ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $216.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• 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): -0.01
• Shares Outstanding: 71,383,890
• 10 Day Avg. Volume: 1,176,358
• 30 Day Avg. Volume: 1,039,238
• PEG Ratio: -0.06
• Price to Book (P/B): -4.54
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 35.47
• Enterprise Value/Market Cap: 2.82
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 10.92
• 1Y Price Target: $2.83
• Price Target Upside: 10.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.37
• Revenue Forecast (FY): $449.36M

• Rating: 48 Neutral
• Price Target: $2.50 ▼(-2.34% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held down mainly by weakened financial performance (recent losses and negative equity) and a bearish technical setup (below major moving averages with negative MACD). The earnings call adds some support via signs of stabilization and expected margin expansion, but near-term revenue guidance remains down year-over-year and valuation is not supported by positive earnings or a dividend.

Positive Factors

High gross margins

Very high gross margins (~89–90%) indicate strong underlying unit economics and pricing leverage in ZipRecruiter’s marketplace. Durable margin advantage cushions operating volatility, funds product investment and marketing, and supports long‑term profitability as revenue recovers.

Positive cash generation and liquidity

Consistent positive operating and free cash flow alongside a $409M cash stockpile gives the company financial flexibility. This durable cash generation supports continued product development, opportunistic M&A or buybacks, and provides a buffer through hiring cycles.

Product, AI adoption and enterprise momentum

Shift toward performance marketing and enterprise customers (25% of revenue) plus rapid adoption of AI tools and ZipIntro strengthens diversification and ARPU. These product-led gains create higher switching costs and scalable growth levers durable beyond near‑term hiring cycles.

Negative Factors

Balance sheet stress (negative equity)

Negative shareholders’ equity in 2025 signals capital structure stress and reduces financial flexibility. Even with lower debt, negative equity can constrain funding options, increase covenant scrutiny and limit capacity for large investments or acquisitions over the medium term.

Revenue volatility and recent losses

Volatile revenue and a swing back to net losses weaken predictability of free cash flow and complicate investment planning. Persistent swings between profitability and losses can impede sustained reinvestment, hiring, and margin consistency across economic cycles.

Exposure to weak hiring demand and SMBs

High exposure to SMBs and sectors facing soft hiring creates structural top‑line risk. Prolonged weakness in job openings reduces paying employer counts and ARPU, meaning product traction alone may not translate into durable revenue growth until broader hiring demand recovers.

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

Overall fundamentals are pressured: the company returned to losses in 2024–2025 and operating performance deteriorated (negative EBITDA/net margin in 2025). Positives include consistently very high gross margin (~89–90%) and continued positive operating/free cash flow in 2024–2025, but the balance sheet is a key risk with stockholders’ equity turning negative in 2025 (despite a sharp reduction in debt).

Income Statement

Revenue has been volatile, rising in 2025 (+14.6%) after sharp declines in 2023–2024, and the company swung from solid profitability in 2022–2023 to losses in 2024–2025. A key strength is consistently very high gross margin (~89–90%), indicating strong underlying unit economics, but operating performance deteriorated recently (negative EBITDA and net margin in 2025), suggesting weakened demand and/or a higher cost base versus revenue.

Balance Sheet

Leverage and equity trends are the primary concern. Debt was extremely high versus equity in 2022–2024 (very elevated debt-to-equity), and stockholders’ equity turned negative in 2025, reducing balance-sheet flexibility and increasing financial risk. While total debt fell dramatically in 2025, the negative equity position and recent losses still leave the capital structure looking stressed compared with earlier periods.

Cash Flow

Cash generation remains a relative bright spot: operating cash flow and free cash flow stayed positive in both 2024 and 2025 even as the company reported net losses, indicating good cash conversion and working-capital discipline. However, free cash flow declined in 2025 (down ~16.7%), and cash flow is well below the stronger levels seen in 2021–2023, pointing to a weaker operating environment and less cushion if conditions soften further.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	448.95M	474.00M	645.72M	904.65M	741.14M
Gross Profit	400.68M	423.85M	581.41M	818.35M	661.53M
EBITDA	11.47M	35.39M	111.57M	113.26M	1.10M
Net Income	-32.99M	-12.85M	49.10M	61.49M	3.60M
Balance Sheet
Total Assets	569.74M	664.06M	659.50M	714.56M	398.62M
Cash, Cash Equivalents and Short-Term Investments	409.14M	505.88M	520.12M	570.36M	254.62M
Total Debt	568.37M	552.72M	555.73M	560.01M	25.29M
Total Liabilities	646.94M	650.63M	651.13M	685.94M	163.65M
Stockholders Equity	-77.20M	13.43M	8.37M	28.62M	234.97M
Cash Flow
Free Cash Flow	9.88M	44.81M	102.27M	118.26M	130.80M
Operating Cash Flow	10.96M	45.73M	103.19M	128.81M	144.14M
Investing Cash Flow	65.09M	-61.98M	106.74M	-351.13M	-13.34M
Financing Cash Flow	-106.45M	-48.36M	-154.26M	195.09M	9.28M

ZipRecruiter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2.56 is above the 20-day moving average (MA) of 2.39, above the 50-day MA of 2.51, and below the 200-day MA of 4.17, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 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	73 Outperform	$3.18B	13.73	13.94%	2.89%	3.65%	5.71%
UPWK	70 Outperform	$1.61B	22.43	18.76%	―	2.50%	187.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
RHI	59 Neutral	$2.29B	20.45	10.26%	8.65%	-7.27%	-43.88%
MAN	51 Neutral	$1.23B	11.44	-0.65%	4.96%	-2.44%	-156.01%
ZIP	48 Neutral	$216.10M	-10.62	―	―	-10.14%	-1381.34%
NSP	43 Neutral	$887.00M	-210.19	-7.69%	6.37%	3.19%	-86.21%

ZipRecruiter Corporate Events

ZipRecruiter Reports Q4 2025 Results, CFO Resigns

ZipRecruiter reported its fourth quarter and full-year 2025 results on February 25, 2026, posting quarterly revenue of $111.7 million and full-year revenue of $449.0 million, alongside a full-year net loss of $33.0 million and an Adjusted EBITDA of $40.8 million, or a 9% margin. Management highlighted that the company achieved year-over-year revenue growth in the fourth quarter and exceeded its Adjusted EBITDA expectations despite a soft hiring environment, attributing performance to disciplined cost controls and an expanded product portfolio, including its new “Be Seen First” and enhanced AI-powered solutions.

In a leadership change disclosed the same day, Chief Financial Officer Timothy Yarbrough notified the company on February 23, 2026, that he would resign effective late on February 25, 2026, to pursue another opportunity, with the company stating his departure was not due to any disagreement over operations or policies. President David Travers, who previously served as CFO, was appointed interim Chief Financial Officer and principal financial officer effective just after midnight on February 26, 2026, while the company conducts a search for a permanent finance chief and continues to communicate material updates through its investor relations channels and social media platforms.

The most recent analyst rating on (ZIP) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.

ZipRecruiter Adds New Independent Director to Board

On February 5, 2026, ZipRecruiter announced a board reshuffle, with director Yvonne Hao resigning from the Board, Audit Committee, and Compensation Committee, a move the company said did not stem from any disagreement over operations or policies. The Board appointed Brie Carere to the Audit Committee and named consumer‑brands executive Jennifer Saenz as an independent Class I director, also placing her on the Compensation and Nominating and Corporate Governance Committees.

Saenz, currently Executive Vice President and Chief Commercial Officer at Albertsons and formerly a senior executive at PepsiCo, brings extensive large‑scale marketing, merchandising, and commerce experience that ZipRecruiter’s leadership expects to leverage as it refines how employers and job seekers connect on its platform. Her appointment, announced publicly on February 9, 2026, includes standard non‑employee director cash retainers and a mix of time‑vested restricted stock unit awards that align her incentives with long‑term shareholder interests.

The most recent analyst rating on (ZIP) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.