ZIPRECRUITER, INC. (ZIP) Stock Analysis
ZIPRECRUITER, INC.
▾ What's in the 72/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). See the Financial Health section for the full balance-sheet read.
How to read ZIP (pre-profit growth)
This company is reinvesting instead of generating profit, so a standard DCF cannot price it. The useful question is whether the growth the market is paying for is achievable — and whether the company can fund itself until then.
-
1
Reverse-DCF — the growth the price demands ↓
It shows exactly how fast the business must grow to justify today's price. Compare that to what comparable companies have actually achieved.
-
2
Cash runway ↓
Can it reach profitability before it has to raise money and dilute shareholders?
-
3
Interactive calculator ↓
Set your own growth + margin assumptions and see what the business would be worth if you are right.
Is now a good time to buy ZIP?
Macro: Neutral / mid-cycleZIP trades at $3.86 vs an estimated intrinsic value of $2.54 — a +51.9% premium to model IV.
Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.
What return would ZIP pay as a bond?
Not measurable here. Pre-profit: the coupon is projected, not earned. An equity bond needs a coupon that exists today. See the cross-company ranking →
What growth must the market believe? Reverse DCF — Instead of asking "what is this stock worth?", asks "what growth rate is the current market price already assuming?"
Why it matters: It crystallizes the bull thesis as a single number you can argue with. If the market expects 40% growth for 10 years and you do not believe that, the stock is overvalued.
Reference: 10–15% = sustainable for strong companies · 20–25% = exceptional · 30%+ = historically very rare
Traditional DCF asks "what is this stock worth?" Reverse DCF flips it: it treats today's price as correct and solves for the growth rate that justifies it. In plain terms — if our model is right about everything else, the company's cash flow would have to grow (or shrink) by this much every year for the next 10 years for today's price to make sense. If that required growth looks unrealistic, the price is stretched; if it looks easy to beat, the price may be cheap.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation → must grow at:
▾ Exactly how this 10-year figure is computed
Forecast length: 10 years, single flat growth rate (no fade)
Terminal growth after year 10: 1.6%
Discount rate: 15.9% (the rate the model used)
Price used: $3.86 — the live price shown on this page (not frozen)
Method: solve for the constant annual growth rate that makes the discounted 10-year FCF stream + terminal value equal today's price.
Within range of what a quality mature business can sustainably deliver. Not demanding.
For reference: Reasonable — sustainable for a quality business over time.
▾ How we computed this · Reality check thresholds · Assumptions
- Starting FCF/share: $0.31 (projected from revenue × terminal margin)
- Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation →: 15.9% — standard 8-12%; 9-10% matches S&P 500 historical return - Terminal Growth RateTerminal Growth Rate — The growth rate we assume the company holds forever, after the explicit 10-year forecast period ends.
Why it matters: It anchors the long-tail value. Cannot mathematically exceed long-term GDP growth or the company eventually becomes larger than the global economy.
Reference: 2–3% (matches long-term US GDP growth) · Above 4% is mathematically problematic
Full explanation →: 1.6% — matches long-term GDP growth - Forecast horizon: 10 years explicit + terminal perpetuity
| ≤ 0% | Priced for decline — likely undervalued OR dying business |
| 5-12% | Reasonable; sustainable for quality businesses |
| 12-18% | Demanding — strong execution required |
| 18-25% | Exceptional — few companies sustain for a decade |
| 25-35% | Heroic — historically very rare |
| 35%+ | Borderline impossible at scale |
Sustaining 30%+ cash-flow growth for a full decade at scale is exceedingly rare — the bar is brutally high.
Use the interactive calculator below to change the discount rate, growth and terminal-growth assumptions and watch the value move.
Football field: where does the price sit?
Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.
Industry multiples sourced from: industry similar to Software. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
How does ZIP stack up against its closest peers?
We take the 5 same-industry companies most similar to ZIP (similar size) and check what investors are paying for each dollar of their revenue (or profits). If ZIP is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 5 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| SMWB | SIMILARWEB LTD. | Software & IT Services | $361M | 1.3x | 1.6x | — | 19.5% |
| SVREW | SaverOne 2014 Ltd. | Software & IT Services | $330M | — | — | — | — |
| RZLVW | REZOLVE AI PLC | Software & IT Services | $313M | 178.7x | — | — | 0.6% |
| YALA | Yalla Group Ltd | Software & IT Services | $393M | 1.1x | — | 3.2x | 31.9% |
| NEXN | Nexxen International Ltd. | Software & IT Services | $473M | — | — | — | — |
| YYAI | AIRWA INC. | Software & IT Services ·fallback | $495M | 38.6x | 50.3x | 75.2x | 1.2% |
| PUBM | PubMatic, Inc. | Software & IT Services ·fallback | $549M | 1.9x | 3.1x | — | 5.2% |
| HUYA | HUYA Inc. | Software & IT Services ·fallback | $563M | 0.6x | 4.5x | — | 19.7% |
Bankruptcy + quality screens
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Distress zone under the classic Altman thresholds — scores here have historically preceded a high rate of financial distress within ~2 years. This is a warning signal, not a direct bankruptcy probability, and its reliability varies by industry. Be very skeptical of any "cheap" valuation on this name.
The classic Z-score was calibrated on manufacturers. It is less reliable for asset-light or non-manufacturing businesses (broadcasters, media, software, services) and not applicable to banks, REITs, or insurers — for those the coefficients and the asset-turnover term distort the result. Read it as one screening input, not a verdict.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
▾ The checks — what passed, what didn't (and what we couldn't measure)
-
✗ Positive net incomeNet income -$33.0M in FY2025.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
-
✓ Positive operating cash flowOperating cash flow $11.0M (was $45.7M the prior year).
-
✓ Cash flow backs up reported profitOperating cash flow $11.0M vs net income -$33.0M.
-
✗ Return on assets improvingReturn on assets -5.8% vs -1.9% a year ago.Why this matters: Is the company squeezing more profit out of each dollar of assets than last year? Rising = getting more efficient; falling = the opposite.
-
✗ Debt load (vs assets)Long-term debt is 95.6% of assets vs 81.9% a year ago ($544.8M of $569.7M assets).Why this matters: Rising debt relative to assets means more risk and more cash going to interest instead of shareholders. Falling debt is a sign of strengthening.
-
✗ Short-term liquidity (current ratio)Current ratio 6.33x vs 6.66x a year ago.Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
-
✓ Share count (dilution)Share count declined 8.8% (98.6M → 89.9M year-over-year), so the no-dilution check passed. (One-year change; the multi-year buyback pace can differ.)
-
✗ Pricing power (gross margin)Gross margin 89.2% vs 89.4% a year ago.Why this matters: Rising gross margin means stronger pricing power or lower input costs — a sign of competitive strength. Falling margin signals pressure.
-
✓ Sales per asset (asset turnover)Asset turnover 0.79x vs 0.71x a year ago.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 15.9%, the figure our model used for ZIP. Open Advanced to also change beta, growth and the rate path.
Note: the calculator opens at our published value of $2.54 — it is initialised to the same scenario-weighted result, so the two match exactly on load. The moment you move a slider, the value below becomes a single-path what-if at your assumptions (not the three-scenario weighting), which is why it can differ from the headline once you've touched it.
15.9% — beta-based (CAPM), from this stock's BetaBeta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation → of 2.07. The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
12.0% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 15.9% — the beta-based rate. Drag the slider to the other rate to see the full range.
+51.9%
At the default assumptions the flat path lands near our published value of $2.54. Move any slider to recompute it with your own.
Move any slider above to recompute this against your own assumptions.
⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
ZipRecruiter is overvalued by 27.5% according to the model, which prices its cash flows based on a 2.0% modeled growth. The market is paying a premium for this stock despite revenue declining at -11.8%/yr over four years and negative net income in the latest period. The market may be assigning value to potential future platform enhancements or expansion into new talent acquisition technologies, which are not in the model. The #1 quantifiable risk is the -11.8%/yr revenue decline.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Quarterly revenue growth rate
- Net income turning consistently positive
- Trends in long-term debt
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue fell -5% to $449.0M.
- Free cash flow is negative at -$37.8M — the cash burn widened vs last year.
- Still unprofitable at -$33.0M — loss widening.
Nothing was clearly improving year-over-year.
Roughly flat: Gross margin held to 89% (0 pts).
Management & Leadership
Ian Siegel is the CEO and co-founder of ZipRecruiter, having led the company since its inception in 2010. He has been instrumental in scaling the platform from a job board to a comprehensive employment marketplace. The company's leadership has focused on leveraging AI to match job seekers with employers.
What They Make
ZipRecruiter operates an online employment marketplace that connects job seekers with employers. It provides AI-powered matching technology to streamline the hiring process for businesses and job search for individuals.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The market prices ZipRecruiter at a premium of +27.5% to the model, likely paying for perceived future growth or quality not fully captured by the backward-looking model. This optimism persists despite a significant revenue decline of -11.8%/yr over four years, possibly due to the company's consistent positive operating cash flow over five years. The market may be assigning value to potential network effects from its platform or future monetization strategies for its user base, which are not in the model.
Three Scenarios, Weighted
| Scenario | IV | Upside from today's price | Weight |
|---|---|---|---|
| Conservative | $2.15 | -44.3% | 40% |
| Base | $2.60 | -32.6% | 35% |
| Optimistic | $3.08 | -20.3% | 25% |
| Weighted | $2.54 | -34.2% | 100% |
Reading the last column: it is the move from today's price to each value (IV ÷ price − 1). The headline "premium/discount to model IV" measures the same gap from the value's side (price ÷ IV − 1), so the two percentages differ in size and sign by construction — e.g. a price 8% above value is a value 7.4% below price.
Business Model & Valuation
How They Make Money
Growth / Revenue DCF Medium
Negative free cash flow: revenue/margin growth model used - standard FCF DCF is unreliable for companies still scaling.
Show advanced inputs
| Revenue Growth | 2.0% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project product, services and recurring/cloud lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue is declining at -11.8%/yr over four years, from $741M to $449M.
Geography & Markets
ZipRecruiter is headquartered in the US and primarily operates in the North American market, though it has some international presence. Specific geographic mix percentages are not available from current data sources.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)52.7NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (5 notes — click to expand/collapse)
Guardrail Notes (3)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- Terminal growth (3%) capped to 1.6% (80% of near-term growth 2%).
- Illiquidity discount 15% applied (small/micro-cap — harder to exit, demand a margin).
FINANCIALS
Financial Statements (5-year tables — click to expand)
From ZIPRECRUITER, INC.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 449.0M | -33.0M | $-0.37 |
| 2024 | 474.0M | -12.9M | $-0.13 |
| 2023 | 645.7M | 49.1M | $0.46 |
| 2022 | 904.6M | 61.5M | $0.51 |
| 2021 | 741.1M | 3.6M | $0.02 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 11.0M | 1.1M | 47.6M | -37.8M |
| 2024 | 45.7M | 922,000 | 64.4M | -19.6M |
| 2023 | 103.2M | 918,000 | 84.2M | 18.0M |
| 2022 | 128.8M | 2.7M | 77.0M | 49.2M |
| 2021 | 144.1M | 6.1M | 107.3M | 30.8M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 11.0M − 1.1M − 47.6M (SBC & adj.) = -37.8M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 569.7M |
| Total Liabilities | 646.9M |
| Equity | -77.2M |
| Total Debt | 544.8M |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.