ZipRecruiter(US:ZIP)2026-02-25 21:13Revenue 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].