SEEK Limited (SEK) remains one of Australia’s most important digital employment platforms, connecting job seekers and hirers across Australia, New Zealand, and key Asian markets. The company entered FY26 facing a noticeable slowdown in job ads, softer candidate demand, and ongoing macro pressure across the broader employment landscape.
Even so, SEEK continues to invest in product upgrades, pricing improvements, and deeper penetration across enterprise customers. The stock has held a relatively stable range this year as investors gauge how quickly the hiring cycle can normalize and whether SEEK’s operating leverage can re-emerge as demand stabilizes.
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Financially, SEEK is navigating a transition year. Revenue growth remains modest, margins have compressed slightly, and EPS results reflect a mix of weaker job volumes and elevated investment spending. The near-term earnings picture is not the main story, though. Analysts see the foundation being laid for stronger monetization and improved yield across major segments once hiring activity rebounds. SEEK’s enterprise product suite and enhanced matching algorithms continue to support long-term competitive positioning.
The valuation model shows how wide the outcomes may be when hiring volumes recover. The mid-case suggests a target price of A$49.37, which implies a potential total return above 100 percent through FY30. High- and low-case bands reflect uncertainty around revenue re-acceleration, pricing strength, and platform growth in Asia. Investors will focus on whether SEEK can maintain operational discipline and deliver enough product momentum to capture meaningful upside as conditions improve.
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Financial Story
SEEK’s latest results show an employment market that remains subdued, particularly in Australia and New Zealand. Job ad volumes remained under pressure as businesses slowed hiring amid macro uncertainty, higher financing costs, and ongoing caution among small and medium enterprises. While revenue grew modestly year over year, the composition suggests stable pricing rather than volume improvement. With job listings showing limited traction in the near term, SEEK’s topline remains tightly linked to broader labor trends.
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue Growth | 1.2% | Slightly positive, low-single-digit growth |
| Net Income Margin | 5.7% | 5.5% |
| EPS Growth | 21.5% | 305.2% (on a low base, normalization expected) |
| Operating Cash Flow | Stable | Stable, consistent with earnings trend |
| P/E Change | (7.3%) | 44.2% |
| Stock Price (FY End) | A$25.95 | A$26.05 |
Margins also softened as the company continued investing in platform enhancements and AI-driven matching tools. These investments have increased SEEK’s cost base at a time when revenue growth is muted, pushing earnings lower than prior expectations. Still, the company maintains a solid balance sheet and continues reinvesting to strengthen its long-term competitive advantage. Management remains focused on expanding yield per listing, improving customer retention, and supporting enterprise integrations.
The valuation model captures what the recovery window may look like. In the mid-case, SEEK could achieve ~10 percent annualized revenue growth through FY31, with EPS growth improving meaningfully once the hiring cycle reaccelerates. The long-term economics remain compelling, given SEEK’s role as the leading recruitment platform and its pricing power across ANZ. Execution on product development and international growth will determine how much of the upside becomes achievable.
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Broader Market Context
The employment sector is moving through a prolonged adjustment phase. Companies across Australia have slowed recruitment as they absorb wage inflation, higher borrowing costs, and weaker discretionary demand. These trends have reduced hiring frequency across industries, leading to fewer ad postings on SEEK’s platform. A stabilization in job listings would be the earliest sign of a sector-wide bottom.
At the same time, digital recruitment remains structurally advantaged compared to traditional hiring channels. Employers continue shifting toward data-driven evaluation tools, tighter skills-matching algorithms, and end-to-end talent solutions. SEEK’s long-term value proposition aligns well with this evolution, positioning the company to capture growth once demand returns.
1. Ad Volume Stabilization and Early-Cycle Indicators
A key question for investors is when hiring demand begins to normalize. Job ad volumes have been declining for several quarters, and the timing of the recovery remains uncertain. Leading indicators, such as SME sentiment and forward-looking hiring surveys, will be critical. Investors will watch closely for a plateau in declines or pockets of improvement across specific sectors.
The pattern of recovery matters, and if job ads begin rising steadily, SEEK’s operating leverage becomes far more visible, allowing margins to rebuild. Conversely, a slower rebound would extend the company’s low-growth period, increasing reliance on pricing, enterprise contracts, and productivity improvements. Either path will help set expectations for FY27 and beyond.
2. Pricing Power and Product Monetization
Another focus is whether SEEK can continue expanding yield per listing despite weaker volumes. The company has a track record of incrementally raising prices through value-added features, improved matching tools, and depth products targeted at enterprise clients. These enhancements provide a recurring monetization engine even during slower economic cycles.
Success here supports the long-term valuation outlook. If SEEK can demonstrate durable pricing power, the market may reward the stock with higher multiples once growth returns. Analysts will be watching for evidence that product upgrades strengthen customer engagement enough to offset lingering macro pressure.
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3. International Growth and Strategic Investment
While ANZ remains SEEK’s core driver, its Asian operations and minority investments in online recruitment platforms provide meaningful optionality. Performance across these markets has been mixed, but long-term digital adoption trends remain strong. The ability to scale these businesses profitably will shape part of the upside in the valuation model.
The investment cycle also remains pivotal. SEEK continues funding technology upgrades, AI-driven candidate matching, and new enterprise solutions. Efficient spend allocation and evidence of improving returns on these investments will influence sentiment, particularly given current macro softness.
The TIKR Takeaway
SEEK’s near-term results still reflect a challenging hiring environment, but the long-term investment case remains anchored in pricing power, digital hiring adoption, and platform scale. The valuation model shows meaningful upside if job ad volumes recover over the next several years. Investors will track early-cycle indicators, monetization trends, and product execution to determine how much of that upside becomes achievable.
Should You Buy, Sell, or Hold SEEK Limited Stock in 2025?
SEEK offers long-term potential tied to a rebound in employment activity, but the timing of that recovery is uncertain. The upside case is compelling if volumes normalize and product monetization strengthens, yet near-term volatility may persist. Investors will likely wait for clearer hiring signals before adjusting positioning.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
