ZipRecruiter, Inc. reported a decline in financial performance for the second quarter of 2025, with revenue totaling $112.2 million, a decrease of 9% from $123.7 million in the same period last year. For the first half of 2025, revenue was $222.3 million, down 10% from $245.9 million in the first half of 2024. The company experienced a net loss of $9.5 million for the quarter, compared to a net income of $7.0 million in the prior year, and a net loss of $22.3 million for the six months ended June 30, 2025, compared to a net income of $0.5 million in the same period of 2024. The decline in revenue was attributed to reduced demand for hiring amid ongoing uncertainty in the labor market.
In terms of operational metrics, the number of Quarterly Paid Employers increased by 4% sequentially from the previous quarter, reaching 66,302, although this figure reflects a decrease compared to the same period last year. Revenue per Paid Employer also saw a decline, falling to $1,693 from $1,755 year-over-year. The company’s gross profit margin remained stable at 89% for both the three and six months ended June 30, 2025, despite a slight decrease in cost of revenue, which was $11.96 million for the quarter, down from $12.94 million in the prior year.
Strategically, ZipRecruiter made significant investments in sales and marketing, with expenses rising 13% to $58.1 million for the quarter, driven by increased marketing and advertising spend. Research and development expenses decreased slightly, reflecting a reduction in stock-based compensation due to lower headcount. The company also completed the acquisition of Breakroom, a UK-based employee review platform, for $13.3 million, which is expected to enhance its service offerings in frontline industries.
Looking ahead, ZipRecruiter remains focused on expanding its marketplace and improving its technology to attract more employers and job seekers. The company has indicated that it will continue to invest in its platform to drive growth, despite the current economic challenges. As of June 30, 2025, ZipRecruiter had cash, cash equivalents, and marketable securities totaling $421.2 million, along with $286.6 million available under its credit facility, which positions it well to navigate the ongoing market volatility.
About ZIPRECRUITER, INC.
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