Here Group (HERE) Q2 2025 earnings summary

Executive summary

• Revenues for Q2 FY2025 were RMB 726.6 million, down 25.9% year-over-year and 10.3% sequentially, reflecting a shift to high-quality growth and focus on the silver economy.

• Net income rose to RMB 126.8 million, up 17.8% year-over-year and 57.1% sequentially; adjusted net income reached RMB 132.0 million, up 27.1% year-over-year and 50% sequentially.

• Registered users grew 24.2% year-over-year to 139.6 million as of December 31, 2024, with a focus on expanding offerings for the silver demographic.

• Gross billings of individual online learning services fell 42.2% year-over-year to RMB 546.2 million.

• The company is executing a strategic transition, diversifying revenue streams, and investing in IT infrastructure, process optimization, and the silver economy.

Financial highlights

• Gross profit was RMB 604.1 million, with a gross margin of 83.1% versus 85.2% a year ago.

• Operating expenses dropped 36.5% year-over-year to RMB 465.9 million, driven by lower sales, marketing, and R&D costs.

• Adjusted net income (excluding share-based compensation) was RMB 132.0 million, with an adjusted net margin of 18.2%.

• Basic and diluted net income per share were RMB 0.78 and RMB 0.77; adjusted figures were RMB 0.81 and RMB 0.80.

• Cash and equivalents, restricted cash, and short-term investments totaled RMB 1,213.2 million as of December 31, 2024, up 15.5% year-over-year.

Outlook and guidance

• Management expects some short-term volatility in adjusted net margin due to investments and restructuring but remains confident in long-term profitability.

• The company will continue to diversify revenue streams, invest in new business segments, and pursue global expansion and strategic partnerships.

• Focus on operational efficiency, selective investments, and leveraging cash position for strategic opportunities.