Here Group (HERE) Q4 2026 earnings summary

Executive summary

• Q4 FY2026 revenue reached RMB127.7 million (CNY 127.7 million), up 94.1% year-over-year but down 22.5% sequentially, driven by 22 IPs including 13 proprietary and 9 exclusive licensed IPs.

• FY2026 was the first full year focused on the pop toy business, with annual revenue of RMB596.8 million, emphasizing proprietary IP incubation and D2C channels.

• Strategic shift prioritizes long-term IP asset value, brand health, and market position over short-term wholesale sales volume.

• Four strategic pillars: IP portfolio diversification, disciplined D2C expansion, operational refinement, and talent acquisition.

• Expanded omnichannel sales network, including flagship stores, pop-ups, Roboshops, and DTC online platforms, with enhanced brand influence through social media and collaborations.

Financial highlights

• Q4 FY2026 revenue was RMB127.7 million, with gross profit of RMB32.98 million and gross margin of 25.8%, but sequential revenue declined due to a challenging market and lower channel sales.

• Cost of revenue rose to RMB94.7 million, up 120.3% year-over-year; sales and marketing expenses were RMB56.2 million, up 194.3% year-over-year.

• Net loss from continuing operations was RMB169.6 million, including a goodwill impairment of RMB124.1 million; adjusted net loss was RMB37.7 million.

• FY2026 net loss from continuing operations was RMB254.9 million; adjusted net loss was RMB93.9 million.

• Cash and cash equivalents as of June 30, 2026, were RMB431.1 million.

Outlook and guidance

• Focus remains on disciplined capital allocation, scalable growth, and prioritizing formats with the strongest long-term potential.

• Committed to strengthening IP and product capabilities, optimizing cost structure, and improving operating efficiency.

• Positioned to capitalize on a global pop toy market projected to grow at an 18.6% CAGR (2024-2030E), with a near-term mandate to drive toward sustainable profitability.