Ziprecruiter Inc

ZipRecruiter reported second-quarter revenue of $118.1 million, up 5% year over year and exceeding guidance by about $6 million, while adjusted EBITDA reached $14.6 million for a 12% margin. Net income was $43.4 million, aided by a gain from the discounted repurchase of $294.6 million of senior notes for $229.4 million, retiring more than half of the outstanding debt. Quarterly paid employers grew 7% to over 70,000, though revenue per paid employer dipped 1% to $1,669. Product improvements drove a 34% sequential increase in qualified applications and doubled employer response rates, and the company raised its second-half outlook to low-single-digit revenue growth with third-quarter revenue expected at $121 million at the midpoint.

ZipRecruiter, Inc. reported a second-quarter loss of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.06 per share and improving from a loss of $0.10 per share a year ago. Revenue came in at $118.06 million, surpassing the consensus estimate by 5.41% and up from $112.23 million in the prior-year quarter. The company has exceeded consensus earnings per share estimates in each of the last four quarters and topped revenue estimates three times over that period. Shares have gained about 15.1% year to date, outperforming the S&P 500's 13% advance. The current Zacks Rank for ZipRecruiter is #3 (Hold), with consensus estimates for the coming quarter at a loss of $0.01 per share on $115.65 million in revenue.

ZipRecruiter has appointed Carmen Chan as its new chief financial officer, effective August 17, 2026. Chan joins from Barclays, where she was a managing director advising technology and internet companies. Dave Travers will remain president but will step down as interim CFO once Chan assumes the role.

Zacks Investment Research identifies UL Solutions, Willdan Group, and ZipRecruiter as three business services stocks well-positioned for near-term growth amid a prospering industry driven by AI adoption and strong service activities. The Zacks Business-Services industry, which carries a Zacks Industry Rank of 108, has underperformed the broader market over the past year, declining 34.1% compared to the S&P 500's 23.9% gain, and currently trades at a forward price-to-earnings ratio of 13.31. UL Solutions is expanding its global platform with new testing facilities and AI-powered software, with its 2026 consensus earnings estimate rising 3.2% to $2.26 per share. Willdan Group has secured multiple contracts including a $100 million extension with Southern California Edison and a $54 million modernization project, and its recent acquisition of Burton Energy Group is expected to boost 2026 earnings, with the consensus estimate increasing 8.3% to $4.94 per share. ZipRecruiter is enhancing its AI-powered hiring tools and resume database, and its 2026 consensus loss per share has narrowed by 50% to 8 cents.

ZipRecruiter shares have surged 100% over the past 12 weeks and 25.4% in the last four weeks, yet the stock remains attractively priced at 0.74 times sales. The company carries a Momentum Score of B and a Zacks Rank #2 (Buy), supported by upward earnings estimate revisions. With a beta of 1.43, the stock has moved 43% more than the market in either direction, reflecting fast-paced momentum. Analysts note that despite the rapid price appreciation, the valuation suggests room for further gains.

ZipRecruiter has entered into privately negotiated agreements to repurchase approximately $295 million in principal amount of its 5% senior unsecured notes due 2030 for about $230 million, capturing a $65 million discount to par value. The transactions will be paid in cash from the company's balance sheet and are closing on a rolling basis, with final closings expected by June 30, 2026. Following the repurchases, roughly $255 million of the originally issued $550 million in notes will remain outstanding, continuing to accrue interest at 5% per annum and maturing in January 2030. CEO Ian Siegel said the move retires over half of the outstanding debt at a significant discount, reducing the debt burden while preserving a strong cash position and enhancing financial flexibility.