Here Group (HERE) Q1 2026 earnings summary

Executive summary

• Completed disposal of legacy and non-employee businesses, rebranded as Here Group Limited, and achieved first quarter as a pure-play pop toy company with a focus on global employee opportunities and a "Test-and-Scale" growth methodology.

• Expanded from online learning to pop toy IP creation, commercialization, and omnichannel sales, building a competitive moat and leveraging partnerships and immersive brand experiences.

• Strategic focus on strengthening the IP ecosystem, expanding multi-channel sales including DTC and international markets, and leveraging a scalable supply chain.

• Completed multiple funding rounds and rebranding, with strong operational momentum and transformation in the pop toy sector.

Financial highlights

• Q1 FY2026 revenue was RMB127.1 million (US$17.9 million), up 93.3% quarter-over-quarter, with all revenue from pop toy and related activities.

• Gross margin expanded to 41.2% from 34.7% sequentially.

• Adjusted net loss from continuing operations narrowed to RMB17.1 million (US$2.4 million), with net loss per share at RMB0.16 and adjusted net loss per share at RMB0.11.

• Cash, cash equivalents, restricted cash, and short-term investments totaled RMB789.4 million (US$110.9 million) as of September 30, 2025.

Outlook and guidance

• Q2 FY2026 revenue expected between RMB150 million and RMB160 million.

• Full-year FY2026 revenue guidance set at RMB750–800 million, with confidence based on new product launches, increased production capacity, and strong order pipeline.

• Profitability expected to improve as fixed costs are optimized and scale increases.

• Management expresses confidence in scaling operations and international expansion.