Recruit Holdings (6098) Investor update summary

Strategic evolution and business model transformation

• The company is evolving its business model by integrating AI and introducing a GMV-linked model to drive revenue and expand EBITDA+S margins, focusing on high-growth areas and operational efficiency.

• The GMV-linked model, starting with Beauty, adds a 1% transaction fee to existing plans, aiming to align fees with value creation and business client revenue growth.

• The hybrid model combines fixed and variable components to ensure fairness, especially in verticals like Beauty where outcomes depend on both platform and stylist factors.

• Transitioned from paper-based media to online and SaaS matching platforms since 1976, with significant digitalization by 2025.

Financial outlook and margin targets

• FY2024 revenue is projected at JPY 566.8 billion (+5.1% YoY), with an EBITDA+S margin of 27.1%.

• Margin targets are set at 30% for next fiscal year and 35% by FY2028, with potential for further improvement as AI and GMV-linked models scale.

• Incremental revenue impact from the GMV-linked model in Beauty is expected to be about JPY 12 billion in the next fiscal year.

Platform growth, user engagement, and AI integration

• Platforms serve 65 million users and 970,000 business clients annually, with 97 million Recruit ID accounts as of December 2025.

• Annual user actions on matching platforms have grown from 190 million in FY2017 to 373 million in FY2024.

• AI is being integrated into SaaS solutions like SALON BOARD, enabling business clients to optimize pricing, promotions, and operational efficiency.