Seek Limited (SLD) Q4 2026 Earnings Report

The call conveyed a predominantly positive operational and financial performance in FY26: double-digit revenue/yield growth, 15% EBITDA growth, strong free cash flow and an upgraded set of medium-term targets supported by AI-driven product and productivity gains. Key challenges remain: weaker volumes (ANZ and Asia), a reported loss driven by non-core impairments and a 13% decline in the Growth Fund valuation, and some near-term uncertainty around realizing fund assets and the macro-driven demand environment. Overall, management positioned the business as resilient with upgraded ambitions underpinned by data, trust and AI, while acknowledging cyclicality and fund-related timing risks.

SEEK’s guidance assumes a tougher FY27 labour market with a base‑case mid‑single‑digit decline in ad volumes (each 1% change ≈ $9m group revenue impact), but management expects continued profit growth driven by yield and operating leverage: a new medium‑term minimum 10% pa paid‑ad yield target (ANZ and Asia individually), a tightened medium‑term cost target of mid‑single‑digit growth (with a next‑year cost‑growth ceiling of 5%), and D&A guided to $180–190m for FY27; leadership cited modest EBITDA/profit growth next year despite weaker volumes (after FY26: net revenue +10%, paid‑ad yields APAC +18%/overall yield strong, EBITDA +15%, adjusted profit and EPS +28%), while balance‑sheet metrics include FCF $246m (+21%), net debt just under $1bn, net leverage ~1.8x and a record dividend $0.52/share (+13%, 100% cash‑profit payout); operational assumptions include ~85% AI adoption and ~40% uplift in engineering throughput to help offset increased AI token/compute costs.