ZipRecruiter Raises Full-Year Outlook After Revenue Beat

The Tip Desk · November 9, 2026 · 4 min read

Third-quarter revenue was $124.4 million, above the $118 million to $124 million range, and the company now sees 4% to 5% full-year growth.

ZipRecruiter (ZIP), the online employment marketplace, reported third-quarter revenue of $124.4 million, up 8% from a year earlier and above the high end of its $118 million to $124 million guidance range.

That year-over-year pace accelerated from 5% growth in the second quarter, when revenue was $118.1 million. Revenue also rose 5% from the prior quarter.

Adjusted EBITDA was $20.8 million, or a 17% margin, compared with $14.6 million and a 12% margin in the second quarter. The Adjusted EBITDA margin expanded 9 percentage points from a year earlier. Both revenue and Adjusted EBITDA came in above the high end of the ranges issued on August 5.

Net income was $5.1 million, or a 4% margin. Second-quarter net income of $43.4 million had included a gain on debt extinguishment from a June 2026 partial repurchase of 5% senior unsecured notes due 2030. On a year-over-year basis, the company said net income increased primarily due to higher revenue and lower operating expenses.

The company said the year-over-year and quarter-over-quarter revenue increases were driven primarily by a higher number of Quarterly Paid Employers and increased job-posting activity from product improvements that lifted engagement on both sides of the marketplace. Quarterly Paid Employers ended the quarter at 73,929, up 10% year-over-year and 5% quarter-over-quarter, the highest count since the third quarter of 2023.

Revenue per Paid Employer was $1,683, down 2% year-over-year and up 1% quarter-over-quarter. The company attributed the year-over-year decline primarily to faster growth in Quarterly Paid Employers than in the year-ago quarter, with some of those employers contributing revenue for only part of the period. The quarter-over-quarter increase was driven by performance-based revenue making up a higher mix of total revenue, rising from 24% in the second quarter to 25% in the third.

Performance-based revenue grew 13% year-over-year and 10% quarter-over-quarter. Enterprise adoption of automated campaign performance solutions increased 23% year-over-year. Gross profit was $111.8 million and gross margin rose to 90% from 89% in both the second quarter and the year-ago third quarter.

The company said U.S. hires and quits remained relatively flat year-over-year and quarter-over-quarter. It pointed to product work aimed at increasing conversations: qualified applications rose 49% quarter-over-quarter, after 34% quarter-over-quarter growth in the second quarter, and employer response rate per application tripled year-over-year. Job seekers who applied to at least one job grew 10% year-over-year.

Total operating expenses were $100.9 million, compared with $107.5 million a year earlier and $101.3 million in the second quarter. Sales and marketing expenses were $59.3 million, or 48% of revenue. Research and development expenses were $25.3 million, or 20% of revenue, which the company said reflected lower personnel-related expenses and stock-based compensation from reduced headcount. General and administrative expenses were $16.2 million.

Cash, cash equivalents and marketable securities were $174.7 million as of September 30, 2026. Operating cash flow for the three months ended September 30 was $15.3 million. The company repurchased 1.0 million shares for $4.5 million in the quarter; remaining authorization under its $750.0 million program was $107.3 million.

For the fourth quarter, ZipRecruiter expects revenue of $118 million to $122 million, or 6% to 9% year-over-year growth, and Adjusted EBITDA of $16 million to $20 million, or a 14% to 16% margin. It said the revenue outlook assumes product momentum from its conversations strategy continues, partially offset by a typical seasonal slowdown in hiring.

The updated full-year 2026 revenue outlook is 4% to 5% year-over-year growth, implying $468 million to $472 million, which the company said exceeds the flat revenue outlook it provided at the start of the year. Full-year Adjusted EBITDA is now expected at $61 million to $65 million, or a 13% to 14% margin, versus 9% in 2025.