ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $354.57M
• Dividend Yield: N/A
• Average Volume (3M): 901.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• 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: 74,088,830
• 10 Day Avg. Volume: 791,391
• 30 Day Avg. Volume: 901,578
• 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: 1.44
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.28
• Enterprise Value/Ebitda: -208.58
• 1Y Price Target: $6.00
• Price Target Upside: 37.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-8.47% Downside)

ZipRecruiter's overall stock score is primarily impacted by its financial instability, with significant challenges in revenue and profitability. Technical indicators further reflect bearish trends, while valuation metrics are unattractive due to ongoing losses. The earnings call offers some optimism with a slight return to revenue growth, but overall, the stock faces considerable risks.

Positive Factors

AI-Powered Product Innovations

Innovative AI features enhance user engagement and platform efficiency, potentially driving long-term growth and competitive advantage.

Revenue Stabilization

Sequential revenue growth indicates potential stabilization, suggesting resilience in business operations despite market challenges.

Generative AI Traffic Surge

Increased traffic from AI engines boosts platform visibility and user interaction, supporting long-term growth and market presence.

Negative Factors

Declining Revenue Per Paid Employer

Decreasing revenue per employer may indicate pricing pressure or reduced service value, impacting profitability and growth potential.

High Leverage and Negative Equity

Financial instability due to high leverage and negative equity raises concerns about long-term solvency and financial flexibility.

Net Loss in Q2 2025

Ongoing net losses highlight operational challenges and may hinder future investment and growth opportunities.

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. The company needs to address these challenges to improve its financial health.

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	-2.45M	35.39M	111.57M	113.26M	6.49M	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	13.76M	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	12.89M	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: 4.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4.37 is below the 20-day moving average (MA) of 4.44, below the 50-day MA of 4.58, and below the 200-day MA of 5.31, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 27.63 is Neutral, 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	71 Outperform	$3.40B	13.81	13.55%	2.81%	0.79%	34.85%
UPWK	69 Neutral	$2.14B	9.23	47.52%	―	2.50%	187.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RHI	60 Neutral	$2.63B	16.89	11.27%	8.66%	-7.27%	-43.88%
NSP	47 Neutral	$1.28B	77.05	16.04%	7.04%	3.19%	-86.21%
MAN	46 Neutral	$1.38B	―	-1.00%	7.87%	-2.44%	-156.01%
ZIP	45 Neutral	$354.57M	―	―	―	-10.14%	-1381.34%

ZipRecruiter Corporate Events

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.

ZipRecruiter Reports Q2 2025 Results Amid Market Challenges

ZipRecruiter, Inc. is a leading online employment marketplace that connects job seekers with employers through its advanced matching technology, serving the recruitment industry by facilitating efficient hiring processes.

ZipRecruiter Expands Share Repurchase Program by $100M

On August 8, 2025, ZipRecruiter‘s Board of Directors authorized an additional $100 million for its share repurchase program, increasing the total authorization to $750 million. This move reflects the company’s strategy to invest in undervalued equity as part of its capital allocation approach. Despite a challenging labor market, ZipRecruiter reported a quarterly revenue of $112.2 million and a net loss of $9.5 million for the quarter ended June 30, 2025, showing signs of financial momentum with expectations of sequential revenue growth.

The most recent analyst rating on (ZIP) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.