Recruit Holdings (6098) Q4 2026 earnings summary

Executive summary

• Achieved record high profits and revenues for FY2025, with revenue rising 3.9% year-over-year to ¥3,697.3 billion and EBITDA+S up 17.0% to ¥794.3 billion, driven by AI adoption and business evolution, especially in HR Technology.

• All key financial metrics (revenue, EBITDA+S, EPS) exceeded revised guidance and reached record highs on a full-year basis.

• Basic EPS increased 28.9% to ¥349.78, with comprehensive income up 61.0% to ¥616.9 billion.

• AI integration across business lines is enhancing matching efficiency, reducing hiring periods by 50%, and increasing user engagement, with March monthly active users up 18% year-over-year.

• Capital allocation remains focused on growth investments, stable dividends, strategic M&A in HR Technology, and a ¥350 billion share repurchase program.

Financial highlights

• FY2025 consolidated revenue increased, with HR Technology revenue up 7.6% year-over-year to $9.67 billion (¥1,458.4 billion), and EBITDA+S margin for HR Technology at 37.7%.

• Staffing revenue grew 2.2% year-over-year to ¥1,703.4 billion, with EBITDA+S margin at 5.9%.

• MMT/Marketing Matching Technologies revenue rose 4.7% year-over-year to ¥564.6 billion, with a 27.4% EBITDA+S margin.

• Gross profit margin increased to 58.6% in FY2025, with gross profit at ¥2,188.2 billion.

• Profit attributable to owners grew 21.6% to ¥496.9 billion in FY2025, with ROE at 31.0%.

Outlook and guidance

• FY2026 revenue projected to rise 9.0% year-over-year to ¥4,030.0 billion; EBITDA+S expected to grow 19.5% to ¥949.0 billion, with margin expanding to 23.5%.

• Basic EPS forecasted to increase 27.8% year-over-year to ¥447.00.

• HR Technology revenue expected to surpass $10 billion (¥1,653.7 billion), with EBITDA+S margin targeted at 41%.

• MMT revenue expected to increase 7.1% year-over-year to ¥605.0 billion, with EBITDA+S margin at 30%.

• Operating income forecasted at ¥787.0 billion (+24.8%), profit attributable to owners at ¥623.0 billion (+25.4%).