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ZipRecruiter
(NYSE:ZIP)
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Rating:58Neutral
Price Target:
$4.50
▲(15.38% Upside)
Action:Reiterated
Date:08/22/26
The score is anchored by mixed financial performance: a clear TTM profitability rebound and positive cash flow are weighed down by elevated balance-sheet risk (negative equity) and a multi-year revenue contraction. Technicals add moderate support via positive momentum (MACD and positioning above longer-term moving averages), while valuation is reasonable at ~12x earnings. The latest earnings call is a net positive due to guidance for margin expansion and product traction, but macro hiring softness and customer monetization pressure remain key constraints.
Positive Factors
Debt Reduction and Q2 Profitability
Strong Q2 profitability combined with discounted debt retirement improves financial flexibility. Lower obligations can reduce future interest burden and leave more resources for product investment, while the debt action strengthens resilience through a softer hiring cycle.
Negative Factors
Negative Equity and Remaining Debt Burden
Negative equity signals a weakened capital base and limits financial flexibility, while remaining debt keeps the company exposed to operating deterioration. Deleveraging helps, but the balance sheet could still amplify downside if marketplace demand weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt Reduction and Q2 Profitability
Strong Q2 profitability combined with discounted debt retirement improves financial flexibility. Lower obligations can reduce future interest burden and leave more resources for product investment, while the debt action strengthens resilience through a softer hiring cycle.
Read all positive factors
ZipRecruiter (ZIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$346.17M
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)12.0
Beta (1Y)2.15
Revenue Growth0.41%
EPS GrowthN/A
CountryUS
Employees800
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.35
Shares Outstanding69,196,680
10 Day Avg. Volume1,176,358
30 Day Avg. Volume1,039,238
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)-4.54
Price to Sales (P/S)0.78
P/FCF Ratio35.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$4.75Price Target Upside21.79% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$462.33M
ZipRecruiter Business Overview & Revenue Model
Company Description
ZipRecruiter, Inc. operates as a web-based hiring platform for small and medium sized businesses. It streamlines the hiring process and offers reseller programs, ATS integrations, and email alert program. The company was founded by Ian Siegel, Joe...
How the Company Makes Money
ZipRecruiter primarily makes money by charging employers (and other hiring organizations) for access to its recruiting marketplace and hiring tools. Its core revenue stream is paid employer subscriptions (or plans) that allow customers to post job...
ZipRecruiter Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveys a generally positive tone driven by product-led momentum (notably the next-generation AI engine and Be Seen First), strong operational improvements (adjusted EBITDA margin expansion and cost/marketing efficiency), healthy cash position and constructive guidance. These positives are tempered by a still-muted hiring market — revenue down 2% YoY and revenue per employer down — and a GAAP net loss. Management presented confident guidance for flat full-year revenue and margin expansion, indicating they view product and go-to-market gains as likely to offset macro headwinds.Positive Updates
Revenue Above Guidance
Q1 revenue of $107.5 million beat the midpoint of guidance despite a soft hiring backdrop.
Negative Updates
Year-over-Year and Sequential Revenue Declines
Q1 revenue declined 2% year-over-year and 4% quarter-over-quarter, driven by a soft hiring environment and post-holiday seasonality.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Above Guidance
Q1 revenue of $107.5 million beat the midpoint of guidance despite a soft hiring backdrop.
Read all positive updates
Company Guidance
ZipRecruiter's guidance for Q2 2026 calls for revenue of $112.0M at the midpoint (implying roughly flat year‑over‑year and ~4% sequential growth from Q1's $107.5M) and adjusted EBITDA of $13.0M at the midpoint (about a 12% margin); looking beyond Q2 the company expects full‑year 2026 revenue to be flat year‑over‑year (a 5 percentage‑point improvement versus 2025’s -5%) and adjusted EBITDA margin to expand to ~14% (up 5 points from 9% in 2025). In support of that outlook management pointed to Q1 results of $107.5M revenue, $9.7M adjusted EBITDA (9% margin), a $4.7M net loss, $393.5M cash and marketable securities, 63k quarterly paid employers (flat YoY, +7% QoQ), $1,698 revenue per paid employer (-2% YoY, -10% QoQ) and $9.4M of share repurchases (3.5M shares), as well as product and marketplace traction including +37% application volume for users of the next‑gen AI engine, 12% of applicants choosing Be Seen First (nearly 2× employer message rate), +26% YoY growth in engaged job seekers via organic search, and enterprise/performance marketing making up 24% of revenue (performance marketing revenue +5% YoY).ZipRecruiter Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 452.26M | 448.95M | 474.00M | 645.72M | 904.65M | 741.14M |
| Gross Profit | 403.05M | 400.68M | 423.85M | 581.41M | 818.35M | 661.53M |
| EBITDA | 131.87M | 11.47M | 35.39M | 111.57M | 113.26M | 1.10M |
| Net Income | 28.03M | -32.99M | -12.85M | 49.10M | 61.49M | 3.60M |
Balance Sheet | ||||||
| Total Assets | 321.33M | 569.74M | 664.06M | 659.50M | 714.56M | 398.62M |
| Cash, Cash Equivalents and Short-Term Investments | 173.81M | 409.14M | 505.88M | 520.12M | 570.36M | 254.62M |
| Total Debt | 264.99M | 568.37M | 552.72M | 555.73M | 560.01M | 25.29M |
| Total Liabilities | 355.14M | 646.94M | 650.63M | 651.13M | 685.94M | 163.65M |
| Stockholders Equity | -33.81M | -77.20M | 13.43M | 8.37M | 28.62M | 234.97M |
Cash Flow | ||||||
| Free Cash Flow | 13.82M | 9.88M | 44.81M | 102.27M | 118.26M | 130.80M |
| Operating Cash Flow | 22.25M | 10.96M | 45.73M | 103.19M | 128.81M | 144.14M |
| Investing Cash Flow | 170.01M | 65.09M | -61.98M | 106.74M | -351.13M | -13.34M |
| Financing Cash Flow | -263.64M | -106.45M | -48.36M | -154.26M | 195.09M | 9.28M |
ZipRecruiter Technical Analysis
Neutral
3.90
Price Trends
4.09
Positive
3.53
Positive
3.42
Positive
Market Momentum
0.22
Positive
44.70
Neutral
48.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIP, the sentiment is Neutral. The current price of 3.9 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.09, and above the 200-day MA of 3.42, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 48.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZIP.
ZipRecruiter Risk Analysis
ZipRecruiter disclosed 54 risk factors in its most recent earnings report. ZipRecruiter reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ZipRecruiter Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.08B | 10.76 | 16.70% | ― | 1.86% | -56.74% | |
63 Neutral | $181.95M | 127.36 | 1.28% | ― | -7.34% | ― | |
61 Neutral | $4.58B | 38.91 | 9.18% | 6.69% | -4.95% | -34.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $346.17M | 12.03 | -41.38% | ― | 0.41% | ― | |
55 Neutral | $2.86B | 27.43 | 5.06% | 2.81% | 6.72% | ― | |
54 Neutral | $613.67M | -2.19 | -27.06% | 1.98% | -9.63% | -4468.44% |
* Communication Services Sector Average
ZIP
ZipRecruiter
4.21
-0.95
-18.41%
DHX
DHI Group
4.19
1.59
61.15%
KELYA
Kelly Services
17.09
3.18
22.82%
MAN
ManpowerGroup
61.45
19.38
46.05%
RHI
Robert Half
44.75
9.47
26.86%
UPWK
Upwork
8.61
-6.30
-42.25%
ZipRecruiter Corporate Events
Business Operations and StrategyFinancial Disclosures
ZipRecruiter reports strong Q2 2026 results, reduces debt
Positive
Aug 5, 2026
On August 5, 2026, ZipRecruiter reported second-quarter 2026 results, with revenue of $118.1 million, net income of $43.4 million and a net income margin of 37 percent. The company also posted supplemental investor materials online and highlighted...
Business Operations and StrategyExecutive/Board Changes
ZipRecruiter Appoints Carmen Chan as New Chief Financial Officer
Positive
Jul 28, 2026
ZipRecruiter, Inc., a leading online employment marketplace listed on the NYSE under ticker ZIP, connects job seekers and employers through its matching technology and mobile apps, and has built a strong position in the digital recruiting and job ...
Business Operations and StrategyPrivate Placements and Financing
ZipRecruiter Reduces Debt Through Discounted Note Repurchases
Positive
Jun 25, 2026
On June 25, 2026, ZipRecruiter announced that it had entered into privately negotiated agreements to repurchase approximately $295 million of its 5% senior unsecured notes due 2030 for about $230 million in cash, capturing a $65 million discount t...
Executive/Board ChangesShareholder Meetings
ZipRecruiter Shareholders Approve Board, Auditor and Compensation
Positive
Jun 12, 2026
At its Annual Meeting of Stockholders held on June 9, 2026, ZipRecruiter shareholders elected Brie Carere and Mike Gupta as Class II directors to serve three-year terms expiring at the 2029 Annual Meeting, reinforcing the company’s board str...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.