Recruit Holdings (6098) Q3 2026 earnings summary

Executive summary

• HR Technology segment outperformed expectations, driving upward revisions to Q3 and Q4 revenue and margin outlooks, and contributing to record-high full-year consolidated revenue, EBITDA+S, and EPS projections.

• Q3 consolidated revenue rose 5.2% year-over-year to ¥943.1 billion, with EBITDA+S up 21.5% to ¥218.2 billion and basic EPS up 29.4% to ¥103.62.

• Revenue for the nine months ended December 31, 2025, increased by 1.5% year-over-year to ¥2,736.8 billion, with operating income up 21.1% to ¥495.7 billion and profit attributable to owners rising 15.6% to ¥394.9 billion.

• The company completed a ¥250 billion share buyback, with total payout ratio of 176.7% and net cash expected to be around ¥700 billion at fiscal year-end.

• Upward revision to full-year FY2025 guidance: EBITDA+S now expected at ¥763.8 billion and basic EPS at ¥335.

Financial highlights

• Q3 HR Technology U.S. revenue was $1.3 billion, up 10.1% year-over-year; Q4 expected at $1.33 billion, up 12.4%.

• Europe and others Q3 revenue was $507 million, up 19.6% year-over-year; Q4 expected at $518 million, up 21.7%.

• Q3 profit attributable to owners increased 23.1% year-over-year to ¥146.5 billion.

• EBITDA+S for the nine months was ¥612.8 billion, up 12.1% year-over-year.

• Q3 segment EBITDA margin was 35.4%, EBITDA+S margin 39.1%; full-year segment EBITDA margin expected at 32.3%.

Outlook and guidance

• Full-year revenue guidance raised to ¥3,664.7 billion (+3.0% YoY), EBITDA+S to ¥763.8 billion (20.8% margin), and basic EPS to ¥335, up 23.4% year-over-year.

• Operating income for FY2025 expected at ¥590.6 billion (+20.4%).

• HR Technology Q4 revenue outlook: +8.5% YoY in USD, EBITDA+S margin of 34.6%.

• MMT full-year revenue expected at ¥566.8 billion, up 5.1% year-over-year, with EBITDA+S margin at 27.1%.

• Q4 FY2025 foreign exchange assumptions: 153 yen/USD, 181 yen/Euro, 103 yen/AUD.