Is Yelp profitable in 2026?

Yes. Yelp reported FY2025 net income of $146 million on $1.46 billion net revenue, a 10% margin, up 10% YoY, per its February 11, 2026 earnings release. Q1 2026 net income was $18 million with adjusted EBITDA of $79 million, a 22% margin, showing continued profitability despite core ad softness.

Could AI chat assistants replace Yelp?

Not entirely as of mid-2026: Yelp received 512,680 AI citations across ChatGPT, Gemini, Perplexity and Google AI Mode in Q4 2025, 3.4x more than second-place BBB, per a May 29, 2026 ppc.land analysis. But its ad-click business is eroding, with RR&O revenue down 11% and clicks down 10% YoY in Q1 2026.

Who is Yelp's biggest competitor?

Google is Yelp's primary structural threat via Google Business Profile, Local Pack, Local Services Ads and AI Overviews; Yelp sued Google for anticompetitive self-preferencing, and a June 30, 2026 court ruling established Google's search monopoly power for 2009 to August 2024. TripAdvisor ranks as the closest traffic-similarity competitor per Similarweb, June 2026.

Is Yelp losing to Google in local search?

Yelp's own Q1 2026 results show RR&O advertising revenue down 11% and ad clicks down 10% YoY, coinciding with Google's expanding AI Overviews and Local Pack dominance. Yelp is suing Google, and a June 30, 2026 ruling found Google held monopoly power in general search from 2009 to August 2024, though trial isn't until September 2028.

What is Yelp's AI strategy?

Yelp acquired AI customer-communications startup Hatch for about $270 million cash plus $30 million retention, closing February 6, 2026, and signed a data agreement with OpenAI announced February 12, 2026. Its own Yelp Assistant, redesigned April 21, 2026, lets users book, order and schedule within one conversation.

Does Yelp make money from AI licensing data?

Yelp's 'Other' revenue, which includes data licensing, SaaS and transactions, hit a record $29 million in Q1 2026, up 75% YoY, and Hatch's run-rate revenue exceeded $34 million in March 2026, up 92% YoY, according to Yelp's Q1 2026 earnings materials reported June 11, 2026. Full financial terms of the OpenAI deal are undisclosed.

Consumer platforms · United States

Yelp Inc.

yelp.com ↗

Local business reviews and ads platform connecting consumers to restaurants, contractors, and shops.

Losing its protection

Assessed 23 July 2026 · Evidence as of 23 July 2026

The structural protection is eroding.

On the recordSince 23 July 2026 · Checkable from Aug 6, 2026 · Every call on the record Checkpoint: Q2 2026 earnings print, first full quarter to show if Hatch and data licensing outrun RR&O decline

The call

Yelp still prints profit, but its core restaurant and retail ad business is shrinking while Google and AI chat answers take the traffic it used to monetize.

Yelp is a website where people read reviews of restaurants and businesses, and Yelp makes money by selling ads to those businesses. Google is harder to compete with because it shows business information right in Google Search and Maps without sending people to Yelp, and AI chatbots like ChatGPT answer questions about restaurants without showing Yelp reviews at all. Yelp is trying new businesses like software for restaurants and selling its review data to companies, but these are still small and unproven compared to its ad business, which is already shrinking.

Why

AI pressure: ChatGPT, Gemini, Perplexity, Google AI Mode. Chat engines answer 'best restaurant near me' directly using licensed Yelp data, cutting the visits Yelp needs to sell ads against. Could AI do the core job? Only partly.

Bigger players: Google (Business Profile, Local Pack, Local Services Ads, AI Overviews). Google's free listings and AI Overviews sit ahead of Yelp in search, and RR&O ad revenue is down 11% with clicks down 10% as of Q1 2026. Could a giant copy it? Yes, easily.

What protects it. Deep local review data and a growing SMB workflow business (Hatch) that Google doesn't replicate and AI labs pay to license.

What would change this call

Yelp reports RR&O ad revenue growth or decline in Q2/Q3 2026 earnings. Shows whether Google's local ad products are still eroding Yelp's core restaurant/retail ad base.
Yelp's 'Other' revenue (Hatch plus data licensing) crosses 15% of total revenue within two years. Would show the workflow/data pivot is scaling fast enough to offset ad erosion.
Outcome and commercial terms of Yelp v. Google antitrust case after June 30, 2026 ruling. Would show whether legal pressure translates into any restored ad traffic or revenue for Yelp.

Key numbers

RR&O ad revenue -11% YoY (Q1 2026)
Other revenue (Hatch, data licensing) +75% YoY to $29M (Q1 2026)
FY2025 net revenue $1.46B, net margin 10% (2025-12-31)

Named risks

Core RR&O advertising revenue decline (-11%) could accelerate past sustainable levels. Severity: high
Google's AI Overviews/Ask Maps could displace yelp.com traffic and impressions. Severity: high
Hatch integration could fail to cross-sell or churn, stalling workflow pivot. Severity: medium
Antitrust case against Google won't reach trial until September 2028, delaying resolution. Severity: medium
Headcount and workforce trend data conflicts across trackers, complicating growth assessment. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Google	losing to	Yelp RR&O ad revenue -11%, clicks -10% YoY Q1 2026 amid Google Local Pack/AI Overviews expansion
Google	contesting	June 30, 2026 court ruling establishes Google's prior search monopoly, aiding Yelp's antitrust suit
BBB, Angi, HomeAdvisor	gaining on	Yelp led AI citation share at 512,680 vs BBB's 149,710 in Q4 2025 per ppc.land, May 2026
TripAdvisor	contesting	Ranked #1 traffic-similarity competitor to Yelp per Similarweb data, June 2026
OpenAI/ChatGPT ecosystem	contesting	Yelp signed data agreement with OpenAI Feb 12, 2026, positioning as licensed data source not displaced traffic

Questions people ask

Is Yelp profitable in 2026?: Yes. Yelp reported FY2025 net income of $146 million on $1.46 billion net revenue, a 10% margin, up 10% YoY, per its February 11, 2026 earnings release. Q1 2026 net income was $18 million with adjusted EBITDA of $79 million, a 22% margin, showing continued profitability despite core ad softness.
Could AI chat assistants replace Yelp?: Not entirely as of mid-2026: Yelp received 512,680 AI citations across ChatGPT, Gemini, Perplexity and Google AI Mode in Q4 2025, 3.4x more than second-place BBB, per a May 29, 2026 ppc.land analysis. But its ad-click business is eroding, with RR&O revenue down 11% and clicks down 10% YoY in Q1 2026.
Who is Yelp's biggest competitor?: Google is Yelp's primary structural threat via Google Business Profile, Local Pack, Local Services Ads and AI Overviews; Yelp sued Google for anticompetitive self-preferencing, and a June 30, 2026 court ruling established Google's search monopoly power for 2009 to August 2024. TripAdvisor ranks as the closest traffic-similarity competitor per Similarweb, June 2026.
Is Yelp losing to Google in local search?: Yelp's own Q1 2026 results show RR&O advertising revenue down 11% and ad clicks down 10% YoY, coinciding with Google's expanding AI Overviews and Local Pack dominance. Yelp is suing Google, and a June 30, 2026 ruling found Google held monopoly power in general search from 2009 to August 2024, though trial isn't until September 2028.
What is Yelp's AI strategy?: Yelp acquired AI customer-communications startup Hatch for about $270 million cash plus $30 million retention, closing February 6, 2026, and signed a data agreement with OpenAI announced February 12, 2026. Its own Yelp Assistant, redesigned April 21, 2026, lets users book, order and schedule within one conversation.
Does Yelp make money from AI licensing data?: Yelp's 'Other' revenue, which includes data licensing, SaaS and transactions, hit a record $29 million in Q1 2026, up 75% YoY, and Hatch's run-rate revenue exceeded $34 million in March 2026, up 92% YoY, according to Yelp's Q1 2026 earnings materials reported June 11, 2026. Full financial terms of the OpenAI deal are undisclosed.

Timeline

2026-06-30Court rules Google held monopoly power in general search 2009 to Aug 2024, boosting Yelp's antitrust case
2026-05-29Third-party analysis shows Yelp got 512,680 AI citations in Q4 2025, 3.4x rival BBB
2026-04-21Yelp launches redesigned Yelp Assistant enabling in-app booking, ordering, scheduling
2026-02-12Yelp announces data agreement with OpenAI
2026-02-11Yelp reports record FY2025 net revenue of $1.46 billion, up 4% YoY
2026-02-06Yelp closes acquisition of Hatch for approximately $270 million cash plus $30 million retention
2026-01-21Yelp announces Hatch acquisition to power AI lead conversion
2025-12-01Amazon integrates Yelp data into Alexa+ for home-services booking
2025-10-21Yelp Fall Product Release adds 35+ AI features including Menu Vision and Yelp Host
2024-08-01Yelp files antitrust lawsuit against Google over local search self-preferencing

Revision history

23 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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