ZipRecruiter (NYSE:ZIP) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

ZipRecruiter (NYSE:ZIP) issued its quarterly earnings data on Monday. The company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.17, FiscalAI reports. The company had revenue of $124.44 million for the quarter.

Here are the key takeaways from ZipRecruiter’s conference call:

• Revenue growth accelerated: Q3 revenue rose 8% year over year to $124.4 million, and management forecast Q4 growth of 6%–9% and full-year growth of 4%–5%. Executives attributed the improvement to product changes and more efficient marketing, while noting that hiring demand remains subdued.
• Marketplace engagement reached new highs: Quarterly Paid Employers grew 10% year over year to 74,000, while job seekers applying rose 10% and average applications per job seeker increased 24%. Qualified applications grew 49% quarter over quarter, and employer response rates per application tripled year over year.
• Profitability improved substantially: Adjusted EBITDA was $20.8 million, a 17% margin and 9 percentage points above the year-ago margin. Full-year adjusted EBITDA guidance implies a 13%–14% margin, compared with 9% in 2025, supported by operating leverage and cost discipline.
• Revenue per paid employer declined: The metric fell 2% year over year to $1,683, which the CFO attributed to new and returning employers contributing only part of the quarter’s revenue. Management also cited a low-hire, low-fire labor market and a typical seasonal hiring slowdown in Q4.

ZipRecruiter Price Performance

NYSE ZIP opened at $4.29 on Tuesday. The firm has a market capitalization of $353.18 million, a price-to-earnings ratio of 12.27 and a beta of 1.54. ZipRecruiter has a 52-week low of $1.65 and a 52-week high of $5.61. The company’s fifty day moving average is $4.04 and its two-hundred day moving average is $3.39.

Insider Transactions at ZipRecruiter

In other news, President David Travers sold 24,705 shares of the stock in a transaction on Friday, September 18th. The stock was sold at an average price of $3.66, for a total value of $90,420.30. Following the transaction, the president owned 1,252,219 shares of the company’s stock, valued at $4,583,121.54. This represents a 1.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ian Siegel sold 9,722 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $3.59, for a total value of $34,901.98. Following the completion of the transaction, the chief executive officer owned 170,285 shares of the company’s stock, valued at $611,323.15. This represents a 5.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 151,318 shares of company stock valued at $608,431 over the last quarter. Corporate insiders own 19.85% of the company’s stock.

Institutional Investors Weigh In On ZipRecruiter

Several institutional investors and hedge funds have recently made changes to their positions in ZIP. AXQ Capital LP purchased a new position in shares of ZipRecruiter in the 2nd quarter worth approximately $38,000. Ritholtz Wealth Management bought a new stake in shares of ZipRecruiter in the 3rd quarter worth approximately $39,000. Caerus Investment Advisors LLC bought a new position in ZipRecruiter in the 1st quarter worth about $25,000. R Squared Ltd bought a new stake in shares of ZipRecruiter during the 3rd quarter valued at about $50,000. Finally, Royce & Associates LP purchased a new position in shares of ZipRecruiter in the third quarter valued at about $61,000. Institutional investors and hedge funds own 70.55% of the company’s stock.

Key Headlines Impacting ZipRecruiter

Here are the key news stories impacting ZipRecruiter this week:

• Positive Sentiment: Third-quarter revenue rose 8% year over year to $124.4 million, while EPS was profitable and beat estimates that called for a loss. Paid employers increased 10% to 74,000, suggesting stronger marketplace activity. Zacks: ZipRecruiter Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Fourth-quarter revenue guidance of $118 million–$122 million came in above the $115.8 million consensus estimate, indicating management expects revenue to remain ahead of analysts’ expectations.
• Positive Sentiment: Commentary highlighted an 89.8% gross margin, a 1,310-basis-point improvement in GAAP operating margin, debt reduction and $22 million in year-to-date free cash flow—signs of better profitability and financial health. Seeking Alpha: ZipRecruiter Q3 Turnaround Progress
• Neutral Sentiment: The analysis said monetization declined, but attributed the weakness to timing. Investors may watch whether monetization improves in coming quarters. Seeking Alpha: ZipRecruiter Q3 Turnaround Progress

Wall Street Analysts Forecast Growth

Several analysts have issued reports on ZIP shares. UBS Group upped their target price on ZipRecruiter from $4.00 to $4.50 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Wall Street Zen downgraded ZipRecruiter from a “strong-buy” rating to a “buy” rating in a report on Saturday. Weiss Ratings raised ZipRecruiter from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, October 27th. Finally, The Goldman Sachs Group upped their price target on ZipRecruiter from $3.50 to $5.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Four equities research analysts have rated the stock with a Hold rating. Based on data from MarketBeat, ZipRecruiter has an average rating of “Hold” and a consensus target price of $4.17.

About ZipRecruiter

ZipRecruiter, Inc operates an online employment marketplace that connects businesses with job seekers. Its platform enables employers to create and distribute job postings across a broad network of online channels, while helping candidates search for available positions and apply for roles.

The company uses technology and matching tools to recommend relevant candidates to employers and suitable job opportunities to job seekers. Its services are designed for businesses of various sizes, including small and midsize employers, as well as staffing firms and larger organizations.

ZipRecruiter was founded in 2010 by Ian Siegel, Joe Edmonds, Ward Poulos and Will Kinnear.