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Recruit Holdings’ HR Tech Segment Sees Profits Jump on Indeed Monetization
TOKYO — Recruit Holdings Co., Ltd., the global HR services giant, reported a significant jump in profitability for its HR Technology segment in the second quarter, driven by strong monetization gains at its Indeed platform that offset a slowdown in job postings.
For the three months ending September 30, 2025, the segment’s revenue, which includes brands like Indeed and Glassdoor, grew 4.5% on a U.S. dollar basis to $2.41 billion.
The quarter’s standout figure was its profitability. The segment’s EBITDA+S (a measure of earnings) surged 10.4% year-over-year to ¥134.8 billion. This pushed the EBITDA+S margin up by 2.6 percentage points to a robust 37.9%, a move the company attributed to improved productivity and operational efficiencies, including a workforce reduction announced in July.
Here is a breakdown of the segment’s performance by region.
📈 U.S. Market: Smarter Monetization Wins the Day
In the United States, the segment’s largest market, revenue increased 5.8% to $1.33 billion. This growth was achieved despite a decrease in the overall number of job postings.
The company successfully counteracted the softer hiring market by improving its monetization strategy. This led to an approximately 15% year-over-year rise in the U.S. Average Revenue per Job Posting (ARPJ) on Indeed, more than compensating for the lower posting volume.
🌍 Europe and Other Markets Show Strength
The “Europe and Others” region delivered strong results, with revenue climbing 14.7% on a U.S. dollar basis to $509 million. Recruit Holdings credited this performance to successful monetization developments in key markets like the United Kingdom and Canada, as well as favorable foreign exchange impacts.
🇯🇵 Japan Market: A Temporary Downturn
The segment’s performance in its home market of Japan was the only point of weakness. Revenue in Japan fell 7.2% (in yen terms) to ¥84.0 billion.
The company stated this was not due to a market-wide slowdown but rather to internal operational changes. Placement services underperformed due to a “system migration” related to an organizational integration. However, the company noted that its job advertising service, Indeed PLUS, performed steadily.
📊 Six-Month Performance
Looking at the full six-month period ending September 30, 2025, the HR Technology segment’s revenue grew 4.1% on a U.S. dollar basis to $4.78 billion. The EBITDA+S margin for the six-month period stood at 36.5%.
