ZipRecruiter (ZIP) investor relations material

Executive summary

• Q1 2026 revenue was $107.5 million, exceeding guidance midpoint but down 2% year-over-year, reflecting a soft hiring market and macroeconomic uncertainty.

• Net loss was $4.7 million (4% margin), a significant improvement from $12.8 million in Q1 2025.

• Adjusted EBITDA reached $9.7 million (9% margin), up from $5.9 million (5% margin) in the prior year.

• Product innovation, including next-gen AI search and Be Seen First, drove engagement and application growth.

• Quarterly Paid Employers rose 7% sequentially to over 63,000, while revenue per paid employer was $1,698, down sequentially due to seasonality.

Financial highlights

• Q1 2026 revenue declined 2% year-over-year and 4% sequentially, with subscription revenue down 4% and performance-based revenue up 5%.

• Adjusted EBITDA margin improved to 9% from 5% in Q1 2025.

• Cash, cash equivalents, and marketable securities totaled $393.5 million at quarter end.

• 3.5 million shares repurchased for $9.4 million in Q1; $111.8 million remains under the $750 million program.

• Gross margin remained stable at 89% for Q1 2026 and Q1 2025.

Outlook and guidance

• Q2 2026 revenue guidance is $112 million at midpoint, flat year-over-year and up 4% sequentially.

• Q2 Adjusted EBITDA guidance is $13 million (12% margin); full-year 2026 expected to deliver flat revenue year-over-year, a 5-point improvement over 2025.

• Adjusted EBITDA margin expected to expand from 9% in 2025 to 14% in 2026.

• Management expects continued investment in marketplace functionality and innovation, with ongoing macroeconomic uncertainty impacting hiring demand.