SEEK Limited (ASX:SEK) operates online employment marketplaces across Australia, New Zealand and several Asian markets, connecting employers with candidates through Job Advertising and related recruitment products. FY26 delivered higher revenue, EBITDA and adjusted profit as increased pricing and greater adoption of higher-value advertising products offset lower paid-ad volumes. Statutory earnings, however, were affected by Investment impairments and the SEEK Growth Fund.

Revenue Increases as Yield Offsets Volume Declines

Sales Revenue from continuing operations increased 17% to A$1.2842 billion in FY26, while net revenue rose 10% to A$1.1989 billion. The difference between sales revenue and net revenue partly reflects SEEK’s reporting treatment for Sidekicker, where contingent labour fulfilment costs are deducted in arriving at net revenue.

Core job ads and ad-enhancement revenue increased 10% to A$1.0762 billion. The increase was mainly supported by higher paid-ad yield, while paid-ad volumes declined across parts of Australia and Asia.

Paid-Ad Yield Rises 18%

Paid-ad yield across the core employment marketplace increased 18% during FY26. SEEK attributed the increase to greater adoption of higher-tier advertisements, including its Advanced ad product, together with value-based pricing.

ANZ job-ad yield increased 14%, while Asia recorded a 20% increase. SEEK’s strategy therefore relied more heavily on revenue earned per advertisement rather than growth in the number of paid job advertisements.

Volumes Move Lower Across Key Markets

ANZ job-ad volumes declined 1% compared with FY25. Australian volumes were down 2%, while New Zealand volumes increased 8% after several years of declines.

In Asia, paid job-ad volumes declined 12%. The reduction reflected the transition to SEEK’s Freemium model and employment-market conditions in several countries. Total advertisements and hirer numbers in Asia nevertheless increased following the rollout of freemium across the region.

EBITDA Reaches A$529.9 Million

EBITDA from continuing operations increased 15% to A$529.9 million from A$459.2 million. The EBITDA Margin increased to 44% from 42%.

Adjusted profit from continuing operations rose 28% to A$199.1 million, while adjusted basic Earnings per share increased to 55.7 cents from 43.5 cents.

The earnings increase reflected revenue growth and operating leverage, although depreciation, amortisation, share-based payments and tax expenses also increased.

Free Cash Flow Rises to A$246 Million

Net cash from Operating Activities from continuing operations increased to A$397.7 million from A$332.8 million.

Capital expenditure was A$151.7 million, resulting in free cash flow of A$246.0 million, up 21%.

SEEK reported an EBITDA cash conversion ratio of 104%, compared with 99% in FY25. Cash generation remains relevant as the company continues investing in product development, artificial intelligence and marketplace capabilities.

Statutory Result Falls Into Loss

SEEK reported a total attributable statutory loss of A$371.3 million, compared with a A$245.2 million profit in FY25.

The result included A$356.0 million of Impairment charges associated with Zhaopin. This comprised a A$283.6 million impairment of the equity-accounted investment and a A$72.4 million impairment associated with the remaining consideration receivable.

The SEEK Growth Fund also contributed a A$201.2 million loss during FY26.

Growth Fund Valuation Declines

The SEEK Growth Fund’s total portfolio value, including distributions, declined 13% to A$1.978 billion at 30 June 2026 from A$2.269 billion a year earlier.

The reduction mainly reflected lower valuations across parts of the HR software portfolio. At year-end, Employment Hero, Go1, HiBob and Online Education Services represented 74% of the Fund’s portfolio valuation.

SEEK owns an 83.8% interest in the Fund but does not control individual asset-sale decisions.

Employment Hero Sale Remains Under Consideration

The Growth Fund has announced its intention to sell its stake in Employment Hero.

The Fund is also considering potential sales of other investments as part of its next phase, with Assets valued at more than A$1 billion potentially involved.

The timing and value realised from these transactions will depend on market conditions and negotiations, meaning they should not yet be treated as completed Liquidity events.

Platform Unification Supports Pricing Strategy

SEEK completed its three-year Platform Unification program in FY24, bringing its Australian, New Zealand and Asian employment marketplaces onto a shared technology platform.

The company has since increased investment in data, artificial intelligence and product development. SEEK links these investments to improved matching, new advertising formats and value-based pricing.

The financial impact is reflected most directly in higher yield, while paid-ad volumes remain dependent on employment conditions.

Dividend Increases to 52 Cents

SEEK declared total FY26 dividends of 52 cents per share, up 13% from 46 cents in FY25.

The final Dividend was 25 cents per share and fully franked, with payment made on 1 October 2026.

Future distributions will remain dependent on earnings, cash flow, investment requirements and capital-allocation decisions.

FY27 Guidance Allows for a Range of Earnings Outcomes

SEEK expects FY27 revenue of approximately A$1.21 billion to A$1.28 billion.

EBITDA is expected to range from approximately A$530 million to A$580 million, while adjusted profit is forecast between A$185 million and A$215 million.

The adjusted profit range includes outcomes both below and above the FY26 result of A$199.1 million, indicating that FY27 earnings will depend on the balance between yield, volumes and expenditure.

Medium-Term Focus Remains on Yield and Cost Control

SEEK continues to target annual yield growth of at least 10% over the medium term while managing expenditure growth through the employment cycle.

Higher yield can partly offset lower advertising volumes, but continued declines in paid advertisements would place greater reliance on pricing and product mix.

The company will therefore need to balance customer value with further increases in average revenue per paid advertisement.

Key Risks and Areas to Watch

Paid-ad volumes remain sensitive to hiring conditions across Australia and Asia. If volumes decline further, higher yield may not fully offset the impact on revenue.

The Growth Fund also introduces valuation risk outside SEEK’s core employment marketplaces, while Zhaopin remains subject to investment and valuation uncertainty.

FY27 paid-ad volumes, yield growth, EBITDA margins, Growth Fund asset sales and progress against adjusted profit guidance will therefore remain important indicators.