The investors in ZipRecruiter, Inc.'s (NYSE:ZIP) will be rubbing their hands together with glee today, after the share price leapt 23% to US$3.62 in the week following its quarterly results. It looks like the results were pretty good overall. While revenues of US$108m were in line with analyst predictions, statutory losses were much smaller than expected, with ZipRecruiter losing US$0.06 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following last week's earnings report, ZipRecruiter's five analysts are forecasting 2026 revenues to be US$449.9m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 53% to US$0.14. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$449.4m and losses of US$0.17 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a cut to losses per share in particular.

The average price target rose 18% to US$3.33, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values ZipRecruiter at US$3.50 per share, while the most bearish prices it at US$3.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past five years have seen revenue shrink 9.8% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. Although ZipRecruiter's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ZipRecruiter's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on ZipRecruiter. Long-term earnings power is much more important than next year's profits. We have forecasts for ZipRecruiter going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - ZipRecruiter has 3 warning signs we think you should be aware of.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.