YELPNEUTRAL

YELP Gross Margin Analysis

89.4%

Higher than 93% of Communication Services sector peers

Updated 109h ago·SEC filings & market data

Key Takeaway

YELP’s gross margin of 89.4% means that for every dollar of revenue, the company keeps nearly 89 cents after accounting for the direct costs of delivering its services, with only about 11 cents going to those costs.

Sector Performance

93th percentile

YELP

89.4%

Sector Median

53.0%

Sector Avg

58.3%

Prior Period

84.9%(May 2026)

↑ Improving

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Deep Analysis

This figure far exceeds the sector median of 54.0% and places YELP in the 94th percentile among Communication Services peers, indicating it is one of the most profitable firms in its industry by this measure. No trend data is available: the year-over-year change, quarter-over-quarter change, and historical values for the last eight quarters are all reported as N/A, so no directional pattern can be assessed. The combination of an extremely high gross margin with no discernible trend suggests the company maintains a structural cost advantage, but the absence of movement offers little insight into whether this advantage is improving or weakening, limiting any clear risk or opportunity signal. This metric supports the overall NEUTRAL verdict because while the margin level is a clear strength, the lack of trend data prevents it from shifting the investment case to either bullish or bearish.

Frequently Asked Questions

What does the Gross Margin tell investors about YELP?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does YELP's Gross Margin compare to its sector?

YELP's Gross Margin of 89.4% compares to a Communication Services sector median of 53.0%, placing it in the 93th percentile.

Who are YELP's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), DASH (50.6%), SNAP (56.5%), TWLO (48.6%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.