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, fully integrating Letsvan/Last One and consolidating its financials as of Q4 FY2025.

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

• Adjusted net income for Q4 FY2025 was RMB 111.2 million, down year-over-year but up significantly sequentially.

• The pop toy/property business, centered on original and licensed IP collectibles, is positioned as the core growth engine, with rapid expansion in domestic and international markets.

• Strategic partnerships and collaborations, including with Juehua Entertainment, China Open, Universal Studios, and others, are expanding the IP portfolio and market reach.

Financial highlights

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

• Adjusted net income: RMB 111.2 million, down 42.6% year-over-year, up 193.8% sequentially.

• Gross profit for Q4 FY2025: RMB 467.6 million, with a gross margin of 75.7%, down from 85.9% year-over-year due to a shift toward product-focused offerings.

• Operating expenses decreased 44.7% year-over-year to RMB 344.2 million, with sales and marketing expenses down 49.3%.

• Cash and equivalents stood at RMB 1,040.9 million as of June 30, 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 continued rapid growth driven by new IP launches, channel expansion, and international market penetration.

• Guidance may be updated in future quarters based on ongoing business developments.