YELP INCYELP

YELP INC Fair Value Disclosure

10-KFiled Feb 27, 20262 min read
FAIR VALUE MEASUREMENTS
The Company’s investments in money market accounts are recorded as cash equivalents at fair value on the consolidated balance sheets. Additionally, the Company carries its available-for-sale debt securities at fair value. See Note 4, “Marketable Securities,” for further details.     
The following table represents the fair value of the Company’s financial instruments, including those measured at fair value on a recurring basis, as of December 31, 2025 and 2024 (in thousands):
December 31, 2025December 31, 2024
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash equivalents:
Money market funds$57,123 $— $— $57,123 $102,793 $— $— $102,793 
U.S. government securities— 215 — 215 — — — — 
Commercial paper— 554 — 554 — — — — 
Short-term marketable securities:
Certificates of deposit— 3,662 — 3,662 — 1,282 — 1,282 
Commercial paper— 3,522 — 3,522 — 8,867 — 8,867 
Corporate bonds— 41,339 — 41,339 — 38,483 — 38,483 
Agency bonds— 1,241 — 1,241 — 1,238 — 1,238 
U.S. government securities— 53,526 — 53,526 — 50,711 — 50,711 
Other investments:
Certificates of deposit(1)
— 5,000 — 5,000 — 10,000 — 10,000 
Total cash equivalents, short-term marketable securities and other investments
$57,123 $109,059 $— $166,182 $102,793 $110,581 $— $213,374 
(1) Reflected in prepaid expenses and other current assets on the consolidated balance sheets.
Certain long- and indefinite-lived assets are recognized at fair value on a nonrecurring basis. The Company recognized impairment charges related to ROU assets and leasehold improvements associated with certain office space that it subleased or abandoned during the years ended December 31, 2024 and 2023. See Note 9, “Leases,” for further details. The Company estimated the fair value of these assets as of the impairment dates using an income approach based on discounted cash flows expected to be received for the subleased or abandoned properties. This valuation technique relied on certain assumptions made by management based on both internal and external data, such as the incremental borrowing rates used to discount these cash flows to their present values. As a result, these assets are classified within Level 3 of the fair value hierarchy.

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsCommitmentsNew Standards