Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on ZIP

ZipRecruiter's recent performance was negatively impacted by a decline in earnings, as reported in its Q1 2025 earnings release. The company's loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.17 indicates a widening gap between expectations and reality. Additionally, the launch of Buy Now, Pay Later (BNPL) flexible payment plan option through a partnership with Zip Co. may lead to increased competition in the digital financial services market. Furthermore, the recognition as the best AI-powered hiring platform for 2025 by Better Business Advice may not necessarily translate to improved financial performance.

1.c. Company Highlights

2. ZipRecruiter's Q4 2025 Earnings: A Glimmer of Hope Amidst Macroeconomic Challenges

ZipRecruiter's Q4 2025 revenue reached $111.7 million, representing a modest 1% year-over-year growth, marking the first quarter of year-over-year growth since Q3 2022. The company's adjusted EBITDA margin was 9% in 2025. The earnings per share (EPS) came out at -$0.01, missing estimates of $0.09463. Revenue per paid employer was $1,889, down 2% year-over-year, while paid employer trends were up 2% year-over-year, with over 59,000 quarterly paid employers.

Publication Date: Mar -08

📋 Highlights
  • Q4 2025 Revenue Growth:: Revenue reached $111.7 million, a 1% YoY increase, marking the first growth since Q3 2022 despite 10% fewer job openings.
  • Adjusted EBITDA Margin Expansion:: Projected 5-point increase to 14% in 2026, driven by cost discipline, up from 9% in 2025.
  • Share Repurchases & Cash Reserves:: $8 million spent repurchasing 1.8 million shares, with $409.1 million in cash, cash equivalents, and securities as of Q4 2025.
  • 2026 Revenue Outlook:: Full-year guidance for flat YoY revenue (vs. 5% decline in 2025) amid subdued hiring demand and seasonal hiring patterns.
  • Enterprise & AI Growth Drivers:: Enterprise business momentum and AI innovations like "Be Seen First" and AI-powered screening questions are positioned to accelerate growth to low single digits by 2026.

Operational Highlights

The company has been investing in product improvements, such as AI-powered suggested screening questions, optimized automated campaigns, and a new product called Be Seen First, which enables job seekers to jump to the top of an employer's candidate list. As Tim Yarbrough, the departing CFO, noted, these investments are aimed at capturing growth and enhancing the user experience. The company's traffic from Large Language Models (LLMs) is growing rapidly and is becoming a larger part of its overall traffic mix.

Guidance and Outlook

For the full year 2026, the company expects hiring demand to follow a typical seasonal cadence, albeit at subdued levels, and believes a likely result is for them to achieve flat year-over-year revenue. The company expects adjusted EBITDA margins to expand by 5 percentage points from 9% in 2025 to 14% in 2026, reflecting rigorous cost discipline alongside targeted investments aimed at capturing growth. Analysts estimate next year's revenue growth at 5.4%.

Valuation and Capital Allocation

ZipRecruiter's current valuation metrics are mixed, with a P/S Ratio of 0.54 and an EV/EBITDA of 11.15. The company's ROE is 57.25%, while its ROIC is -3.86%. The company prioritizes organic growth, followed by M&A opportunities, and then return of capital. It has a robust balance sheet with $409.1 million in cash, cash equivalents, and marketable securities as of December 31, 2025, and has been a consistent buyer of its stock, repurchasing about 1.8 million shares for $8 million last quarter.

Growth Prospects

The company expects its growth to accelerate throughout the year, reaching low single-digit territory by the end of 2026. Its enterprise business, which is less dependent on marketing, is driving this growth. The company’s EBITDA margin expansion also supports this view. The company's investments in AI-powered recruiting and its "Be Seen First" feature are expected to enhance its marketplace, providing benefits to both job seekers and employers.

3. NewsRoom

Card image cap

Market Today: Jobs Slide, Oil Soars, Media M&A and Major Recalls

Mar -06

Source: gurufocus.com

Card image cap

Top Stocks From the Staffing Services Industry to Buy Now

Mar -05

Source: zacks.com

Card image cap

ZipRecruiter, Inc. (ZIP) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

Card image cap

ZipRecruiter Announces Fourth Quarter and Full Year 2025 Results

Feb -25

Source: businesswire.com

Card image cap

BNPL Firm Zip Shares Hit 11-Year Low on Flat Earnings Forecast

Feb -19

Source: pymnts.com

Card image cap

ZipRecruiter to Participate at Upcoming Investor Conference

Feb -17

Source: businesswire.com

Card image cap

ZipRecruiter Announces Board of Directors Appointment

Feb -09

Source: businesswire.com

Card image cap

ZipRecruiter, Inc. (ZIP) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.29%)

6. Segments

Subscription

Expected Growth: 3.5%

ZipRecruiter's 3.5% subscription growth is driven by increasing demand for recruitment services, expansion into new markets, and strategic partnerships. The company's AI-powered job matching technology and user-friendly interface also contribute to its growth, as well as the rising need for employers to streamline their hiring processes in a competitive job market.

Performance-based

Expected Growth: 2.5%

ZipRecruiter's 2.5% growth is driven by increasing demand for recruitment services, expansion into new markets, and strategic partnerships. The company's performance-based model, which charges clients only for successful hires, resonates with cost-conscious employers. Additionally, ZipRecruiter's AI-powered matching technology and user-friendly interface enhance the job seeker experience, driving engagement and retention.

7. Detailed Products

Job Posting

Allows employers to post job openings on multiple job boards and websites, increasing visibility and reach to potential candidates.

Resume Database

Provides access to a vast database of resumes, allowing employers to search and filter candidates based on specific criteria.

Applicant Tracking System (ATS)

Streamlines the hiring process by allowing employers to manage job postings, track applicants, and collaborate with team members.

Screening and Assessment Tools

Offers a range of screening and assessment tools to help employers identify top candidates and reduce time-to-hire.

Job Distribution

Distributes job postings to a network of job boards, social media, and other online platforms to increase visibility and reach.

8. ZipRecruiter, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ZipRecruiter's job posting services can be substituted with other job boards and career websites, but its unique features and user-friendly interface reduce the threat of substitutes.

Bargaining Power Of Customers

ZipRecruiter's customers, mainly employers and recruiters, have limited bargaining power due to the company's large customer base and diversified revenue streams.

Bargaining Power Of Suppliers

ZipRecruiter's suppliers, mainly job boards and career websites, have limited bargaining power due to the company's dominant position in the market.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the online job posting market, and the increasing popularity of job search platforms.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established players like Indeed, LinkedIn, and Glassdoor, which creates a competitive landscape for ZipRecruiter.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 98.49%
Debt Cost 7.60%
Equity Weight 1.51%
Equity Cost 10.16%
WACC 7.64%
Leverage 6539.22%

11. Quality Control: ZipRecruiter, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Upwork

A-Score: 5.0/10

Value: 3.9

Growth: 8.6

Quality: 8.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
HireQuest

A-Score: 4.5/10

Value: 5.3

Growth: 4.4

Quality: 8.4

Yield: 4.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
GEE Group

A-Score: 3.8/10

Value: 10.0

Growth: 3.3

Quality: 3.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Hudson Global

A-Score: 3.3/10

Value: 8.3

Growth: 0.8

Quality: 4.9

Yield: 0.0

Momentum: 0.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
TrueBlue

A-Score: 3.3/10

Value: 10.0

Growth: 0.7

Quality: 4.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
ZipRecruiter

A-Score: 3.1/10

Value: 6.0

Growth: 3.6

Quality: 6.2

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.93$

Current Price

2.94$

Potential

-0.00%

Expected Cash-Flows