Recruit Holdings (6098) Q4 2025 earnings summary

Executive summary

• Revenue and adjusted EBITDA reached record highs in FY2024, with margin at an all-time high, driven by productivity improvements, monetization strategies, and AI adoption, especially in the U.S.

• U.S. hiring demand continues to decline, particularly among SMEs, with a further 10% drop expected in FY2025.

• Organizational restructuring integrated HR technology and HR solutions, creating the Marketing Matching Technologies (MMT) segment.

• Major share repurchases and treasury stock retirements were executed, totaling over 64.6 million shares and 599.9 billion yen.

Financial highlights

• FY2024 consolidated revenue increased by 4.1% to 3,557.4 billion yen; adjusted EBITDA rose 13.5% to 678.8 billion yen (19.1% margin).

• Operating income increased 21.9% to 490.5 billion yen; profit attributable to owners up 15.5% to 408.5 billion yen.

• Basic EPS increased 20.1% to 271.44 yen, aided by share buybacks.

• Net cash and cash equivalents at year-end decreased to 822.7 billion yen due to share repurchases.

• Gross profit for FY2024 was 2,085.6 billion yen, up from 1,964.5 billion yen in FY2023.

Outlook and guidance

• FY2025 revenue is expected to be 3,520.0 billion yen, down 1.1% year-over-year; adjusted EBITDA is projected to rise 2.7% to 697.0 billion yen (19.8% margin).

• Operating income forecasted to grow 10.1% to 540.0 billion yen; profit attributable to owners to increase 4.8% to 428.0 billion yen.

• Basic EPS forecasted to increase 8.7% to 295.00 yen; dividends per share set at 25.0 yen.

• U.S. hiring demand expected to decline by 10%, with stable conditions in Japan.

• Net cash target of 600 billion yen by March 2026 remains unchanged.