ZipRecruiter Expects Q4 Revenue Growth Amid Q2 Paid Employer Increases

ZipRecruiter's Q2 2025 earnings report indicates likely year-over-year revenue growth due to sequential paid employer increases and AI-driven engagement. Quarterly paid employers grew 10% from Q4 2024 to Q1 2025 and another 4% in Q2 2025. CEO Ian H. Siegel highlighted the growth in paid employers, noting a decline in top-line revenue due to the company's transition to a subscription-based model.

ZipRecruiter, Inc. (ZIP) has reported its Q2 2025 earnings, showcasing encouraging signs of stabilization and growth. The company's quarterly paid employers, or QPEs, grew sequentially by 10% from Q4 2024 to Q1 2025 and another 4% in Q2 2025. This sequential growth in QPEs, now at 66,300, underscores the company's resilience in a challenging labor market.

CEO Ian H. Siegel highlighted that while the top-line revenue has declined due to the transition to a subscription-based model, the company's revenue for Q2 2025 grew by 2% sequentially to $112.2 million. This marks the first time since 2021 that revenue has grown from Q2 to Q3, according to the company's guidance. Siegel expressed confidence that a return to modest year-over-year revenue growth in Q4 is a likely scenario.

The company's financial results also indicated a net loss of $9.5 million for Q2 2025, compared to a net income of $7 million in Q2 2024 and a net loss of $12.8 million in Q1 2025. Adjusted EBITDA was $9.3 million, resulting in a margin of 8%. The company reported cash, cash equivalents, and marketable securities of $421.2 million as of June 30, 2025, and repurchased 10.2 million shares for $56.5 million in Q2.

The earnings call also discussed the impact of AI-driven enhancements. The company's automated campaign optimization solution was nearly 20% more effective at achieving campaign targets in Q2 compared to the prior quarter. Additionally, there was a 58% quarter-over-quarter increase in site visits from generative AI engines.

The company's strategic focus remains on AI-driven enhancements and product adoption. CEO Ian H. Siegel stated, "we are well positioned to emerge from this period as a stronger company, poised to capture outsized market share with both employers and job seekers in the years ahead."

Overall, ZipRecruiter's Q2 2025 results indicate a positive trend in stabilization and growth, with the company's management expressing confidence in a return to modest year-over-year revenue growth in the fourth quarter.

References:
[1] https://seekingalpha.com/news/4483595-ziprecruiter-signals-likely-q4-year-over-year-revenue-growth-amid-sequential-paid-employer
[2] https://www.businesswire.com/news/home/20250810434172/en/ZipRecruiter-Announces-Second-Quarter-2025-Results