Here Group (HERE) Q4 2025 earnings summary

Executive summary

• Announced and completed a strategic restructuring to divest non-property businesses and focus on the high-growth pop toy/property segment, including full integration and consolidation of Letsvan/Last One as of Q4 FY2025.

• Q4 FY2025 revenue was RMB 617.8 million, with the pop toy/property business contributing RMB 65.8 million (10.6% of total revenue).

• Adjusted net income for Q4 FY2025 was RMB 111.2 million, with a margin of 18%, down year-over-year but up sequentially.

• Cash and equivalents stood at RMB 1,040.9 million as of June 30, 2025.

• Significant partnerships and collaborations established to enhance IP development, brand reach, and product innovation.

Financial highlights

• Q4 FY2025 revenue: RMB 617.8 million, down 38.2% YoY but up 8.3% sequentially.

• Gross profit for Q4 FY2025 was RMB 467.6 million, with a gross margin of 75.7% (down from 85.9% YoY).

• Net income for Q4 FY2025 was RMB 108 million, net profit margin 17.5%; adjusted net income RMB 111.2 million (18% margin).

• Sales and marketing expenses dropped to 47.6% of revenue from 69.2% sequentially.

• Share repurchase: 1.7M ADSs repurchased for US$3.6M in 2024; 0.2M ADSs for US$2.2M in 2025.

Outlook and guidance

• Pop toy/property business revenue guidance: RMB 100–110 million for Q1 FY2026 and RMB 750–800 million for FY2026.

• Management expects the pop toy/property segment to drive future growth, with ongoing expansion of IP portfolio and international channels.

• Guidance reflects confidence in market opportunity and ability to scale.