31, 2025, an improvement from $77.27 million in 2024[16] Future Projections - The company expects 2026 net revenue to be in the range of $1.455 billion to $1.475 billion[4] - 2026 adjusted EBITDA is expected to be in the range of $310 million to $330 million[4] User Engagement - Yelp users contributed 22 million new reviews in 2025, resulting in a total of 330 million cumulative reviews, up 7% from the prior year[8] - Average revenue per location reached an annual record despite a 3% decrease in total paying advertising locations[8] Strategic Initiatives - The company is focused on AI transformation and has signed an agreement with OpenAI to enhance its services[2]