Revenue growth remains in negative territory with a 2.3% year-over-year decline in 2026Q1, though the company maintains a resilient 88.9% gross margin profile.
| Sales/Revenue | 446.43M | 448.95M | 474M | 645.72M | 904.65M | 741.14M | 418.14M | 429.56M |
| Revenue Growth % | -3.33% | -5.28% | -26.59% | -28.62% | 22.06% | 77.25% | -2.66% | - |
| Cost of Goods Sold | 48.59M | 48.27M | 50.15M | 64.31M | 86.3M | 79.61M | 54.16M | 54.78M |
| COGS % of Revenue | - | 10.75% | 10.58% | 9.96% | 9.54% | 10.74% | 12.95% | 12.75% |
| Gross Profit | 397.84M | 400.68M | 423.85M | 581.41M | 818.35M | 661.53M | 363.98M | 374.78M |
| Gross Margin % | 89.12% | 89.25% | 89.42% | 90.04% | 90.46% | 89.26% | 87.05% | 87.25% |
| Gross Profit Growth % | - | -5.47% | -27.1% | -28.95% | 23.71% | 81.75% | -2.88% | - |
| Operating Expenses | 407.08M | 420.04M | 422.59M | 501.98M | 721.12M | 669.92M | 299.55M | 381.1M |
| OpEx % of Revenue | - | 93.56% | 89.15% | 77.74% | 79.71% | 90.39% | 71.64% | 88.72% |
| Selling, General & Admin | 289.7M | 295.47M | 287.76M | 360.18M | 593.39M | 559.45M | 230.14M | 315.69M |
| SG&A % of Revenue | - | 65.81% | 60.71% | 55.78% | 65.59% | 75.48% | 55.04% | 73.49% |
| Research & Development | 117.38M | 124.56M | 134.83M | 141.8M | 127.74M | 110.47M | 69.41M | 65.41M |
| R&D % of Revenue | - | 27.75% | 28.45% | 21.96% | 14.12% | 14.91% | 16.6% | 15.23% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -9.24M | -19.36M | 1.26M | 79.44M | 97.23M | -8.39M | 64.43M | -6.32M |
| Operating Margin % | -2.07% | -4.31% | 0.27% | 12.3% | 10.75% | -1.13% | 15.41% | -1.47% |
| Operating Income Growth % | - | -1633.91% | -98.41% | -18.3% | 1258.58% | -113.02% | 1119.82% | - |
| EBITDA | 249K | -6.9M | 13.55M | 91.06M | 107.91M | 1.07M | 79.94M | 2.63M |
| EBITDA Margin % | 0.06% | -1.54% | 2.86% | 14.1% | 11.93% | 0.14% | 19.12% | 0.61% |
| EBITDA Growth % | -90.63% | -150.88% | -85.12% | -15.61% | 9975.63% | -98.66% | 2944.29% | - |
| D&A (Non-Cash Add-back) | 9.49M | 12.46M | 12.29M | 11.62M | 10.68M | 9.46M | 15.51M | 8.94M |
| EBIT | 48.17M | -989K | 23.1M | 99.94M | 102.58M | -8.36M | 65.37M | -5.19M |
| Net Interest Income | -59.19M | -29.63M | -7.06M | -9.46M | -23.54M | -913K | -1.04M | -575K |
| Interest Income | 0 | 0 | 22.54M | 19.93M | 4.96M | 3K | 0 | 0 |
| Interest Expense | 59.19M | 29.63M | 29.6M | 29.39M | 28.5M | 916K | 1.04M | 575K |
| Other Income/Expense | -13.25M | -11.26M | -7.76M | -8.89M | -23.14M | -884K | -95K | 557K |
| Pretax Income | -22.49M | -30.62M | -6.5M | 70.55M | 74.08M | -9.28M | 64.34M | -5.76M |
| Pretax Margin % | -5.04% | -6.82% | -1.37% | 10.93% | 8.19% | -1.25% | 15.39% | -1.34% |
| Income Tax | 2.42M | 2.38M | 6.36M | 21.45M | 12.59M | -12.88M | -21.71M | 588K |
| Effective Tax Rate % | -10.74% | -7.76% | -97.85% | 30.41% | 16.99% | 138.81% | -33.75% | -10.21% |
| Net Income | -24.9M | -32.99M | -12.85M | 49.1M | 61.49M | 3.6M | 86.05M | -6.35M |
| Net Margin % | -5.58% | -7.35% | -2.71% | 7.6% | 6.8% | 0.49% | 20.58% | -1.48% |
| Net Income Growth % | -29.83% | -156.68% | -126.18% | -20.16% | 1608.17% | -95.82% | 1455.3% | - |
| Net Income (Continuing) | -24.9M | -32.99M | -12.85M | 49.1M | 61.49M | 3.6M | 86.05M | -6.35M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.30 | -0.37 | -0.13 | 0.46 | 0.51 | 0.02 | 0.60 | -0.06 |
| EPS Growth % | -41.36% | -184.62% | -128.26% | -9.8% | 2990.91% | -97.25% | 1130.93% | - |
| EPS (Basic) | - | -0.37 | -0.13 | 0.49 | 0.54 | 0.02 | 0.60 | -0.06 |
| Diluted Shares Outstanding | 83.67M | 89.87M | 98.59M | 105.78M | 121.4M | 118.22M | 109.14M | 109.14M |
| Basic Shares Outstanding | 83.67M | 89.87M | 98.59M | 100.73M | 114.27M | 118.22M | 109.14M | 109.14M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Cyclical SMB Hiring Sensitivity
According to the most recent quarterly financial data, ZipRecruiter's revenue growth has remained in negative territory, with the latest period showing a 2.3% year-over-year decline, reflecting a broader cooling in the small-to-medium business hiring market that has persisted for several consecutive quarters.
The consistent negative growth trajectory suggests that the company is struggling to find a floor in its core employer base. This trend implies that the post-pandemic hiring surge has fully normalized, and the platform's current value proposition may be insufficient to drive new customer acquisition in a more restrictive economic environment.
Based on reported income statements, ZipRecruiter maintains a robust gross margin profile, consistently hovering around 89% over the last ten quarters, which highlights the inherent scalability of its software-driven matching marketplace despite the ongoing top-line revenue pressures observed in recent filings.
This high gross margin indicates that the company's core infrastructure is highly efficient and not burdened by significant variable costs per transaction. However, the stability of this metric also suggests that the company has limited room for further margin expansion through operational efficiencies alone, as the primary cost drivers remain outside of COGS.
As evidenced by the company's financial statements, ZipRecruiter has struggled to achieve consistent operating leverage, with operating margins fluctuating between -10.6% and 9.8% over the past ten quarters, largely due to the heavy reliance on sustained sales and marketing expenditures to drive platform activity.
The inability to scale operating income alongside gross profit suggests that the business model requires a high level of continuous marketing investment to maintain its market position. Investors should monitor whether management can decouple revenue growth from these aggressive customer acquisition costs, as current figures indicate a lack of inherent operating efficiency.
Analysis of the income statement reveals that stock-based compensation remains a significant non-cash expense, with quarterly figures frequently exceeding $10 million, which complicates the assessment of true bottom-line profitability and masks the underlying cash burn inherent in the company's current operational structure.
The persistent gap between negative net income and the significant SBC charges warrants further investigation into the company's long-term compensation strategy. This reliance on equity-based incentives may be inflating the perceived cost of operations while simultaneously diluting shareholders, making it difficult to determine when the company might reach sustainable GAAP profitability.
While the company markets itself as a technology-driven recruitment platform, the financial data suggests a business model that functions more like a marketing arbitrage operation, where the high sensitivity of operating margins to advertising spend poses a significant risk to long-term sustainability.
Short-sellers may focus on the fact that any reduction in marketing spend could lead to an immediate and sharp decline in revenue, given the transactional nature of the SMB customer base. This dependency implies that the company's moat may be thinner than the AI-matching narrative suggests, as it must constantly outspend competitors to maintain its candidate and employer liquidity.
Quick answers to the most common questions about buying ZIP stock.
For fiscal year 2025, ZipRecruiter, Inc. (ZIP) reported total revenue of $449.0M. This represents a 4.5% increase compared to $429.6M in 2019.
ZipRecruiter, Inc. (ZIP) reported a net loss of $33.0M for the fiscal year ending 2025.
ZipRecruiter, Inc. (ZIP) reported an operating income of $-19.4M, resulting in an operating profit margin of -4.3%. This margin reflects the operational efficiency of the business before interest and taxes.
ZipRecruiter, Inc. (ZIP) generated $400.7M in gross profit for the year, representing a gross profit margin of 89.2%. This demonstrates the company's core pricing power and production efficiency.