ZipRecruiter (ZIP) Stock Analysis & Winston Score

ZipRecruiter is an online job marketplace that connects employers looking to hire workers with people searching for jobs. It sells access to its hiring platform mainly to small and medium-sized businesses across the United States. The company is known for using automated matching technology to suggest job candidates to employers and job listings to applicants.

ZipRecruiter makes money by charging employers subscription fees or pay-per-contact fees to post jobs and reach candidates. It operates almost entirely in the U.S. market and generates very high gross margins, but the business is currently running at a small operating loss. The biggest risk ZipRecruiter faces is competition from much larger platforms like Indeed and LinkedIn, which have greater resources and brand recognition, while a slowdown in hiring activity across the broader economy can quickly reduce the number of employers willing to pay for recruiting services.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-2.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+53.8% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

30.3%ownership

Insiders own a meaningful stake in the company

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$251M cash & investments at current burn rate

Revenue declining

ZipRecruiter's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

88.9%

Premium pricing power — 88.9% gross margin

Operating Margin

-1.4%

Losing money on operations — -1.4%

ROCE

-0.3%

Weak — -0.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-3.3%

Shrinking sales (-3.3% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

2.4%

Thin free cash flow (2.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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