ZipRecruiter Inc. (ZIP) Q2'26 Earnings Review Product Led Reacceleration Drives Outperformance Despite Subdued Labor Market

Equity Research 6 August 2026 | 4:52AM EDT

ZipRecruiter Inc. (ZIP) Q2’26 Earnings Review: Product Led Reacceleration Drives Outperformance Despite Subdued Labor Market

ZIP 12m Price Target: $5.00 Price: $4.25 Upside: 17.6% NEUTRAL Eric Sheridan In its Q2’26 earnings report, ZipRecruiter (ZIP) mgmt produced a | Goldman Sachs & Co. LLC strong set of results with Revenue & Adj. EBITDA both exceeding Aarshiya Sachdeva guidance & street expectations, and management highlighting that | Goldman Sachs & Co. LLC product improvements drove higher engagement across both sides of the marketplace despite ongoing labor market uncertainty. In terms of the report and the earnings call, the company emphasized a few key themes: 1) mgmt raised FY26 revenue expectations to +LSD% YoY growth (up from flat previously) & Adj. EBITDA margins Key Data _____________________________________ Market cap: $384.3mn guided to 12-14% (up from 9% in FY25); 2) the full rollout of the Enterprise value: $272.5mn 3m ADTV: $2.7mn next-generation search and matching engine drove a +34% QoQ United States increase in qualified applications, which paired with other product Americas Internet M&A Rank: 3 improvements doubled the employer response rate YoY; 3) Be Seen GS Forecast __________________________________ First candidates utilizing the new audio message feature saw an 8% 12/25 12/26E 12/27E 12/28E

lift in employer connection rates, while the newly launched Revenue ($ mn) New Revenue ($ mn) Old AI-driven Smart Outreach tool automated personalized candidate EBITDA ($ mn) EBIT ($ mn) ( outreach; 4) the company executed a partial repurchase of ~$295m EPS ($) New ( of its 5% senior unsecured notes at a ~$65m discount to par, retiring EPS ($) Old ( P/E (X) NM 10.3 NM 23.4 over half of its outstanding notes while maintaining ~$174m in cash Dividend yield (%) -- -- -- -- and investments; & 5) announced the appointment of Carmen Chan Net debt/EBITDA (X) (4.6) (1.9) (1.2) (1.5)

as CFO, effective August 17, 2026. 6/26 9/26E 12/26E 3/27E EPS ($) ) In the short-term, we expect that investor debates will remain GS Factor Profile ______________________________ anchored on both the macroeconomic activity levels and the Growth

company’s relative competitive position against that backdrop. Financial Returns Longer term, we believe ZIP remains well-positioned against the Multiple secular shift toward online recruiting & rising aspects of personalization and technology. We maintain our Neutral rating, Integrated

adjust our operating estimates for this earnings report and mgmt. Percentile 20th 40th 60th 80th 100th commentary, and adjust our PT from $3.50 to $5.00. ZIP relative to Americas Coverage

Q2’26 Positives & Negatives: ZIP relative to Americas Internet

Source: Company data, Goldman Sachs Research estimates. Positives: a) Q2’26 revenue and Adjusted EBITDA both beat See disclosures for details. GSe/Street estimates and exceeded the midpoint of mgmt

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs ZipRecruiter Inc. (ZIP)

ZipRecruiter Inc. (ZIP) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Jan 19, 2024 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets P/E (X) NM 10.3 NM 23.4 Net PP&E EV/EBITDA (X) 7.1 3.9 3.0 1.9 Net intangibles EV/sales (X) 0.6 0.5 0.5 0.3 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) Other long-term assets EV/DACF (X) 5.5 4.1 3.5 2.3 Total assets CROCI (%) ROE (%) NM NM NM NM Accounts payable 9.1 8.9 9.2 9.6 Net debt/EBITDA (X) (4.6) (1.9) (1.2) (1.5) Short-term debt…