SEEK Limited

For FY26, SEEK reported net revenue growth of 10%, EBITDA growth of 15%, and adjusted profit and EPS growth of 28%. Paid ad yields increased 18% across APAC, with ANZ volumes down about 1% and Asia volumes down 12%. Free cash flow rose 21% to $246 million, operating cash flow converted at 104% of EBITDA, net debt was just under $1 billion, and net leverage improved to 1.8x. Reported loss was $307 million, reflecting the Zhaopin impairment and a $201 million net loss from the fund driven by a 13% decline in portfolio valuation. The dividend was $0.52 per share, up 13% year over year, and represented a 100% payout of cash profit. Looking ahead, SEEK guided to mid-single-digit volume declines in FY27, continued strong yield growth, and maximum cost growth of 5%; Kendra also said a flat-volume FY28 scenario with the new medium-term targets would imply NPAT growth in the mid-20s, and that nothing seen so far suggests a major additional below-the-line step-up beyond the FY27 D&A range of $180 million to $190 million.

Ian Narev framed the result as evidence that SEEK is delivering on its promises and doing so with more confidence in the future. He emphasized that the business can still grow EBITDA even in a weak volume environment, because placement share, yield and operating leverage are now proven levers. He was especially bullish on AI, saying management and the board came away more convinced that SEEK’s competitive advantage in a world of rapid technological change is strengthening, not eroding.

Kendra Banks said the company expanded margins and converted earnings into cash, with free cash flow up 21% to $246 million and operating cash flow at 104% of EBITDA. She highlighted that total expenditure grew 8% versus 10% revenue growth, with growth-business investment up 10% due to AI, product innovation and Sidekicker costs, while run-the-business costs rose 4% outside FX effects. She also pointed to net debt of just under $1 billion, leverage at 1.8x, and the record $0.52 dividend, and noted FY27 D&A guidance of $180 million to $190 million includes some useful-life changes but no expected write-offs on top.

Analysts focused on the growth fund, asking about proceeds, leverage, buybacks and whether asset sales could be EPS-accretive; Ian said SEEK owns 83% of the fund, expects most capital realized to be returned, but does not control the fund or have specific capital-return guidance yet. Questions also centered on whether the new 10%+ yield target is conservative, how much of FY26’s yield came from depth adoption versus value-based pricing, and whether price increases are hurting placement share; management said the target applies separately to ANZ and Asia, the mix should be broadly balanced, and they have high confidence yield is not being won at the expense of share. On volumes, management said the FY27 base case assumes mid-single-digit declines driven mainly by macro conditions, with AI impacts so far limited to the edges, and noted cost levers such as marketing, hiring pace, and bonuses if conditions worsen.