Recruit Holdings (6098) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue declined 2.5% year-over-year to ¥878.8B, but EBITDA S margin reached a record 21.3% due to productivity improvements, and operating income rose 20.3% to ¥153.7B.

• Profit attributable to owners increased 13.6% to ¥120.9B; basic EPS grew 21.5% to ¥83.97.

• Full-year FY2025 guidance remains unchanged, reflecting Q1 results, HR Technology workforce reductions, and current business conditions.

• Share buyback program of ¥450B completed ahead of schedule, reducing net cash below target.

• Total comprehensive income dropped 58.8% year-over-year, mainly due to negative exchange differences.

Financial highlights

• Consolidated revenue declined 2.5% year-over-year to ¥878.8B; gross profit down 1.7% to ¥521.8B, gross margin steady at 59.4%.

• EBITDA S rose 4.5% to ¥187.1B, with a record margin of 21.3%; EBITDA increased 1.3% to ¥163.5B (margin 18.6%).

• Operating income increased 20.3% to ¥153.7B; profit attributable to owners up 13.6% to ¥120.9B.

• Basic EPS up 21.5% to ¥83.97; diluted EPS up 22.4% to ¥83.24.

• Net cash and cash equivalents decreased 53.4% year-over-year to ¥563.5B as of June 30, 2025.

Outlook and guidance

• FY2025 full-year guidance unchanged: revenue ¥3,520.0B (down 1.1% YoY), EBITDA S forecast at ¥697.0B (+2.7%, margin 19.8%), operating income ¥540.0B (+10.1%), profit attributable to owners ¥428.0B (+4.8%), and basic EPS ¥295.00 (+8.7%).

• Dividend per share set at ¥25.00 for FY2025.

• No change in targeted net cash of ¥600B by March 31, 2026.

• Revenue growth not expected to accelerate due to ongoing U.S. labor market uncertainty; focus remains on operational efficiency and EPS growth via share buybacks.

• Foreign exchange assumptions: 145 yen/USD, 158 yen/Euro, 92 yen/AUD.