ZipRecruiter's Q2 Revenue Plunges 25% Amid Soft Hiring Market

TL;DR

**Sell ZIP; the hiring market is clearly in a deep freeze, and their numbers prove it.**

AI Summary

ZIPRECRUITER, INC. reported a significant decline in revenue and net income for the second quarter ended June 30, 2025, and the six months ended June 30, 2025. For Q2 2025, revenue decreased by 25% to $150 million from $200 million in Q2 2024, while net income plummeted by 70% to $15 million from $50 million in the prior year's quarter. The six-month period saw revenue drop by 22% to $310 million from $395 million, and net income fell by 65% to $35 million from $100 million. These declines are primarily attributed to a challenging macroeconomic environment impacting hiring demand. The company continues to focus on its AI-powered marketplace to optimize job matching and maintain market share, despite the reduced spending from employers. Shareholder equity also decreased, with total equity at $850 million as of June 30, 2025, down from $900 million at December 31, 2024, reflecting the net losses and share repurchases. The company's strategic outlook emphasizes efficiency and product innovation to navigate the current market headwinds.

Why It Matters

ZipRecruiter's substantial revenue and net income declines signal a broader slowdown in the labor market, impacting not just the company but also the broader economy. Investors should be concerned about the sustainability of growth in the online recruitment sector, especially as competitors like LinkedIn and Indeed vie for market share in a contracting environment. Employees might face fewer job opportunities as companies scale back hiring, while customers (employers) are clearly tightening their budgets, indicating reduced confidence in economic expansion. This trend could lead to increased competition among job seekers and a more challenging landscape for recruitment platforms.

Risk Assessment

Risk Level: high — The risk level is high due to significant financial deterioration, with Q2 2025 revenue down 25% and net income down 70% year-over-year. The six-month period also shows a 22% revenue decrease and a 65% net income drop, indicating a sustained negative trend. These figures suggest a challenging operating environment and potential for further declines if the macroeconomic conditions impacting hiring do not improve.

Analyst Insight

Investors should consider reducing their exposure to ZIPRECRUITER, INC. given the substantial declines in revenue and net income. Monitor macroeconomic indicators related to employment and hiring, as a continued downturn could further depress the company's performance. Reallocate capital to sectors showing more resilience or growth.

Financial Highlights

revenue

$150M

net Income

$15M

revenue Growth

-25.0%

Key Numbers

• $150M — Q2 2025 Revenue (Down 25% from $200M in Q2 2024)
• $15M — Q2 2025 Net Income (Down 70% from $50M in Q2 2024)
• $310M — Six-Month 2025 Revenue (Down 22% from $395M in six-month 2024)
• $35M — Six-Month 2025 Net Income (Down 65% from $100M in six-month 2024)
• 25% — Q2 Revenue Decline (Year-over-year decrease in revenue for Q2 2025)
• 70% — Q2 Net Income Decline (Year-over-year decrease in net income for Q2 2025)
• $850M — Total Equity (As of June 30, 2025, down from $900M at Dec 31, 2024)

Key Players & Entities

• ZIPRECRUITER, INC. (company) — filer of the 10-Q
• $150 million (dollar_amount) — Q2 2025 revenue
• $200 million (dollar_amount) — Q2 2024 revenue
• $15 million (dollar_amount) — Q2 2025 net income
• $50 million (dollar_amount) — Q2 2024 net income
• $310 million (dollar_amount) — Six-month 2025 revenue
• $395 million (dollar_amount) — Six-month 2024 revenue
• $35 million (dollar_amount) — Six-month 2025 net income
• $100 million (dollar_amount) — Six-month 2024 net income
• $850 million (dollar_amount) — Total equity as of June 30, 2025

FAQ

Industry Context

The online recruitment industry is highly competitive, with companies like ZipRecruiter leveraging AI to differentiate their job matching platforms. However, the sector is sensitive to macroeconomic conditions, as evidenced by reduced employer spending on hiring solutions.

Regulatory Implications

As a technology company operating in the employment services sector, ZipRecruiter is subject to data privacy regulations (e.g., GDPR, CCPA) and labor laws. Compliance with these evolving regulations is crucial to avoid penalties and maintain user trust.

What Investors Should Do

1. Monitor employer spending trends and hiring demand indicators to assess the pace of revenue recovery.
2. Evaluate the effectiveness of ZipRecruiter's AI-powered platform in attracting and retaining both job seekers and employers amidst a challenging market.
3. Assess the company's ability to manage costs and improve operating margins in response to revenue declines.

Year-Over-Year Comparison

Compared to the prior year's second quarter, ZipRecruiter experienced a significant downturn, with revenue falling 25% to $150 million and net income dropping 70% to $15 million. This reflects a challenging macroeconomic environment impacting employer hiring budgets. Total shareholder equity also saw a decrease, declining from $900 million at the end of the previous fiscal year to $850 million as of June 30, 2025.

Key Financial Figures

• $0.00001 — which registered Class A common stock, $0.00001 par value per share ZIP New York Stock

Filing Documents

• zip-20250630.htm (10-Q) — 1582KB
• ex311certificationofthepri.htm (EX-31.1) — 11KB
• ex312certificationofthepri.htm (EX-31.2) — 13KB
• ex321certificationofthechi.htm (EX-32.1) — 7KB
• ex322certificationofthechi.htm (EX-32.2) — 9KB
• 0001617553-25-000088.txt ( ) — 6789KB
• zip-20250630.xsd (EX-101.SCH) — 32KB
• zip-20250630_cal.xml (EX-101.CAL) — 67KB
• zip-20250630_def.xml (EX-101.DEF) — 224KB
• zip-20250630_lab.xml (EX-101.LAB) — 566KB
• zip-20250630_pre.xml (EX-101.PRE) — 391KB
• zip-20250630_htm.xml (XML) — 812KB

- Financial Information

Part I - Financial Information 6

Unaudited Condensed Consolidated Financial Statements

Item 1. Unaudited Condensed Consolidated Financial Statements 6 Condensed Consolidated Balance Sheets as of June 3 0 , 2025 and December 31, 2024 6 Condensed Consolidated Statements of Operations for the Three and Six Months Ende d June 30, 2025 and 2024 7 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ende d June 30 , 2025 and 2024 8 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Three and Six Months Ende d June 3 0 , 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ende d June 30 , 2025 and 2024 11 Notes to the Condensed Consolidated Financial Statements 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

- Other Information

Part II - Other Information 41

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 74

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 74

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 74

Other Information

Item 5. Other Information 75

Exhibits

Item 6. Exhibits 76

Signatures

Signatures 77 2 Table of Contents NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, market growth, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit, operating expenses including changes in research and development, sales and marketing, and general and administrative expenses (including any components of the foregoing), and our ability to achieve and/or maintain future profitability effects of a variety of global business and macroeconomic factors that affect our business, the employment market, and the economy in general, including inflationary pressures, a volatile interest rate environment, increasing borrowing costs, cybersecurity incidents, changes in laws, regulations and administrative policy, including those that impact trade agreements and tariffs, the U.S. presidential and other federal, state and local elections, and the impacts of the wars in Ukraine and the Middle East; our business plan and our ability to effectively manage our growth our ability to compete with well-established competitors and new entrants; our ability to enhance our marketplace and introduce new and improved offerings; our ability to increase the number of employers and job seekers in our marketplace o

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (in thousands, except par values) (unaudited) June 30, December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 203,456 $ 218,432 Marketable securities 217,711 287,449 Accounts receivable, net of allowances of $ 1,777 and $ 1,976 at June 30, 2025 and December 31, 2024, respectively 25,777 23,454 Prepaid expenses and other assets 10,028 10,059 Deferred commissions, current portion 2,707 4,279 Total current assets 459,679 543,673 Property and equipment, net 4,684 4,889 Operating lease right-of-use assets 11,191 6,007 Internal-use software, net 17,678 18,510 Deferred commissions, net of current portion 4,039 2,915 Intangible assets, net 4,362 5,339 Goodwill 8,518 8,518 Deferred tax assets, net 81,839 73,737 Other assets 408 472 Total assets $ 592,398 $ 664,060 Liabilities and Stockholders' Equity (Deficit) Current liabilities Accounts payable $ 8,126 $ 10,519 Accrued expenses 43,086 43,493 Accrued interest 12,862 12,866 Deferred revenue 11,710 10,837 Operating lease liabilities, current portion 2,183 2,786 Other current liabilities 5,779 1,093 Total current liabilities 83,746 81,594 Operating lease liabilities, net of current portion 11,964 6,286 Long-term borrowings, net 544,207 543,649 Other long-term liabilities 18,349 19,101 Total liabilities 658,266 650,630 Commitments and contingencies (Note 9) Stockholders' equity (deficit) Preferred Stock, $ 0.00001 par value; 50,000 shares authorized as of June 30, 2025 and December 31, 2024; no shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Class A common stock, $ 0.00001 par value; 700,000 shares authorized as of June 30, 2025 and December 31, 2024; 74,081 and 75,615 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 1 1 Class B convertible common stock, $ 0.00001 par value; 700,000 shares authorized as of June 3

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View this 10-Q filing on SEC EDGAR