Here Group (HERE) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached RMB164.7 million, reflecting strong IP-driven growth and exceeding guidance despite industry headwinds and seasonality.

• Gross margin improved to 34.5%, up 350 basis points sequentially, due to cost structure optimization.

• The company operates 20 IPs (12 proprietary, 8 licensed) and completed rebranding and Nasdaq listing, transitioning from online learning to pop toy industry.

• Focus remains on building proprietary IPs, expanding D2C stores, and enhancing omni-channel user engagement.

• Strategic capital allocation and disciplined investment underpin long-term growth ambitions.

Financial highlights

• Q3 FY2026 revenue was RMB164.7 million, down from RMB177.3 million in the previous quarter but up from RMB127.1 million in Q2 and RMB65.8 million in Q4 FY25.

• Gross profit was RMB56.9 million, with gross margin rising to 34.5% from 31% sequentially.

• Net loss was RMB34.1 million; adjusted net loss was RMB22.9 million.

• Basic and diluted net loss per share were RMB0.21; adjusted net loss per share were RMB0.14.

• Major revenue contributors: WAKUKU (RMB102.4 million), SIINONO (RMB33.3 million), ZIYULI (RMB14.3 million), and others (RMB14.7 million).

Outlook and guidance

• Q4 FY2026 revenue expected between RMB130 million and RMB140 million.

• FY2026 revenue guidance revised to RMB600–610 million, reflecting current market conditions and a downward adjustment from previous guidance.

• Positioned to capitalize on a global pop toy market projected to reach RMB753.7 billion by 2030, with an 18.6% CAGR (2024-2030E).

• Continued focus on new IP launches, measured global expansion, and omni-channel strategies.