Core Insights - Yelp reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 4.4% year-on-year to $376 million, and a GAAP profit of $0.61 per share, which was 16.1% above analysts' consensus estimates [1][7]. Company Overview - Yelp, founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, is an online platform that assists users in discovering local businesses through crowd-sourced reviews [4]. Revenue Growth - Over the last three years, Yelp has achieved a compounded annual growth rate of 8.2% in sales, which is considered mediocre compared to the broader consumer internet sector, although there are still positive aspects to note about the company [5]. - In Q3, Yelp's revenue growth of 4.4% surpassed Wall Street's estimates by 2.1%, but analysts project a slowdown in revenue growth to 2.7% over the next 12 months, indicating potential demand challenges for its products and services [6]. Financial Performance - Q3 financial highlights include revenue of $376 million compared to analyst estimates of $368.2 million, an EPS of $0.61 versus estimates of $0.53, and an adjusted EBITDA of $98.07 million against estimates of $84.85 million [7]. - The company revised its full-year revenue guidance to $1.46 billion from $1.47 billion, reflecting a 0.5% decrease, while EBITDA guidance was set at $362.5 million, above analyst estimates of $357.8 million [7]. - Operating margin improved to 14.1% from 12.9% in the same quarter last year, and free cash flow margin increased to 31.6% from 12.2% in the previous quarter [7]. - Yelp's market capitalization stands at $2.03 billion [7].