ZipRecruiter Q2 Earnings Call Highlights

Second-quarter results exceeded expectations: Revenue rose 5% year over year to $118.1 million, while adjusted EBITDA increased to $14.6 million, or a 12% margin. ZipRecruiter also reported $43.4 million in net income, partly boosted by a gain from debt extinguishment.

Debt and employer activity improved: The company repurchased $294.6 million of senior notes for $229.4 million, retiring more than half of the outstanding debt. Quarterly paid employers grew 7% year over year to more than 70,000, though revenue per employer declined slightly.

Product investments lifted engagement and outlook: The company said qualified applications rose 34% sequentially and employer response rates doubled year over year, supported by matching, audio-message and AI outreach tools. ZipRecruiter raised its second-half outlook to low-single-digit revenue growth and expects third-quarter revenue of $121 million at the midpoint.

ZipRecruiter reported second-quarter revenue growth and higher profitability as product improvements increased activity between employers and job seekers, while the company also reduced its debt through a discounted repurchase of senior notes. Revenue for the quarter ended June 30 was $118.1 million, up 5% from a year earlier and 10% sequentially. The result was about $6 million above the midpoint of the company’s guidance range, according to Co-founder and CEO Ian Siegel. Adjusted EBITDA was $14.6 million, representing a 12% margin, compared with an 8% margin in the second quarter of 2025 and a 9% margin in the first quarter of 2026.

ZipRecruiter reported net income of $43.4 million, or a 37% net income margin. President and Interim CFO David Travers said net income was aided by a gain on debt extinguishment related to the company’s June repurchase of its 5% unsecured notes due in 2030.

In June, ZipRecruiter repurchased $294.6 million of senior unsecured notes for $229.4 million, a discount of approximately $65 million to par value. The transaction retired more than half of the outstanding notes, according to management. The company ended the quarter with $173.8 million in cash, cash equivalents and marketable securities. Siegel said the balance sheet provides sufficient capital to fund future growth initiatives.

ZipRecruiter ended the quarter with more than 70,000 quarterly paid employers, an increase of 7% year over year and 12% from the prior quarter. Revenue per paid employer was $1,669, down 1% from a year earlier and 2% sequentially. Travers attributed the decline primarily to the addition of employers that joined during the quarter and therefore contributed revenue for only part of the period. Total operating expenses fell to $101.3 million from $106.9 million in the prior-year quarter, primarily reflecting lower stock-based compensation and personnel-related costs.

Management highlighted a series of product releases intended to increase meaningful conversations between employers and job seekers. The ongoing rollout of ZipRecruiter’s next-generation search and matching engine increased qualified application volume by 34% quarter over quarter in the second quarter, the company said. Combined with other platform improvements, the higher volume of qualified applications helped double employer response rates per application from a year earlier. ZipRecruiter also expanded its Be Seen First feature by allowing applicants to record an audio message accompanying their resume. Early data sho...