Recruit Holdings , posted a 3.5% year-over-year revenue increase for Q3 FY2024, totaling JPY 896.9 billion (USD 5.83 billion). Operating income surged 28.2%, while adjusted EBITDA climbed 13.5%. The company highlighted stabilization in the US job market but noted weaker labor demand in Europe. HR technology revenue rose 13.3%, led by a 66.9% surge in Japan. Meanwhile, staffing revenue edged up 1.1%, and the matching and solutions segment remained flat. Recruit forecasts full-year revenue of JPY 3.56 trillion (USD 23.17 billion), with Q4 trends largely dependent on US job postings.



Tokyo, Japan – February 12, 2025 – Recruit Holdings Co., Ltd. (TYO: 6098), a global leader in staffing and HR technology solutions, announced its financial results for the third quarter of the fiscal year ending March 31, 2025 (Q3 FY2024). The company reported a 3.5% year-over-year (YoY) increase in revenue, reaching JPY 896.9 billion (USD 5.83 billion). Operating income surged 28.2% YoY, while adjusted EBITDA grew 13.5%, demonstrating continued resilience and strategic growth in key business segments.

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Financial Performance Summary (Q3 FY2024 vs. Q3 FY2023)

Recruit Holdings maintained stable revenue growth, supported by strong performance in HR Technology and Staffing segments, despite economic challenges in European markets.

• Revenue: JPY 896.9 billion (USD 5.83 billion), up 3.5% YoY


• Operating Income: JPY 139.6 billion (USD 0.91 billion), up 28.2% YoY


• Profit Attributable to Owners: JPY 119.0 billion (USD 0.77 billion), up 11.9% YoY


• Adjusted EBITDA: JPY 179.6 billion (USD 1.18 billion), up 13.5% YoY


• Basic EPS: JPY 80.10, up 17.7% YoY

Recruit attributed the revenue growth to stabilization in the U.S. job market, expansion of HR technology services, and continued efficiency improvements in staffing operations.

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Revenue Breakdown by Business Segment

1. HR Technology – Strongest Growth at 13.3% YoY
   
   
   
   • Revenue: JPY 275.4 billion (USD 1.79 billion), up 13.3%
   
   
   • Japan: +66.9%
   
   
   • U.S.: +8.0%
   
   
   • Rest of the World: +11.8%
   
   
   
   HR Technology continued to be the fastest-growing segment, particularly in Japan, where strategic business realignment and operational enhancements contributed to a significant revenue increase.


2. Matching & Solutions – Slight Decline of 0.4%
   
   
   
   • Revenue: JPY 198.7 billion (USD 1.29 billion), down 0.4%
   
   
   • HR Solutions: -13.6%
   
   
   • Marketing Solutions: +7.4%
   
   
   
   While HR Solutions saw a decline due to reduced corporate spending on hiring solutions, Marketing Solutions delivered positive growth.


3. Staffing – Stable Growth at 1.1%
   
   
   
   • Revenue: JPY 438.4 billion (USD 2.85 billion), up 1.1%
   
   
   • Japan: +7.8%
   
   
   • Europe, U.S., and Australia: -4.2%
   
   
   
   Staffing performance in Japan remained strong, but economic headwinds in Europe and the U.S. led to a revenue decline in overseas staffing operations.

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Full-Year Forecast for FY2024

Recruit Holdings reaffirmed its full-year revenue forecast at JPY 3.56 trillion (USD 23.17 billion), reflecting 4.2% YoY growth.

• Adjusted EBITDA is projected at JPY 673.0 billion (USD 4.40 billion, up 12.5% YoY)


• Operating Income is forecasted at JPY 488.0 billion (USD 3.19 billion, up 21.2% YoY)


• Profit Attributable to Owners is expected to reach JPY 403.0 billion (USD 2.63 billion, up 14.0% YoY)

Recruit noted that its Q4 forecast assumes stable job posting trends in the U.S., but Japan and international markets are revised lower due to currency fluctuations and economic uncertainties.

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Stock Performance and Market Capitalization

Following the earnings release on February 12, 2025, Recruit Holdings’ stock closed at JPY 10,660.00 (USD 69.40), marking a 0.84% decline for the day. The stock remains 10.38% below its 52-week high of JPY 11,895.00 (USD 77.44), set on December 12, 2024. The company’s market capitalization stands at JPY 17.59 trillion (USD 114.5 billion, based on a 1 USD = 153.59 JPY exchange rate).

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Strategic Outlook and Future Growth

• HR Technology Expansion: Recruit continues investing in AI-driven talent acquisition and HR SaaS solutions, targeting global expansion.


• Staffing Optimization: The company remains focused on operational efficiency in Japan, while closely monitoring European market conditions.


• Marketing Solutions Growth: Despite HR Solutions' slowdown, Marketing Solutions remains a bright spot, underscoring Recruit’s diversification efforts.


• Shareholder Returns: Recruit continues its JPY 600 billion share repurchase program, reinforcing its commitment to shareholder value.

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Management Commentary

During the earnings call, Recruit Holdings’ executives stated:

"Our Q3 performance reflects steady labor demand in the U.S. and strong HR technology adoption across multiple regions. While Europe remains uncertain, we remain confident in our full-year forecast, supported by consistent hiring trends and strategic business investments."

Recruit plans to announce FY2025 market guidance and forward-looking strategies in May 2025.

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About Recruit Holdings

Recruit Holdings Co., Ltd. is a global leader in HR technology, staffing, and business solutions. With operations across Japan, the U.S., and Europe, the company provides innovative workforce solutions through Indeed, Glassdoor, and its staffing & HR SaaS offerings.