SEEK (ASX:SEK) Shares Face Profit Doubts Despite Stronger AI Yield Growth

SEEK walked into this result with the stock under pressure, down nearly 9.5% over the past week and flat over the past month as investors questioned how much profit the online jobs leader could really squeeze from softer hiring conditions. The headline today is that profits are the weak spot. Over the trailing 12 months SEEK reported a net loss of A$306.5m, even as net revenue and free cash flow moved higher and the company kept funding a full dividend.

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FY 2026 Earnings Summary

• Revenue (FY 2026, trailing 12 months): A$1,284.2m vs. A$1,097.0m in FY 2025 (higher revenue level)
• Net Loss (FY 2026, trailing 12 months, continuing operations): A$306.3m loss vs. A$238.7m profit in FY 2025 (moved from profit to loss)
• Basic EPS (FY 2026, trailing 12 months): A$0.858 loss per share vs. A$0.668 earnings per share in FY 2025 (shifted from earnings to loss)
• Earnings from Discontinued Operations (FY 2026, trailing 12 months): A$64.8m loss vs. A$6.9m profit in FY 2025 (moved from profit to loss)

If you prefer clean charts to a dense wall of earnings tables and accounting footnotes, explore SEEK's full financial picture, including a clear view of its recent net loss trend, in the visual company report for SEEK.

SEEK’s AI Yield Story Clears Key Execution Hurdles

The bullish pitch on SEEK is that AI, depth products and freemium create a yield led business that can grow profit even when job ad volumes soften. FY26 results give solid evidence for that claim. Net revenue rose 10% and EBITDA rose 15% while ANZ paid ad volumes fell about 1% and Asia paid volumes fell about 12%. That points to higher yield and operating leverage doing the heavy lifting, not volume.

Depth monetisation, a core plank of the bull case, also hit a clear milestone. ANZ depth ad revenue moved from 28% to 42% of segment revenue. Management has now upgraded its through cycle paid yield target to at least 10% growth for both ANZ and Asia and capped FY27 cost growth at 5%. That is consistent with the thesis that AI driven products and efficiency gains can support sustained margin expansion.

Compare SEEK’s yield story against market expectations and see whether analysts think this AI and depth led profit engine is on the right track with the consensus price target analysis for SEEK.

SEEK Bear Case: AI Costs, Asia Mix Still Bite

The core worry around SEEK is that heavy AI and product spend, plus a freemium tilt in Asia, leave margins exposed if yield does not carry enough weight. The latest result cuts against some of that fear but does not clear it. Net revenue and EBITDA moved ahead while paid ad volumes in ANZ and Asia fell, so AI and depth products are lifting revenue per ad as management claims. However, the group still reported a sizeable net loss alongside higher D&A and earlier write downs, which feeds the concern that investment returns are uneven.

Asia remains the soft spot for the bearish view. Freemium drove a larger ad corpus and user base, yet paid volumes in Asia declined 12%. That is exactly the conversion risk critics flagged. Until those free listings convert more consistently into paid or depth products, the argument about delayed scale benefits to group margins remains intact.

After a net loss, higher D&A and earlier write downs, it is worth asking if this is temporary noise or a deeper pattern. Review the full risk analysis for SEEK which shows 2 important warning signs

Take Charge Of Your Next Move

If SEEK’s mix of higher revenue, free cash flow strength and a reported net loss has your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for a more attractive entry point. Once you own SEEK or any other stock, use the Portfolio Command Center to keep on top of the most important developments without getting drowned in day to day noise. For longer term ideas and different angles on the same company, tap into the Community to see how other investors are thinking about risks and opportunities. Spot potential catalysts and red flags earlier so you can act with more confidence and stay ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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