ZipRecruiter reported its third‑quarter 2025 results on November 5, 2025. Total revenue reached $115.0 million, a 2% sequential increase but a 2% decline compared with the $117.1 million earned in Q3 2024. Net loss widened to $9.8 million, while adjusted EBITDA stood at $9.2 million, giving an 8% margin. Earnings per share were $‑0.11, beating the consensus estimate of $‑0.15.
The year‑over‑year revenue drop reflects a softer labor market and a 4% decline in revenue per paid employer. Nevertheless, the company’s revenue mix shifted toward higher‑margin, performance‑based contracts, which grew 12% quarter‑over‑quarter and now account for 24% of total revenue. This mix shift helped offset the decline in traditional subscription revenue and contributed to the sequential growth.
The EPS beat can be attributed to disciplined cost management and the higher‑margin revenue mix. While operating expenses rose modestly, the company avoided significant one‑time charges, allowing adjusted EBITDA to remain flat at 8% and supporting a better-than‑expected earnings figure.
Management guided for Q4 revenue that would represent the first year‑over‑year increase since Q3 2022, with a midpoint estimate that implies 1% growth. The full‑year revenue outlook remains unchanged, but the company now expects an adjusted EBITDA margin of 9% versus 8% in the prior quarter, reflecting improved cost control and the continued expansion of its AI‑driven matching platform.
CEO Ian Siegel highlighted the company’s resilience amid a persistently soft labor market, noting that sequential revenue growth and a 140% rise in visits from generative AI models demonstrate the platform’s growing relevance. CFO Tim Yarbrough emphasized the importance of maintaining financial discipline while accelerating investments in high‑return verticals, underscoring confidence in the company’s long‑term trajectory.
The results suggest that ZipRecruiter is stabilizing its top line and positioning itself for a return to year‑over‑year growth. The continued emphasis on AI and enterprise adoption, coupled with disciplined cost management, supports the company’s long‑term goal of achieving 30% adjusted EBITDA margin, even as it navigates ongoing headwinds from a soft labor market.
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