YelpFRA:Y9L +0.70%72 Gross Margin % is 89.37% as of Mar. 2026, which is 2% below its 10-year median of 91.64. GuruFocus rates FRA:Y9L with a GF Score™ of 72/100 and a GF Value™ of €38.44 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 497 Interactive Media companies, Yelp ranks better than 78.47% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Yelp's Gross Profit for the
three
months ended in Mar. 2026 was €279 Mil. Yelp's Revenue for the
three
months ended in Mar. 2026 was €313 Mil. Therefore, Yelp's Gross Margin % for the quarter that ended in Mar. 2026 was 89.37%.
The historical rank and industry rank for Yelp's Gross Margin % or its related term are showing as below:
FRA:Y9L'
s Gross Margin % Range Over the Past 10 Years
Min: 90.04 Med: 91.64 Max: 93.86
Current: 90.04
During the past 13 years, the highestGross Margin % of Yelp was 93.86%. The lowest was 90.04%. And the median was 91.64%.
FRA:Y9L's Gross Margin % is ranked better than 78.47% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs FRA:Y9L: 90.04
Yelp had a gross margin of 89.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Yelp was -0.60% per year.
Yelp (FRA:Y9L) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Yelp had a gross margin of 89.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Yelp Gross Margin % Related Terms
Yelp Gross Margin % Historical Data
* Premium members only.
The historical data trend for Yelp's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:Y9L vs TBLA, WBTN, UPWK: Gross Margin % Comparison
For the Internet Content & Information subindustry, Yelp's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yelp Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Yelp's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Yelp's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Yelp (FRA:Y9L) has a Gross Margin % of 89.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Yelp and its competitors. This is near median its historical median of 91.64. Over the past decade, Yelp's Gross Margin % has ranged from 90.04 to 93.86. According to the industry distribution chart, Yelp ranks #107 out of 497 companies in the Interactive Media industry, placing it in the top 21.5%.
Is Yelp's Gross Margin % too high?
Yelp's current Gross Margin % of 89.37% is near median its 10-year median of 91.64. Over the past 10 years, this metric has ranged from a low of 90.04 to a high of 93.86. The Interactive Media industry median Gross Margin % is 62.58. Yelp's value of 89.37% is 42.8% above this industry median. Based on the distribution chart, Yelp ranks #107 out of 497 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Yelp has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yelp's Gross Margin % compare to TBLA and WBTN?
According to the Interactive Media industry distribution chart, Yelp ranks #107 out of 497 companies for Gross Margin %. This places Yelp in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 62.58. Yelp's value of 89.37% is 42.8% above this benchmark. Historically, Yelp's own Gross Margin % has ranged from 90.04 to 93.86 over the past decade. While the company's 10-year median is 91.64 vs. the industry median of 62.58, Yelp has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yelp's current Gross Margin % of 89.37% is 42.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Yelp and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yelp's current Gross Margin % is 89.37%, which is near median its own 10-year median of 91.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yelp stock overvalued right now?
Based on GuruFocus' analysis, Yelp (FRA:Y9L) is currently considered Significantly Undervalued. The stock's GF Value™ is €38.44, compared to a current price of €23.09 — trading 39.9% below its estimated fair value. The current Gross Margin % is 89.37%, which is near median its 10-year median of 91.64 and 42.8% above the Interactive Media industry median of 62.58. Yelp's overall GF Score™ is 72/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Yelp (FRA:Y9L), the current Gross Margin % is 89.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yelp (FRA:Y9L) Overvalued in 2026?
Based on GuruFocus' analysis, Yelp stock appears to be undervalued.
The current stock price of €23.09 is trading 39.9% below its estimated GF Value™ of €38.44.
GuruFocus considers Yelp to be Significantly Undervalued.
Key valuation signals for FRA:Y9L:
Gross Margin %: 89.37% (near median its 10-year median of 91.64)
GF Value™: €38.44 vs. price of €23.09 (39.9% below fair value)
Industry Position: 42.8% above the Interactive Media median (#107 of 497)
No single metric tells the full story. See the FRA:Y9L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yelp Inc operates in the online content market based in the United States. It provides a web-based platform and mobile application to bridge the gap between businesses and consumers. The platform assists consumers through product reviews, tips, photos and videos thereby enabling them in making appropriate buying decisions and posting their feedbacks. Its products and services includes Advertising Products and Business Page Products. In addition, it also lets the buyers directly transact with businesses directly through its platform. Yelp generates revenue mainly from the sale of advertising on its website and mobile app to businesses. The company generates majority of the revenue from United States, and also has its presence in other countries.
72GF Score
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