Here Group (HERE) Q2 2026 earnings summary

Executive summary

• Achieved Q2 FY2026 revenue of RMB 177.3 million, up 39.4% sequentially, surpassing guidance and marking the first full quarter as a dedicated IP-trend company.

• Operates a diversified portfolio of 18 IPs (11 proprietary, 5 exclusive licensed, 2 non-exclusive licensed), focusing on flagship IPs and omni-channel expansion.

• Rebranded from online learning to pop toy IP, leveraging a test-and-scale methodology and expanding global/domestic retail presence.

• Offline D2C stores and distributor channels expanded, enhancing user engagement and brand presence.

• Strategic partnership and joint venture with Enlight Media to deepen IP content and explore film/TV opportunities.

Financial highlights

• Total revenue: RMB 177.3 million, up from RMB 127.1 million in the previous quarter and RMB 65.8 million in FY25 Q4.

• Gross profit: RMB 55 million; gross margin declined to 31% from 41% due to offline channel expansion.

• Adjusted net loss narrowed to RMB 16.1 million from RMB 17.1 million sequentially; net loss from continued operations: RMB 25.4 million.

• Inventories increased to RMB 111.8 million, anticipating Chinese New Year and new launches.

• Sales and marketing expenses: RMB 52.8 million; R&D: RMB 9.1 million; G&A: RMB 31.3 million.

Outlook and guidance

• Q3 FY2026 revenue guidance: RMB 140–150 million; FY2026 guidance: RMB 750–800 million.

• Guidance reflects seasonality, planned product launches, and positive pop toy market outlook.

• Major new products to launch from end of March, supporting medium- to long-term growth.

• Positioned for growth in a global pop toy market projected to grow at 18.6% CAGR to RMB 753.7 billion by 2030; Chinese market at 24% CAGR to RMB 213.3 billion.