Highlights

  • SEEK guided to FY2026 adjusted profit of A$190 million to A$220 million, with the midpoint implying growth of approximately 32% compared with FY2025 adjusted profit of A$155.2 million.
  • At its February 2026 half-year result, SEEK upgraded FY2026 net revenue guidance to A$1.19 billion to A$1.23 billion and set adjusted EBITDA guidance at A$530 million to A$550 million.
  • The company reported a statutory half-year loss of A$178 million after recognising a A$356 million impairment related to its investment in Zhaopin.

SEEK Limited (ASX:SEK) completed the 2026 financial year carrying guidance that pointed to a substantial increase in adjusted profit compared with FY2025. However, the figure remained a management forecast rather than a reported result, while a major impairment related to Zhaopin continued to weigh heavily on statutory earnings.

Where the projected profit growth comes from

SEEK is a Melbourne-based employment marketplace operator with businesses across Australia, New Zealand and several Asian markets through the Jobstreet and Jobsdb brands.

The company issued its original FY2026 guidance with its FY2025 full-year results on 19 August 2025.

At that time, SEEK forecast:

  • FY2026 revenue of A$1.15 billion to A$1.25 billion
  • FY2026 adjusted profit of A$190 million to A$220 million

The midpoint of the adjusted profit range is A$205 million.

Compared with FY2025 adjusted profit of A$155.2 million, this implies growth of approximately 32%.

However, that percentage is an arithmetic calculation based on the guidance range. It is not a reported FY2026 outcome and was not presented by SEEK as a formal growth target.

Adjusted profit is SEEK’s preferred underlying earnings measure. It excludes selected items that management considers non-operating, including certain impairment charges and fair-value movements related to investment holdings.

These exclusions can be significant, meaning SEEK’s adjusted and statutory earnings may differ materially.

Half-year result strengthens underlying outlook

SEEK released its FY2026 half-year results on 17 February 2026 for the six months ended 31 December 2025.

Sales revenue increased 21% to A$647 million, while net revenue rose 12% to A$601 million.

Adjusted EBITDA increased 19% to A$267 million, while adjusted profit climbed 35% to A$104 million.

The result demonstrated improving underlying earnings despite relatively soft recruitment conditions across several markets.

Management also upgraded its FY2026 operating guidance.

Net revenue guidance was narrowed and increased to between A$1.19 billion and A$1.23 billion, while adjusted EBITDA guidance was set at A$530 million to A$550 million.

The adjusted profit range of A$190 million to A$220 million remained the key reference point for expected full-year profit growth.

Zhaopin impairment drives statutory loss

Although the underlying result improved, SEEK’s statutory earnings moved sharply in the opposite direction.

The company reported a statutory loss of A$178 million for the first half of FY2026.

The loss was largely driven by a A$356 million impairment associated with Zhaopin, SEEK’s Chinese employment marketplace investment.

At 30 June 2025, SEEK carried its 23.5% interest in Zhaopin at A$451.6 million.

The impairment therefore removed a substantial portion of the investment’s recorded value.

The writedown was non-cash, but it highlights the risks associated with SEEK’s exposure to China and the weaker outlook for Zhaopin’s underlying business.

Despite the statutory loss, SEEK increased its fully franked interim dividend by 13% to 27 cents per share.

The dividend was paid on 1 April 2026.

Revenue growth is being driven by yield

A central feature of SEEK’s recent performance is that revenue growth has not relied on higher job advertisement volumes.

In FY2025, paid job ad volumes in Australia and New Zealand declined by approximately 10%.

However, yield increased 13% in constant currency.

Yield refers to the average revenue SEEK earns from each paid job advertisement.

Across its Asian markets, paid advertisement volumes declined 16%, while yield increased 18%.

A similar pattern continued during the first half of FY2026.

Australian and New Zealand paid job ad volumes declined modestly, while revenue growth was supported by pricing, premium product tiers and improved advertiser mix.

In Asia, revenue grew 4% and yield increased 17% as more customers moved toward higher-priced advertising options.

SEEK also reported that its Australian job placement share was approximately 4.9 times that of its nearest competitor during the half.

This demonstrates the strength of the platform’s market position, but it also means future earnings growth depends partly on customers continuing to accept higher pricing during subdued hiring conditions.

Platform unification is now complete

SEEK’s unification program was a multi-year initiative designed to place its Asia-Pacific employment marketplaces onto a single technology and product platform.

The program began in 2021 and was completed during 2024.

Previously, SEEK operated separate regional systems across different markets.

The unified platform is intended to make product development faster, improve data use and allow technology upgrades to be rolled out more consistently across the group.

SEEK has not disclosed a single total cost for the unification project.

However, the company’s capital expenditure declined from A$161.1 million in FY2024 to A$129.9 million in FY2025.

Management attributed part of this decline to the completion of the program.

The company has said the unified platform delivered a fivefold increase in experimentation and a threefold increase in the rate of product releases.

FY2026 is therefore the first full financial year after completion of the major platform build.

This may support operating leverage if revenue continues to rise without a corresponding increase in technology investment.

SEEK Growth Fund remains a major asset

SEEK also owns a substantial interest in the SEEK Growth Fund, which invests in employment, education and human-capital technology businesses.

At 30 June 2025, the Growth Fund portfolio was valued at approximately A$2.27 billion.

SEEK’s equity-accounted interest was recorded at around A$1.78 billion.

The fund had generated a return on invested capital of approximately 32% since inception at the end of FY2025, increasing to 33% by the February 2026 update.

The portfolio remains important because its value can materially influence SEEK’s balance sheet and statutory earnings.

However, fund valuations may fluctuate and are not equivalent to realised cash proceeds.

Employment Hero liquidity event remains pending

The SEEK Growth Fund has indicated that it intends to pursue a liquidity window for its Employment Hero investment during calendar 2026.

A liquidity window could involve a partial or full sale of the holding, potentially converting some of the fund’s investment value into cash.

However, no completed transaction had been announced as of 27 July 2026.

The potential sale therefore remains an opportunity rather than a confirmed capital event.

The eventual proceeds, timing and use of funds will depend on market conditions, buyer demand and the structure of any transaction.

Labour-market conditions remain challenging

SEEK’s operating performance remains closely linked to hiring activity across Australia, New Zealand and Asia.

A weaker labour market generally leads to fewer job advertisements, which can place pressure on platform volumes.

SEEK has partly offset this through higher yield, premium listings, improved targeting and broader product adoption.

However, there is a limit to how far pricing can compensate for weaker hiring demand.

If job advertisement volumes remain subdued for an extended period, SEEK may need stronger growth from new products and value-added services to maintain earnings momentum.

The Australian and New Zealand business remains the group’s largest earnings contributor, while Asian markets provide longer-term growth potential but also greater economic and execution risk.

Dividend growth despite statutory pressure

SEEK’s decision to increase its interim dividend despite reporting a statutory loss reflects management’s focus on adjusted earnings and operating cash flow.

The 27-cent interim dividend represented a record half-year payout for the company.

However, future dividend growth will depend on the full-year result, cash generation, investment requirements and any further valuation changes across Zhaopin and the Growth Fund.

A further impairment or weaker-than-expected operating result could influence the board’s approach to capital returns.

What investors should watch in the FY2026 result

The FY2026 financial year ended on 30 June 2026, but the audited full-year result had not been released as of 27 July 2026.

SEEK reported its FY2025 result on 19 August 2025 and its FY2024 result on 13 August 2024, indicating that an August release would be consistent with recent reporting patterns.

However, no final reporting date had been confirmed.

The full-year result will clarify whether adjusted profit finished within the A$190 million to A$220 million guidance range.

Investors will also watch whether net revenue reached the upgraded range of A$1.19 billion to A$1.23 billion and whether adjusted EBITDA landed within the A$530 million to A$550 million forecast.

Main risks and catalysts

The key positive is that SEEK delivered strong adjusted profit growth during the first half despite weaker job advertisement volumes.

Higher yield, premium product adoption and the completed platform unification provide a foundation for continued margin improvement.

However, the business faces several material risks.

The Zhaopin impairment demonstrates that SEEK’s investment portfolio can create large statutory earnings swings.

Asian revenue growth also slowed to 4% during the first half, while ongoing weakness in employment markets could constrain job ad volumes.

The potential Employment Hero liquidity event could become a positive catalyst, but its timing and proceeds remain uncertain.

The FY2026 result will therefore need to demonstrate that operating momentum remained strong through the second half and that guidance was achieved without relying excessively on pricing increases.