Head Hunter: revenue stalled, profit grew — on financial items, not operations

On August 20, Head Hunter released its condensed consolidated interim financial statements for Q2 2026. Quarterly revenue was RUB 10,149 mn, flat year-on-year, EBITDA fell 9.1% to RUB 4,849 mn, and net profit rose 4.3% to RUB 4,362 mn. This review explains why profit grows while revenue stagnates, and what it means for valuation.

Key takeaways

— Q2 revenue flat year-on-year, EBITDA down 9.1% — operating picture weaker than net profit suggests

— Net profit up 4.3% on financial income and low tax, not operations

— HRtech segment grows 32.1% but remains loss-making, though loss narrows

— EBITDA margin down from 52.6% to 47.8% — pressure on core profitability

— Debt up RUB 10.1 bn in the quarter, but net debt/EBITDA stays negative

— Dividend yield 17.6% — above fair, but payout consumes 81% of profit

— Valuation: EV/EBITDAC 6.5x — below its own three-year average

Key figures, RUB bn

Q2 revenue flat year-on-year, EBITDA down 9.1% — operating picture weaker than net profit suggests

In Q2 2026, Head Hunter's revenue was RUB 10,149 mn — exactly the same as a year earlier. That is zero growth, especially striking after years of double-digit expansion. In Q1 2026, revenue had already declined 1.5% YoY — so Q2 merely confirmed stagnation, not recovery.

EBITDA for the quarter fell 9.1% to RUB 4,849 mn, with margin down from 52.6% to 47.8%. This means the company is not only flat but also losing efficiency: operating costs are growing faster than revenue. The core business, per the report, shows revenue down 3.3% YoY, driven by weakness in the SME/mid-market segment, where subscription revenue is falling.

Net profit up 4.3% on financial income and low tax, not operations

Net profit for Q2 was RUB 4,362 mn, up 4.3% from RUB 4,184 mn a year earlier. This growth looks paradoxical against falling EBITDA, but is explained by items below the operating line: financial income for the quarter was RUB 386 mn, and income tax expense was only RUB 230 mn versus RUB 521 mn a year ago. The effective tax rate more than halved, driving the net profit increase.

The report also shows one-off items: a net FX loss of RUB 88 mn and a share of losses of associates of RUB 29 mn. Without these, profit would have been even higher, but even so it is clear: operations are not generating growth, profit is supported by financial and tax effects.

HRtech segment grows 32.1% but remains loss-making, though loss narrows

In Q2, the HRtech segment reported revenue of RUB 767 mn, up 32.1% YoY. This is the only growing block: the core business declined 3.3%, and HRtech partially offsets that decline. However, the segment remains loss-making: its segment EBITDA was RUB 46 mn versus a loss of RUB 77 mn a year earlier — the loss narrowed, but profitability is still far off.

Management is betting on HRtech as a strategic driver, and the dynamics are indeed impressive: growth of a third while the core business shrinks. But for now, the segment is consuming resources, and its contribution to overall profit is negative. The question is when HRtech will reach breakeven — that determines whether the company can return to aggregate profit growth.

EBITDA margin down from 52.6% to 47.8% — pressure on core profitability

EBITDA margin for Q2 was 47.8% versus 52.6% a year earlier. The 4.8 percentage point decline is significant pressure on profitability, not explained by one-offs alone. The report shows operating expenses (excluding depreciation) fell only 2.3%, while revenue was flat — hence the margin squeeze.

For a company with such high profitability, even a small margin decline translates into a noticeable drop in EBITDA in cash terms. If revenue continues to stagnate and costs rise, the margin could fall further. For now, 47.8% is still a very high level, but the trend is negative.

Debt up RUB 10.1 bn in the quarter, but net debt/EBITDA stays negative

Head Hunter's net debt at end-June 2026 was RUB -11,365.7 mn, meaning the company remains a net creditor. However, debt rose by RUB 10.1 bn in the quarter and by RUB 8.1 bn over the last 12 months. This is a significant shift: the company is actively spending its accumulated cash position, including on share buybacks and dividends.

Despite the debt increase, net debt/EBITDA for the trailing twelve months is -0.65 — the company still has a net cash position. But if the trend continues, Head Hunter could become a net debtor for the first time in a long while. This is important to watch, as negative net debt has been one of the arguments for investment appeal.

Dividend yield 17.6% — above fair, but payout consumes 81% of profit

Over the last 12 months, Head Hunter paid dividends of RUB 466 per share, a yield of 17.6%. Our model estimates the next payout at RUB 466 per share, a forward yield of 17.6%. The fair yield for this name, in our view, is 17.9% — so the current yield is only slightly below.

The payout ratio is 0.81 of profit — the company directs over 80% of net profit to dividends. This is a generous policy, but it leaves little room for reinvestment in growth, especially given HRtech requires investment. If profit continues to stagnate and payouts remain at current levels, the ratio could rise further.

Valuation: EV/EBITDAC 6.5x — below its own three-year average

EV/EBITDAC for the trailing twelve months is 6.47x — the key multiple for a software company that capitalises development. It is lower than EV/EBITDA (6.48x), reflecting the capitalisation effect. The three-year average EV/EBITDA is 7.38x, meaning the current valuation is 12% below its own history.

P/E for the trailing twelve months is 6.84x, also looking inexpensive. However, low multiples are explained by revenue stagnation and margin compression: the market does not believe in a quick return to growth. If HRtech does not start generating profit and the core business continues to stagnate, the discount to history may persist or even widen.

Valuation on the latest reported figures

Bottom line

Bottom line: Head Hunter in Q2 showed flat revenue and lower EBITDA, but higher net profit thanks to financial items and low tax. This is not operational success but rather an accounting effect. The company remains highly profitable, but the trend of margin compression and revenue stagnation is negative. Dividends are high but consume 81% of profit, and debt is rising. Valuation is below its own history, but that is justified by weak operational dynamics. The key question is whether HRtech can reach profitability and offset the core business stagnation.