ZIPRECRUITER, INC.ZIP
ZIPRECRUITER, INC. Fair Value Disclosure
Financial Instruments
Fair Value Measurements
The following table presents the Company’s financial assets measured at fair value on a recurring basis, as well as the amortized cost basis and gross unrealized gains and losses of those assets as of December 31, 2025 (in thousands):
| Balance Sheet Classification | ||||||||||||||||||||||||||||||||||||||
| Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Marketable Securities | |||||||||||||||||||||||||||||||||
| Level 1: | ||||||||||||||||||||||||||||||||||||||
| Cash | $ | 158,093 | $ | — | $ | — | $ | 158,093 | $ | 158,093 | $ | — | ||||||||||||||||||||||||||
| Money market mutual funds | 22,336 | — | — | 22,336 | 22,336 | — | ||||||||||||||||||||||||||||||||
| U.S. treasury securities | 99,553 | 38 | — | 99,591 | — | 99,591 | ||||||||||||||||||||||||||||||||
| Subtotal | 279,982 | 38 | — | 280,020 | 180,429 | 99,591 | ||||||||||||||||||||||||||||||||
| Level 2: | ||||||||||||||||||||||||||||||||||||||
| Commercial paper | 29,569 | — | — | 29,569 | 3,782 | 25,787 | ||||||||||||||||||||||||||||||||
| Corporate notes and obligations | 87,221 | 12 | (21) | 87,212 | 3,817 | 83,395 | ||||||||||||||||||||||||||||||||
| Asset-backed securities | 12,334 | 3 | (1) | 12,336 | — | 12,336 | ||||||||||||||||||||||||||||||||
| Subtotal | 129,124 | 15 | (22) | 129,117 | 7,599 | 121,518 | ||||||||||||||||||||||||||||||||
| Total cash, cash equivalents, and marketable securities | $ | 409,106 | $ | 53 | $ | (22) | $ | 409,137 | $ | 188,028 | $ | 221,109 | ||||||||||||||||||||||||||
As of December 31, 2024, the Company’s financial assets consisted of the following (in thousands):
| Balance Sheet Classification | ||||||||||||||||||||||||||||||||||||||
| Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Marketable Securities | |||||||||||||||||||||||||||||||||
| Level 1: | ||||||||||||||||||||||||||||||||||||||
| Cash | $ | 176,987 | $ | — | $ | — | $ | 176,987 | $ | 176,987 | $ | — | ||||||||||||||||||||||||||
| Money market mutual funds | 18,721 | — | — | 18,721 | 18,721 | — | ||||||||||||||||||||||||||||||||
| U.S. treasury securities | 149,555 | 73 | — | 149,628 | — | 149,628 | ||||||||||||||||||||||||||||||||
| Subtotal | 345,263 | 73 | — | 345,336 | 195,708 | 149,628 | ||||||||||||||||||||||||||||||||
| Level 2: | ||||||||||||||||||||||||||||||||||||||
| Commercial paper | 11,688 | — | — | 11,688 | 1,337 | 10,351 | ||||||||||||||||||||||||||||||||
| Certificates of deposit | 3,987 | — | — | 3,987 | — | 3,987 | ||||||||||||||||||||||||||||||||
| Corporate notes and obligations | 135,302 | 17 | (40) | 135,279 | 21,387 | 113,892 | ||||||||||||||||||||||||||||||||
| Asset-backed securities | 9,585 | 6 | — | 9,591 | — | 9,591 | ||||||||||||||||||||||||||||||||
| Subtotal | 160,562 | 23 | (40) | 160,545 | 22,724 | 137,821 | ||||||||||||||||||||||||||||||||
| Total cash, cash equivalents, and marketable securities | $ | 505,825 | $ | 96 | $ | (40) | $ | 505,881 | $ | 218,432 | $ | 287,449 | ||||||||||||||||||||||||||
The Company’s money market mutual funds and treasury securities are measured at fair value using quoted prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. The fair values of the Company’s Level 2 commercial paper and certificates of deposit are determined using quoted prices in markets that are not active or using model-driven valuations employing significant inputs derived from observable market data. The fair values of the Company’s Level 2
corporate notes and obligations and asset-backed securities are determined using an evaluated price based on a compilation of reported market information, such as benchmark yield curves, credit spreads and estimated default rates.
The carrying amounts of the Company’s remaining financial instruments not discussed in the above table, including accounts receivable and accounts payable, approximate fair value because of their short-term maturities, except for the Company’s senior unsecured notes due 2030 (the “Notes”) which are valued on a quarterly basis for disclosure purposes only based on quoted prices for the Notes in less active markets and categorized accordingly as Level 2 in the fair value hierarchy. The aggregate fair value of the Notes was estimated to be approximately $429.0 million as of December 31, 2025, and approximately $496.4 million as of December 31, 2024.
Certain assets, including operating leases, long-lived assets, and goodwill, are also subject to measurement at fair value on a non-recurring basis using Level 2 or Level 3 inputs, respectively, but only when they are deemed to be impaired. As of December 31, 2025 and December 31, 2024, no material impairments were identified on those assets required to be measured at fair value on a non-recurring basis.
Equity Securities
The Company’s investments in equity securities consist primarily of money market mutual funds. During the years ended December 31, 2025, 2024, and 2023, the Company recorded no material unrealized gains and losses in connection with its money market mutual funds held as of December 31, 2025.
Available-for-sale Debt Securities
The following table summarizes the fair value of the Company’s available-for-sale debt securities by contractual maturity as of December 31, 2025 (in thousands):
| Due within 1 year | $ | 210,114 | |||
| Due after 1 year through 5 years | 18,594 | ||||
| Total available-for-sale debt securities | $ | 228,708 | |||
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months as of December 31, 2025 and 2024 (in thousands):
December 31, | |||||||||||||||||||||||
2025 | 2024 | ||||||||||||||||||||||
| Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
| Corporate notes and obligations | 37,956 | (21) | 74,872 | (40) | |||||||||||||||||||
| Asset-backed securities | 6,411 | (1) | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | $ | 44,367 | $ | (22) | $ | 74,872 | $ | (40) | |||||||||||||||
The Company had no available-for-sale debt securities in a continuous unrealized loss position for more than 12 months as of December 31, 2025 and 2024.
The Company did not recognize any credit losses for its available-for-sale debt securities during the years ended December 31, 2025, 2024, and 2023.
During the year ended December 31, 2025, the Company recorded $1.0 million in proceeds related to sales of its available-for-sale debt securities. The Company recorded no material gross realized gains or gross realized losses in its Consolidated Statements of Operations as a result of those sales. During the years ended December 31, 2024 and December 31, 2023, the Company did not have any sales of its available-for-sale debt securities.About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.