ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $358.61M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 225.2
• Beta (1Y): 1.58
• Revenue Growth: -16.20%
• EPS Growth: -222.75%
• Country: US
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): -0.10
• Shares Outstanding: 74,088,830
• 10 Day Avg. Volume: 1,516,406
• 30 Day Avg. Volume: 1,006,095
• 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: 1.65
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 1.32K
• 1Y Price Target: $5.50
• Price Target Upside: 26.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 44 Neutral
• Price Target: $4.00 ▼(-7.83% Downside)

ZipRecruiter's overall stock score is primarily impacted by its financial performance, which shows declining revenue and profitability, and high financial leverage. Technical analysis indicates a bearish trend, and valuation metrics suggest potential overvaluation. The earnings call provided a mixed outlook, with some positive developments but also significant challenges.

Positive Factors

Market Position

ZipRecruiter is gaining market share even in a down market, with its traffic declining less than the overall online recruiting market.

Product Engagement

The ZipIntro product significantly increased engagement, with 90% more sessions and nearly double the amount of interviews.

Share Repurchase Plan

Announcement of a $100 million increase in the share repurchase plan, indicating confidence in the company's financial health.

Negative Factors

Financial Outlook

Management guided Q1 adjusted EBITDA significantly below expectations, indicating potential short-term financial challenges.

Hiring Demand

Macro pressures impacting broader hiring demand and leading to a cautious approach by employers is currently weighing on ZIP and top-line growth.

Macroeconomic Environment

Uneasiness remains surrounding the potential impacts on the macro environment.

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 makes money through a subscription-based revenue model, primarily charging employers for access to its platform and services. Employers pay fees to post job listings and gain access to a wide pool of potential candidates. The company offers various subscription plans that differ based on features such as the number of job slots and the level of exposure a job listing receives. Additionally, ZipRecruiter generates revenue through partnerships with other job boards and platforms, expanding the reach of its job postings. These collaborations enhance the visibility of listings, making them accessible to a broader audience, which in turn drives more employers to use its services.

ZipRecruiter Financial Statement Overview

Summary

ZipRecruiter is facing significant financial challenges, with declining revenue and profitability, negative equity, and a high financial risk profile. Despite maintaining positive cash flow, the sustainability of the financial health is questionable given ongoing negative trends in income and equity.

Income Statement

ZipRecruiter has been experiencing significant challenges in its financial performance. The TTM (Trailing-Twelve-Months) shows a deterioration in key profitability metrics. The gross profit margin remains strong at around 89.5%, but the net profit margin turned negative at -4.2%, reflecting a substantial decline in net income. Revenue growth has been declining, with the latest TTM revenue falling compared to previous periods. EBIT and EBITDA margins also indicate operational struggles, with EBIT margin at -2.1% and EBITDA margin at 4.2%. These figures suggest the company is facing difficulties in maintaining profitability and growing revenue.

Balance Sheet

The balance sheet reveals concerning leverage and equity trends. The debt-to-equity ratio is not calculable due to negative equity, indicating high financial risk. The equity ratio is also negative due to negative stockholders' equity, highlighting a weak financial position. Return on equity (ROE) is not meaningful with negative equity values. The continuous decline in stockholders' equity over time is a critical issue, indicating potential solvency concerns.

Cash Flow

ZipRecruiter's cash flow statement shows mixed results. The free cash flow is positive, but its growth has been declining, with a contraction in the TTM compared to the previous year. The operating cash flow to net income ratio is strong, suggesting effective conversion of net income into cash flow. However, the free cash flow to net income ratio reveals challenges, particularly given the negative net income. Despite positive free cash flow, the overall cash flow trend is worrying, considering the negative net income and declining free cash flow growth.

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: Neutral
• Last Price: 4.34
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 4.34 is above the 20-day moving average (MA) of 4.21, below the 50-day MA of 4.86, and below the 200-day MA of 6.41, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 80.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZIP.

ZipRecruiter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPWK	78 Outperform	$1.81B	8.10	50.61%	―	3.92%	231.82%
KFY	76 Outperform	$3.73B	15.60	13.49%	2.28%	-1.23%	44.06%
RHI	61 Neutral	$3.54B	19.89	12.75%	6.11%	-6.95%	-41.84%
MAN	58 Neutral	$1.84B	18.36	-0.78%	5.41%	-3.79%	-138.56%
Sector *	56 Neutral	HK$65.29B	0.77	-5.00%	5.19%	-0.84%	-12.63%
NSP	54 Neutral	$1.89B	47.85	31.50%	4.56%	2.40%	-75.66%
ZIP	44 Neutral	$358.61M	225.24	-2897.28%	―	-16.20%	-222.75%

ZipRecruiter Corporate Events

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.

ZipRecruiter Holds 2025 Annual Stockholders Meeting

On June 10, 2025, ZipRecruiter, Inc. held its 2025 Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and operations. At the meeting, stockholders elected Ian Siegel, Yvonne Hao, and Cipora Herman as Class I directors for a three-year term, ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers for the fiscal year ended December 31, 2024. These decisions are expected to influence the company’s strategic direction and financial oversight.

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.

ZipRecruiter Repurchases 3 Million Shares from Investors

On May 22, 2025, ZipRecruiter, Inc. repurchased 3,000,000 shares of its Class A common stock from entities affiliated with Institutional Venture Partners at $5.32 per share. This transaction, approved by the company’s Audit Committee, is part of its ongoing share repurchase program, leaving approximately $51 million available for future repurchases. Institutional Venture Partners continues to hold over 8.4 million shares, maintaining an 11% ownership stake in the company.

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.