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 for Q2 increased 16.0% to ¥188.1 billion, and 1H Adjusted EBITDA grew 11.9% to ¥367.2 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.

• Net cash and deposits decreased to JPY 756.6 billion as of September 30, 2024, from JPY 1.1354 trillion at March 31, 2024.

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%.

• HR Technology Q2 revenue up 10.0% to ¥283.0 billion; Adjusted EBITDA margin 37.8%.

• Staffing segment growth in Japan (+7.2% Q2) offset declines in Europe, US, and Australia.

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

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%).

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

• U.S. job openings are expected to continue declining for another 18–24 months, with paid job postings decreasing until fiscal year-end.

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

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