ZipRecruiter Sees Low-Single-Digit Growth as Likely 2026 Scenario

The Tip Desk · October 27, 2026 · 4 min read

Second-quarter revenue was $118.1 million, $6 million above the midpoint of guidance, as management sees low-single-digit year-over-year revenue growth in 2026 as a likely scenario, up from its prior expectation of flat revenue.

ZipRecruiter (ZIP), an online employment marketplace, reported second-quarter revenue of $118.1 million, up 5% from a year earlier and $6 million above the midpoint of its guidance range.

The sequential increase was 10%. The company said the year-over-year and quarter-over-quarter gains were driven primarily by a higher number of paid employers and increased job-posting activity, alongside product rollouts.

Quarterly paid employers ended at 70,721, up 7% year-over-year and 12% sequentially. Revenue per paid employer was $1,669, down 1% year-over-year and 2% sequentially, which the company attributed to more paid employers, some of which contributed revenue only for a portion of the quarter.

Gross profit was $105.5 million. Gross margin remained 89%, in line with the first quarter of 2026 and the second quarter of 2025.

Adjusted EBITDA was $14.6 million, or a 12% margin, compared with $9.7 million and a 9% margin in the first quarter. The company said Adjusted EBITDA and margin grew on both a year-over-year and quarter-over-quarter basis as a result of higher revenue and continued cost discipline.

Net income was $43.4 million, or a 37% margin, after a $4.7 million net loss in the first quarter. The swing was driven by a $59.3 million gain on debt extinguishment from a June 2026 partial repurchase of 5% senior unsecured notes due 2030.

In June, ZipRecruiter repurchased $294.6 million of aggregate principal amount of those notes for a discounted par value of $229.4 million, retiring over half of the outstanding notes. Cash, cash equivalents and marketable securities totaled $173.8 million as of June 30, 2026, versus $393.5 million as of March 31, 2026. The company said the decline was primarily due to financial investments held at March 31 maturing in the second quarter and being used to fund the repurchase.

Total operating expenses were $101.3 million, versus $97.1 million in the first quarter, with the sequential increase primarily from higher sales and marketing investments. Sales and marketing expenses were $58.9 million, or 50% of revenue. Research and development expenses were $26.4 million, or 22% of revenue. General and administrative expenses were $16.0 million, or 14% of revenue.

Performance marketing revenue increased 15% year-over-year. Adoption of the automated campaign performance solution increased more than 50% year-over-year, similar to the first quarter.

The company said it expanded its next-generation search and matching engine to the entire platform in the second quarter, increasing qualified application volume 34% quarter-over-quarter. It said that lift, paired with other product improvements, doubled the employer response rate per application year-over-year. It also launched Smart Outreach, an AI feature for its Resume Database of over 50 million job seekers, and gave “Be Seen First” applicants the option to record an audio message. Early data, the company said, showed candidates who recorded a message had up to an 8% lift in the connection rate with the employer.

The company said hires and quits remained stable versus the first quarter but still near their lowest levels since 2015.

For the third quarter, ZipRecruiter expects revenue of $118.0 million to $124.0 million, or $121.0 million at the midpoint, representing 5% year-over-year and 2% sequential growth. It also projects Adjusted EBITDA of $13.0 million to $19.0 million, or $16.0 million at the midpoint, yielding an 11% to 15% Adjusted EBITDA margin, or 13% at the midpoint, versus an 8% margin in the prior-year period.

Looking to the full year, the company said low-single-digit year-over-year revenue growth is a likely scenario, up from a prior expectation of flat revenue, which will result in full-year Adjusted EBITDA margins of 12% to 14%, versus 9% in 2025.

On July 28, 2026, the company announced the appointment of Carmen Chan as chief financial officer, effective August 17, 2026. David Travers will continue as president.