ZipRecruiter (ZIP)
NYSE:ZIP
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ZipRecruiter
(NYSE:ZIP)
Select Model
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Rating:44Neutral
Price Target:
$2.00
▲(0.00% Upside)
Action:ReiteratedDate:03/26/26
The score is held down primarily by weakened financial performance (recent losses and negative equity) and clearly bearish technicals (below major moving averages with negative MACD). Earnings-call commentary provides a partial offset via signs of stabilization and guided margin improvement, but near-term revenue guidance remains soft and valuation support is limited due to a negative P/E and no dividend.
Positive Factors
Very high gross margins (~89–90%)
ZipRecruiter’s sustained ~89–90% gross margins point to durable unit economics in its marketplace model. High gross margins provide structural insulation for profitability as revenue normalizes, enabling the company to invest in product, marketing and AI while retaining healthy economics per transaction over the medium term.
Negative Factors
Negative shareholders’ equity / stressed capital structure
The transition to negative shareholders’ equity in 2025 signals a weakened balance sheet that constrains financial flexibility. Even with reduced gross debt, negative equity complicates access to capital, limits strategic optionality (M&A, large investments) and raises solvency scrutiny if operating performance deteriorates further.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margins (~89–90%)
ZipRecruiter’s sustained ~89–90% gross margins point to durable unit economics in its marketplace model. High gross margins provide structural insulation for profitability as revenue normalizes, enabling the company to invest in product, marketing and AI while retaining healthy economics per transaction over the medium term.
Read all positive factors
ZipRecruiter (ZIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$177.27M
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth-10.14%
EPS Growth-1381.34%
CountryUS
Employees1,000
SectorCommunication Services
Sector Strength97
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding71,383,890
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 Cap3.16
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit1.40
Enterprise Value/Ebitda10.02
Forecast
1Y Price Target
$2.83Price Target Upside41.50% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$449.36M
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 ...
How the Company Makes Money
ZipRecruiter primarily makes money by selling employer-facing recruiting services through paid plans, with revenue largely recognized as subscription revenue. Employers pay to post jobs and access platform features such as candidate matching, outr...
ZipRecruiter Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call showed clear signs of stabilization and execution: first quarter of YoY revenue growth since 2022, strong Q4 adjusted EBITDA and margin improvement, meaningful enterprise and product momentum (performance marketing growth, strong adoption of AI features and ZipIntro), and a healthy cash position. These positives are tempered by soft hiring demand (job openings down ~10% YoY), a lower holiday baseline that drives Q1 2026 guidance below prior year (~-4% YoY at the midpoint), SMB and sector‑specific weakness, and a CFO transition. On balance the company appears to be stabilizing with improving margins and product traction, but near‑term revenue growth remains exposed to macro and seasonality headwinds.Positive Updates
Return to Year‑over‑Year Revenue Growth
Q4 2025 revenue of $111.7M (reported as ~$112M) representing 1% year‑over‑year growth — the first quarter of YoY revenue growth since Q3 2022.
Negative Updates
Soft Hiring Demand and Decline in Job Openings
Hiring demand was soft in Q4 2025; job openings declined ~10% YoY and hiring demand fell below what normal seasonality would have predicted, weighing on paid employer counts and early‑Q1 trends.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Year‑over‑Year Revenue Growth
Q4 2025 revenue of $111.7M (reported as ~$112M) representing 1% year‑over‑year growth — the first quarter of YoY revenue growth since Q3 2022.
Read all positive updates
Company Guidance
ZipRecruiter guided Q1 2026 revenue to $106 million at the midpoint (down 4% year‑over‑year and 5% sequentially) with adjusted EBITDA of $5 million at the midpoint (a 5% margin, flat YoY). For full‑year 2026 management expects flat year‑over‑year revenue (versus a 5% decline in 2025) and a 5 percentage‑point expansion in adjusted EBITDA margin to 14% (from 9% in 2025). For context, Q4 2025 revenue was $111.7M (1% YoY growth) with adjusted EBITDA of $16.2M (15% margin); the company finished Q4 with ~59,000 quarterly paid employers (+2% YoY, -12% sequentially), revenue per paid employer of $1,889 (-2% YoY, +10% seq), cash and equivalents of $409.1M, Q4 buybacks of 1.8M shares for $8M, and performance‑marketing at 25% of revenue with 9% YoY growth in Q4.ZipRecruiter Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
28
Negative
Cash Flow
57
Neutral
| 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
Negative
2.00
Price Trends
2.17
Negative
3.12
Negative
3.85
Negative
Market Momentum
-0.11
Negative
45.30
Neutral
65.07
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 is below the 20-day moving average (MA) of 2.11, below the 50-day MA of 2.17, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 65.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.14B | 13.73 | 13.94% | 2.89% | 3.65% | 5.71% | |
70 Outperform | $1.36B | 22.43 | 18.76% | ― | 2.50% | 187.92% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $2.39B | 20.45 | 10.26% | 8.65% | -7.27% | -43.88% | |
51 Neutral | $1.25B | -104.17 | -0.65% | 4.96% | -2.44% | -156.01% | |
45 Neutral | $944.34M | -210.19 | -7.69% | 6.37% | 3.19% | -86.21% | |
44 Neutral | $177.27M | -10.62 | 57.25% | ― | -10.14% | -1381.34% |
* Communication Services Sector Average
ZIP
ZipRecruiter
2.00
-3.46
-63.37%
NSP
Insperity
25.03
-54.72
-68.62%
KFY
Korn Ferry
60.53
-1.61
-2.59%
MAN
ManpowerGroup
26.93
-22.04
-45.00%
RHI
Robert Half
23.59
-22.22
-48.50%
UPWK
Upwork
10.66
-2.24
-17.36%
ZipRecruiter Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
ZipRecruiter Reports Q4 2025 Results, CFO Resigns
Neutral
Feb 25, 2026
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 o...
Executive/Board Changes
ZipRecruiter Adds New Independent Director to Board
Positive
Feb 10, 2026
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. ...
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.