ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $400.42M
• Dividend Yield: N/A
• Average Volume (3M): 841.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• 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: 779,928
• 30 Day Avg. Volume: 841,752
• 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: 1.28
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: 104.74
• 1Y Price Target: $6.00
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.42
• Revenue Forecast (FY): $449.36M

• Rating: 48 Neutral
• Price Target: $4.50 ▼(-3.85% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and negative equity. While there are positive developments in enterprise strategy and performance-based revenue growth, the technical indicators and valuation metrics suggest caution. The balanced sentiment from the earnings call provides some optimism, but the financial instability remains a major concern.

Positive Factors

Enterprise Strategy Success

The increase in enterprise customer adoption of automated campaign optimization suggests a strengthening of ZipRecruiter's business model, enhancing customer retention and potentially driving long-term revenue growth.

Generative AI Traffic Increase

The significant rise in site visits from generative AI models indicates a new and rapidly growing channel for attracting job seekers, which could lead to increased engagement and revenue opportunities.

Performance-Based Revenue Growth

The growth in performance-based revenue highlights ZipRecruiter's ability to capitalize on performance-driven models, which can enhance profitability and provide a competitive edge in the recruitment market.

Negative Factors

Revenue Decline

The year-over-year revenue decline reflects ongoing challenges in maintaining top-line growth, which could impact the company's market position and long-term financial health.

Negative Equity

Negative equity indicates financial instability and potential solvency issues, limiting ZipRecruiter's ability to invest in growth opportunities and posing risks to long-term sustainability.

Net Loss

Ongoing net losses highlight operational challenges and could hinder ZipRecruiter's ability to reinvest in its business, affecting future growth and competitive positioning.

ZipRecruiter Business Overview & Revenue Model

Company Description

ZipRecruiter, Inc., together with its subsidiaries, operates a marketplace that connects job seekers and employers. Its platform is a two-sided marketplace, which enables employers to post jobs and access other features, where the job seekers are able to apply to jobs with a single click. The company was incorporated in 2010 and is headquartered in Santa Monica, California.

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: Positive
• Last Price: 4.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIP, the sentiment is Positive. The current price of 4.68 is above the 20-day moving average (MA) of 4.35, above the 50-day MA of 4.39, and below the 200-day MA of 5.09, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 91.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZIP.

ZipRecruiter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPWK	73 Outperform	$2.56B	11.19	47.52%	―	2.50%	187.92%
KFY	71 Outperform	$3.45B	13.98	13.55%	2.75%	0.79%	34.85%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RHI	60 Neutral	$2.76B	17.70	11.27%	8.73%	-7.27%	-43.88%
NSP	50 Neutral	$1.33B	79.97	16.04%	6.96%	3.19%	-86.21%
ZIP	48 Neutral	$400.42M	―	―	―	-10.14%	-1381.34%
MAN	46 Neutral	$1.32B	―	-1.00%	8.18%	-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.

The most recent analyst rating on (ZIP) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.

ZipRecruiter Earnings Call: Balancing Growth and Challenges

ZipRecruiter’s recent earnings call presented a balanced sentiment, reflecting both achievements and challenges. The company celebrated significant strides in enterprise strategy and performance-based revenue growth, alongside promising developments in generative AI traffic and quarterly paid employers. However, these positives were tempered by a decline in overall revenue and a reported net loss, painting a nuanced picture of the company’s current standing.

ZipRecruiter Reports Q3 2025 Financial Results

ZipRecruiter, Inc. is a prominent online employment marketplace that connects job seekers with potential employers, leveraging advanced matching technology to enhance the hiring process across various business sizes.

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.

The most recent analyst rating on (ZIP) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.

ZipRecruiter Earnings Call: Growth Amid Challenges

The recent earnings call for ZipRecruiter, Inc. painted a mixed picture of the company’s financial health and strategic direction. While there was optimism surrounding sequential growth in paid employers and revenue stabilization, challenges such as a decrease in revenue per paid employer, a net loss, and a decline in adjusted EBITDA margin were also highlighted. These developments occur against a backdrop of a persistently soft labor market.

ZipRecruiter Repurchases Shares in August 2025

On August 25, 2025, ZipRecruiter repurchased 1,639,345 shares of its Class A common stock from Institutional Venture Partners at $4.27 per share as part of its existing share repurchase program. This transaction, approved by the company’s Audit Committee, leaves IVP with over 6.7 million shares, or about 9% of the outstanding Class A stock, and $132.2 million remains available for future repurchases.

The most recent analyst rating on (ZIP) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.