Highlights

  • SEEK increased first-half FY26 net revenue by 12% to A$601 million and adjusted EBITDA by 19% to A$267 million despite declining paid advertisement volumes.
  • Revenue growth was driven largely by higher yield per advertisement, which increased 17%, rather than stronger hiring activity.
  • The company continues investing in artificial intelligence, while investors assess whether AI strengthens SEEK’s marketplace advantage or challenges its long-term role as an employment intermediary.

SEEK Limited (ASX:SEK) has demonstrated earnings resilience during a challenging employment environment, using pricing power, product upgrades and technology investment to offset weaker job advertisement volumes. However, the company remains caught between two opposing forces: improving near-term profitability and uncertainty around the future role of employment marketplaces in an AI-driven hiring environment.

Earnings growth despite weaker job advertising conditions

SEEK delivered its FY2026 half-year results for the six months ended 31 December 2025.

The company reported:

  • Net revenue of A$600.9 million
  • Adjusted EBITDA of A$267 million
  • Adjusted profit of A$104.1 million

Net revenue increased 12%, while adjusted EBITDA grew 19%.

The result demonstrated SEEK’s ability to maintain earnings momentum despite weaker labour-market conditions.

The key driver was not increased advertising volume.

Instead, SEEK generated more revenue from each advertisement through pricing, premium products and improved customer monetisation.

This distinction is important because marketplace businesses typically rely on increasing transaction volume.

SEEK’s recent performance shows it can still grow earnings even when hiring activity slows, although the sustainability of that approach remains a key investor question.

Yield growth offsets declining job advertisement volumes

SEEK’s biggest operational theme has been the rise in revenue per advertisement.

In Australia and New Zealand:

  • Revenue increased 14% to A$476 million
  • Yield increased 17%
  • Paid advertisement volumes declined 2%

Yield represents the average revenue generated from each paid job advertisement.

The increase has been supported by:

  • Higher-value advertisement tiers
  • Premium placement products
  • Outcome-based pricing models
  • Improved employer targeting tools

SEEK has strengthened its position by helping employers reach more relevant candidates rather than simply selling more job listings.

However, maintaining high yield growth becomes harder as the pricing base increases.

The key FY27 question is whether pricing power can continue offsetting weaker hiring demand.

Australia and New Zealand remain the core business

Australia and New Zealand remain SEEK’s strongest markets.

The company reported:

  • Australian placement share of approximately 36.3%
  • Market position around five times larger than its nearest competitor

The region continues to generate the majority of SEEK’s earnings.

However, these markets are relatively mature.

Future growth is likely to depend more on:

  • Product innovation
  • Pricing optimisation
  • AI-enabled services
  • Employer productivity tools

rather than rapid customer expansion.

Asian markets face volume pressure

SEEK’s Asian operations delivered a more mixed performance.

Revenue increased approximately 4% to A$125 million.

However, paid advertisement volumes declined 14%.

Yield again increased 17%, helping offset weaker activity.

The company has expanded its freemium model across Asian markets, allowing more employers to access the platform without immediately paying for advertisements.

Management expects free users to potentially convert into paying customers over time.

However, evidence of successful monetisation remains limited.

The strategy creates a trade-off:

  • Higher platform engagement
  • Larger employer network

against:

  • Lower near-term paid advertisement volumes
  • Potential revenue dilution

FY26 guidance strengthened, but not upgraded

SEEK’s FY26 guidance was tightened following the half-year result.

The company’s original FY26 guidance included:

  • Revenue: A$1.15 billion to A$1.25 billion
  • EBITDA: A$510 million to A$550 million
  • Adjusted profit: A$190 million to A$220 million

Updated guidance became:

  • Revenue: A$1.19 billion to A$1.23 billion
  • EBITDA: A$530 million to A$550 million
  • Adjusted profit: A$195 million to A$215 million

The change indicates stronger confidence around delivery.

However, it should not be interpreted as a major earnings upgrade.

The top end of the guidance ranges remained unchanged, while the adjusted profit midpoint stayed around A$205 million.

The update represented improved visibility rather than a fundamental change in earnings expectations.

Zhaopin impairment clouds statutory earnings

SEEK’s statutory earnings have been affected by its investment in Zhaopin, its Chinese employment marketplace associate.

In February 2026, SEEK recognised a post-tax impairment of approximately A$356 million.

The impairment reflected:

  • Challenging Chinese economic conditions
  • Competitive pressures
  • Strategic changes within Zhaopin

Following the impairment, SEEK reported a statutory loss.

The impairment reduced the carrying value of the investment substantially.

However, management continues to view Zhaopin as a strategic asset and expects SEEK’s ownership position to increase through an ownership simplification process.

The impairment does not directly reflect weakness in SEEK’s core Australian, New Zealand or UK employment marketplaces.

However, it highlights the risks associated with international investments.

Balance sheet and dividend support investor confidence

SEEK maintained a relatively strong financial position.

At 31 December 2025:

  • Net debt was approximately A$990 million
  • Cash balance was approximately A$129 million

Net leverage remained manageable at around two times.

The company also continued returning capital to shareholders.

SEEK declared a fully franked interim dividend of 27 cents per share, representing growth compared with the previous period.

The dividend reflects confidence in cash generation, although higher debt levels limit financial flexibility compared with a purely asset-light marketplace business.

SEEK Growth Fund remains a strategic asset

The SEEK Growth Fund continues to contribute additional strategic value.

SEEK owns approximately 83.8% of the fund.

At December 2025, the fund’s portfolio value was approximately A$1.78 billion.

Major holdings include:

  • Employment Hero
  • Go1
  • Hibob
  • OES

The fund has generated a positive return on invested capital since inception.

SEEK has also explored liquidity options for its Employment Hero investment.

A successful transaction could provide additional capital flexibility.

However, portfolio valuations remain subject to market conditions and may not translate directly into realised cash returns.

Artificial intelligence creates opportunity and uncertainty

AI is one of the biggest strategic issues facing SEEK.

The company believes artificial intelligence can strengthen its marketplace by improving:

  • Candidate matching
  • Advertisement creation
  • Search capability
  • Verification processes
  • Recruitment efficiency

SEEK has introduced more than 50 AI-related services across its platform.

The company has also highlighted AI tools that improve candidate targeting and reduce recruitment friction.

The strategic argument is that SEEK’s proprietary employment data provides an advantage because it understands which candidates actually lead to successful placements.

This creates a potential competitive advantage over general-purpose AI systems.

AI could also disrupt the marketplace model

The opposing argument is that AI may reduce the need for traditional employment platforms.

If employers can use AI tools to identify candidates directly, the value of marketplace intermediaries could decline.

SEEK’s challenge is proving that AI enhances its role rather than replacing it.

The company argues that trusted employment data, verified outcomes and matching capability create long-term advantages.

However, competition remains intense from global platforms and emerging AI recruitment solutions.

The impact of AI on hiring behaviour remains uncertain.

Employment market remains the key cycle factor

SEEK continues to face a weaker employment environment.

The company reported declining job advertisements, while applications per advertisement reached record levels.

This indicates a labour market where employers have more choice and job seekers face greater competition.

Lower hiring activity can eventually pressure employer spending.

SEEK’s pricing power has protected earnings so far, but prolonged weakness could challenge revenue growth.

Long-term strategy focuses on three pillars

SEEK’s strategy centres around:

  • Employment marketplace services
  • Data and AI capabilities
  • International expansion

The company aims to use its employment data advantage to improve recruitment outcomes.

The success of this strategy depends on maintaining employer willingness to pay premium prices while expanding the value of the platform.

Share performance reflects investor caution

SEEK shares have remained under pressure despite improved earnings.

The company traded around A$12.89 on 24 July 2026, representing a significant decline over the previous year.

The market appears concerned about:

  • Slowing employment growth
  • Sustainability of pricing increases
  • AI disruption risks
  • International investment returns

The valuation reflects scepticism about long-term growth rather than immediate operational weakness.

What investors should watch

The FY26 full-year result will provide the next major checkpoint.

Investors will focus on:

  • EBITDA delivery against guidance
  • Sustainability of yield growth
  • Job advertisement trends
  • AI monetisation progress
  • FY27 outlook

The central question is whether SEEK can continue generating earnings growth in a lower-volume recruitment environment.

SEEK has shown pricing power and operational resilience.

The next phase will depend on whether AI strengthens that advantage or challenges the economics of the marketplace.