Recruit Holdings (6098) Q4 2025 earnings summary

Executive summary

• FY2024 revenue rose 4.1% to 3,557.4 billion yen, with adjusted EBITDA up 13.5% to 678.8 billion yen and margin at a record high, driven by productivity improvements and AI integration.

• Basic EPS grew 20.1% to 271.44 yen; profit attributable to owners increased 15.5% to 408.5 billion yen.

• Major share repurchases and treasury stock retirements executed, reducing shares outstanding by 5.2% and totaling over 64.6 million shares and 599.9 billion yen.

• Segment reorganization integrated HR Technology and HR Solutions; Matching & Solutions became Marketing Matching Technologies.

• AI-powered products piloted in the US and Japan, with 33% of new HR tech code written by AI.

Financial highlights

• FY2024 revenue reached 3.56 trillion yen, adjusted EBITDA 678.8 billion yen (19.1% margin), and operating income 490.5 billion yen.

• Basic EPS up 20.1% to 271.44 yen; total payout to shareholders surged 237.5% to 859.1 billion yen (210.3% payout ratio).

• Net cash and cash equivalents decreased to 822.7 billion yen as of March 31, 2025, mainly due to share repurchases.

• Gross profit margin rose to 58.6% in FY2024; adjusted EBITDA margin improved to 19.1%.

• Total assets declined 11.8% to 2,772.2 billion yen; equity attributable to owners fell 19.2% to 1,617.5 billion yen.

Outlook and guidance

• FY2025 revenue expected to decline 1.1% to 3.52 trillion yen; adjusted EBITDA to rise 2.7% to 697.0 billion yen (19.8% margin).

• Operating income forecasted to grow 10.1% to 540.0 billion yen; profit attributable to owners to increase 4.8% to 428.0 billion yen.

• Basic EPS projected to rise 8.7% to 295.00 yen; dividends per share set at 25.0 yen.

• US hiring demand expected to decline ~10% in FY2025; revenue to be flat in USD, with Europe/Other regions up 8.1% in USD.

• Net cash target of 600 billion yen by March 31, 2026 remains unchanged.