#ZipRecruiter reports Q1 2026 revenue of $107.5 million
ZipRecruiter, Inc. (NYSE: ZIP) reported first quarter 2026 revenue of $107.5 million and a net loss of $4.7 million on May 7, with results landing above the midpoint of the company's prior guidance. The Santa Monica, California-based online employment marketplace also reported Adjusted EBITDA of $9.7 million for the quarter ended March 31, 2026.
The results arrive against a backdrop of subdued US hiring activity that has weighed on online recruitment platforms since 2023, as employers across white-collar sectors have slowed job posting volumes. Competitors including Indeed, LinkedIn, and Recruit Holdings have similarly faced revenue pressure tied to lower employer demand. ZipRecruiter operates in this category as a publicly traded pure-play online employment marketplace.
#Net loss margin reached 4% as Adjusted EBITDA margin held at 9%
Net loss margin for the quarter was 4%, according to the company's reconciliation table. Adjusted EBITDA margin came in at 9%.
Stock-based compensation totaled $8.4 million during the quarter. Interest expense reached $7.4 million, reflecting the company's debt obligations. Depreciation and amortization accounted for $2.9 million.
Other income, net, was $3.4 million for the period. The company recorded an income tax benefit of $836,000.
ZipRecruiter defines Adjusted EBITDA as net income or loss before interest expense, other income or expense, income tax, and depreciation and amortization, adjusted to remove stock-based compensation. The company describes the measure as a supplemental performance indicator and notes it should not be considered in isolation from GAAP results, which are required under US accounting standards.
#CEO points to AI-powered matching as competitive focus
"We started 2026 with disciplined execution, delivering Q1 results above the midpoint of our guidance. The pace of innovation across our marketplace is accelerating, with a focus on driving meaningful conversations between job seekers and employers," Ian Siegel, CEO of ZipRecruiter, said in the earnings release. "Our AI-powered matching technology enables us to move beyond identifying the right matches to actively driving engagement across our marketplace. With our cutting-edge technology, proprietary data, and enduring brand, we believe ZipRecruiter is well positioned to win in the AI era and capture market share."
The company's matching technology connects job seekers with employer postings. ZipRecruiter stated it has been the highest-rated job search app on iOS and Android since 2017, based on AppFollow data covering ZipRecruiter, Glassdoor, Indeed, LinkedIn, and Monster.
The company described the platform as a marketplace that connects job seekers with businesses of all sizes. Investments in AI matching capabilities form the core of the company's stated competitive strategy.
#Risks tied to macroeconomic conditions and competition remain
ZipRecruiter operates in a category dominated by larger and well-resourced competitors, including Indeed and LinkedIn, alongside specialized job boards and emerging AI-driven recruitment platforms. The company identified competition from established players and new entrants as a risk factor in its earnings release.
The company also flagged macroeconomic exposure, including potential effects of US trade and tariff policies, as a factor that could affect demand for its services. Additional risks identified include reliance on Amazon Web Services, data privacy compliance, and the company's ability to achieve and maintain profitability.
ZipRecruiter held a conference call at 2:00 p.m. Pacific Time on May 7 to discuss results, with a webcast available on the company's investor relations site. Management's full commentary and forward guidance is available in the shareholder letter accompanying the results.
Siegel stated that the company believes it is well positioned to capture market share in the AI era. Forward-looking statements remain subject to macroeconomic conditions, hiring demand, competitive dynamics from established and emerging recruitment platforms, and regulatory developments around data privacy and labor markets.
#Adjusted EBITDA adjustments draw scrutiny from accounting observers
The $14.5 million gap between ZipRecruiter's $4.7 million GAAP net loss and its $9.7 million Adjusted EBITDA reflects the standard non-GAAP adjustments outlined in the company's reconciliation table. Stock-based compensation of $8.4 million is the largest single add-back, followed by interest expense of $7.4 million and depreciation and amortization of $2.9 million. Stock-based compensation as an Adjusted EBITDA add-back has drawn criticism from some accounting observers and investors, including Warren Buffett and Charlie Munger, who have argued that equity compensation represents a real economic cost to shareholders through dilution. ZipRecruiter notes in its release that Adjusted EBITDA should not be considered in isolation or as a substitute for GAAP measures.