ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $387.59M
• Dividend Yield: N/A
• Average Volume (3M): 856.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -10.14%
• EPS Growth: -1381.34%
• Country: US
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Staffing & Employment Services
• EPS (TTM): -0.11
• Shares Outstanding: 72,529,950
• 10 Day Avg. Volume: 1,017,501
• 30 Day Avg. Volume: 856,089
• PEG Ratio: 0.44
• Price to Book (P/B): 53.15
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 15.93
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: 104.74
• 1Y Price Target: $5.00
• Price Target Upside: 10.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.42
• Revenue Forecast (FY): $449.36M

• Rating: 55 Neutral
• Price Target: $5.50 ▲(21.41% Upside)

ZipRecruiter's overall stock score is primarily impacted by its financial challenges, including declining revenues and profitability, and a negative P/E ratio. Positive technical indicators and a balanced earnings call sentiment provide some support, but the financial instability remains a significant concern.

Positive Factors

Enterprise Strategy Success

The increase in enterprise customer adoption of automated solutions indicates strong demand for ZipRecruiter's advanced services, potentially leading to sustained revenue growth and improved market position.

Generative AI Traffic Increase

The significant rise in site visits from generative AI models suggests a growing channel for attracting job seekers, enhancing ZipRecruiter's competitive edge in leveraging AI technology.

Performance-Based Revenue Growth

The growth in performance-based revenue highlights ZipRecruiter's ability to capitalize on performance-driven models, indicating potential for sustained revenue expansion and improved profitability.

Negative Factors

Revenue Decline

The year-over-year revenue decline reflects challenges in maintaining growth momentum, which could impact long-term financial stability and market competitiveness.

Net Loss

The net loss indicates ongoing profitability challenges, which may strain financial resources and limit the company's ability to invest in growth initiatives.

High Leverage

High leverage and negative equity raise concerns about ZipRecruiter's financial stability, potentially limiting its ability to withstand economic downturns or invest in strategic opportunities.

ZipRecruiter Business Overview & Revenue Model

Company Description

ZipRecruiter (ZIP) is a leading online employment marketplace that connects job seekers with employers. Founded in 2010, the company operates primarily in the human resources and recruitment sectors, offering a platform that allows businesses to post job listings and access a vast pool of candidates. Its core services include job posting, applicant tracking, and recruitment solutions, utilizing advanced AI technology to match candidates with suitable job opportunities effectively.

How the Company Makes Money

ZipRecruiter primarily generates revenue through a subscription-based model. Employers pay for job postings and recruitment services, with various pricing tiers depending on the features and number of job listings desired. Additionally, the company offers premium services, such as enhanced visibility for job postings and access to advanced analytics. Key revenue streams also include partnerships with other job boards and recruitment platforms that expand its reach and services. By leveraging data-driven insights and AI technology, ZipRecruiter attracts a significant number of employers and job seekers, contributing to its earnings growth.

ZipRecruiter Financial Statement Overview

Summary

ZipRecruiter faces significant financial challenges, with declining revenues and profitability. The balance sheet reflects high leverage and negative equity, raising concerns about financial stability. While cash flow from operations is positive, the decline in free cash flow growth indicates potential liquidity issues.

Income Statement

ZipRecruiter has experienced a significant decline in revenue over the TTM period, with a negative revenue growth rate of -46.7%. The gross profit margin remains high at 89.5%, indicating efficient cost management. However, the net profit margin is negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, suggesting operational challenges.

Balance Sheet

The company's balance sheet shows a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. Return on equity is positive, but this is due to negative equity, which distorts the metric. The equity ratio is not favorable, highlighting high leverage.

Cash Flow

Operating cash flow remains positive, but the free cash flow has decreased significantly, with a growth rate of -27.9%. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio suggests reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	448.30M	474.00M	645.72M	904.65M	741.14M	418.14M
Gross Profit	400.66M	423.85M	581.41M	818.35M	661.53M	363.98M
EBITDA	4.88M	35.39M	111.57M	113.26M	1.10M	80.89M
Net Income	-42.95M	-12.85M	49.10M	61.49M	3.60M	86.05M
Balance Sheet
Total Assets	573.55M	664.06M	659.50M	714.56M	398.62M	212.13M
Cash, Cash Equivalents and Short-Term Investments	410.97M	505.88M	520.12M	570.36M	254.62M	114.54M
Total Debt	558.25M	552.72M	555.73M	560.01M	25.29M	52.17M
Total Liabilities	649.70M	650.63M	651.13M	685.94M	163.65M	262.43M
Stockholders Equity	-76.15M	13.43M	8.37M	28.62M	234.97M	-50.30M
Cash Flow
Free Cash Flow	11.86M	44.81M	102.27M	118.26M	130.80M	80.64M
Operating Cash Flow	15.74M	45.73M	103.19M	128.81M	144.14M	88.01M
Investing Cash Flow	71.97M	-61.98M	106.74M	-351.13M	-13.34M	-7.37M
Financing Cash Flow	-101.51M	-48.36M	-154.26M	195.09M	9.28M	-1.63M

ZipRecruiter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIP, the sentiment is Negative. The current price of 4.53 is below the 20-day moving average (MA) of 4.98, below the 50-day MA of 4.63, and below the 200-day MA of 4.97, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 5.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZIP.

ZipRecruiter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	73 Outperform	$3.51B	13.49	13.89%	2.85%	3.65%	5.71%
UPWK	72 Outperform	$2.78B	11.89	47.52%	―	2.50%	187.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RHI	60 Neutral	$2.82B	17.70	11.27%	8.48%	-7.27%	-43.88%
ZIP	55 Neutral	$387.59M	-9.26	―	―	-10.14%	-1381.34%
NSP	54 Neutral	$1.47B	85.24	16.04%	6.37%	3.19%	-86.21%
MAN	54 Neutral	$1.37B	-61.88	-1.00%	4.96%	-2.44%	-156.01%

ZipRecruiter Corporate Events

ZipRecruiter Buys Back 1.75 Million Shares

On November 17, 2025, ZipRecruiter repurchased 1,750,547 shares of its Class A common stock from Institutional Venture Partners at $4.57 per share. This transaction, approved by the company’s Audit Committee, is part of ZipRecruiter’s existing share repurchase program, leaving IVP with over 5 million shares, or about 7% of the outstanding Class A stock.

ZipRecruiter Reports Q3 2025 Financial Results

On November 5, 2025, ZipRecruiter announced its financial results for the third quarter of 2025, reporting a quarterly revenue of $115 million and a net loss of $9.8 million. Despite a challenging labor market, the company demonstrated consistent revenue growth from the first to the third quarter of 2025, with expectations of a year-over-year revenue increase in the fourth quarter for the first time since 2022. The results underscore the resilience of ZipRecruiter’s business model and its strategic focus on next-generation hiring solutions, positioning the company for future growth and increased market share.