ZipRecruiter Launches ChatGPT App for AI-Powered Job Discovery Share Job seekers can now explore relevant opportunities directly inside of ChatGPT ZipRecruiter launches ChatGPT app for AI-powered job discovery. Job seekers can now explore relevant opportunities directly inside of ChatGPT. SANTA MONICA, Calif.--(BUSINESS WIRE)-- ZipRecruiter®(NYSE: ZIP), a leading online employment marketplace, is bringing job search directly into ChatGPT with the launch of the new ZipRecruiter app for ChatGPT. ZipRecruiter ...

Core Viewpoint - ZipRecruiter, Inc. (ZIP) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade for ZipRecruiter reflects an improved earnings outlook, likely leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - For the fiscal year ending December 2026, ZipRecruiter is expected to earn -$0.16 per share, unchanged from the previous year, but analysts have raised their estimates by 56.9% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - ZipRecruiter's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Q4 2025 revenue reached $112 million, representing a 1% year-over-year growth, marking the first quarter of year-over-year growth since Q3 2022 [12][19] - Adjusted EBITDA in Q4 2025 was $16.2 million, equating to a margin of 15%, an increase from 13% in Q4 2024 and 8% in Q3 2025 [21] - Cash, cash equivalents, and marketable securities totaled $409.1 million as of December 31, 2025 [22] Business Line Data and Key Metrics Changes - Performance marketing revenue increased by 9% year-over-year in Q4 2025, up from 5% growth in Q3 2025 [17] - The number of quarterly paid employers was over 59,000 in Q4, up 2% year-over-year but down 12% sequentially [19][20] - Revenue per paid employer was $1,889, down 2% year-over-year but up 10% sequentially [21] Market Data and Key Metrics Changes - Job openings declined by 10% year-over-year, indicating a soft hiring demand in Q4 2025 [6][35] - The hiring demand in Q1 2026 has shown signs of recovery, with paid employer trends rebounding year to date [7] Company Strategy and Development Direction - The company launched "Be Seen First," a product aimed at enhancing job seekers' visibility to employers, which has shown promising results [5][14] - The focus remains on leveraging AI technology to improve hiring processes and enhance user engagement [10][60] - The company is committed to maintaining a strong balance sheet and pursuing growth opportunities while managing costs effectively [24][46] Management's Comments on Operating Environment and Future Outlook - Management noted that the current labor market trends are primarily driven by economic factors rather than technology-driven automation [9] - The company expects hiring demand to follow a typical seasonal cadence in 2026, albeit at subdued levels, with a forecast of flat year-over-year revenue [8][23] - Management expressed confidence in the long-term growth opportunities despite the current macroeconomic challenges [24] Other Important Information - The CFO, Tim Yarbrough, announced his departure after over a decade with the company, with David Travers stepping in as interim CFO [10][11] - The company has invested over $1 billion in building its brand and technology, positioning itself for future growth [9] Q&A Session Summary Question: Demand environment characterization between large enterprises and SMBs - Management observed a slowdown in SMB demand during the holiday period but noted a rebound in early 2026, indicating a stable demand environment moving forward [27][30] Question: Traffic performance from LLMs - Management indicated that while LLM traffic is growing, traditional sources still dominate in terms of engagement and conversion [38] Question: Growth cadence throughout the year - Management expressed confidence in a gradual improvement in growth, driven by enterprise performance and operational improvements [43][44] Question: Capital allocation strategy - The company prioritizes organic growth, followed by M&A opportunities, and then returning capital to shareholders, including stock repurchases [45][46]

Financial Data and Key Metrics Changes - Q4 2025 revenue reached $112 million, representing a 1% year-over-year growth, marking the first year-over-year growth since Q3 2022 [13][20] - Adjusted EBITDA in Q4 2025 was $16.2 million, equating to a margin of 15%, higher than 13% in Q4 2024 and 8% in Q3 2025 [22] - Cash, cash equivalents, and marketable securities totaled $409.1 million as of December 31, 2025 [23] Business Line Data and Key Metrics Changes - Performance marketing revenue increased by 9% in Q4 2025, up from 5% growth in Q3 2025, driven by enterprise-focused strategies [18] - The number of quarterly paid employers was over 59,000 in Q4, a 2% increase year-over-year but a 12% decrease sequentially, consistent with historical seasonal patterns [21] Market Data and Key Metrics Changes - Job openings declined by 10% year-over-year in Q4 2025, reflecting a soft hiring demand [6][9] - The company noted that hiring demand in Q4 2025 was below normal seasonal expectations, with a notable slowdown in SMB demand [28] Company Strategy and Development Direction - The company launched "Be Seen First," a product aimed at enhancing job seekers' visibility to employers, which has shown promising results [6][15] - ZipRecruiter is focused on leveraging AI technology to improve hiring processes and enhance user engagement, with significant investments made in AI-driven features [10][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging macroeconomic environment, expecting flat year-over-year revenue in 2026 compared to a 5% decline in 2025 [8][25] - The company anticipates Adjusted EBITDA margins to expand by 5 percentage points in 2026, reflecting cost discipline and targeted investments [25] Other Important Information - Tim Yarbrough, the CFO, announced his departure after over a decade with the company, with Dave Travers stepping in as interim CFO [11][12] - The company has initiated a search for a permanent CFO to ensure a seamless transition [12] Q&A Session Summary Question: Demand environment characterization between large enterprises and SMBs - Management noted a slowdown in SMB demand during Q4 but observed a rebound in early Q1 2026, indicating a stable overall macro environment [28][29] Question: Clarification on Q4 slowdown and Q1 recovery - Management explained that the Q4 slowdown was consistent with government job openings data, while the Q1 recovery is starting from a lower baseline due to the holiday period [34][52] Question: Traffic behavior from LLMs and its impact - Management indicated that while LLM traffic is growing, traditional sources still dominate in terms of engagement, but LLMs are becoming an important part of the traffic mix [37][38] Question: Growth cadence throughout the year and capital allocation - Management expressed confidence in growth acceleration based on year-to-date trends and enterprise performance, while also prioritizing organic growth and potential M&A opportunities in capital allocation [44][46]

Financial Data and Key Metrics Changes - Q4 2025 revenue reached $112 million, representing a 1% year-over-year growth, marking the first quarter of year-over-year growth since Q3 2022 [12][19] - Adjusted EBITDA in Q4 2025 was $16.2 million, equating to a margin of 15%, an increase from 13% in Q4 2024 and 8% in Q3 2025 [20] - Cash, cash equivalents, and marketable securities totaled $409.1 million as of December 31, 2025 [21] Business Line Data and Key Metrics Changes - Performance marketing revenue increased by 9% year-over-year in Q4 2025, up from 5% growth in Q3 2025 [17] - The number of quarterly paid employers was over 59,000 in Q4 2025, a 2% increase year-over-year but a 12% decrease sequentially [19] - Revenue per paid employer was $1,889, down 2% year-over-year but up 10% sequentially [20] Market Data and Key Metrics Changes - Job openings declined by 10% year-over-year, indicating a soft hiring demand in Q4 2025 [5][34] - Despite the overall hiring slowdown, healthcare remained resilient while retail, food service, and education showed weakness [34] Company Strategy and Development Direction - The company launched "Be Seen First," a product aimed at enhancing job seekers' visibility to employers, which has shown promising results [5][13] - The focus remains on leveraging AI technology to improve matching processes and enhance user experience, with significant investments made in this area [10][61] - The company aims to achieve flat year-over-year revenue in 2026, with a targeted expansion of Adjusted EBITDA margins from 9% in 2025 to 14% in 2026 [8][24] Management's Comments on Operating Environment and Future Outlook - Management noted that hiring demand in Q4 2025 was below normal seasonal expectations, but trends in early Q1 2026 have shown improvement [6][28] - The company believes that economic factors, rather than AI displacement, are primarily driving current labor market trends [9] - Management expressed confidence in the company's ability to navigate the current labor market and capitalize on growth opportunities [24] Other Important Information - The CFO announced his departure after over a decade with the company, with the President stepping in as interim CFO [10][11] - The company has initiated a search for a permanent CFO to ensure a seamless transition [11] Q&A Session Summary Question: Characterization of employer demand environment - Management observed a slowdown in SMB demand during Q4 but noted a rebound in early Q1 2026, with SMB demand appearing slightly better than the previous year [26][28] Question: Traffic from LLMs and its impact - Management indicated that while LLM traffic is growing, traditional sources still dominate in terms of engagement and conversion [36][37] Question: Growth cadence throughout the year - Management expects Q1 to be a low point, with gradual improvement anticipated as the year progresses, driven by enterprise performance [41][43] Question: Capital allocation strategy - The company prioritizes organic growth, followed by M&A opportunities, and then return of capital, including stock repurchases [45][46] Question: Changes in employer candidate sourcing - Management confirmed that while resumes remain important, new features like "Be Seen First" are allowing candidates to express enthusiasm and stand out in the application process [49][55]

1 Proprietary and Confidential. © 2026 ZipRecruiter, Inc. All Rights Reserved. Legal Notice This presentation has been prepared by ZipRecruiter, Inc. ("we," "us," "our," the "Company," or "ZipRecruiter"). The information set forth herein does not purport to be complete or to contain all relevant information. Statements contained herein are made as of February 25, 2026 unless stated otherwise. CORPORATE PRESENTATION February 2026 This presentation contains "forward-looking" statements within the meaning of t ...

Revenue and Profitability - Total revenue for the year ended December 31, 2025, was $449.0 million, with subscription revenue at $345.2 million and performance-based revenue at $103.8 million[378]. - Total revenue for 2025 was $448.952 million, a decrease of 5.3% from $474.001 million in 2024[386]. - Gross profit for 2025 was $400.680 million, down from $423.851 million in 2024, reflecting a gross margin of approximately 89.2%[386]. - The company reported a net loss of $32.994 million for 2025, compared to a net loss of $12.854 million in 2024[388]. - Basic net loss per share for 2025 was $(0.37), compared to $(0.13) in 2024[386]. - Total comprehensive loss for 2025 was $(33.018) million, compared to a loss of $(12.811) million in 2024[388]. - Net income for 2023 was $49,098,000, a significant increase compared to a net loss of $12,854,000 in 2024 and a net loss of $32,994,000 in 2025[394]. Revenue Breakdown - Subscription revenue includes time-based job posting plans and upsells, with contracts typically subject to renewal and nonrefundable[378]. - Performance-based revenue is generated from customers paying per click for job postings, with campaigns lasting from one to three months[379]. - Subscription revenue for 2025 was $345,155,000, down from $369,823,000 in 2024 and $508,384,000 in 2023, while performance-based revenue was $103,797,000 in 2025[512]. Expenses and Liabilities - Operating expenses totaled $420.038 million in 2025, slightly decreased from $422.589 million in 2024[386]. - Total liabilities were $646.944 million in 2025, slightly down from $650.630 million in 2024[384]. - Cash and cash equivalents decreased to $188.028 million in 2025 from $218.432 million in 2024[384]. - The company incurred a net loss of $32,994,000 in 2025, following a net loss of $12,854,000 in 2024 and a net income of $49,098,000 in 2023[394]. Cash Flow and Investments - Cash provided by operating activities was $10,958,000 in 2025, down from $45,735,000 in 2024 and $103,192,000 in 2023[394]. - The company maintains an investment portfolio of highly rated debt securities and money market mutual funds to manage excess cash reserves[450]. - The total available-for-sale debt securities amounted to $228.7 million, with $210.1 million due within 1 year[523]. Stock and Shareholder Information - The company repurchased common stock totaling $102,105,000 in 2025, compared to $40,346,000 in 2024 and $147,565,000 in 2023[394]. - The Company has a share repurchase program that reduces outstanding shares and impacts earnings per share calculations[485]. - The weighted average shares outstanding for basic net income (loss) per share were 89.867 million in 2025, down from 98.588 million in 2024 and 100.730 million in 2023[493]. Intellectual Property and Risk Management - The company owns one U.S. patent and has three U.S. and 20 international trademark registrations for the trademark "ZIPRECRUITER" as of December 31, 2025[57]. - The company maintains strict access control procedures and confidentiality agreements to protect trade secrets and proprietary information[58]. - The company is exposed to foreign currency risk primarily related to expenses in Canadian Dollar, British Pound, and Israeli New Shekel[364]. Acquisitions and Goodwill - The company acquired Breakroom on July 23, 2024, measuring certain assets and liabilities at fair value[405]. - As of December 31, 2023, the carrying amount of the Company's goodwill was $1.7 million, increasing to $8.5 million by December 31, 2024, following the acquisition of Breakroom[480]. - The fair value of consideration transferred for the acquisition of Breakroom was $13.3 million, consisting of $12.4 million in cash and a liability of $0.9 million[498]. Tax and Regulatory Information - The company’s total income taxes paid in 2025 included $4,061,000, with significant contributions from jurisdictions such as the United Kingdom and New York State[394]. - The Company evaluates deferred tax assets for realizability and establishes a valuation allowance if realizability is not likely[448]. Future Commitments and Projections - Future minimum commitments related to hosting service agreements total $15.2 million for 2026 and $13.3 million for 2030 and beyond[550]. - The company is evaluating the effects of new accounting standards updates, including ASU 2024-03 and ASU 2025-06, on its consolidated financial statements[487][490].

Revenue Performance - Q4'25 revenue reached $111.7 million, representing a 1% year-over-year growth, marking the first quarter of year-over-year growth since Q3'22[27]. - Full year revenue for 2025 was $449.0 million, reflecting a 5% decline year-over-year[12]. - Revenue for Q4'25 was $111.7 million, up 1% year-over-year and down 3% quarter-over-quarter, marking the first year-over-year growth since Q3'22[51]. - Total revenue for Q4 2025 was $111,673, a slight increase of 0.6% compared to $111,020 in Q4 2024[84]. - Q1'26 revenue guidance is $106 million at the midpoint, reflecting a 4% year-over-year decline and a 5% sequential decline[73]. Profitability Metrics - Adjusted EBITDA for Q4'25 was $16.2 million, with an Adjusted EBITDA margin of 15%[27]. - Adjusted EBITDA for Q4 2025 was $16,224, representing an increase of 12.0% from $14,389 in Q4 2024[86]. - Net loss in Q4'25 was $(0.8) million, improving from a net loss of $(10.8) million in Q4'24, with an adjusted EBITDA of $16.2 million and a margin of 15%[67]. - Gross profit for Q4'25 was $99.5 million, flat year-over-year and down 3% sequentially, with a gross margin of 89%[56]. - Gross profit for the year ended December 31, 2025, was $400,680, down 5.5% from $423,851 in 2024[84]. Operating Expenses - Total operating expenses for Q4'25 were $95.5 million, down from $103.5 million in Q4'24, primarily due to lower stock-based compensation[59]. - Operating expenses decreased to $95,534 in Q4 2025 from $103,532 in Q4 2024, reflecting a reduction of 7.5%[84]. - The company reported a stock-based compensation expense of $9,347 in Q4 2025, down from $15,200 in Q4 2024[86]. - GAAP sales and marketing expense for Q4 2025 was $51,423,000, a decrease from $54,723,000 in Q4 2024[88]. - GAAP research and development expense for Q4 2025 was $28,350,000, down from $31,740,000 in Q4 2024[88]. Employer Metrics - Quarterly Paid Employers increased to 59.1K in Q4'25, up 2% year-over-year, despite a 12% sequential decline due to seasonal hiring patterns[30]. - Quarterly Paid Employers reached 59,104 in Q4'25, up 2% year-over-year but down 12% sequentially, indicating stability despite macroeconomic volatility[52]. - Revenue per Paid Employer for Q4'25 was $1,889, down 2% year-over-year but up 10% sequentially[55]. - The company defines Paid Employers as actively recruiting employers on a paid subscription plan, with Quarterly Paid Employers reflecting the count during the fiscal quarter[91]. Future Outlook - The company expects flat year-over-year revenue in 2026, compared to the 5% decline in 2025, with adjusted EBITDA margins projected to expand to 14%[17]. - The company expects flat year-over-year revenue in 2026, with adjusted EBITDA margins projected to expand by 5 percentage points to 14%[74]. Investments and Innovations - The company invested over $1 billion in technology and brand development to enhance its market position and drive future growth[20]. - The new product "Be Seen First" enables job seekers to move to the top of employer candidate lists, resulting in candidates being nearly 2x more likely to engage in conversations with employers[14][35]. - Job seeker visits from generative AI engines more than doubled year-over-year in Q4'25, indicating strong platform optimization[36]. - Enhancements to the Resume Database increased employer engagement by 66%, with a higher unlock rate for candidates with recent activity labels[43]. - Enterprise ZipIntro sessions increased by 17% sequentially in Q4'25, reflecting strong adoption of the AI-powered hiring solution[41]. Financial Position - Cash and cash equivalents decreased to $188,028 at the end of Q4 2025 from $218,432 at the end of Q4 2024, a decline of 13.9%[85]. - Total current assets decreased to $448,851 in 2025 from $543,673 in 2024, a reduction of 17.5%[83]. - Total liabilities slightly decreased to $646,944 in 2025 from $650,630 in 2024[83]. - Total fully diluted shares outstanding as of December 31, 2025, were 92,217,000, comprising 71,372,000 Class A common shares and 13,030,000 Class B common shares[89]. Non-GAAP Financial Measures - Non-GAAP cost of revenue for Q4 2025 was $11,128, compared to $10,340 in Q4 2024, an increase of 7.6%[87]. - Non-GAAP cost of revenue excludes stock-based compensation and depreciation, providing a clearer view of operational costs[92]. - Adjusted EBITDA is calculated as net income before interest, taxes, and depreciation, adjusted for stock-based compensation, serving as a key performance metric[93]. - Management utilizes non-GAAP financial measures for planning and evaluating strategic initiatives, emphasizing their importance in assessing operational performance[94]. - Non-GAAP financial measures should not be viewed in isolation from GAAP results, as they provide supplemental insights into the company's performance[95].

Core Insights - Zip's U.S. business reported a revenue growth of 46.4%, driven by a strong holiday trading period, marking the highest transaction volumes in its history [2] - Despite the revenue growth, Zip's share price fell to its lowest in 11 years due to expectations of flat cash earnings for the second half of the financial year, which were about 3% lower than analyst estimates [3] Company Performance - The company experienced significant growth in the U.S. market, with a notable increase in transaction volumes during the holiday season [2] - However, the growth was tempered by weaker-than-expected net transactions and a decline in new American customer additions, leading to an increase in net bad debts [3] Industry Trends - The buy now, pay later (BNPL) sector is evolving from a checkout feature to a regular line item in household budgets, indicating a shift in consumer behavior [7] - A study indicated that 31% of consumers used credit card installment plans and 14% used BNPL in the previous three months, highlighting the growing acceptance of these payment methods [9] - Among consumers living paycheck to paycheck, 36% reported using credit card installment plans, while 18% used BNPL, suggesting that these tools are becoming essential for managing cash flow [10]

Market Overview - The Australian sharemarket closed flat on February 10, 2026, with the S&P/ASX 200 ending 2.7 points lower at 8,867.40 after a 1.9% rally the previous day [1][9] - The index is currently 2.72% below its 52-week high and has shown virtually no change over the last five days [2][9] Sector Performance - Financials sector declined by 1.1%, primarily due to significant losses in insurance companies [2][9] - 8 out of 11 sectors ended higher, with Information Technology being the best-performing sector, gaining 2.14% [5][9] - Miners advanced by 1% on the back of higher iron ore prices, with BHP Group rising 1.1% and Rio Tinto gaining 1.4% [5][9] Top Gainers - Silex Systems Limited (SLX) led the day's gains, closing at $7.240, up $0.560 or 8.383% [3][9] - Other notable gainers included DroneShield Limited (DRO) up 7.301%, Deep Yellow Limited (DYL) up 7.142%, Zip Co Limited (ZIP) up 6.072%, and Superloop Limited (SLC) up 5.579% [3][9] Bottom Performers - Steadfast Group Limited (SDF) and Insurance Australia Group Limited (IAG) were the bottom performers, down 9.46% and 6.19% respectively [2][9] - AUB Group Limited (AUB) fell by 6.115%, while CSL Limited (CSL) and Suncorp Group Limited (SUN) also experienced declines of 4.979% and 4.237% respectively [2][9] Individual Stock Highlights - Treasury Wine Estates shares rose by 8.1% after resolving a dispute with U.S. distributor Republic National Distributing Company [7][9] - Gold stocks increased by 1.3%, with Genesis Minerals up 2.8% and St Barbara rising 4.4% [6][9] - Energy stocks advanced by 0.6%, with uranium miners Deep Yellow and Paladin Energy up 7.1% and 5.5% respectively [7][9]