The stock dropped 9.8% to $20.53 during Friday trading, extending a difficult stretch for the review aggregator. Over the past year, Yelp’s market value has eroded significantly, with shares now down roughly 49%. Investors reacted sharply to the company’s long-term projections, despite performance in the final months of the year largely aligning with Wall Street’s immediate expectations.

For the fourth quarter, Yelp reported a net profit of $37.8 million, or 61 cents per share, a decline from the $42.2 million recorded during the same period last year. Revenue saw a slight dip to $360 million, compared to $362 million a year earlier. While these figures technically surpassed FactSet analyst projections of 54 cents per share on $359.3 million in revenue, the year-over-year contraction in both top and bottom lines signaled cooling momentum for the platform.

The 2026 Growth Forecast

The primary catalyst for the sell-off appeared to be the company’s outlook for 2026. Yelp projected net revenue between $1.46 billion and $1.48 billion, trailing the consensus estimate of just above $1.48 billion from analysts polled by FactSet. Additionally, the company expects adjusted EBITDA for 2026 to land between $310 million and $330 million. This conservative guidance suggests a cautious approach as the company navigates a shifting digital advertising landscape and intensifying competition for local business discovery.