Key Highlights

• SEK shares fell 5.61% to $12.80 on 9 September 2026 despite strong FY26 underlying results.

• Adjusted profit grew 28% to $199 million; EBITDA increased 15% to $530 million on 10% Revenue growth.

• Reported loss was $307 million for Continuing Operations, driven by a $356 million Zhaopin Impairment and $201 million SEEK Growth Fund net loss.

• Record full-year Dividend of 52 cents per share fully franked was declared, a 13% increase on FY25.

Shares in SEEK Ltd (ASX:SEK) declined 5.61% to $12.80 on 9 September 2026, despite the company having reported a set of FY26 results on 12 August 2026 that demonstrated meaningful growth in its underlying employment marketplace business. The share price weakness likely reflects a combination of factors: the significant reported loss driven by the SEEK Growth Fund portfolio, the ongoing impairment of the Zhaopin investment, the slightly weaker Job Advertising Volume environment and cautious FY27 guidance that implies limited growth at the midpoints of the guidance ranges.

Underlying Business Performance: Sixth Year of Double-Digit Yield Growth

SEEK's FY26 results from Continuing Operations showed net revenue of $1,199 million, up 10% on the prior period. This growth was driven primarily by 18% paid ad yield growth across the Asia-Pacific markets — the sixth consecutive year of double-digit yield growth. Total expenditure increased 8%, below the rate of revenue growth, delivering Operating Leverage for the fourth consecutive half. EBITDA grew 15% to $530 million, and EBITDA Margin expanded to 44%.

ANZ revenue grew 12%, with Australian job ad yield rising 14% following the launch of upgraded ad tiers and the Advanced ad product in H2 FY2025. This was partially offset by a 2% decline in Australian job ad volumes as macroeconomic conditions weighed on hiring activity in the second half of FY2026. New Zealand volumes grew 8% following several years of declines. Asia revenue grew 3% (5% in constant currency), with 20% paid ad yield growth partly offset by a 12% decline in paid job ad volumes as markets transitioned to a Freemium model and macroeconomic conditions in Hong Kong weighed on results.

Reported Loss Driven by Growth Fund and Zhaopin Impairment

The reported loss of $307 million for Continuing Operations stands in contrast to the 28% growth in adjusted profit. The primary driver of this gap is the SEEK Growth Fund, which recorded a net loss of $201 million in FY2026, driven by a 13% decline in the Fund's total portfolio value. This portfolio decline was concentrated in the HR SaaS assets, where valuations fell despite 23% 'look-through' revenue growth — a divergence between operating performance and valuation outcomes. The Fund's cumulative return on invested Capital since creation is 12%.

Additionally, a total impairment charge of $356 million was recorded against SEEK's Investment in Zhaopin, the Chinese online employment marketplace. This comprised a $284 million impairment against SEEK's 23.5% equity-accounted investment in Continuing Operations and a $72 million impairment against the net consideration receivable in Discontinued Operations. A $9.5 million performance fee payable to the Fund's manager in relation to the increase in JobAdder's value was also recorded as a significant item.

Medium-Term Goals Upgraded on AI Confidence

Despite the complexity of the reported results, management upgraded SEEK's medium-term strategic goals, citing increased confidence in the company's Competitive Advantage in the AI-enabled employment marketplace environment. The company aims to increase already-leading market positions in every market and grow yield by a minimum of 10% annually through the cycle, while improving operating leverage by maintaining mid-single-digit cost growth. Management identified data and trust as SEEK's unique sources of competitive advantage in an AI-enabled competitive environment.

The SEEK Growth Fund also disclosed that the sale process for its stake in Employment Hero is still in progress, and that the Trustee Board and Fund Manager are in discussions about plans that may include near-term sales of investments currently valued at over $1 billion, which would supersede the previous Liquidity window. Further detail is expected before the end of 2026.

FY27 Guidance and Capital Allocation

FY27 guidance (excluding the Fund and significant items) indicated revenue of approximately $1,210 million to $1,280 million, EBITDA of approximately $530 million to $580 million, and adjusted profit of approximately $185 million to $215 million. At the midpoints, this implies approximately 5% revenue growth, 6% EBITDA growth and 3% adjusted profit growth in constant currency terms. The guidance reflects a lower-volume job advertising environment and higher AI-related costs, with management citing a lower-volume base case as the near-term operating assumption.

The Board determined a record final dividend of 25 cents per share fully franked (record date 3 September 2026, payment 1 October 2026), bringing the FY2026 full-year dividend to 52 cents per share — a 13% increase and a record for the company. The dividend represented 100% of cash profit less capex.

Conclusion

SEEK's FY26 results present a company with genuine underlying momentum — six years of double-digit yield growth, expanding EBITDA margins and a record dividend — alongside meaningful complexity from the Growth Fund's performance and the Zhaopin impairment. The FY27 guidance, while positive, implies a step-down from the growth rates achieved in FY26 in a lower-volume environment. The resolution of the Growth Fund's investment sales program and the ultimate trajectory of job ad volumes in Australia and Asia will be the key variables investors monitor in assessing whether SEEK's operating momentum can be sustained through the current economic cycle.