Executive Summary

Q3 2025 revenue was $115.0M, up 2% q/q and down 2% y/y; GAAP net loss was $(9.8)M (−9% margin) while Adjusted EBITDA was $9.2M (8% margin). Management cited enterprise-driven performance-based revenue (+12% q/q) and continued QPE momentum as key drivers .
Guidance: Q4 2025 revenue $109–$115M (midpoint $112M, +1% y/y; −3% q/q seasonality) and Adjusted EBITDA $11–$17M (10–15% margin); full-year 2025 implied Adjusted EBITDA margin ~9% (above prior mid-single-digit scenario) .
Versus S&P Global consensus, Q3 revenue slightly beat ($115.0M vs $113.9M*) and S&P “Primary EPS” beat (actual $0.01* vs $(0.15)*), though GAAP EPS remained negative; this non-GAAP vs GAAP divergence reflects add-backs underlying “Primary EPS” and Adjusted EBITDA methodology .
Strategic momentum: enterprise adoption of automated campaign optimization (+19% q/q), performance-based revenue mix increased to 24%, ZipIntro interviews/sessions +80% q/q, and job seeker visits from generative AI engines +140% q/q—all supportive of share gains into an eventual recovery .

Note: Asterisks (*) denote values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Enterprise traction accelerated: performance-based revenue +12% q/q, largest sequential growth in 3+ years; enterprise adoption of automated campaign optimization +19% q/q .
- Product-led engagement: ZipIntro interviews/sessions +80% q/q; SMB resume unlocks +11% q/q following RDB enhancements .
- New traffic channels: generative-AI-driven site visits +140% q/q; management emphasized multi-year investments and high brand awareness as traffic tailwinds .
- Quote: “Performance-based revenue grew 12% quarter over quarter, the most growth we've seen in the past three years.” — Ian Siegel, CEO .
What Went Wrong
- Top-line still below prior year: Q3 revenue −2% y/y; revenue per paid employer −4% y/y as hiring demand remains muted .
- Profitability under pressure y/y: Q3 net loss widened to $(9.8)M vs $(2.6)M in Q3’24; Adjusted EBITDA fell to $9.2M (8% margin) from $15.0M (13%) y/y, reflecting lower revenue and higher expenses .
- Macro headwinds: Management continues to see a “subdued” hiring environment, with quits and hires near cycle lows; Q4 guide assumes normal holiday seasonality and stable but muted demand .

Financial Results

Revenue, EPS, and Margins (quarters ordered oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$110.1	$112.2	$115.0
Diluted EPS (GAAP)	$(0.13)*	$(0.10)*	$(0.11)*
Net Income (Loss) ($M)	$(12.8)	$(9.5)	$(9.8)
Net Income Margin %	(12)%	(8)%	(9)%
Adjusted EBITDA ($M)	$5.9	$9.3	$9.2
Adjusted EBITDA Margin %	5%	8%	8%

Key Operating Metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Quarterly Paid Employers (count)	63,500	66,302	66,959
Revenue per Paid Employer ($)	—	$1,693	$1,717
Gross Margin %	—	89%	89%

Estimate Comparison (S&P Global)

Metric	Q3 2025 Consensus	Q3 2025 Actual	Surprise	Q4 2025 Consensus	Q4 2025 Guide (Company)
Revenue ($M)	$113.9*	$115.0	+$1.1	$112.2*	$109–$115 (mid $112)
Primary EPS ($)	$(0.15)*	$0.01*	+$0.16	$(0.08)*	N/A

Notes: Primary EPS reflects S&P Global “Primary EPS” methodology, distinct from GAAP diluted EPS. Values marked with * are retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q4 2025	N/A (directional: return to y/y growth discussed)	$109–$115 (mid $112; +1% y/y; −3% q/q)	New numeric range
Adjusted EBITDA ($M)	Q4 2025	N/A	$11–$17; margin 10–15%	New numeric range
FY Adjusted EBITDA Margin %	FY 2025	“Mid-single digits” scenario	~9% implied from Q4 midpoint	Raised

Earnings Call Themes & Trends

Topic	Q-2 (Q4 2024)	Q-1 (Q2 2025)	Current (Q3 2025)	Trend
Macro/Quits & Hires	Prolonged downturn; quits near cycle lows; cautious optimism for 2025	Stabilization signs; broad-based QPE growth	“Stable but subdued”; Q4 seasonality embedded in guide	Stabilizing but muted
Enterprise strategy & programmatic optimization	180+ ATS integrations, product cadence highlighted	AI bidding model ~20% more effective q/q	Enterprise adoption +19% q/q; perf-based revenue +12% q/q	Accelerating traction
ZipIntro	Strong reception, faster time-to-first app	Sessions +90% q/q	Interviews/sessions +80% q/q	Sustained rapid adoption
Resume Database (RDB)	Next-gen RDB launched; double-digit adoption	AI features drove +12% unlocks q/q	SMB resume unlocks +11% q/q	Consistent adoption
GenAI traffic channel	Building AI/UX foundation; brand top-of-mind	AI engines +58% q/q visits	+140% q/q visits; quality on par with other channels	Rapidly growing channel
Breakroom (ratings)	US rollout began; 1,500+ pages	8,000 pages; 1M+ ratings	10,000+ profiles; 1M+ US ratings	Scaling content base

Management Commentary

“Performance-based revenue grew 12% quarter over quarter, the most growth we've seen in the past three years.” — Ian Siegel, CEO .
“Enterprise customer adoption of [our] automated campaign optimization solution increased 19% quarter-over-quarter.” — Dave/Ian (shareholder letter/call) .
“In Q3, we further optimized our website to help popular generative AI tools easily discover ZipRecruiter... site visits from generative AI engines increased by over 140% quarter-over-quarter.” — Management .
“Our Q4’25 revenue guidance of $112 million at the midpoint represents a 1% increase year-over-year... [and] implies a full-year Adjusted EBITDA margin of 9%.” — CFO .

Q&A Highlights

Enterprise/performance-based outperformance: sequential +12% cited as cumulative impact of ATS integrations and programmatic optimization; enterprises slow to move but momentum building .
Macro & margins: Q4 margin strength reflects typical seasonal marketing patterns; continued ROI-based spend discipline .
Generative AI channel: traffic up sharply; quality comparable to traditional channels; focus on optimizing discovery and conversion .
QPE drivers: growth from both new employer acquisitions and reactivations; platform engagement improving (24% more SMB jobs receiving 5+ applications in 24 hours y/y) .
Compliance/AI guardrails: Management emphasized abiding by hiring laws and building appropriate guardrails as AI features expand .

Estimates Context

Q3 2025: Revenue beat consensus ($115.0M vs $113.9M*), and S&P “Primary EPS” beat ($0.01* vs $(0.15)*) while GAAP EPS remained negative; underscores non-GAAP normalization and operating discipline amid soft demand .
Q4 2025: Company midpoint ($112M) aligns closely with S&P revenue consensus ($112.2M*), suggesting balanced expectations into seasonal quarter .

Note: Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

Enterprise-led reacceleration is tangible: performance-based revenue mix rose to 24% in Q3 (22% in Q2/Q3’24), aided by programmatic optimization and ZipIntro adoption—key setup for operating leverage when hiring recovers .
Sequential top-line progress through 2025 continues: Q1→Q2→Q3 revenue increased 2 straight quarters; Q4 midpoint implies first y/y growth since Q3’22—an important sentiment and estimate revision catalyst .
Product flywheel is working: RDB enhancements, ZipIntro, and genAI-discovery optimization are improving engagement and employer ROI, supporting QPE growth and mix shift to enterprise .
Profitability discipline maintained: Q3 Adj. EBITDA margin 8% with Q4 guide 10–15%; full-year implied ~9% tops prior mid-single-digit scenario—limiting downside while preserving growth investments .
Watch near-term: Q4 seasonality and muted macro remain headwinds; however, guidance embeds these factors and still targets y/y growth, reducing downside surprise risk .
Medium term: If stabilization transitions to recovery, enterprise/performance momentum and traffic share gains position ZIP to expand margins toward long-term targets (30% Adjusted EBITDA margin aspiration) .

Additional detail and sources:

Q3 results and key metrics: press release and shareholder letter .
Guidance: Q4 revenue and Adj. EBITDA ranges, full-year implications .
Q&A and qualitative themes: Q3 earnings call .
Prior quarters for trend: Q2 2025 and Q4 2024 materials .

Note on S&P Global data: All values marked with * in tables or text are retrieved from S&P Global.

ZIPRECRUITER, INC. (ZIP)·Q3 2025 Earnings Summary