Recruitment firm HRnetGroup (SGX:CHZ
) reported earnings of $52.9 million for FY2025 ended Dec 31, 2025, up 14.3% y-o-y.
Revenue was up by 3.0% y-o-y to $584.0 million, backed by the increase in revenue for both flexible staffing (FS) and professional recruitment (PR) segments.
Revenue from the FS segment increased 3.2% y-o-y to $524.1 million. The average monthly contractors were up by 5.6% y-o-y to 16,421 as increases in Taiwan, Indonesia and Mainland China offset the reduction in Singapore.
Revenue from the PR segment was up marginally by 1.6% y-o-y to $55.8 million as placement volume increased 4.6% y-o-y to 4,766.
Blended gross profit margin fell from 21.6% in FY2024 to 21.0% in FY2025, given contribution from FS continued to exceed PR in relative contribution.
Other income rose 44.5% y-o-y to $22.3 million, driven by fair value net gains on financial assets and gold, government grants and gain from disposal of financial assets.
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This was partially offset by lower interest income and the absence in trade-related accrual reversals recorded in FY2024.
Meanwhile, operating expenses increased by 1.2% y-o-y to $82.7 million, attributed to higher employee costs from increased headcount, incentives and bonuses, and realised & unrealised foreign exchange losses.
This was partially offset by reduction in facilities and depreciation expenses, following office consolidation and lease optimisation initiatives.
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HRnetGroup has proposed a final dividend of 2.2 cents per share. With the interim dividend of 2 cents, total dividend for FY2025 amounts to 4.2 cents.
This represents a 78% payout in terms of net profit after tax and 79% of the company’s free cash flow.
Looking ahead, given the intense competition in mid-level recruitment, HRnetGroup will pivot the PR segment towards senior executive search and expanding the FS segment, which provides strong and stable revenue for the company.
HRnetGroup will also be cultivating recurring revenue streams such as Octomate, a workforce-management platform generating implementation fees and scalable 3–5-year subscription income.
Shares in HRnetGroup closed 0.5 cents higher or 0.68% up at 74.5 cents on Feb 25.
