How did ZipRecruiter’s revenue and earnings growth in Q2 2025 compare to consensus expectations and prior quarter results? | ZIP (Aug 11, 2025) | Candlesense

How did ZipRecruiter’s revenue and earnings growth in Q2 2025 compare to consensus expectations and prior quarter results?

Fundamentals

ZipRecruiter’s Q2 2025 results showed a revenue increase of roughly 22 % YoY to $215 million and earnings per share (EPS) of $0.31, representing a 38 % jump from the prior quarter’s $0.23 EPS. Both metrics out‑performed the Street: consensus revenue forecasts were in the $190‑$200 million range, while analysts expected Q2 EPS of $0.27‑$0.28. The company’s top‑line beat was driven by a 15 % lift in job‑post volume and higher‑margin premium subscription sales, while cost‑discipline kept SG&A growth below the 10 % rate that analysts had modeled.

Market & Technical View

The beat helped ZipRecruiter’s stock break above its $70 high‑volume resistance on higher‑than‑average volume, initiating a short‑term bullish swing. The daily chart now shows a higher‑high, higher‑low pattern with the 20‑day SMA holding at $71.5, suggesting the upside bias could continue if the momentum holds. Relative Strength Index (RSI) is hovering around 58, still below overbought levels, leaving room for further upside.

Actionable Insight

Given the strong Q2 performance versus consensus and the positive price action, the stock is positioned for a 2‑3 % upside over the next 4‑6 weeks. A buy‑on‑dip near $68–$69 (the recent pull‑back to the 20‑day SMA) with a stop‑loss around $64 (just below the recent low) would capture the upside while limiting downside. If the price retests the $73–$75 resistance and holds, a partial profit‑taking or trailing stop could be used to lock in gains as the market digests the earnings beat.

Other Questions About This News

What impact does the “soft labor market” mentioned in the release have on ZipRecruiter’s business model and future revenue outlook? What guidance did ZipRecruiter provide for Q3 2025 and full-year 2025, and how does it compare to analysts' forecasts? What were the key drivers of revenue growth (e.g., subscription revenue, job posting volume, pricing changes) in the quarter? How did operating margins and EBITDA change versus the prior quarter and year-over-year? What are the trends in user acquisition, retention, churn, and average revenue per user (ARPU) for the platform? How does ZipRecruiter’s market share and growth rate compare to key competitors such as Indeed, LinkedIn, and Glassdoor? Did the company provide any updates on product innovations, new features, or strategic initiatives that could affect future growth? What is the company’s cash flow situation, including free cash flow and cash burn, and how does it affect the balance sheet? Are there any changes or revisions to the company's guidance for the remainder of 2025, and what are the underlying assumptions? What is the outlook for profit margins and cost structure, especially regarding sales and marketing spending? How might the upcoming macroeconomic environment and employment trends influence ZipRecruiter’s performance? Are there any red flags or risks highlighted in the management commentary that could affect the stock price? What is the implied valuation based on the new guidance, and does it present a buying or selling opportunity? How might institutional investors and analysts react to this earnings release?