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Yelp

YELP
61
Internet Content & Information · Communication Services
Price
$23.46
-0.14 (-0.59%)
Market Cap
$1.29B
Winston Score
61
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Weak
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Good
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Share count falling — buybacks

−17.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 78.6M (2021) → 65.1M (2025)

Winston Score History

The full picture

Yelp runs a website and app where people can search for local businesses — like restaurants, plumbers, dentists, and salons — and read reviews written by other customers. The platform connects everyday consumers with local service providers across dozens of categories, making it one of the most recognized local business review platforms in the United States.

Yelp makes most of its money by charging local businesses for advertising on its platform, primarily through cost-per-click ads that appear when users search for relevant services. The company operates almost entirely in the United States, with roughly $1.3 billion in market value and an 88.9% gross margin that reflects its low-cost, software-based business model. Its main competitive advantage is its large library of user-generated reviews, which attracts searchers and gives advertisers a reason to pay for visibility — but Yelp faces ongoing pressure from Google, which offers similar local search and review features directly inside its dominant search engine.

Politician Trades

2 trades / 12mo

0 Congressional buys and 2 sells on YELP in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-17.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$314M/ year

→ Flat (-4% vs prior year)

21.4% of revenue

1.8x the sector average (12%)

Steady R&D investment year-over-year

Insider Activity

3.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$94M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Yelp is growing revenue at 1% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
88.9%
Premium pricing power — 88.9% gross margin
Profit after running costs
Operating Margin
11.6%
Modest — 11.6% operating margin
Return on the money invested
ROCE
23.9%
Exceptional — 23.9% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+1.5%
Nearly flat sales (+1.5% YoY)
Profit growth
EPS YoY
-7.0%
Earnings shrinking (-7.0% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
276%
Turns 276% of profit into real cash
Spare cash per sale
FCF Margin
20.1%
Converts sales into free cash efficiently (20.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.16
Conservative — low debt load (0.16)
Covers its interest
Interest Cover
111.60x
Comfortably covers interest (111.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
11.1x
Attractive valuation — P/E 11.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-3.0
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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