Yelp's stock experienced a significant after-hours plunge of 10.64% following the release of its fourth-quarter 2025 financial results. The decline occurred despite the company reporting earnings and revenue that exceeded analyst expectations.

The sharp drop appears driven by concerning year-over-year declines in key financial metrics. Yelp reported a 10% decrease in net income and a 15% decline in adjusted EBITDA for the quarter. Revenue also fell by 1% compared to the same period last year, primarily due to lower advertising revenue from Restaurant, Retail & Other businesses.

Additional business metrics revealed further challenges, including a 5% year-over-year decline in paying advertising locations. While ad clicks increased by 6%, this was offset by an 8% decrease in average cost per click. The company also provided its 2026 outlook, expecting adjusted EBITDA between $310 million and $330 million, and net revenue in the range of $1.455 billion to $1.475 billion.