Key Highlights

  • Sales Revenue rose 17% to A$1,284.2 million from continuing operations for FY26.
  • Adjusted profit rose 28% to A$199.1 million, and adjusted EPS rose 28% to 56 cents.
  • EBITDA rose 15% to A$529.9 million, and free Cash Flow rose 21% to A$246.0 million.
  • The statutory result was a loss of A$306.5 million from continuing operations, and job-ad volumes softened in Australia and Asia.

Why did SEEK (ASX:SEK)'s shares fall sharply on the day it reported a record Dividend and higher adjusted profit? The answer lies in the details behind the headline: results landed at the lower end of guidance, job-ad volumes softened in Australia and Asia, the FY27 outlook did not point to faster growth, and investors remain unsure how artificial intelligence will change recruitment.

The central development: encouraging operating numbers, weak reception

SEEK operates online employment marketplaces, mainly in Australia and New Zealand (ANZ) and in Asia. For FY26, from continuing operations, sales revenue rose 17% to A$1,284.2 million and net revenue rose 10% to A$1,198.9 million. EBITDA rose 15% to A$529.9 million and adjusted profit, the company's preferred measure, rose 28% to A$199.1 million, with adjusted Earnings Per Share up 28% to 56 cents. Free cash flow was A$246.0 million, up 21%.

The statutory result looked very different. SEEK reported a loss of A$306.5 million from continuing operations and A$371.3 million including discontinued operations. The main drivers were a A$356 million Impairment related to Zhaopin, its China-based associate (a A$284 million write-down of the equity-accounted stake and A$72 million on the net consideration receivable), and a net loss of A$201.2 million from the SEEK Growth Fund, whose portfolio value declined 13%.

It also noted that net revenue, EBITDA and adjusted profit were at the lower end of previous guidance ranges. That is a news report of the market reaction rather than a company explanation, and share-price moves reflect many factors.

Revenue drivers and segments

ANZ is the core. Sales revenue there rose 12% to A$945.4 million. Job-ad yield, meaning revenue per advertisement, rose 14%, while Australian job-ad volumes fell 2%. This pricing-led pattern is common in marketplaces with encouraging positions but is sensitive to hiring demand: if volumes keep falling, Yield gains become harder to sustain.

Asia contributed A$253.5 million, up 3% (5% in constant currency), with paid job-ad volumes down 12%. The company cites macroeconomic conditions, weaker hiring in Hong Kong and the effect of a Freemium transition in some markets. Margins and growth in Asia therefore depend on whether free listings eventually convert to paying employers.

Dividend and cash

The company declared a final dividend of 25 cents fully franked, taking FY26 dividends to 52 cents fully franked, up 13% from 46 cents. The final dividend had a 3 September 2026 Record Date and was payable on 1 October 2026.

FY27 guidance

Excluding the Growth Fund and significant items, SEEK guided to FY27 revenue of about A$1,210 million to A$1,280 million, EBITDA of about A$530 million to A$580 million and adjusted profit of about A$185 million to A$215 million. Guidance is management's expectation and depends heavily on hiring conditions.

Comparing guidance with FY26 is not entirely straightforward. Slower cost growth alongside modest revenue growth means the EBITDA range of A$530 million to A$580 million depends on hiring Demand holding up, because there is little cushion if volumes weaken further, and management has said productivity gains must absorb AI-related costs.

AI: advantage or threat

SEEK's announcement presents AI as a source of competitive advantage, with data and trust as key assets, and says higher spending on product, technology and AI teams and on compute lifted FY26 costs. It expects productivity gains to absorb higher AI-related costs in FY27. Investors, however, are debating whether AI-driven Job search, matching tools or direct employer sourcing could weaken classified-style job boards. The competitive question is who owns candidate relationships and data. SEEK's long-standing audience and employer base are strengths, while rivals such as LinkedIn and Indeed, and new AI-native entrants, are the competitive set to watch.

Risks and developments to monitor

Job-ad Volume trends in Australia and Asia, particularly in a softer labour market.

Whether yield increases can continue to offset lower volumes.

Progress of the Asia freemium transition and Hong Kong conditions.

The remaining exposure to Zhaopin after the impairment.

Cost growth from AI and technology Investment relative to guidance.

The first-half FY27 result, and any update to guidance.