WillItSurvive

Codility runs online coding tests and technical interviews for hiring engineers.

Protection under test
Assessed 22 July 2026 · Evidence as of 22 July 2026
Something worth protecting exists and is being tested right now.
On the recordSince 22 July 2026 · Checkable from August 2, 2026 · Every call on the record Checkpoint: EU AI Act high-risk AI obligations for recruitment tools take effect
The call

Codility has real enterprise customers and a compliance angle worth watching, but shrinking headcount and no fresh capital put it on the back foot against a faster-shipping HackerRank.

Codility sells software that tests whether job candidates can write code, used by large companies to screen engineers. It is increasingly easy to copy because HackerRank, its main competitor, has more money, more customers, and is shipping AI features faster. The one thing that could save Codility is a new EU regulation (starting August 2026) that requires hiring tests to prove they do not discriminate, and Codility has built tools to do that, but only if it can convince customers to buy and Codility has enough cash to keep building.

Why
01
AI pressure: AI coding assistants (GitHub Copilot, ChatGPT) plus HackerRank's AI Interviewer. AI tools let candidates cheat on take-home code tests while also letting rivals ship AI proctoring and eval features faster. Could AI do the core job? Yes, likely.
02
Bigger players: HackerRank. HackerRank has 2,500+ customers and shipped AI Interviewer, Proctor Mode, and model eval suites in 2025 while Codility cut headcount roughly in half. Could a giant copy it? Yes, easily.
03
What protects it. EU AI Act high-risk recruitment rules land August 2, 2026, and Codility's validated Engineering Skills Model gives it a compliance story rivals don't yet match.
What would change this call
Codility announces new enterprise logos citing EU AI Act compliance after August 2, 2026 deadline. Would show its compliance moat converts to paying customers, not just messaging.
Codility headcount or web traffic stabilizes or grows in H2 2026 reports. Would show the shrinkage trend is reversing rather than continuing.
Codility raises new capital or discloses profitability. Would show it can fund AI feature parity with HackerRank despite 78+ month funding drought.
Key numbers
  • Headcount down ~50% from peak (2026-06-28)
  • No new funding since $22M round, Jan 2020 (2026-06-28)
  • Web traffic down 9.3% quarter over quarter (2026-05-12)
Named risks
  • No new funding raised since January 2020, limiting capital for AI feature parity. Severity: high
  • Headcount down roughly 45% from 2021 peak with hiring nearly frozen (2 open roles mid-2026). Severity: high
  • Core coding-assessment premise erodes as AI generates more code, per rival HackerRank's 2025 data claim. Severity: high
  • HackerRank out-shipping Codility on AI interviewer and proctoring features through 2025. Severity: medium
  • Greenhouse ATS integration deprecation could cause enterprise customer churn during migration. Severity: medium
Rivals, as read in July 2026
RivalDirectionEvidence
HackerRanklosing toHackerRank shipped AI Interviewer, Proctor Mode, ASTRA at AI Day 2025 vs Codility's single AI Copilot (Nov 2025)
CodeSignalcontestingCodeSignal launched AI learning tool Cosmo in 2024 (vendor-claimed) in same assessment category
HireVuecontestingCB Insights groups Codility as 'Challenger' among 11 peers including incumbent HireVue, Mar 2026
CoderPadcontestingNamed as direct peer competitor in technical-screening category comparisons through 2025
Questions people ask
Is Codility profitable in 2026?
Codility has not disclosed profitability. It raised a $22M Series A in January 2020 and has reported no new funding round since, per a mid-2026 tracker noting funds were raised '78 months ago.' Independent revenue figures are stale and conflicting, so its current financial health cannot be confirmed.
Is Codility shrinking or laying off staff?
Yes. Headcount fell from about 201 employees in September 2021 to roughly 109-118 by mid-2026, and Codility's own site now describes itself as 'a focused team of fewer than 100 people' as of May 2026. Only 2 open roles were tracked globally as of June 2026.
Who is Codility's biggest competitor?
HackerRank is Codility's closest and most active rival. HackerRank claims 2,500+ customers and 26M+ developers (vendor-claimed, Nov 2025) and shipped an AI Interviewer, Proctor Mode, and model-eval suite ASTRA in 2025, while Codility launched a smaller OpenAI-based AI Copilot in November 2025.
Could AI replace Codility's coding assessment platform?
Partially. HackerRank's 2025 Developer Skills Report claims roughly one-third of code is now AI-generated (vendor-claimed), eroding the premise of pure coding-skill testing. Codility is countering by assessing 'AI-Assisted Engineering' skills since October 2024, but its core screening task remains automatable.
Who owns Codility?
Codility is privately held, not publicly traded. CEO is Natalia Panowicz. Investors include Oxx, Kennet Partners, Seedcamp, SaaS Capital, HardGamma Ventures, and YLD, with the most recent disclosed round being a $22M Series A led by Oxx and Kennet Partners in January 2020.
Does the EU AI Act affect Codility?
Yes. The EU AI Act's high-risk obligations for recruitment and candidate-evaluation AI systems take effect August 2, 2026, with fines up to 15 million euros or 3 percent of global turnover for non-compliance, directly impacting how Codility's assessment tools must document risk and oversight.
Timeline
  • 2026-07-02Rolled out Engineering Skills Model and AI for Business preview treating AI as first-class assessed skill
  • 2026-06-30Published guidance on EU AI Act high-risk recruitment rules ahead of Aug 2026 deadline
  • 2026-06-23Launched granular AI Interview Assistance Settings with template-level overrides
  • 2025-12-03Gave account admins direct controls over AI feature availability
  • 2025-11-05Launched AI Copilot using OpenAI models in VSCode-based interview environments
  • 2025-09-19Added AI-generated feedback within coding assessments
  • 2024-10-02Debuted assessment of AI-Assisted Engineering skills, industry-first claim (vendor-claimed)
  • 2020-01-30Raised $22M Series A led by Oxx and Kennet Partners
Revision history
22 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources