The Young and the Restless Recap, August 1, 2025: Billy's ready to make some waves, Diane makes a new friend

Here’s your Y&R recap for the Friday, August 1, 2025 episode of The Young and the Restless, when Tessa struggles being a single mom, and Billy tells Jack he wants to end their business relationship.

What happened on The Young and the Restless

At the park, Tessa tries to talk to Arya but she won’t use her words. As Tessa looked more and more stressed, Daniel entered the park and observed her with her daughter. Daniel came over and tried to make Arya smile and talk. He said he overheard that Tessa was out of fishy crackers, but pulled out a bag of fishy gummies instead.

Tessa explained that Arya was a little out of sorts with Mariah out of the house, and that she was a single mom. Daniel offered that she was giving them space so she wouldn’t hurt them even more, but Tessa didn’t think it was working. Arya watched as they spoke, looking down. Tessa wondered if Daniel had anything in his bag that would make her smile and he said he might.

Tessa and Daniel sat on a blanket on the grass after Daniel got Arya to take a nap. They cloud-gazed and tried to find animals in the sky. Tessa tried but Daniel was being more creative until he got her open her mind and she could see them, too. Tessa said she felt like she could handle motherhood better when Arya woke up knowing there was a whole animal kingdom up there.

Tessa admitted she was about to lose it before Daniel got there, and she didn’t like Arya seeing her that way. She said she holds it in the best she can but after Arya’s in bed, she cries a lot. Daniel told her how she couldn’t do it all herself and encouraged Tessa to lean on those who wanted to help. He also advised her ot take care of herself so she could take care of her daughter. “How did you get so wise?” Tessa asked. “By doing everything wrong over and over again,” Daniel replied.

Tessa said that she was trying to give Mariah time, but wouldn’t wait forever, either. She recalled how she and Tessa used to lay on the ground and watch the stars. There was a bunny that was getting closer to them. “When you’re kind and gentle, you make others feel safe,” Tessa told Daniel as she rubbed his arm. Daniel suggested they go get their guitars and do their music lesson. Tessa asked if he could come somewhere with her and Arya instead.

At the Abbott mansion, Diane and Jack wondered if Victor would back off of Kyle now that Audra’s plan fell through. Jack thought that Audra was the one to worry about, as she was about to lose everything. “And a woman with nothing to lose is dangerous. I know better than anyone,” Diane added. Jack was sure Kyle could handle Audra, no matter what plots and schemes she threw at him. “Exactly which plots and schemes are you talking about?” Billy asked as he entered from the dining room.

Jack and Diane were surprised to see him. Billy told Jack he hoped to finish the conversation they had started in France. Diane excused herself go to the office; she gave Jack a kiss on the way out and told him good luck. Once alone, Billy asked Jack why he would need good luck to talk to him. Jack admitted he had shared their challenges with Diane, and she agreed there was need for change. Billy also agreed. He told his brother it was time they went their separate ways and end their business relationship.

Jack and Billy moved to the dining room as Jack ranted about Cane and the nerve of him thinking he could move back to Genoa City after everything happened. Billy noted that Cane wasn’t to blame for what happened. Regardless, Jack didn’t trust Cane, and didn’t know how Billy could put their future in Cane’s hands.

Billy admitted he wanted to give things with Cane another shot. Jack rambled about how Cane was Aristotle Dumas. Billy interrupted to ask if Jack was willing to sell his interests in Abbott Communications or not. Jack wasn’t sure Billy would welcome complete honesty, but told him that it was clear that Billy wanted to regain control of Chancellor Industries. He noted that to do that, Billy would have to communicate with Victor. Billy admitted that was the case, and that he intended on being successful.

“You have already signed a contract making Sally CEO of the company,” Jack told Billy. He said he had invested in Billy but if there was any chance that Billy wasn’t running the company, then he wanted out. Jack said he was sure he could make a deal with Cane for them. Billy wondered what the catch was that Jack was so willing to step aside so easily.

Jack thought Billy would be happy that he wasn’t forcing him down a path he didn’t want to take, and called himself another guardrail Billy could let go of. Billy grimaced that Jack just had to act like Billy would crash and burn without his control. Jack thought it was support and care that he had given him over the years. Billy told Jack that he appreciated his support in using the Abbott family name but he thought it was better they are brothers and not business partners. “I think we can agree we see the world differently,” Billy noted. Jack thought Cane was just using Billy as a piece of the puzzle he’s putting together. Billy was willing to take the chance.

Diane spotted Phyllis in Crimson Lights and they shared terse greetings. Phyllis said she had put a lid on her contempt while at the estate but figured they could now resume their usual hateful way of communicating. Diane said she was surprised Phyllis didn’t stay in France since she’d leeched onto Cane. She asked if he had her removed and she’d bled him dry already. “The truth is au contraire, Diane,” Phyllis grinned. She revealed that Cane couldn’t get enough of her.

Diane laughed while they added sugar to their coffees, and tried to get info out of Phyllis as to what she and Cane had planned. Phyllis said Diane was the last person she’d share information with. Diane mocked her for being desperate to make a deal, and didn’t think Phyllis was any competition. Diane noted that she thought Phyllis stepped over two dead bodies to make a deal.

Phyllis told Diane that she watched Damian die in Cane’s arms, and tried to get her to understand that wasn’t something she took lightly. She reminded Diane that Chance dated her daughter, Summer, and that he was a good man. “Chance will be missed by many in Genoa City,” Diane shrugged. “Including myself. For you to insinuate otherwise is insulting to me,” Phyllis snapped. Diane scrunched up her face in confusion. “Phyllis, you’re getting involved with the man who is responsible for those tragedies,” she admonished.

Phyllis insisted that Cane was not responsible for Carter’s actions and that he didn’t know his assistant was unhinged. “Even if you’re going to give the man a pass for the two homicides that happened while we were kept hostage, the man did deceive his family and the rest of the world for the last six years,” Diane noted. “Diane…seriously?” Phyllis mocked. She reminded Diane that she had pretended to be dead for most of Kyle’s life, while Cane just hid that he had come into money and power. Diane clapped back that Phyllis also returned from beyond the grave. Phyllis agreed that she had as well, but she wasn’t judging Cane. Diane said that Cane and Phylis were cut from the same cloth. “It’s no wonder that you’re getting into bed with Cane Ashby,” Diane added.

Diane warned Phyllis that she could be the next one with a knife in her back if she wasn’t careful. But Daniel and Tessa walked in with Arya so Phyllis walked away. Diane swiped at Phyllis on her way out but Phyllis said to ignore her. Tessa changed her mind about the lesson she had planned with Daniel and suggested that he catch up with his mom instead. Phyllis asked him to go somewhere as she didn’t want to be spied on when they spoke. Daniel agreed but looked confused as Phyllis and Diane glared at each other as they walked out the door.

Tessa tried to deal with a work issue on the phone but looked overwhelmed. Diane spotted her and came over to help her with Arya. The two sat down to talk in a booth and Tessa worried that she grabbed the wrong bag because she wouldn’t have Arya’s favorite toy when she woke up. Diane pulled out a bag of crayons and Tessa was relieved. Diane gave her some advice that kids don’t want them to be perfect, they just want you to do your best and said it looked like that was what Tessa was doing.

Daniel and Phyllis went to Society, where Phyllis told him that Aristotle was Cane. She thought the news hadn’t broken because Victor was sitting on it until he could figure out how to use it to his advantage. Phyllis laughed that Cane was moving back and it wasn’t good for everyone in Genoa City. “What I’m about to tell you must never leave this room,” Phyllis told him. She revealed to DAniel that Cane was planning on taking all the big companies. Daniel mocked her that it was a vague secret and didn't know why she had to keep it under wraps. “Because I’m the one who’s going ot help him do it,” Phyllis said.

Daniel thought that Phyllis and Cane were already frosty and wondered what changed. Phyllis said she and Cane were both other people now. She noted that Daniel could have a place in her scheme. Daniel thought she was offering something that wasn’t hers to give, and that she was doing a lot of wishful thinking. Phyllis was all in believing in Cane and thought he could do anything. He was an overnight billionaire, and a huge success, and she wanted to work with him. She noted that only she and Billy got along with Cane, and everyone else was butting heads. “Please don’t tell me that Billy has anything to do with this plan,” Daniel sighed.

Phyllis relented that Cane was using Billy but couldn’t say why. She added that Cane respected her and liked the way she thought. Daniel hoped it would work out for her but couldn’t help but be suspicious of the guy. “Maybe it’s time to throw caution to the wind,” Billy said as he walked up.

Phyllis wondered what risk Billy was taking, and he said he was taking a chance on himself. Daniel brought up how Aristotle was Cane. Billy said that he wouldn’t be surprised if Victor knew all along. “The power dynamic in this town is about to change,” Phyllis said ominously. “It most certainly is,” Billy grinned.

At Crimson Lights, Jack came and Diane went to join him on the patio. He told her that at his meeting with Billy, he seemed content to be enamored with Cane, but Jack sensed Billy hoped he would stick around for some reason. Diane noted that Jack was upset with Billy for wanting to partner with Cane, but earlier, Jack told her that he would do the same if it meant having a go at Victor. “It’s true. I would make a deal with the devil if it meant sticking it to Victor Newman,” Jack agreed.

“I have to believe that my motive in turning to Cane is far more noble than Billy’s,” Jack told Diane. He said that by neutralizing Victor will protect Kyle from any more attacks. Jack said that by selling his interests to Cane, he’ll put Billy in a vulnerable position. He said he couldn’t imagine what Jill would think about it all. Jack thought if Billy aligned himself with Cane, there might be no turning back and this could be the last time the two of them do business.

Across the cafe, Tessa showed Arya a drawing she made with the crayons. She showed her stick figures and told her a story about how much her mommies loved her. Tessa tried to explain how her mommies get upset but that they loved her more than anything.

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