Is the business good?
How good a business is YELP?
Yelp Inc. earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
28%
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Internet Content & Information median 6.3% · 12 months to Q1 2026
- Cash conversion
- 2.02×
Cash conversion · 1.89× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −12%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −4.4% |
| FY2021 | 3.0% |
| FY2022 | 4.9% |
| FY2023 | 5.9% |
| FY2024 | 11% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q1 2026
- 90%
- Operating margin12 months to Q1 2026
- 12%
- Net margin12 months to Q1 2026
- 9.5%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $1.47B
- Free cash flow, trailing twelve months
- $281M
- Net income, trailing twelve months
- $139M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Content & Information
Ranks #5 of 24 by Smart Score