ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $451.28M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 225.2
• Beta (1Y): 1.64
• Revenue Growth: -16.20%
• EPS Growth: -222.75%
• Country: US
• Employees: 1,000
• Sector: Communication Services
• Sector Strength: 96
• Industry: Staffing & Employment Services
• EPS (TTM): -0.10
• Shares Outstanding: 74,088,830
• 10 Day Avg. Volume: 1,349,872
• 30 Day Avg. Volume: 1,344,924
• 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: 1.31
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 1.32K
• 1Y Price Target: $5.80
• Price Target Upside: 17.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $5.50 ▲(11.79% Upside)

The overall stock score of 54 reflects significant financial challenges, including declining revenue and profitability, and high financial leverage. Positive technical indicators and strategic product innovations provide some optimism, but valuation concerns and earnings call highlights of ongoing challenges weigh heavily on the score.

Positive Factors

Product Enhancement

ZipRecruiter enhanced its AI campaign performance optimization solution, improving its effectiveness by almost 20%.

Revenue Growth

Early signs of revenue stabilization with quarterly paid employers continuing to grow sequentially, suggesting stabilization similar to pre-COVID seasonality.

Share Repurchase

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

Negative Factors

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.

Macro Environment

Uneasiness remains surrounding the potential impacts on the macro environment.

Market Position

ZIP is a third player in online recruiting in the US, and analysts would like to see faster growth and improving Adjusted EBITDA margin ramping towards the 30% long-term target.

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 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: Neutral
• Last Price: 4.92
• 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 Neutral. The current price of 4.92 is above the 20-day moving average (MA) of 4.63, above the 50-day MA of 4.63, and below the 200-day MA of 6.04, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 64.79 is Neutral, 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	79 Outperform	$2.23B	9.64	50.61%	―	3.92%	231.82%
KFY	75 Outperform	$3.86B	16.03	13.49%	2.32%	-1.23%	44.06%
RHI	64 Neutral	$3.80B	21.33	12.75%	6.21%	-6.95%	-41.84%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
ZIP	54 Neutral	$451.28M	225.24	-2897.28%	―	-16.20%	-222.75%
MAN	54 Neutral	$1.91B	18.36	-0.78%	5.48%	-3.79%	-138.56%
NSP	49 Neutral	$2.10B	53.10	31.50%	4.44%	2.40%	-75.66%

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.

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.

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.