Yelp revenue +1.4% to $375.5M in Q2 2026; operating income -18% as Hatch integration weighs

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 8, 2025 · ~2 min read

Key Changes

• high

  Operating income fell 18% YoY to $43.7M despite 1.4% revenue growth, driven by 47% higher depreciation and amortization from Hatch intangibles ($375.5M), increased sales and marketing spend (+6%), and higher cost of revenue (+18%).

  MD&A: Operating Results verify on EDGAR →
• high

  Yelp acquired Hatch for $271.2M in cash (Feb 2026), drawing $100M on its revolving credit facility at 5.30% interest. The company is pausing share repurchases after spending $200M year-to-date and will prioritize debt repayment through 2026.

  MD&A: Hatch Acquisition & Capital Allocation verify on EDGAR →
• high

  Advertising revenue declined 3% YoY to $342.5M, reversing prior-year 4% growth, as Restaurants, Retail & Other revenue fell 10%. Management expects Q3 2026 net revenue to decline slightly YoY due to continued economic challenges facing consumers and local businesses.

  MD&A: Revenue Trends & Outlook verify on EDGAR →