ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $401.62M
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 225.2
• Beta (1Y): 1.60
• Revenue Growth: -16.20%
• EPS Growth: -222.75%
• Country: US
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Staffing & Employment Services
• EPS (TTM): -0.10
• Shares Outstanding: 74,088,830
• 10 Day Avg. Volume: 919,141
• 30 Day Avg. Volume: 1,145,038
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 1.32K
• 1Y Price Target: $5.80
• Price Target Upside: 25.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 47 Neutral
• Price Target: $4.50 ▼(-2.39% Downside)

ZipRecruiter's overall stock score is primarily impacted by its financial performance, characterized by declining revenue and profitability, and high financial leverage. The earnings call provided some positive insights into future growth potential through AI innovations, but ongoing losses and valuation concerns weigh heavily on the score.

Positive Factors

AI-Powered Product Innovations

The introduction of AI-powered features like ZipIntro enhances product offerings, potentially increasing user engagement and retention, which can drive long-term growth.

Revenue Stabilization and Growth

Sequential revenue growth indicates potential stabilization, suggesting the company may overcome previous declines and achieve consistent future growth.

Generative AI Traffic Surge

Increased traffic from AI engines can lead to higher user engagement and conversion rates, supporting long-term revenue growth and market presence.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a risk to long-term sustainability, as it may indicate challenges in maintaining market share and competitive positioning.

High Financial Leverage

High financial leverage and negative equity can limit financial flexibility, increasing risk and potentially impacting the company's ability to invest in growth opportunities.

Net Loss in Q2 2025

Ongoing net losses highlight profitability challenges, which can strain resources and hinder the company's ability to fund future growth initiatives.

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 challenges with declining revenue and profitability, coupled with high financial leverage. While the company maintains strong gross margins and positive cash flow metrics, the negative equity and declining growth rates pose significant risks.

Income Statement

ZipRecruiter has experienced declining revenue growth, with a negative growth rate in the TTM period. The gross profit margin remains strong at approximately 89%, indicating efficient cost management. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins in the TTM period.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative equity position in the TTM period and a high debt-to-equity ratio in previous years. This indicates potential financial instability. The return on equity has been volatile, reflecting inconsistent profitability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, but the company maintains a positive operating cash flow. The free cash flow to net income ratio is relatively strong, suggesting efficient cash generation relative to earnings, despite the negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.40M	474.00M	645.72M	904.65M	741.14M	418.14M
Gross Profit	402.90M	423.85M	581.41M	818.35M	661.53M	363.98M
EBITDA	449.00K	35.39M	111.57M	113.26M	6.49M	80.89M
Net Income	-35.70M	-12.85M	49.10M	61.49M	3.60M	86.05M
Balance Sheet
Total Assets	592.40M	664.06M	659.50M	714.56M	398.62M	212.13M
Cash, Cash Equivalents and Short-Term Investments	421.17M	505.88M	520.12M	570.36M	254.62M	114.54M
Total Debt	14.15M	552.72M	555.73M	560.01M	25.29M	52.17M
Total Liabilities	658.27M	650.63M	651.13M	685.94M	163.65M	262.43M
Stockholders Equity	-65.87M	13.43M	8.37M	28.62M	234.97M	-50.30M
Cash Flow
Free Cash Flow	17.87M	44.81M	102.27M	118.26M	130.80M	80.64M
Operating Cash Flow	22.47M	45.73M	103.19M	128.81M	144.14M	88.01M
Investing Cash Flow	21.87M	-61.98M	106.74M	-351.13M	-13.34M	-7.37M
Financing Cash Flow	-112.57M	-48.36M	-154.26M	195.09M	9.28M	-1.63M

ZipRecruiter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.61
• 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 4.61 is below the 20-day moving average (MA) of 4.96, below the 50-day MA of 4.61, and below the 200-day MA of 5.75, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.18 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
UPWK	79 Outperform	2.54B	11.00	40.32%	―	3.92%	231.82%
KFY	68 Neutral	3.69B	14.99	13.22%	2.57%	0.79%	34.85%
RHI	64 Neutral	3.46B	19.13	13.57%	6.76%	-6.95%	-41.84%
MAN	54 Neutral	1.79B	-101.85	-0.81%	5.86%	-3.79%	-138.56%
NSP	49 Neutral	1.86B	47.07	35.71%	4.85%	2.40%	-75.66%
ZIP	47 Neutral	$401.62M	225.24	-2897.28%	―	-16.20%	-222.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

ZipRecruiter Corporate Events

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.