Recruit Holdings (6098) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, rose 5.4% year-over-year to ¥1,798.7 billion, with growth across all segments.

• Adjusted EBITDA increased 11.9% to ¥367.2 billion, and operating income rose 13.4% to ¥269.7 billion.

• Basic EPS for Q2 was ¥76.58, up 4.2% year-over-year; 1H EPS reached ¥145.64, up 7.5%.

• Share repurchases totaling 53.1 million shares (¥478.5 billion) were executed as of October 31, 2024, with 80% of the JPY 600 billion program completed in four months.

• Segment realignment will transfer HR Solutions to HR Technology, with Matching & Solutions focusing on Marketing and SaaS Solutions from next fiscal year.

Financial highlights

• Q2 FY2024 revenue increased 4.9% year-over-year to ¥897.1 billion; operating income up 22.1% to ¥141.8 billion.

• Adjusted EBITDA margin for Q2 FY2024 rose to 21.0%; for the six months, margin was 20.4%.

• Net cash and deposits as of September 30, 2024, were JPY 756.6 billion, down JPY 378.7 billion from March 31, 2024.

• Total comprehensive income for the six months dropped 64.8% to ¥136.4 billion, mainly due to negative exchange differences.

• Cash and cash equivalents decreased 33.4% to ¥757.6 billion, primarily due to share repurchases.

Outlook and guidance

• FY2024 full-year revenue guidance revised to ¥3,468.7–3,548.7 billion (+1.5% to +3.9% YoY); adjusted EBITDA guidance raised to ¥622.2–682.2 billion (+4.0% to +14.0%).

• Operating income forecast at ¥442.7–502.7 billion (+10.0% to +24.9% YoY); profit attributable to owners at ¥362.4–407.4 billion (+2.5% to +15.2%).

• Basic EPS guidance set at ¥239.64–270.64 (+6.0% to +19.8% YoY).

• Interim dividend per share confirmed at ¥12.00; full-year dividend forecast at ¥24.00.

• HR Technology US revenue expected to decline in 2H due to seasonality; Japan HR Solutions transition to Indeed PLUS slower than expected.