AcquisitionsMay 8, 2026, 04:27 PM
Yelp Acquires Hatchify for $271.2M; Q1 Net Income $17.7M
AI Summary
Yelp Inc. announced the acquisition of Hatchify Inc., an AI lead management platform, for approximately $271.2 million in cash during the first quarter of 2026. For Q1 2026, Yelp reported a slight increase in net revenue to $361.46 million, up from $358.53 million in the prior year. However, net income decreased to $17.74 million from $24.39 million, and basic EPS fell to $0.30 from $0.37 year-over-year. The company also saw a significant reduction in cash and cash equivalents and utilized $130.00 million from its revolving credit facility.
Key Highlights
- Yelp acquired Hatchify Inc., an AI lead management platform, for approximately $271.2 million in cash.
- Net revenue for Q1 2026 was $361.46 million, a slight increase from $358.53 million in Q1 2025.
- Net income attributable to common stockholders decreased to $17.74 million in Q1 2026 from $24.39 million in Q1 2025.
- Basic net income per share was $0.30 in Q1 2026, down from $0.37 in Q1 2025.
- Cash and cash equivalents decreased to $110.41 million as of March 31, 2026, from $216.06 million at December 31, 2025.
- The company drew $130.00 million from its revolving credit facility as of March 31, 2026.
- Goodwill increased to $355.63 million as of March 31, 2026, primarily due to the Hatchify acquisition.
- Income from operations was $27.30 million in Q1 2026, down from $29.46 million in Q1 2025.