Recruit Holdings (6098) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 revenue rose 3.5% year-over-year to ¥896.9 billion, with adjusted EBITDA up 13.5% to ¥179.6 billion and basic EPS up 17.7% to ¥80.10.

• Full-year FY2024 guidance was revised upward to ¥3,560.0 billion revenue (+4.2%), adjusted EBITDA at ¥673.0 billion (+12.5%), and basic EPS at ¥267.00 (+18.1%).

• Share repurchases reached ¥679.0 billion YTD, with a payout ratio of 250.0% and 75.8 million shares repurchased.

• Profit attributable to owners increased 6.9% year-over-year to ¥341.5 billion for the nine months ended December 31, 2024.

• Comprehensive income declined 6.2% year-over-year to ¥396.4 billion, mainly due to negative other comprehensive income items.

Financial highlights

• Q3 adjusted EBITDA margin improved to 20.0% from 18.3% year-over-year.

• Operating income increased 28.2% to ¥139.6 billion; profit attributable to owners rose 11.9% to ¥119.0 billion.

• Gross profit for the nine months was ¥1,570.8 billion, up from ¥1,472.4 billion year-over-year.

• Net cash provided by operating activities increased to ¥437.6 billion, while net cash used in financing activities rose to ¥710.4 billion, mainly due to treasury stock purchases.

• Cash and cash equivalents at period end decreased to ¥871.8 billion from ¥1,136.9 billion as of March 31, 2024.

Outlook and guidance

• FY2024 full-year revenue guidance raised to ¥3,560.0 billion, with adjusted EBITDA of ¥673.0 billion and operating income of ¥488.0 billion.

• Profit attributable to owners forecast at ¥403.0 billion, with basic EPS of ¥267.00, up 18.1% year-over-year.

• Foreign exchange assumptions for Q4: 154 yen/USD, 159 yen/Euro, 97 yen/AUD.

• Market outlook for the next fiscal year will be provided in May.