Yelp Inc. reported its financial results for the second quarter of 2025, revealing a net revenue of $370.4 million, a 4% increase from $357.0 million in the same period last year. For the first half of 2025, the company achieved a total revenue of $728.9 million, up 6% from $689.8 million in the first half of 2024. The net income attributable to common stockholders for the second quarter was $44.1 million, or $0.67 per diluted share, compared to $38.0 million, or $0.54 per diluted share, in the prior year. The company’s operating income also saw significant growth, increasing by 34% to $53.3 million for the quarter.
In terms of operational metrics, Yelp's advertising revenue from its Services categories grew by 8% year-over-year, driven by strong performance in Home and Auto Services, including contributions from its recent acquisition of RepairPal. However, the Restaurants, Retail & Other (RR&O) categories experienced a decline, with ad clicks down 7% year-over-year, attributed to macroeconomic pressures. The average cost-per-click (CPC) increased by 11%, reflecting higher demand from Services advertisers. The total number of paying advertising locations decreased by 3% to 515,000, with Services locations growing while RR&O locations declined.
Strategically, Yelp has focused on enhancing its product offerings and user experience. The company has introduced new features such as co-branded showcase ads and an AI-powered call answering service for restaurants, which are expected to improve advertiser engagement and consumer interaction. Additionally, Yelp has continued to invest in its technology infrastructure, which has contributed to increased operational costs, particularly in the cost of revenue, which rose by 16% to $35.4 million in the second quarter.
Yelp's balance sheet as of June 30, 2025, showed total assets of $980.2 million, with cash and cash equivalents at $197.7 million. The company has also been active in its stock repurchase program, having repurchased approximately 3.5 million shares for $128.4 million during the first half of the year. Looking ahead, Yelp anticipates that macroeconomic uncertainties will continue to impact its revenue growth, projecting flat net revenue and a decrease in adjusted EBITDA for the third quarter of 2025. The company remains committed to its strategic initiatives aimed at driving long-term growth and enhancing shareholder value.
About YELP INC
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